424B5
The
information in this Preliminary Prospectus Supplement is not
complete and may be changed. The Preliminary Prospectus
Supplement and the accompanying Prospectus are not an offer to
sell these securities, and they are not soliciting an offer to
buy these securities, in any jurisdiction where this offer or
sale is not
permitted.
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Filed pursuant to Rule 424(b)(5)
File No. 333-136396
Subject to
Completion, dated August 8, 2006
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Preliminary Prospectus
Supplement |
(To Prospectus Dated
August 8, 2006) |
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$
Hanson PLC
% Notes
due
We are offering $ of our % Notes
due (the notes).
The notes will bear interest at a rate of % per
year. We will pay interest on the notes
on and of each year,
beginning , 2007. The notes will mature
on .
We may redeem the notes at any time at the make-whole premium
set forth under the heading Description of the
Notes Optional Redemption in this
prospectus supplement. The notes may also be redeemed before
maturity upon the occurrence of certain tax events described in
this prospectus supplement and the accompanying prospectus.
The notes will be our senior unsecured debt obligations and will
rank equally with our other present and future senior unsecured
indebtedness.
Application will be made to list the notes on the New York Stock
Exchange.
Investing in these securities involves certain risks. See
Risk Factors beginning on page 2 of the
accompanying prospectus.
Neither the Securities and Exchange Commission nor any state
securities commission has approved or disapproved of the notes
or determined that this prospectus supplement or the
accompanying prospectus is accurate or complete. Any
representation to the contrary is a criminal offense.
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Proceeds, (before | |
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Initial Public | |
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Underwriting | |
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expenses) to | |
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Offering Price(1) | |
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Discounts | |
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Hanson PLC | |
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Per Note
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% |
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% |
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Total
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$ |
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$ |
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$ |
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(1) |
Plus accrued interest, if any, from August ,
2006. |
The underwriters expect to deliver the notes to investors
through the book-entry facilities of The Depository Trust
Company (DTC) for the accounts of its participants,
including Euroclear and Clearstream, on or about
August , 2006.
Joint Bookrunners
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Banc of America Securities LLC |
JPMorgan |
August , 2006
You should rely only on the information contained or
incorporated by reference in this prospectus supplement and the
accompanying prospectus. If information in this prospectus
supplement is inconsistent with the accompanying prospectus, you
should rely on the prospectus supplement. We have not, and the
underwriters have not, authorized anyone to provide you with
different information. We are not, and the underwriters are not,
making an offer of these securities in any jurisdiction where
the offer or sale is not permitted. You should not assume that
the information provided in this prospectus supplement, the
accompanying prospectus or the documents incorporated by
reference in this prospectus supplement and in the accompanying
prospectus is accurate as of any date other than their
respective dates. Our business, financial condition, results of
operations and prospects may have changed since those dates.
TABLE OF CONTENTS
Prospectus Supplement
Prospectus
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ABOUT THIS PROSPECTUS
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1 |
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RISK FACTORS
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2 |
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WHERE YOU CAN FIND MORE INFORMATION
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2 |
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INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
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3 |
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USE OF PROCEEDS
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3 |
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RATIO OF EARNINGS TO FIXED CHARGES
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3 |
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DESCRIPTION OF DEBT SECURITIES
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4 |
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PLAN OF DISTRIBUTION
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14 |
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ENFORCEMENT OF CIVIL LIABILITIES
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14 |
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VALIDITY OF SECURITIES
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14 |
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EXPERTS
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14 |
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IMPORTANT NOTICE ABOUT INFORMATION IN THIS PROSPECTUS
SUPPLEMENT AND
THE ACCOMPANYING PROSPECTUS
This document is in two parts. The first part is this prospectus
supplement, which describes the specific terms of this offering
of the notes and also adds to and updates information contained
in the accompanying prospectus and the documents incorporated by
reference in this prospectus supplement and the accompanying
prospectus. The second part is the accompanying prospectus,
which gives more general information, some of which does not
apply to this offering.
If the description of this offering varies between this
prospectus supplement and the accompanying prospectus, you
should rely on the information contained in or incorporated by
reference in this prospectus supplement.
The consolidated financial statements of Hanson, incorporated by
reference in this prospectus supplement, are prepared in
accordance with International Financial Reporting Standards
(IFRS) as adopted by the European Union (EU), which differ
in certain respects from U.S. generally accepted accounting
principles or U.S. GAAP. For a discussion of
certain significant differences between IFRS and U.S. GAAP
relevant to Hansons consolidated financial statements
incorporated by reference in this prospectus supplement, see
Note 33 of Notes to Consolidated Financial Statements
included in Hansons Annual Report on
Form 20-F for the
fiscal year ended December 31, 2005.
The market, industry and product segment data contained in the
documents incorporated by reference in this prospectus
supplement and the accompanying prospectus have been taken from
industry and other sources available to us in the relevant
jurisdictions and, in some cases, adjusted based on relevant
managements knowledge of the industry. We have not
independently verified any third-party market information.
Similarly, while we believe our internal estimates are reliable,
they have not been verified by independent sources.
EXCHANGE RATE INFORMATION
The following table shows, for the periods and dates indicated,
certain information regarding the U.S. dollar/pound
sterling exchange rate, based on the noon buying rate in New
York City for cable transfers in foreign currencies as certified
for customs purposes by the Federal Reserve Bank of New York
expressed in U.S. dollars per £1.00.
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Period End | |
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Average(1) | |
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High | |
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Low | |
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Year ended December 31, 2001
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1.4543 |
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1.4382 |
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1.5045 |
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1.3730 |
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Year ended December 31, 2002
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1.6095 |
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1.5084 |
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1.6095 |
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1.4074 |
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Year ended December 31, 2003
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1.7842 |
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1.6450 |
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1.7842 |
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1.5500 |
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Year ended December 31, 2004
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1.9160 |
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1.8356 |
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1.9482 |
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1.7544 |
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Year ended December 31, 2005
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1.7188 |
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1.8235 |
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1.9292 |
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1.7138 |
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Month ended January 31, 2006
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1.7820 |
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1.7686 |
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1.7885 |
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1.7404 |
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Month ended February 28, 2006
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1.7539 |
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1.7480 |
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1.7807 |
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1.7343 |
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Month ended March 31, 2006
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1.7567 |
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1.7442 |
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1.7567 |
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1.7256 |
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Month ended April 30, 2006
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1.8220 |
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1.7680 |
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1.8220 |
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1.7389 |
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Month ended May 31, 2006
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1.8732 |
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1.8687 |
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1.8911 |
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1.8286 |
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Month ended June 30, 2006
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1.8491 |
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1.8435 |
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1.8817 |
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1.8108 |
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Month ended July 31, 2006
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1.8685 |
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1.8443 |
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1.8685 |
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1.8203 |
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Month through August 7, 2006
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1.9102 |
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1.8908 |
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1.9102 |
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1.8711 |
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(1) For any year, the average of the Noon Buying Rates on
the last business day of each month during such year; in the
case of a month or partial month, the average of the Noon Buying
Rates on the business days occurring during such month or
partial month.
As of August 7, 2006 the latest practicable date for which
exchange rate information was available before the printing of
this prospectus supplement, the noon buying rate for one pound
sterling expressed in U.S. Dollars was $1.9102.
S-1
USE OF PROCEEDS
We estimate that the net proceeds (after underwriting discounts
and commissions and estimated expenses) from the sale of the
notes offered hereby will be approximately
$ million.
We intend to use the proceeds from the sale of the notes to
repay existing short-term borrowings and otherwise for general
corporate purposes.
CAPITALIZATION AND INDEBTEDNESS
The following table sets forth our capitalization on an actual
basis, using financial information compiled in accordance with
IFRS, as of June 30, 2006 and as adjusted to reflect the
offering of the notes hereby. You should read this table in
conjunction with our consolidated financial statements and notes.
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As of | |
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June 30, 2006 | |
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As Adjusted | |
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£ million | |
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£ million | |
Total current borrowings
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1,184.8 |
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Non-current borrowings (excluding amounts due within one year):
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% Notes due offered hereby
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77/8% Notes
due 2010
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415.3 |
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415.3 |
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51/4% Notes
due 2013
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373.8 |
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373.8 |
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Unsecured bank loans
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279.1 |
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279.1 |
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Other loans secured
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3.3 |
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3.3 |
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Other loans unsecured
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Total non-current borrowings
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1,071.5 |
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Equity attributable to equity holders of the Company
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Called up share capital:
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Authorized: 1,000,000,000 in ordinary shares of £0.10 each
issued and fully paid: 736,968,849 ordinary shares of £0.10
each
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73.7 |
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73.7 |
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Own shares
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(115.6 |
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(115.6 |
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Reserves
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2,640.3 |
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2,640.3 |
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Total Equity attributable to equity holders of the Company
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2,598.4 |
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2,598.4 |
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Total capitalization
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3,669.9 |
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S-2
DESCRIPTION OF NOTES
The following description of the particular terms of the notes
supplements the description of the general terms and provisions
of the debt securities set forth under Description of
Debt Securities in the accompanying prospectus. The
accompanying prospectus contains a detailed summary of
additional provisions of the notes and of the indenture (the
indenture), to be dated as of
August , 2006, between Hanson and
The Bank of New York, as trustee, under which the notes will be
issued. The following description replaces the
Description of Debt Securities in the
accompanying prospectus, to the extent of any inconsistency.
Under the indenture, we can issue an unlimited amount of notes.
In addition, the indenture provides that notes may be issued in
series up to the aggregate principal amount that may be
authorized from time to time by our board of directors. From
time to time, we may, without the consent of the holders of the
notes, re-open any series of debt securities and
issue additional notes of the series under the indenture in
addition to the notes offered by this prospectus supplement,
which additional notes will have substantially similar terms to
the notes offered by this prospectus supplement except for the
issue date and the issue price.
The notes will be our senior unsecured obligations, ranking
equally without preference with our present and future senior
unsecured indebtedness.
The specific financial terms of the notes we are offering are as
follows:
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Title:
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% Notes due |
Total initial principal amount being issued:
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U.S.$ |
Stated maturity:
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Interest rate:
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% per year |
Date interest starts accruing:
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August , 2006 |
Interest payment dates:
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and of each year
commencing , 2007 |
The notes will be issued in denominations of $1,000 and integral
multiples of $1,000. Interest on the notes will be computed on
the basis of a 360-day
year of twelve, 30-day
months. We may redeem the notes before they mature, in whole or
in part, at any time at our option, at a redemption price
described under Optional Redemption below. The notes
may also be redeemed by us before they mature in the event of
certain changes in the tax laws of the United Kingdom, as
described in more detail in the accompanying prospectus under
Description of Debt Securities Optional
Redemption for Taxation Reasons.
Principal, premium, if any, and interest will be payable, and
the notes will be transferable or exchangeable, at the office of
the trustee in the Borough of Manhattan, The City and State of
New York, as paying agent for the notes, or at the office of any
other paying agent or agents as we may appoint in the future. No
service charge will be made for any exchange or registration of
transfer of the notes, but we may require payment of an amount
sufficient to cover any tax or other governmental charge imposed
as a result of any exchange or registration of transfer of the
notes.
The notes will not be entitled to any sinking fund. The notes
will be subject to defeasance as described in the accompanying
prospectus.
Optional Redemption
The notes are redeemable, in whole or in part, at any time
before their maturity at our option, at a redemption price equal
to the greater of:
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100% of the principal amount of the notes to be redeemed; or |
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the sum of the present values of the remaining scheduled
payments of principal and interest (including any additional
amounts) on the notes to be redeemed (not including any payments
of |
S-3
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interest accrued as of the redemption date) discounted to the
redemption date on a semiannual basis (assuming a
360-day year consisting
of twelve 30-day
months) at the adjusted treasury rate (as described below),
plus basis points, as calculated
by an independent investment banker (as described below), plus
accrued and unpaid interest on the notes to be redeemed to the
redemption date. |
The term adjusted treasury rate means, with respect
to any redemption date:
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the yield, under the heading which represents the average for
the immediately preceding week, appearing in the most recently
published statistical release designated H.15(519)
or any successor publication which is published weekly by the
Board of Governors of the Federal Reserve System and which
establishes yields on actively traded U.S. Treasury
securities adjusted to constant maturity under the caption
Treasury Constant Maturities for the maturity
corresponding to the comparable treasury issue (as described
below). If no maturity is within three months before or after
the remaining life (as described below), yields for the two
published maturities most closely corresponding to the
comparable treasury issue will be determined and the adjusted
treasury rate will be interpolated or extrapolated from those
yields on a straight-line basis, rounding to the nearest
month; or |
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if the statistical release described in the previous
paragraph (or any successor release) is not published
during the week preceding the calculation date or does not
contain the relevant yields, the rate per annum equal to the
semiannual equivalent yield to maturity of the comparable
treasury issue, calculated using a price for the comparable
treasury issue (expressed as a percentage of its principal
amount) equal to the comparable treasury price (as described
below) for that redemption date. |
The adjusted treasury rate will be calculated on the third
business day preceding the redemption date.
The term comparable treasury issue means the
U.S. Treasury security selected by an independent
investment banker as having a maturity comparable to the
remaining term of the notes to be redeemed that would be
utilized, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate
debt securities of comparable maturity to the remaining term of
the notes to be redeemed, which we refer to as the
remaining life.
The term comparable treasury price means
(1) the average of five reference treasury dealer
quotations (as described below) for the redemption date, after
excluding the highest and lowest reference treasury dealer
quotations, or (2) if the independent investment banker
obtains fewer than five reference treasury dealer quotations,
the average of all such quotations.
The term independent investment banker means Banc of
America Securities LLC, J.P. Morgan
Securities Inc. or their respective successors or, at our
option in lieu of Banc of America Securities LLC or
J.P. Morgan Securities Inc. or if Banc of America
Securities LLC and J.P. Morgan Securities Inc.
are unwilling or unable to serve as independent investment
banker, an independent investment and banking institution of
international standing appointed by us.
The term reference treasury dealer means:
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Banc of America Securities LLC, J.P. Morgan
Securities Inc. or their respective successors, unless
either of them ceases to be a primary U.S. government securities
dealer in New York City, in which case we will substitute
another primary U.S. government securities dealer in New York
City; and |
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any other U.S. government securities dealers in New York City
selected by us. |
The term reference treasury dealer quotations means,
with respect to each reference treasury dealer and any
redemption date, the average, as determined by the independent
investment banker, of the bid and asked prices for the
comparable treasury issue (expressed in each case as a
percentage of its principal
S-4
amount) quoted in writing to the independent investment banker
at 5:00 p.m. New York City time, on the third business day
preceding the redemption date.
We will mail a notice of redemption at least 30 days but
not more than 60 days before the redemption date to each
holder of notes to be redeemed. If we elect to redeem less than
all the notes, the trustee will select in a fair and appropriate
manner which notes are to be redeemed.
Unless we default in the payment of the redemption price, on and
after the redemption date, interest will cease to accrue on the
notes or portions of the notes called for redemption.
Settlement and Clearance
The notes will be represented by one or more global notes that
will be deposited with and registered in the name of DTC or its
nominee. Thus, we will not issue notes in definitive form to
you, except in the limited circumstances described below. Each
global note will be issued to DTC, which will keep a
computerized record of its participants whose clients have
purchased the notes. Each participant will then keep a record of
its clients. Unless it is exchanged in whole or in part for a
note in definitive form, a global note may not be transferred.
DTC, its nominees and their successors may, however, transfer a
global note as a whole to one another, and these transfers are
required to be recorded on our records or a register to be
maintained by the trustee.
Beneficial interests in a global note will be shown on, and
transfers of beneficial interests in a global note will be made
only through, records maintained by DTC and its participants.
DTC has provided us with the following information: DTC is a
limited-purpose trust company organized under the New York
Banking Law, a banking organization within the
meaning of the New York Banking Law, a member of the
U.S. Federal Reserve System, a clearing
corporation within the meaning of the New York Uniform
Commercial Code and a clearing agency registered
under the provisions of Section 17A of the Securities
Exchange Act of 1934. DTC holds securities that its direct
participants deposit with DTC. DTC also records the settlements
among direct participants of securities transactions, such as
transfers and pledges, in deposited securities through
computerized records for direct participants accounts.
This eliminates the need to exchange certificated securities.
Direct participants include securities brokers and dealers,
banks, trust companies, clearing corporations and certain other
organizations.
DTCs book-entry system is also used by other organizations
such as securities brokers and dealers, banks and trust
companies that work through a direct participant. The rules that
apply to DTC and its participants are on file with the SEC.
DTC is owned by a number of its direct participants and by The
New York Stock Exchange, Inc., the American Stock Exchange, Inc.
and the National Association of Securities Dealers, Inc.
(NASD).
When you purchase notes through DTC, the purchases must be made
by or through a direct participant, which will receive credit
for the notes on DTCs records. When you actually purchase
the notes, you will become their beneficial owner. Your
ownership interest will be recorded only on the direct or
indirect participants records. DTC will have no knowledge
of your individual ownership of the notes. DTCs records
will show only the identity of the direct participants and the
amount of the notes held by or through them. You will not
receive a written confirmation of your purchase or sale or any
periodic account statement directly from DTC. You should instead
receive these from your direct or indirect participant. As a
result, the direct or indirect participants are responsible for
keeping accurate account of the holdings of their customers. The
trustee will wire payments on the notes to DTCs nominee.
We and the trustee will treat DTCs nominee as the owner of
each global security for all purposes. Accordingly, we, the
trustee and any paying agent will have no direct responsibility
or liability to pay amounts due on a global note to you or any
other beneficial owners in that global note. Any redemption
notices will be sent by us directly to DTC, which will, in turn,
inform the direct participants (or the indirect participants),
which will then contact you as a beneficial holder.
It is DTCs current practice, upon receipt of any payment
of distributions or liquidation amounts, to proportionately
credit direct participants accounts on the payment date
based on their holdings. In
S-5
addition, it is DTCs current practice to pass through any
consenting or voting rights to such participants by using an
omnibus proxy. Those participants will, in turn, make payments
to and solicit votes from you, the ultimate owner of notes,
based on their customary practices. Payments to you will be the
responsibility of the participants and not of DTC, the trustee
or us.
Notes represented by one or more global notes will be
exchangeable for notes in definitive registered form with the
same terms in authorized denominations only if:
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DTC is unwilling or unable to continue as depositary or ceases
to be a clearing agency registered under applicable law, and a
successor is not appointed by us within 120 days; |
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we decide to discontinue the book-entry system; or |
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an event of default has occurred and is continuing with respect
to the notes. |
If the global note is exchanged for notes in definitive form,
the trustee will keep the registration books for the notes at
its corporate office and follow customary practices and
procedures regarding the notes in definitive form.
Clearstream Banking and Euroclear
Links have been established among DTC, Clearstream Banking,
société anonyme (Clearstream), and
Euroclear Bank S.A./ N.V. (Euroclear), which are two
European book-entry depositaries similar to DTC, to facilitate
the initial issuance of the notes sold outside of the United
States and cross-market transfers of the notes associated with
secondary market trading.
Although DTC, Clearstream and Euroclear have agreed to the
procedures provided below in order to facilitate transfers, they
are under no obligation to perform these procedures, and these
procedures may be modified or discontinued at any time.
Clearstream and Euroclear will record the ownership interests of
their participants in much the same way as DTC, and DTC will
record the total ownership of each of the U.S. agents of
Clearstream and Euroclear, as participants in DTC.
When notes are to be transferred from the account of a DTC
participant to the account of a Clearstream participant or a
Euroclear participant, the purchaser must send instructions to
Clearstream or Euroclear through a participant at least one day
prior to settlement. Clearstream or Euroclear, as the case may
be, will instruct its U.S. agent to receive notes against
payment. After settlement, Clearstream or Euroclear will credit
its participants account. Credit for the notes will appear
on the next day (European time).
Because settlement is taking place during New York business
hours, DTC participants will be able to employ their usual
procedures for sending notes to the relevant U.S. agent
acting for the benefit of Clearstream or Euroclear participants.
The sale proceeds will be available to the DTC seller on the
settlement date. As a result, to the DTC participant, a
cross-market transaction will settle no differently than a trade
between two DTC participants.
When a Clearstream or Euroclear participant wishes to transfer
notes to a DTC participant, the seller will be required to send
instructions to Clearstream or Euroclear through a participant
at least one business day prior to settlement. In these cases,
Clearstream or Euroclear will instruct its U.S. agent to
transfer these notes against payment for them. The payment will
then be reflected in the account of the Clearstream or Euroclear
participant the following day, with the proceeds back-valued to
the value date, which would be the preceding day, when
settlement occurs in New York. If settlement is not completed on
the intended value date, that is, the trade fails, proceeds
credited to the Clearstream or Euroclear participants
account will instead be valued as of the actual settlement date.
S-6
TAX CONSIDERATIONS
Certain U.S. Federal Income Tax Considerations
The following is a general summary of certain material
U.S. federal income tax consequences of the purchase,
ownership and disposition of the notes by U.S. holders (as
such term is defined below). This summary is based upon the
Internal Revenue Code of 1986, as amended, applicable income tax
regulations, published rulings, administrative pronouncements
and court decisions, as of the date of this document, all of
which are subject to change or differing interpretations at any
time and in some circumstances with retroactive effect. This
summary does not discuss all aspects of U.S. federal income
taxation that may be relevant to a particular investor in light
of the investors particular circumstances, or to certain
types of investors subject to special treatment under the
U.S. federal income tax laws, (such as tax-exempt
organisations (including qualified pension plans), banks,
insurance companies, real estate investment trusts, regulated
investment companies, brokers, dealers, traders in securities
that elect to use the
mark-to-market method
of accounting for their securities, foreign persons and
entities, persons holding notes as part of a straddle or a
hedging, integrated, constructive sale or conversion
transaction, persons whose functional currency is
not the U.S. dollar), certain U.S. expatriates or
former long-term residents of the United States, partnerships or
other pass-through entities and holders of interests in
partnerships or other pass-through entities that hold the notes.
The following summary deals only with U.S. holders who
purchase the notes at original issuance at their issue price,
which is the first price at which a substantial amount of the
notes is sold for money to the public (not including bond
houses, brokers or similar persons or organizations acting in
the capacity of underwriters, placement agents or wholesalers)
and hold the notes as capital assets. In addition, this summary
does not consider the effect of alternative minimum tax, or any
foreign, state, local or other tax laws, or any other
U.S. tax consequences other than U.S. federal income
tax consequences that may be applicable to particular investors.
EACH PROSPECTIVE PURCHASER OF NOTES SHOULD CONSULT ITS OWN
TAX ADVISORS CONCERNING THE APPLICATION OF U.S. FEDERAL
INCOME TAX LAWS TO ITS PARTICULAR SITUATION AS WELL AS ANY
CONSEQUENCES OF THE PURCHASE, OWNERSHIP AND DISPOSITION OF
NOTES ARISING UNDER THE U.S. ESTATE TAX LAWS AND THE
LAWS OF ANY OTHER TAXING JURISDICTION.
As used herein, the term U.S. holder means a
beneficial owner of a note that is for U.S. federal income
tax purposes: (i) an individual citizen or resident of the
U.S.; (ii) a corporation (or any other entity treated as a
corporation of U.S. federal income tax purposes) created or
organised in or under the laws of the U.S. or of any
political subdivision thereof; (iii) an estate the income
of which is subject to U.S. federal income taxation
regardless of its source; and (iv) a trust (a) the
administration of which is subject to the primary supervision of
a court in the U.S. and with respect to which one or more
U.S. persons have the authority to control all substantial
decisions or (b) that has a valid election in effect under
applicable U.S. treasury regulations to be treated as a
U.S. person.
Interest Payments. You will be taxed on any interest on a note
as ordinary interest income at the time you receive or accrue
the interest, depending on your method of accounting for
U.S. federal tax purposes. We do not expect the notes to be
issued with original issue discount (of more than a
statutorily defined de minimis amount).
Interest paid by us on the notes generally constitutes foreign
source income for U.S. federal income tax purposes. For
foreign tax credit limitation purposes, interest on the notes
generally constitutes passive income. You will generally be
denied a foreign tax credit for foreign taxes imposed with
respect to the notes where you do not meet a minimum holding
period requirement during which you are not protected from risk
of loss. You are urged to consult your tax advisors regarding
the availability of the foreign tax credit under your particular
circumstances.
For U.K. income tax withholding on interest payments please see
United Kingdom Taxation.
S-7
Sale, Exchange, Redemption and Other Disposition of the Notes.
Upon the sale, exchange, redemption or other disposition of the
notes, you will recognize taxable gain or loss equal to the
difference, if any, between the amount realized on the sale,
exchange, redemption or other disposition (other than accrued
but unpaid interest which will be treated as ordinary interest
income) and your adjusted tax basis in such notes. Your adjusted
tax basis in the notes generally will equal the cost of such
notes. Any such gain or loss generally will be capital gain or
loss and will be long-term capital gain or loss if at the time
of sale, exchange, redemption or other disposition you held the
notes for more than one year. The deductibility of capital
losses is subject to certain limitations. Any gain or loss
realized by a U.S. holder on the sale, exchange, redemption
or other disposition of the notes generally will be treated as
U.S. source gain or loss, as the case may be.
Information Reporting and Backup Withholding. Information
returns may be filed with the Internal Revenue Service in
connection with payments of interest on the notes and the
proceeds from a sale or other disposition of the notes unless
the U.S. holder of the notes establishes an exemption from
the information reporting rules. A U.S. holder of notes
that does not establish such an exemption may be subject to
U.S. backup withholding tax on these payments if the holder
fails to provide its taxpayer identification number, fails to
report in full dividend and interest income or otherwise comply
with the backup withholding rules. The backup withholding rate
is currently 28%. Any amounts withheld from a payment under the
backup withholding rules will be allowed as a credit against
your U.S. federal income tax liability and you may be
entitled to a refund, provided that the required information is
furnished to the Internal Revenue Service.
Certain U.K. Income Tax Considerations
The following is a general summary of certain U.K. tax
considerations relating to the notes based on current law and
practice in the U.K. It does not purport to be a complete
analysis of all tax considerations relating to the notes. It
relates to the position of persons who are the absolute
beneficial owners of notes and may not apply to certain classes
of persons such as dealers. Prospective purchasers of notes
should consult their tax advisers as to the consequences under
the tax laws of the country of which they are resident for tax
purposes and the tax laws of the U.K. of acquiring, holding and
disposing of notes and receiving payments of interest, principal
and/or other amounts under the notes. This summary is based upon
the law as in effect on the date of this prospectus and is
subject to any change in law that may take effect after such
date.
Withholding Tax. Under current legislation, for so long as the
notes carry a right to interest and continue to be listed on a
recognised stock exchange within the meaning of section 841
of the Income and Corporation Taxes Act 1988 (ICTA)
the notes will constitute quoted Eurobonds within the meaning of
section 349(4) ICTA. The New York Stock Exchange is
currently amongst those exchanges which are recognized for these
purposes. Accordingly, so long as the notes are listed on the
New York Stock Exchange, payments of interest on the notes may
be made without withholding or deduction for or on account of
U.K. income tax.
HM Revenue & Customs (HMRC) has powers to
obtain information (including the name and address of the
beneficial owner of the interest) from any person in the U.K.
who either pays interest to, or receives interest on behalf of,
an individual. Such information may, in certain circumstances,
be exchanged by HMRC with the tax authorities of other
jurisdictions.
EU Savings Directive. Under the directive, each Member State is
required to provide to the tax authorities of another Member
State details of payments of interest or other similar income
paid by a person within its jurisdiction to an individual
resident in that other Member State; however, Austria, Belgium
and Luxembourg may instead apply a withholding system for a
transitional period in relation to such payments, deducting tax
at rates rising over time to 35%.
S-8
Direct Assessment of Non-U.K. Resident Holders of Notes of
U.K. Tax on Interest
Interest on the notes has a U.K. source. Accordingly, such
interest will, in principle, be within the charge to U.K. tax
even if paid without deduction or withholding. By way of an
exception to this, such interest will not be chargeable to U.K.
tax in the hands of a holder of notes who is not resident for
tax purposes in the U.K. unless such holder carries on a trade,
profession or vocation in the U.K. through a branch or agency
(or, in relation to a corporate holder, carries on a trade in
the U.K. through a permanent establishment) in connection with
which the interest is received or to which the notes are
attributable, in which case (subject to exemptions for interest
received by certain categories of agent such as some brokers and
investment managers) tax may be levied on the branch or agency
(or, as the case may be, permanent establishment). Where
interest has been paid under deduction of U.K. income tax,
noteholders who are not resident in the U.K. may be able to
obtain an exemption or reduction from U.K. tax payable on such
interest under the provisions of an applicable double taxation
convention.
Taxation of Returns: Companies Within the Charge to
Corporation Tax
Noteholders who are within the charge to U.K. corporation tax
will normally be subject to tax on all profits and gains,
including interest, arising on or in connection with the notes
under the loan relationship rules contained in the Finance Act
1996. Profits and gains will, for loan relationship purposes,
generally include any exchange gains and losses arising as a
result of changes in the sterling/dollar exchange rate during
each accounting period in which such notes are held. Any such
profits and gains will generally fall to be calculated in
accordance with the statutory accounting treatment of the notes
in the hands of the relevant noteholder, and will generally be
charged to tax as income in respect of each accounting period to
which they are allocated, in accordance with that accounting
treatment. Relief may be available in respect of losses (which
will be determined as summarised above), or for related
expenses, on a similar basis.
Authorised unit trusts must not bring into account credits or
debits under the loan relationship rules in respect of capital
profits, gains or losses arising on or in connection with the
notes. Capital profits, gains and losses are identified by
reference to items dealt with under the heading net
gains/losses on investments during the period or
other gains/losses in the statement of total return
for an accounting period required to be contained in the annual
report of the authorised unit trust by the applicable Statement
of Recommended Practice.
Taxation of Returns: Other Noteholders
Noteholders who are not within the charge to U.K. corporation
tax and who are resident or ordinarily resident in the U.K. for
tax purposes or who carry on a trade, profession or vocation in
the U.K. through a branch or agency in connection with which
interest on the notes is received or to which the notes are
attributable will generally be liable to U.K. tax on the amount
of any interest received in respect of the notes. The notes will
not be qualifying corporate bonds and therefore a disposal of
the notes by a noteholder may give rise to a chargeable gain or
an allowable loss for the purposes of U.K. capital gains tax.
A disposal of notes by a noteholder who is resident or
ordinarily resident in the U.K. for tax purposes or who carries
on a trade in the U.K. through a branch or agency to which the
notes are attributable may also give rise to a charge to tax on
income in respect of an amount representing interest accrued on
the notes since the preceding payment date.
Stamp Duty and Stamp Duty Reserve Tax
No U.K. stamp duty or stamp duty reserve tax will be payable on
the issue of the global notes or on the issue or transfer by
delivery of the notes (including a transfer of book entry
interests) or on their redemption.
S-9
UNDERWRITING
Under the terms and subject to the conditions contained in an
underwriting agreement dated August , 2006, the
underwriters named below, for whom Banc of America Securities
LLC and J.P. Morgan Securities Inc. are acting as
representatives, have severally agreed to purchase, and Hanson
PLC has agreed to sell them, severally, the principal amount of
notes set forth opposite their respective names below:
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Banc of America Securities LLC
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J.P. Morgan Securities Inc.
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The underwriting agreement provides that the obligations of the
several underwriters to pay for and accept delivery of the notes
offered by this prospectus supplement are subject to the
approval of certain legal matters by their counsel and to
certain other conditions. The underwriters are obligated to take
and pay for all of the notes offered by this prospectus
supplement if any such notes are taken.
The underwriters initially propose to offer the notes directly
to the public at the offering price described on the cover page
of this prospectus supplement. In addition, the underwriters
initially propose to offer part of the notes to certain dealers
at a price that represents a concession not in excess
of % of the principal amount of the notes, and
any underwriter may allow, and any such dealer may reallow, a
concession not in excess of % of the principal
amount of the notes. After the initial offering of the notes,
the underwriters may from time to time vary the offering price
and other selling terms.
We will pay to the underwriters in connection with this offering
an underwriting discount of %.
Application will be made to list the notes on the New York Stock
Exchange. The underwriters have advised us that they presently
intend to make a market in the notes, as permitted by applicable
laws and regulations. The underwriters are not obligated,
however, to make a market in the notes and any such market
making may be discontinued at any time without notice, at the
sole discretion of the underwriters. Accordingly, no assurance
can be given as to the liquidity of, or trading markets for, the
notes.
We have also agreed to indemnify the underwriters with respect
to certain liabilities, including liabilities under the
U.S. Securities Act of 1933, as amended, or to contribute
to payments each underwriter may be required to make in respect
thereof.
In connection with the offering of the notes, the underwriters
may engage in transactions that stabilize, maintain, or
otherwise affect the price of the notes. Specifically, the
underwriters may over-allot in connection with the offering of
the notes, creating a syndicate short position. In addition, the
underwriters may bid for, and purchase, notes in the open market
to cover syndicate short positions or to stabilize the price of
the notes. Finally, the underwriting syndicate may reclaim
selling concessions allowed for distributing the notes in the
offering of the notes, if the syndicate repurchases previously
distributed notes in syndicate covering transactions,
stabilization transactions or otherwise. Any of these activities
may stabilize or maintain the market price of the notes above
independent market levels. The underwriters are not required to
engage in any of these activities, and may end any of them at
any time.
Expenses associated with this offering to be paid by us, other
than underwriting discounts, are estimated to be $ .
We expect to deliver the notes against payment therefor on or
about the date specified in the last paragraph of the cover page
of this prospectus supplement, which will be the fifth business
day following the date of pricing of the notes (such settlement
period is referred to as T+5). Under
Rule 15c6-1 of the Exchange Act, trades in the secondary
market are required to settle in three business days, unless the
parties to a trade expressly agree otherwise. Accordingly,
purchasers who wish to trade notes on the date
S-10
of pricing or the next succeeding business day will be required,
by virtue of the fact that the notes initially will settle in
T+5, to specify alternative settlement arrangements to prevent a
failed settlement.
We have agreed with the underwriters not to, without the
representatives prior written consent, directly or
indirectly, offer for sale, sell or otherwise dispose of any
debt securities issued by us (except with respect to our
U.S. commercial paper and Euro commercial paper programs)
for a period of 90 days from the date of this prospectus
supplement.
From time to time in the ordinary course of their respective
businesses, certain of the underwriters and their affiliates
have engaged in and may in the future engage in commercial
banking, derivatives and/or investment banking transactions with
us and our affiliates. This offering is being conducted pursuant
to Conduct Rule 2710(h) of the NASD.
European Economic Area
In relation to each Member State of the European Economic area
which has implemented the Prospectus Directive (each, a
Relevant Member State), each underwriter represents
and agrees that with effect from and including the date on which
the Prospectus Directive is implemented in that Relevant Member
State (the Relevant Implementation Date) it has not
made and will not make an offer of notes to the public in that
Relevant Member State prior to the publication of a prospectus
in relation to the notes that has been approved by the competent
authority in that Relevant Member State or, where appropriate,
approved in another Relevant Member State and notified to the
competent authority in that Relevant Member State, all in
accordance with the Prospective Directive, except that it may,
with effect from and including the Relevant Implementation Date,
make an offer of notes to the public in that Relevant Member
State (provided that the notes have not been and will not be
offered, sold or delivered in Italy or to investors resident in
Italy) at any time:
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in (or in Germany, where the offer starts within) the period
beginning on the date of publication of a prospectus in relation
to those notes which has been approved by the competent
authority in that Relevant Member State or, where appropriate,
approved in another Relevant Member State and notified to the
competent authority in that Relevant Member State, all in
accordance with the Prospectus Directive and ending on the date
which is 12 months after the date of such publication; |
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to legal entities which are authorized or regulated to operate
in the financial markets or, if not so authorized or regulated,
whose corporate purpose is solely to invest in securities; |
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to any legal entity which has two or more of (1) an average
of at least 250 employees during the last financial year;
(2) a total balance sheet of more than
43,000,000; and
(3) an annual net turnover of more than
50,000,000 as shown in
its last annual or consolidated accounts; or |
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in any other circumstances which do not require the publication
by the Company of a prospectus pursuant to Article 3 of the
Prospectus Directive. |
For the purposes of the foregoing, the expression an offer
of notes to the public in relation to any notes in any
Relevant Member State means the communication in any form and by
any means of sufficient information on the terms of the offer
and the notes to be offered so as to enable an investor to
decide to purchase or subscribe the notes, as the same may be
varied in that Member State by any measure implementing the
Prospectus Directive in that Member State and the expression
Prospectus Directive means Directive 2003/71/ EC and includes
any relevant implementing measure in each Relevant Member State.
United Kingdom
Each underwriter has represented and agreed that:
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Section 86(7) of the U.K. Financial Services and Markets
Act 2000) (the FSMA); |
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it has not offered or sold and, will not offer or sell any notes
to persons in the United Kingdom except to persons who are
qualified investors or otherwise in circumstances which do not
require a prospectus to be made available to the public in the
United Kingdom within the meaning of section 85(1) of the
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it has only communicated or caused to be communicated and will
only communicate or cause to be communicated any invitation or
inducement to engage in investment activity (within the meaning
of Section 21 of FSMA received by it in connection with the
issue or sale of any notes in circumstances in which
Section 21(1) of the FSMA does not apply to us; and |
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it has complied and will comply with all applicable provisions
of the FSMA with respect to anything done by it in relation to
the notes in, from or otherwise involving the United Kingdom. |
VALIDITY OF NOTES
The validity of the notes under New York law and English law
will be passed upon for us by Weil, Gotshal & Manges
LLP and Mr. Graham Dransfield, the Legal Director of
Hanson, respectively. The validity of the notes under New York
law will be passed upon for the underwriters by Simpson
Thacher & Bartlett LLP, U.S. counsel for the
underwriters.
S-12
PROSPECTUS
HANSON PLC
Debt Securities
We may from time to time offer and sell unsecured debt
securities in one or more separate series. We will describe in
one or more prospectus supplements, which must accompany this
prospectus, the type and amount of a series of debt securities
we are offering and selling, as well as the specific terms of
these securities. Such prospectus supplements may also add,
update or change information contained in this prospectus. You
should read this prospectus and the prospectus supplements
carefully, together with the information described under the
heading Where You Can Find More Information before
you invest in these securities.
We may offer debt securities in amounts, at prices and on terms
to be determined at the time of offering. We may sell these
securities directly to you, through agents we select, or through
underwriters and dealers we select. If we use agents,
underwriters or dealers to sell these securities, we will name
them and describe their compensation in the applicable
prospectus supplement.
The mailing address of our principal executive office is
1 Grosvenor Place, London, SW1X 7JH, England and our
telephone number is +44 (0) 20 7245 1245.
Investing in these securities involves risks. See
Risk Factors beginning on page 2 of this
prospectus and Risk Factors in our most recent
Annual Report on
Form 20-F, as well
as any risk factors contained in the applicable prospectus
supplement.
Neither the U.S. Securities and Exchange Commission nor
any state securities commission has approved or disapproved
these securities or passed upon the accuracy or adequacy of this
prospectus. Any representation to the contrary is a criminal
offense.
This prospectus may not be used to consummate sales of debt
securities unless accompanied by a prospectus supplement.
The date of this prospectus is August 8, 2006.
TABLE OF CONTENTS
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You should rely only on the information contained in this
prospectus, the accompanying prospectus supplement or any
document to which we have referred you. We have not authorized
anyone to provide you with different information. You should not
assume that the information in this prospectus or the
accompanying prospectus supplement is accurate as of any date
other than the date on the front of these documents. We are not
making an offer of these securities in any state or jurisdiction
where the offer is not permitted.
i
ABOUT THIS PROSPECTUS
This document is called a prospectus and is part of a
registration statement that we have filed with the
U.S. Securities and Exchange Commission (the
SEC), using a shelf registration
process. This prospectus provides you with a general description
of the debt securities we may offer. Each time we offer debt
securities, we will provide a supplement to this prospectus. The
accompanying prospectus supplement will describe the specific
terms of that offering, and may also include a discussion of any
special considerations applicable to those securities. The
accompanying prospectus supplement may also add, update or
change the information contained in this prospectus. If there is
any inconsistency between the information in this prospectus and
the accompanying prospectus supplement, you should rely on the
information in the accompanying prospectus supplement. Please
read carefully this prospectus and the accompanying prospectus
supplement. In addition to the information contained in the
documents, we refer you to the information contained under the
headings Where You Can Find More Information and
Incorporation of Certain Documents by Reference. The
registration statement containing this prospectus, including the
exhibits to the registration statement, provides additional
information about us and the debt securities offered under this
prospectus. The registration statement, including the exhibits,
can be read on the SEC website or at the SECs offices,
each of which is listed under the heading Where You Can
Find More Information.
All references in this prospectus and the accompanying
prospectus supplement to Hanson, our
company, we, us or our
mean Hanson PLC, unless we state otherwise or as the context
requires. In addition, the term IFRS means
international financial reporting standards as adopted by the
European Union and the term U.K. GAAP means
generally accepted accounting principles in the United Kingdom.
Our consolidated financial statements are published in pounds
sterling. In this prospectus and the accompanying prospectus
supplement, U.S. dollars or $
refers to U.S. currency, pounds sterling,
sterling, or pence refers to U.K.
currency and euro or
refers to the single currency of the participating Member States
in the Third Stage of European and Monetary Union of the Treaty
Establishing the European Community, as amended from time to
time.
1
RISK FACTORS
Risks related to the offering and owning the debt
securities
Since we conduct our operations through subsidiaries, your
right to receive payments on the debt securities is subordinated
to the other liabilities of our subsidiaries.
We carry on a significant portion of our operations through
subsidiaries. Our subsidiaries are not guarantors of the debt
securities we may offer. Moreover, these subsidiaries are not
required and may not be able to pay dividends to us. Claims of
the creditors of our subsidiaries have priority as to the assets
of such subsidiaries over the claims of our creditors.
Consequently, holders of our debt securities are in effect
structurally subordinated, on our insolvency, to the prior
claims of the creditors of our subsidiaries.
Our ability to make debt service payments depends on our
ability to transfer income and dividends from our
subsidiaries.
We are a holding company with no significant assets other than
direct and indirect interests in the many subsidiaries through
which we conduct operations. A number of our subsidiaries are
located in countries that may impose regulations restricting the
payment of dividends outside of the country through exchange
control regulations. To our knowledge, there are currently no
countries in which we operate that restrict payment of
dividends. However, there is no assurance that such risk may not
exist in the future.
Furthermore, the continued transfer to us of dividends and other
income from our subsidiaries may be limited by various credit or
other contractual arrangements and/or tax constraints, which
could make such payments difficult or costly. We do not believe
that any of these arrangements or constraints will have any
material impact on our ability to meet our financial
obligations. However, if in the future these restrictions are
increased and we are unable to ensure the continued transfer of
dividends and other income to us from these subsidiaries, our
ability to pay dividends and make debt payments will be impaired.
We are not restricted in our ability to dispose of our assets
by the terms of the debt securities.
The indenture governing our debt securities contains a negative
pledge that prohibits us and our significant subsidiaries from
pledging assets to secure other bonds or similar debt
instruments, unless we make a similar pledge to secure the debt
securities offered by this prospectus. However, we are generally
permitted to sell or otherwise dispose of substantially all of
our assets to another corporation or other entity under the
terms of the debt securities. If we decide to dispose of a large
amount of our assets, you will not be entitled to declare an
acceleration of the maturity of the debt securities, and those
assets will no longer be available to support our debt
securities.
WHERE YOU CAN FIND MORE INFORMATION
We are subject to the filing requirements of the Securities
Exchange Act of 1934, as amended (the Exchange Act).
In accordance with the Exchange Act, we file reports and other
information with the Securities Exchange Commission (the
SEC). Our SEC filings are available over the
internet at the SECs website at http://www.sec.gov. The
address of the SECs internet site is provided solely for
the information of prospective investors and is not intended to
be an active link incorporating any materials via such website,
except as described below. You may also read and copy any
document we file at the SECs public reference room at 100
F Street, N.E., Washington, D.C. 20549. Please call the SEC
at (800) SEC-0330 for further information on the public
reference room. You may request a copy of the filings referred
to above at no cost by writing or telephoning us at our
registered office at 1 Grosvenor Place, London SW1X 7JH,
United Kingdom, attn: Company Secretary;
+44 (0) 20 7245 1245.
2
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
This prospectus incorporates by reference certain of
the reports and other information that we have filed with the
SEC under the Exchange Act. This means that we are disclosing
important information to you by referring you to those
documents. The information incorporated by reference is
considered to be a part of this prospectus. Information filed
with the SEC after the date of this prospectus will update and
supersede this information. We incorporate by reference in this
prospectus the documents listed below:
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Our Annual Report on
Form 20-F for the
year ended December 31, 2005; |
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Our reports on
Form 6-K furnished
to the SEC on February 13, 2006 and July 20, 2006. |
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Our report on
Form 6-K/A
furnished to the SEC on August 8, 2006; |
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Any future reports on
Form 6-K that we
may file that indicate that they are incorporated by reference
into this Registration Statement; and |
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Any future Annual Reports on
Form 20-F that we
may file with the SEC under the Exchange Act prior to the
termination of any offering contemplated by this prospectus. |
Information in this prospectus may be modified by information
included in subsequent Exchange Act filings that we incorporate
by reference, the result of which is that only the information
as modified will be part of this prospectus. All other
information in the prospectus will be unaffected by the
replacement of this superseded information.
USE OF PROCEEDS
Except as otherwise described in the accompanying prospectus
supplement, we expect to use the net proceeds from the sale of
the debt securities we offer under this prospectus for general
corporate purposes.
RATIO OF EARNINGS TO FIXED CHARGES
The following table sets forth our ratio of earnings to fixed
charges for the periods indicated, using financial information
compiled in accordance with IFRS for the fiscal years ended
December 31, 2005 and 2004 and the six months ended
June 30, 2006. As a first-time adopter of IFRS on
January 1, 2005 and in accordance with General
Instruction G to
Form 20-F, we are
providing the ratio of earnings to fixed charges for 2005 and
2004 in accordance with IFRS and for 2005, 2004, 2003, 2002, and
2001 in accordance with U.S. GAAP.
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Ended | |
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June 30, | |
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Year Ended December 31, | |
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2006 | |
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Earnings to fixed charges IFRS
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3.9 |
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4.3 |
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4.4 |
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Earnings to fixed charges U.S. GAAP
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3.8 |
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0.4 |
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3.2 |
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3.7 |
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2.7 |
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In the calculation of our ratio of earnings to fixed charges,
earnings represents income before taxation from
continuing operations plus fixed charges, adjusted to exclude
the amount of interest capitalized during the period, and
fixed charges represents interest expense, including
interest capitalized, plus that portion of operating lease
rental expense deemed to reflect the interest factor.
3
DESCRIPTION OF DEBT SECURITIES
We may issue debt securities using this prospectus. The summary
below sets forth possible terms and provisions for each series
of debt securities. Each time that we offer debt securities, we
will prepare and file a prospectus supplement with the SEC,
which you should read carefully. The prospectus supplement may
contain additional terms and provisions of those securities. If
there is any inconsistency between the terms and conditions
presented here and those in the prospectus supplement, those in
the prospectus supplement will apply and will replace those
presented here.
The debt securities will be issued under a document called an
indenture. We will enter into an indenture with The Bank of New
York, who will act as trustee. The form of the indenture is
filed as an exhibit to this registration statement.
The indenture and its associated documents contain the full
legal text governing the matters described in this section. This
section summarizes certain material provisions of the indenture
and of the debt securities. The following description is a
summary only and is qualified in its entirety by reference to
all of the provisions of the indenture. We urge you to read the
indenture because it, and not this summary, defines your rights
as holders of the debt securities. Certain terms, unless
otherwise defined here, have the meaning given to them in the
indenture. Section references are to the indenture.
General
Under the indenture, we can issue an unlimited amount of debt
securities. In addition, the indenture provides that debt
securities may be issued in series up to the aggregate principal
amount that may be authorized from time to time by our board of
directors. From time to time we may, without the consent of the
holders of outstanding debt securities, including holders of the
debt securities, re-open any series of debt
securities and issue additional debt securities of that series
that will have substantially similar terms to the original debt
securities except for the issue date and issue price. Unless
otherwise indicated in the prospectus supplement relating to a
particular series, this summary describes provisions that are
common to all series.
The specific financial, legal and other terms particular to a
series of debt securities are described in the prospectus
supplement relating to the series. Those terms may vary from the
terms described here. Accordingly, this summary also is subject
to and qualified by reference to the description of the terms of
the series described in the prospectus supplement. The
prospectus supplement relating to a series of debt securities
will describe the following terms of the series:
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the title of the series of debt securities; |
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any limit on the aggregate principal amount of the series of
debt securities; |
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the date or dates on which we will pay the principal of the
series of debt securities; |
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the rate or rates, including floating rates, at which the series
of debt securities will bear interest, if any, and the date or
dates on which such interest will be payable and the record
dates for the interest payment dates; |
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the place or places where the principal, additional amounts, if
any, and any interest on the debt securities will be payable; |
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the price or prices at which, the period or periods within which
and the terms and conditions upon which a series of debt
securities may be redeemed, in whole or in part, at the option
of Hanson; |
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the obligation, if any, to redeem, purchase or repay the debt
securities pursuant to any sinking fund or analogous provisions
at the option of a holder and the detailed terms and provisions
of those redemption provisions; |
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the denominations in which the series of debt securities will be
issued, if other than denominations of $1,000 and integral
multiples of $1,000; |
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if other than the principal amount, the portion of the principal
amount of the series of debt securities that will be payable
upon declaration of the acceleration of the maturity thereof or
provable in bankruptcy; |
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any index used to determine the amount of payment of principal
or interest, if any, on the series of debt securities or the
method for determining and the calculation agent, if any, who
shall be appointed and authorized to calculate any amounts not
fixed on the original issue date; |
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if other than the trustee, any authenticating or paying agents,
transfer agents or registrars or any other agents with respect
to the series of debt securities; |
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the forms of debt securities of the series; |
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whether the debt securities of the series will be issued in
whole or in part in the form of one or more global securities
and, in that case, the depositary with respect to the global
security or securities and the circumstances under which any
global security may be registered for transfer or exchange, or
authenticated and delivered, in the name of a person other than
the depositary or its nominee, if other than as set forth in the
indenture; |
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whether any premium, upon redemption or otherwise, shall be
payable by the issuer on debt securities of the series; |
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whether the debt securities of the series are to be issued as
original issue discount securities and the amount of the
discount at which the original issue discount securities may be
issued; |
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any condition to which payment of any principal of (or premium,
if any) or interest on debt securities of the series will be
subject; |
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any addition to or change in the events of default that applies
to any debt securities of the series and any change in the right
of the trustee or the requisite holders of such debt securities
to declare the principal amount due and payable; and |
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any other special features of the series of debt securities. |
Unless otherwise stated in the prospectus supplement, the debt
securities will be issued only in fully registered form without
interest coupons.
The debt securities will be our senior unsecured obligations
ranking equally with our other senior unsecured indebtedness. We
are, however, a holding company and conduct our operations
through subsidiaries. The debt securities will be structurally
subordinated to all indebtedness of our subsidiaries.
The debt securities will be serially numbered and issued in
denominations of $1,000 and integral multiples of $1,000 for all
amounts in excess of $1,000. Payments of interest on the debt
securities will be computed on the basis of a
360-day year of twelve
30-day months. We may
redeem the debt securities before they mature, in whole or in
part, at any time at our option, at a redemption price described
under Optional Redemption. The debt securities may
also be redeemed by us before they mature in the event of
certain changes in the tax laws of the United Kingdom, as
described in more detail under Optional Redemption for
Taxation Reasons.
Principal, premium, if any, and interest will be payable, and
the debt securities will be transferable or exchangeable, at the
office of the trustee in the borough of Manhattan, The City and
State of New York, as paying agent for the debt securities, or
at the office of any other paying agent or agents as we may
appoint in the future. No service charge will be made for any
exchange or registration of transfer of the debt securities, but
we may require payment of an amount sufficient to cover any tax
or other governmental charge imposed as a result of any exchange
or registration of transfer of the debt securities.
New York law governs the indenture and the debt securities,
except for certain matters required to be governed by English
law. We have agreed that we will be subject to the jurisdiction
of any US federal or
5
state court in the State and County of New York in respect of
any legal proceedings relating to the debt securities or the
indenture.
Payment of Additional Amounts
Any amounts to be paid by us with respect to the debt securities
will be paid without deduction or withholding for any and all
present and future taxes, levies, imposts or other governmental
charges whatsoever imposed, assessed, levied or collected by or
for the account of the United Kingdom or any political
subdivision or taxing authority of the United Kingdom.
If deduction or withholding of any of these taxes or other
governmental charges are at any time required by the United
Kingdom or any such subdivision or authority, we will pay any
additional amount in respect of principal, premium, if any,
interest and sinking fund payments, if any, required in order
that the net amounts paid to the holders of the debt securities
or the trustee under the indenture after the deduction or
withholding equals the amounts of principal, premium, if any,
interest and sinking fund payments, if any, to which the holders
or the trustee are entitled. Our obligation to pay additional
amounts is subject to compliance by the holders or beneficial
owners of the debt securities with any relevant administrative
requirements.
We will not have to pay additional amounts with respect to:
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(i) |
any present or future taxes, levies, imposts or other
governmental charges which would not have been so imposed,
assessed, levied or collected but for the fact that the holder
or beneficial owner of such debt security is or has been a
domiciliary, national or resident of, or engaging or having been
engaged in business or maintaining or having maintained a
permanent establishment or being or having been physically
present in, the United Kingdom or such political subdivision or
otherwise having or having had some connection with the United
Kingdom or such political subdivision other than the holding or
ownership of a security, or the collection of principal,
premium, if any, and interest, if any, on, or the enforcement
of, a debt security; |
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(ii) |
any present or future taxes, levies, imposts or other
governmental charges which would not have been so imposed,
assessed, levied or collected but for the fact that, where
presentation is required, such debt security was presented more
than thirty days after the date such payment became due or was
provided for, whichever is later; |
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(iii) |
any present or future taxes, levies, imposts or other
governmental charges which are payable otherwise than by
deduction or withholding from payments on or in respect of such
debt security; |
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(iv) |
any present or future taxes, levies, imposts or other
governmental charges which would not have been so imposed,
assessed, levied or collected but for (A) the failure to
comply with any certification, identification or other reporting
requirements concerning the nationality, residence, identity or
connection with the United Kingdom or any political subdivision
or authority thereof by the holder or beneficial owner of such
debt security, or (B) the failure to make any declaration
or other similar claim or to satisfy any information or
reporting requirement that, in the case of (A) or (B), is
required or imposed by statute, treaty, regulation or
administrative practice of the United Kingdom or such political
subdivision or authority as a precondition to exemption from all
or parts of such taxes, levies, imposts or other governmental
charges; |
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(v) |
any deduction or withholding that is payable as a result of or
pursuant to any European Union Directive on the taxation of
savings implementing the conclusions of the ECOFIN Council
Meeting of 26-27 November 2000 or any law implementing or
complying with, or introduced in order to conform to, such
Directive; |
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(vi) |
any present or future taxes, levies, imposts or other
governmental charges that the holder would have been able to
avoid by presenting such security to another paying agent; |
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(vii) |
any present or future taxes, levies, imposts or other
governmental charges (A) that would not have been so
imposed, assessed, levied or collected if the beneficial owner
of such security had been the holder of such security or
(B) which, if the beneficial owner of such security held
the Security as the holder of such security, would have been
excluded pursuant to clauses (i) through
(vi) inclusive above; |
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(viii) |
any estate, inheritance, gift, sale, transfer, personal property
or similar tax, assessment or other governmental charge; or |
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(ix) |
any combination of the foregoing clauses (i) through (viii). |
Except in the case of a consolidation, merger or similar
transaction involving us in which the successor corporation is
incorporated elsewhere, the indenture does not provide for the
payment of additional amounts by us due to any deduction or
withholding requirement imposed by any taxing authority or
political subdivision other than those of the United Kingdom.
Optional Redemption for Taxation Reasons
The debt securities are redeemable at our option before their
maturity in the event of certain changes in the tax laws of the
United Kingdom after the date of the indenture as specified
below.
We may, at our option, redeem any series of debt securities
issued under the indenture in whole at any time (except in the
case of debt securities of a series having a variable rate of
interest, which may be redeemed only on an interest payment
date), if as the result of:
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any change in or any amendment to the laws, including any
applicable double taxation treaty or convention, of the United
Kingdom, or of any political subdivision or taxing authority of
the United Kingdom affecting taxation, or |
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any change in an application or interpretation of those laws,
including any applicable double taxation treaty or convention, |
and, we determine that:
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(i) |
we would be required to make additional payments in respect of
principal, premium, if any, interest, if any, or sinking fund
payments, if any, on the next succeeding date for the payment of
such amounts, |
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(ii) |
any tax would be imposed (whether by way of deduction,
withholding or otherwise) by the United Kingdom or by any
political subdivision or taxing authority of the United Kingdom,
upon or with respect to any principal, premium, if any,
interest, if any, or sinking fund payments, if any, received or
receivable by us from any of our subsidiaries incorporated in,
or resident for tax purposes under the laws of, the United
Kingdom, or |
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(iii) |
based upon an opinion of independent counsel addressed to us, as
a result of any action taken by any taxing authority of, or any
action brought in a court of competent jurisdiction in, the
United Kingdom or any political subdivision of the United
Kingdom, the circumstances described in clause (i) or
(ii) would exist, |
then, in these cases, the redemption price of those securities
will be equal to 100% of the principal amount of those
securities plus accrued interest to the date fixed for
redemption (except in the case of outstanding original issue
discount securities which may be redeemed at the redemption
price specified by the terms of each series of those securities).
Our option to redeem for taxation reasons applies only in the
case of changes, amendments, applications or interpretations
that occur on or after the original issuance date of the debt
securities. If we are succeeded by another entity, as described
under Consolidation, Merger and Sale of
Assets, the applicable jurisdiction will be the
jurisdiction in which the successor entity is organized, and the
applicable date will be the date the entity became a successor.
7
Limitation on Liens
The indenture provides that so long as debt securities of any
series remain outstanding, we will not, and will not permit any
of our significant subsidiaries to, incur, assume, guarantee or
allow to exist indebtedness for borrowed money, which we refer
to as Debt, secured by a mortgage, pledge, security
interest, lien, fixed or floating charge or other encumbrance,
which we refer to as a lien or liens,
upon any restricted assets (as described below) without
effectively providing that the Debt due under the indenture and
the debt securities (together with, at our option, any other
Debt of ours then existing or thereafter created ranking equally
with the debt securities) will be secured equally and rateably
with (or prior to) such Debt, so long as such Debt is so
secured. This limitation will not apply to Debt secured by:
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(1) |
liens on shares of stock or assets or indebtedness of any
corporation existing at the time that corporation becomes a
significant subsidiary of ours or of one of our significant
subsidiaries; |
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(2) |
liens on shares of stock or assets or indebtedness existing at
the time those shares or assets or indebtedness were acquired or
to secure the payment of all or any part of the purchase price
of those shares or assets or indebtedness or to secure any Debt
incurred before, at the time of, or within 12 months after,
in the case of shares of stock, the acquisition of those shares
and, in the case of assets, the later of the acquisition, the
completion of construction (including any improvements on an
existing asset) or the commencement of commercial operation of
those assets, as long as the Debt is incurred for the purpose of
financing all or any part of the purchase price of the shares or
assets; |
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(3) |
liens existing at the date of the indenture; |
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(4) |
liens for taxes, assessments or governmental charges or levies
not yet delinquent or being contested in good faith by
appropriate proceedings diligently conducted, if the reserve or
other appropriate provision, if any, which is required by IFRS,
has been made; |
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(5) |
liens arising by operation of law and not securing amounts more
than 90 days overdue or otherwise being contested in good
faith; |
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(6) |
any lien over any credit balance or cash held in any account
with a financial institution arising solely by operation of law
or granted in the ordinary course of business as security for
any loan or other financial accommodation, not exceeding the
amount of the credit balance or cash, made available by the
financial institution or its affiliates to us or any subsidiary
of ours in jurisdictions where, due to regulatory, tax, foreign
exchange control or other similar reasons, intercompany loans
are restricted or impracticable and the loan or financial
accommodation is obtained in lieu of intercompany loans; |
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(7) |
rights of financial institutions to offset credit balances in
connection with the operation of cash management programs
established for the benefit of us and/or any subsidiary of ours; |
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(8) |
any lien incurred or deposit made in the ordinary course of
business, including, but not limited to, (A) any
mechanics, materialmans, carriers,
workmans, vendors or other similar liens, or surety,
customs and appeal bonds and other similar obligations,
(B) any liens securing amounts in connection with
workers compensation, unemployment insurance and other
types of social security and (C) any easements,
rights-of-way,
restrictions and other similar charges; |
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(9) |
liens on shares of stock or assets or indebtedness of any
corporation existing at the time that corporation is acquired
by, merged with or into, or consolidated or amalgamated with, us
or a significant subsidiary of ours or at the time of a sale,
lease or other disposition of the assets of a corporation as an
entirety or substantially as an entirety to us or a significant
subsidiary of ours; |
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(10) |
any liens created by us or a subsidiary of ours over assets as
part of a project financing (including the shares of any special
purpose corporation) to secure Debt incurred to finance the
project, where the right of recovery is limited to the assets of
the project being financed; and |
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(11) |
any extension, renewal or replacement (or successive extensions,
renewals or replacements) in whole or in part, of any lien
permitted under the foregoing clauses (1) to (10),
inclusive, or of any Debt secured by such a lien, as long as
(a) the principal amount of Debt secured by such a lien may
not exceed the principal amount of Debt so secured (or capable
of being so secured under the written arrangements under which
the original lien arose) at the time of the extension, renewal,
or replacement, and (b) the extension, renewal or
replacement lien is limited to all or any part of the same
shares of stock or assets or indebtedness that secured the lien
extended, renewed or replaced (plus improvements on such
assets), or shares of stock issued or assets or indebtedness
received in substitution or exchange for the lien. |
We and/or a significant subsidiary of ours may incur, assume,
guarantee or allow to exist Debt secured by a lien or liens
which would otherwise be subject to the restrictions set forth
above in an aggregate amount which, together with (a) all
other such Debt incurred by us or our significant subsidiaries
and (b) attributable debt (as described below) of our
company or our significant subsidiaries in respect of sale and
lease-back transactions (as described in the first paragraph
under Limitation on Sale and Lease-Back
Transactions), existing at the time, does not at the time
exceed 10% of our consolidated net tangible assets (as described
below). This exclusion does not apply to attributable debt in
respect of:
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sale and lease-back transactions permitted because we would be
entitled to incur, assume, guarantee or allow to exist Debt
secured by a lien on the assets to be leased without equally and
rateably securing the Debt due under the indenture and the debt
securities issued under the indenture, and |
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sale and lease-back transactions, the proceeds of which have
been applied in accordance with clause (2) of the
limitation on sale and lease-back transactions discussed under
Limitation on Sale and Lease-Back
Transactions. |
For the purposes of this summary, restricted assets
means any of our assets or the assets of a direct or indirect
significant subsidiary of ours (including any shares of stock of
or indebtedness of any direct wholly-owned subsidiaries of ours
or of our significant subsidiaries).
Attributable debt means, as of any particular time,
the present value (discounted in the manner specified in the
indenture) compounded semi-annually of our obligation for rental
payments during the remaining term of the lease in respect of a
sale and lease-back transaction, including, in each case, any
period for which the lease has been extended. These rental
payments will not include amounts payable by or on behalf of the
lessee for maintenance and repairs, insurance, taxes,
assessments, water rates and similar charges.
Consolidated net tangible assets means the aggregate
amount of our consolidated total assets less (i) current
liabilities and (ii) all goodwill, trade names, trademarks,
patents and other like intangibles, in each case, as shown on
the audited consolidated balance sheet contained in the latest
annual report to our shareholders.
Limitation on Sale and Lease-Back Transactions
As long as debt securities of any series issued under the
indenture remain outstanding, we will not enter into, and will
not permit any of our significant subsidiaries to enter into,
any arrangement with any person providing for the leasing by us
or any of our significant subsidiaries, as the case may be, of
any restricted assets (except a lease for a temporary period not
to exceed three years and except for leases between us and any
of our subsidiaries) which we have sold or transferred or plan
to sell or transfer to that person. We refer to such a
transaction as a sale and lease-back transaction.
This restriction on our and our significant subsidiaries
ability to enter into a sale and lease-back transaction does not
apply if, after giving effect to a sale and lease-back
transaction, the aggregate amount of all attributable debt with
respect to all sale and lease-back transactions plus all of our
Debt and all Debt of any significant subsidiary of ours
incurred, assumed or guaranteed and secured by a lien or liens
(with the exception of Debt secured by a lien on restricted
assets or other assets that we or the significant
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subsidiary would be entitled to incur, assume, guarantee or
allow to exist without equally and rateably securing the Debt
due under the indenture and the debt securities issued under the
indenture under the limitation on liens described above) does
not exceed 10% of our consolidated net tangible assets. In
addition, the restriction on sale and lease-back transactions
will not apply to any sale and lease-back transaction if:
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(1) |
we or a significant subsidiary of ours, as the case may be,
would be entitled to incur, assume, guarantee or allow to exist
Debt secured by a lien or liens on the assets to be leased
without equally and rateably securing the Debt due under the
indenture and the debt securities issued under the indenture
pursuant to the limitation on liens covenant described
above; or |
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(2) |
we or a significant subsidiary of ours, as the case may be,
within the 12 months preceding the sale or transfer or the
12 months following the sale or transfer, regardless of
whether the sale or transfer was made by us or the significant
subsidiary, applies, in the case of a sale or transfer for cash,
an amount equal to the net proceeds of the sale and, in the case
of a sale or transfer for consideration other than cash, an
amount equal to the fair value of the assets which were leased
at the time of entering into the arrangement (as determined by
our board of directors or the board of directors of the
significant subsidiary): |
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to the retirement (other than any retirement of Debt owed to us
or any of our significant subsidiaries or any retirement of Debt
subordinated to the debt securities issued under the indenture)
of indebtedness for money borrowed, incurred or assumed by us or
the significant subsidiary which by its terms matures on, or is
extendible or renewable at the option of the obligor to, a date
more than 12 months after the date of incurring, assuming
or guaranteeing the Debt; or |
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to investment in any restricted assets of our company or the
significant subsidiary. |
Consolidation, Merger and Sale of Assets
We may, without the consent of the holders of any of the
outstanding debt securities issued under the indenture,
consolidate or amalgamate with, or merge into, any other
corporation or sell, convey, transfer or lease our properties
and assets as an entirety or substantially as an entirety to any
corporation, which we refer to as a successor
corporation, if:
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immediately after giving effect to the transaction, no event of
default under the indenture has occurred and is continuing, |
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the successor corporation assumes our obligations on the debt
securities and under the indenture, and |
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the successor corporation agrees to make payments, including any
additional amounts, in respect of the debt securities in the
same manner as described under Payment of
Additional Amounts. |
The indenture does not restrict:
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the incurrence of unsecured indebtedness by us or our
subsidiaries, |
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a consolidation, merger, sale of assets or other similar
transaction that could adversely affect our creditworthiness or
that of the successor corporation or combined entity, |
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a change in control of Hanson, or |
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a highly leveraged transaction involving Hanson, whether or not
involving a change in control. |
10
Events of Default
An event of default with respect to any series of debt
securities issued under the indenture will occur if any of the
events listed in clauses (i) through (v) occurs:
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(i) |
there is a default in the payment of any installment of interest
or any additional amounts payable on any debt securities of that
series when it becomes due and payable and the default continues
for 30 days; |
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(ii) |
there is a default in the payment of any principal of any debt
securities of that series or of any sinking fund installment
relating to the debt securities of that series when these
payments become due and payable; |
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(iii) |
there is a default in the performance or breach of any of the
other covenants in respect of the debt securities of that series
which we have not remedied for a period of 60 days after we
receive written notice of the default or breach; |
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(iv) |
certain events of bankruptcy, insolvency, or reorganization of
us or any of our significant subsidiaries occurs; or |
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(v) |
there is a default by us or any of our significant subsidiaries
under any other indebtedness for money borrowed by, or the
payment of which is guaranteed by, us or any of our significant
subsidiaries (other than any indebtedness owed to us or any of
our significant subsidiaries), which is caused by a failure to
make a payment due under the indebtedness or guarantee prior to
the expiration of any applicable grace period for the
indebtedness or guarantee (and, in any event, not less than
15 days from the original due date for payment thereof) or
which results in the acceleration of the indebtedness before its
maturity, and the indebtedness under which the default has
occurred equals, in the aggregate, at least the greater of 1% of
our consolidated net worth (as described below) and $50,000,000
(or the foreign currency equivalent of that amount). |
In the case of clause (v) above, it will not be an event of
default if the acceleration relates to indebtedness of an entity
which becomes a direct or indirect significant subsidiary of
ours after we acquire it, so long as the indebtedness is
accelerated as a result of events or circumstances directly
related to the acquisition and is discharged in full within five
days following the acceleration. An event of default with
respect to a particular series of debt securities issued under
the indenture will not necessarily constitute an event of
default with respect to any other series of debt securities
issued under the indenture. The indenture provides that the
trustee may withhold notice to the holders of any series of debt
securities issued under the indenture of any default with
respect to those debt securities (except a default in the
payment of principal or interest or any additional amounts) if
the trustee determines it is in the interest of the holders of
those debt securities so to do.
If an event of default described in clause (i), (ii),
(iii) (as long as the event of default under
clause (iii) is with respect to less than all series of
debt securities then outstanding under the indenture) or
(v) above occurs and is continuing, the trustee may in its
discretion give notice to us that the debt securities of the
affected series are immediately due and payable at their
principal amount together with accrued interest thereon
(including any additional amounts). The trustee will be required
to give this notice to us if the trustee receives a written
request from the holders of at least 25% in aggregate principal
amount of the then outstanding debt securities of any series
issued under the indenture which is affected by the event of
default (with each affected series voting as a separate class).
If an event of default described in clause (iii) (as long
as the event of default is with respect to all series of debt
securities then outstanding under the indenture) or
(iv) above occurs and is continuing, the trustee may in its
discretion give notice to us that all the debt securities then
outstanding under the indenture are immediately due and payable
at their principal amount together with accrued interest
(including any additional amounts). The trustee will be required
to give us this notice if the trustee receives a written request
from the holders of at least 25% in aggregate principal amount
of all the debt securities then outstanding under the indenture
(with all series voting as one class).
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At any time after a declaration of acceleration with respect to
the debt securities of any series outstanding under the
indenture has been made, but before a judgment or decree based
on the acceleration has been obtained, the holders of a majority
in principal amount of the then outstanding debt securities of
that series may, under certain circumstances, rescind and annul
the acceleration if all events of default (other than an event
of default caused by the non-payment of accelerated principal
and interest with respect to that series of debt securities)
have been cured or waived as provided in the indenture.
For purposes of this summary, consolidated net worth
means the amount shown as equity shareholders funds on our
consolidated balance sheet, determined in accordance with IFRS
as of the end of our most recent semi-annual or annual fiscal
period ending prior to the taking of any action for the purpose
of which the determination is being made.
The indenture contains a provision entitling the trustee,
subject to the duty of the trustee during the continuance of an
event of default to act with the required standard of care, to
be indemnified by the holders of debt securities under the
indenture before proceeding to exercise any right or power under
the indenture at the request of such holders. The indenture also
provides that the holders of a majority in aggregate principal
amount of the then outstanding debt securities of each series
affected (each series voting as a separate class) may direct the
time, method and place of conducting any proceeding for any
remedy available to the trustee, or exercising any trust or
power conferred on the trustee, with respect to the debt
securities of that series, subject to certain exceptions.
The indenture contains covenants that require us to file
annually with the trustee a certificate as to the absence of
certain defaults or specifying any default that exists.
Modification and Waiver
With the consent of the holders of not less than a majority in
aggregate principal amount of the debt securities of all series
then outstanding under the indenture affected by any
supplemental indenture (voting as one class), we and the trustee
may enter into supplemental indentures adding any provisions to
or changing, eliminating or waiving any of the provisions of the
indenture or modifying the rights of the holders of debt
securities of each affected series, except that no supplemental
indenture may, among other things,
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change the final maturity of any debt security issued under the
indenture, or reduce the principal amount of any debt security
issued under the indenture, or reduce the rate or change the
time of payment of any interest on the debt securities or reduce
any amount payable on any redemption of the debt securities,
without the consent of the holder of each debt security so
affected; or |
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reduce the percentage of debt securities of any series, the
holders of which are required to consent to any supplemental
indenture, without the consent or waiver, as the case may be, of
the holder of each debt security so affected. |
We and the trustee may also amend the indenture in certain
circumstances without the consent of the holders of debt
securities issued under the indenture to reflect that a
successor corporation has assumed our obligations under the
indenture or the replacement of the trustee with respect to the
debt securities of one or more series and for certain other
purposes.
Defeasance
The indenture provides that we do not need to comply with
certain restrictive covenants of the indenture (including those
described under Limitation on Liens and
Limitation on Sale and Lease-Back
Transactions) with respect to a series of debt securities
outstanding under the indenture, if we deposit, in trust, with
the trustee:
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(i) |
money; |
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(ii) |
obligations of the United States, which will provide money
through payments of interest and principal; or |
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(iii) |
a combination of (i) and (ii), |
sufficient to pay all the principal (including any mandatory
sinking fund payments) of and interest (including any additional
amounts) on the debt securities of the particular series of debt
securities on the dates such payments are due. These payment
dates may include one or more redemption dates designated by us.
In order for us to exercise this option, no default under the
indenture can have occurred and be continuing, and we must
otherwise comply with the terms of the debt securities of the
particular series with respect to which we have taken the
actions described in this paragraph.
The indenture also provides that we may, at our option, be
discharged from any and all obligations in respect of the debt
securities with respect to which we have taken the actions
described in the previous paragraph (except for certain
limited obligations) if, in addition to paying the amounts
described above, we deliver to the trustee either:
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an opinion of counsel to the effect that the holders of the debt
securities of such series will not recognize income, gain or
loss for US federal income tax purposes as a result of our
exercise of this option and will be subject to US federal income
tax on the same amounts and in the same manner and at the same
times as would have been the case if we had not exercised this
option; or |
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a ruling to that effect received from or published by the US
Internal Revenue Service. |
Notices
Notices in respect of the debt securities will be given to
holders of debt securities by mail at their registered addresses.
Concerning the Trustee
The Bank of New York, of 101 Barclay Street, Floor 8 West,
New York, New York 10286, is trustee under the indenture. We and
our affiliates conduct banking transactions with the trustee in
the ordinary course of business.
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PLAN OF DISTRIBUTION
We may offer and sell securities in one or more transactions
from time to time to or through underwriters, who may act as
principals or agents, directly to other purchasers or through
agents to other purchasers or through any combination of these
methods.
A prospectus supplement relating to a particular offering of
securities may include the following information:
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the terms of the offering; |
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the names of any underwriters or agents; |
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the purchase price of the securities; |
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the net proceeds to us from the sale of the securities; |
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any delayed delivery arrangements; and |
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any underwriting discounts and other items constituting
underwriters compensation; any initial public offering
price; and any discounts or concessions allowed or reallowed or
paid to dealers. |
The distribution of the securities may be effected from time to
time in one or more transactions at a fixed price or prices,
which may be changed, at market prices prevailing at the time of
sale, at prices related to prevailing market prices or at
negotiated prices.
ENFORCEMENT OF CIVIL LIABILITIES
Hanson is a public limited company incorporated in England and
Wales. Many of our directors and officers, and some of our
experts named in this prospectus, reside outside the United
States, principally in the United Kingdom. In addition, although
we have substantial assets in the United States, a large portion
of our assets and the assets of our directors and officers are
located outside the United States. As a result, it may not be
possible for investors to effect service of process within the
United States upon us or those persons or to enforce against us
or those persons judgments of U.S. courts predicated upon
civil liabilities under the U.S. federal securities laws.
There is doubt as to the enforceability in England, in original
actions or in actions for enforcement of judgments of
U.S. courts, of civil liabilities predicated solely upon
such securities laws.
VALIDITY OF SECURITIES
The validity of the debt securities under New York law and
English law will be passed upon for us by Weil,
Gotshal & Manges LLP, and Mr. Graham Dransfield,
the Legal Director of Hanson, respectively. If this prospectus
is delivered in connection with an underwritten offering, the
validity of the debt securities may be passed upon for the
underwriters by U.S. and/or English counsel for the underwriters
specified in the related prospectus supplement. If no English
counsel is specified, such U.S. counsel to the underwriters
may rely on the opinions of Mr. Dransfield, as to certain
matters of English law.
EXPERTS
The consolidated financial statements of Hanson PLC appearing in
Hanson PLCs Annual Report on
Form 20-F for the
year ended December 31, 2005 and Hanson PLC
managements assessment of the effectiveness of internal
control over financial reporting as of December 31, 2005
included therein, have been audited by Ernst &
Young LLP, independent registered public accounting firm,
as set forth in their reports thereon included therein, and
incorporated herein by reference. Such financial statements and
managements assessment have been incorporated herein by
reference, in reliance upon such reports given on the authority
of such firm as experts in accounting and auditing.
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$
% Notes due
Joint Bookrunners
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Banc of America Securities LLC |
JPMorgan |
August , 2006