As
filed pursuant to Rule 424(b)(3) The information in this prospectus supplement is not complete and may be changed. This 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 the offer or sale is not permitted.
Subject to
Completion
$ We are offering $ of our % notes due 2017 (the “notes”) and $ of our % debentures due 2037 (the “debentures” and, together with the notes, the “securities”). We will pay interest on the securities on June 1 and December 1 of each year. The first payment of interest will be made on June 1, 2008. The securities will be issued only in denominations of $2,000 and higher integral multiples of $1,000. We may redeem either series of securities in whole or in part, at any time before their maturity, at the applicable redemption price described under “Description of the Securities—Optional Redemption”. See “Risk Factors” beginning on page S-8 to read about important factors you should consider before buying the securities. Neither the Securities and Exchange Commission nor any other regulatory body has approved or disapproved of these securities or passed upon the accuracy or adequacy of this prospectus supplement or the accompanying prospectus. Any representation to the contrary is a criminal offense. |
Per Note | Per Debenture | Total | |||||||||
Initial public offering price | % | % | $ | ||||||||
Underwriting discount | % | % | $ | ||||||||
Proceeds, before expenses, to Rockwell Automation, Inc. | % | % | $ |
The initial public offering price set forth above does not include accrued interest, if any. Interest on the securities will accrue from December , 2007 and must be paid by the purchasers if the securities are delivered after December , 2007. The underwriters expect to deliver the securities through the facilities of The Depository Trust Company against payment in New York, New York on or about December , 2007. |
Banc of America Securities LLC |
Goldman, Sachs & Co. |
UBS Investment Bank |
|
Prospectus Supplement dated December , 2007. |
TABLE OF CONTENTS Prospectus Supplement |
Page |
|
---|---|
About This Document | S-3 |
Forward-Looking Statements | S-3 |
Summary | S-5 |
Risk Factors | S-8 |
Use of Proceeds | S-11 |
Capitalization | S-11 |
Description of the Securities | S-12 |
Material U.S. Federal Tax Considerations | S-18 |
Underwriting | S-22 |
Validity of the Securities | S-25 |
Prospectus |
Page |
|
---|---|
About This Prospectus | 1 |
The Company | 1 |
Where You Can Find More Information | 1 |
Information Incorporated By Reference | 2 |
Forward-Looking Statements | 2 |
Ratio of Earnings to Fixed Charges | 4 |
Use of Proceeds | 4 |
Description of Debt Securities | 5 |
Plan of Distribution | 18 |
Validity of Debt Securities | 18 |
Experts | 18 |
No dealer, salesperson or other person is authorized to give any information or to represent anything not contained or incorporated in this prospectus supplement and the accompanying prospectus. You must not rely on any unauthorized information or representations. The accompanying prospectus, as supplemented by this prospectus supplement, is an offer to sell only the securities offered hereby, but only under circumstances and in jurisdictions where it is lawful to do so. The information contained in this prospectus supplement is current only as of its date. S-2 ABOUT THIS DOCUMENT This document consists of two parts. The first part is this prospectus supplement, which contains specific information about the terms of the securities. The second part is the accompanying prospectus, which provides a general description of debt securities we may offer from time to time, some of which may not apply to the securities. In the event the information in this prospectus supplement differs in any way from the information set forth in the accompanying prospectus, this prospectus supplement will apply and will supersede the information in the accompanying prospectus. References in this prospectus supplement to “Rockwell”, “we”, “us” and “our” are to Rockwell Automation, Inc. and its subsidiaries and predecessors unless the context indicates otherwise. FORWARD-LOOKING STATEMENTS This prospectus supplement, the accompanying prospectus and the documents incorporated by reference into this prospectus supplement contain statements (including certain projections and business trends) that are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Words such as “believe”, “estimate”, “project”, “plan”, “expect”, “anticipate”, “will”, “intend” and other similar expressions may identify forward-looking statements. Actual results may differ materially from those projected as a result of certain risks and uncertainties, many of which are beyond our control, including but not limited to: |
• | economic and political changes in global markets where we compete, such as currency exchange rates, inflation rates, interest rates, recession, policies of foreign governments and other external factors we cannot control, and U.S. and local laws affecting our activities abroad and compliance therewith; |
• | successful development of advanced technologies and demand for and market acceptance of new and existing products; |
• | general global and regional economic, business or industry conditions, including levels of capital spending in industrial markets; |
• | the availability, effectiveness and security of our information technology systems; |
• | competitive product and pricing pressures; |
• | disruption of our operations due to natural disasters, acts of war, strikes, terrorism, or other causes; |
• | intellectual property infringement claims by others and the ability to protect our intellectual property; |
• | our ability to successfully address claims by taxing authorities in the various jurisdictions where we do business; |
• | our ability to attract and retain qualified personnel; |
• | the uncertainties of litigation; |
• | disruption of our North American distribution channel; |
• | the availability and price of components and materials; |
S-3 |
• | successful execution of our cost productivity and our globalization initiatives; |
• | our ability to execute strategic actions, including acquisitions and integration of acquired businesses; and |
• | other risks and uncertainties, including but not limited to those detailed from time to time in our Securities and Exchange Commission filings. |
These forward-looking statements reflect our beliefs as of the date of this prospectus supplement. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. S-4 SUMMARY This summary contains basic information about us and our offering of the securities. It does not contain all the information that may be important to you. You should read the following summary together with the more detailed information contained elsewhere or incorporated by reference in this prospectus supplement and the accompanying prospectus. The Company We are a leading global provider of industrial automation power, control and information solutions that help manufacturers achieve a competitive advantage in their businesses. We were incorporated in Delaware in 1996 in connection with a tax-free reorganization completed on December 6, 1996, pursuant to which we divested our former aerospace and defense business to The Boeing Company. In the reorganization, the former Rockwell International Corporation (“RIC”) contributed all of its businesses, other than the aerospace and defense business, to us and distributed all of our capital stock to RIC’s shareowners. Boeing then acquired RIC. RIC was incorporated in 1928. Our principal executive offices are located at 1201 South Second Street, Milwaukee, Wisconsin 53204, USA, and our telephone number at that location is +1-414-382-2000. S-5 The Offering |
Securities Offered |
$
aggregate principal amount of % notes due 2017. $ aggregate principal amount of % debentures due 2037. |
|
Maturity Date | The
notes mature on December 1, 2017 and the debentures mature on December 1, 2037. |
|
Interest Payment Dates |
June 1 and December 1 of each
year, commencing June 1, 2008. |
|
Optional Redemption | At
our option, we may redeem the securities of each series in whole or in part, at any
time before their maturity, at the applicable redemption price described under
"Description of the Securities—Optional Redemption" in this prospectus
supplement. |
|
Ranking | The
securities: |
|
• | are
unsecured; |
|
• | rank equally
with all existing and future unsecured and unsubordinated debt; |
|
• | are senior to
any future subordinated debt; and |
|
• | are effectively
junior to any existing and future secured debt to the extent of assets securing
that debt. |
|
Covenants | We
will issue the securities under an indenture containing covenants for your benefit.
These covenants require us to satisfy certain conditions in order to: |
|
• | incur debt
secured by liens; |
|
• | engage in
sale/leaseback transactions; or |
|
• | merge or
consolidate with another entity. |
|
For
a more detailed discussion of these covenants, see "Description of Debt
Securities—Covenants" in the accompanying prospectus. |
||
Change of
Control Repurchase Event |
Upon a change of control
repurchase event, you will have the right to require us to repurchase your
securities at a price equal to 101% of the principal amount of the securities
repurchased plus any accrued and unpaid interest. See "Description of the
Securities—Change of Control Repurchase Event" in this prospectus
supplement. |
S-6 |
Use of Proceeds | We
estimate that we will receive net proceeds from this offering of approximately
$ million, which we intend to use to repay at
maturity our 6.15% notes due January 15, 2008 and for general corporate purposes,
which may include repayment of commercial paper, acquisitions, investments,
additions to working capital, share repurchases, capital expenditures and advances
to or investments in our subsidiaries. Net proceeds may be temporarily invested
before use. |
Further Issues | We may from
time to time issue additional debt securities of the same tenor, coupon and other
terms as the notes or the debentures, so that those additional debt securities and
the notes or the debentures, as applicable, offered hereby will form a single
series. |
Risk Factors | See "Risk
Factors" beginning on page S-8 to read about important factors you should
consider before buying the securities. |
S-7 RISK FACTORS You should carefully consider the following risk factors and the information under the heading “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended September 30, 2007, which is incorporated by reference in this prospectus supplement and the accompanying prospectus, as well as the other information included or incorporated by reference in this prospectus supplement and the accompanying prospectus, before making an investment decision. These risks are not intended as, and should not be construed as, an exhaustive list of relevant risk factors. There may be other risks that a prospective investor should consider that are relevant to the investor’s own particular circumstances or generally. Risks Relating to the Securities We are permitted to incur more debt, which may intensify the risks associated with our current leverage, including the risk that we will be unable to service our debt. The indenture governing the securities does not limit the amount of additional unsecured debt that we may incur. In addition, we currently maintain a five-year senior unsecured revolving credit facility under which we may borrow up to $600 million. Any indebtedness we incur under that credit facility will rank equally with the securities. If we incur additional debt, the risks associated with our leverage, including the risk that we will be unable to service our debt, will increase. The securities are structurally subordinated to the indebtedness and other liabilities of our subsidiaries. The securities are our obligations exclusively and not of any of our subsidiaries. A significant portion of our operations is conducted through our subsidiaries. Our subsidiaries are separate legal entities that have no obligation to pay any amounts due under the securities or to make any funds available therefor, whether by dividends, loans or other payments. Moreover, our rights to receive assets of any subsidiary upon its liquidation or reorganization, and the ability of holders of the securities to benefit indirectly therefrom, will be effectively subordinated to the claims of creditors, including trade creditors, of that subsidiary. In addition, the indenture governing the securities does not contain any limitation on the amount of liabilities, such as trade payables, that may be incurred by our subsidiaries. The securities will be subject to the prior claims of any secured creditors, and if a default occurs, we may not have sufficient funds to fulfill our obligations under the securities. The securities are unsecured obligations, ranking equally with our other senior unsecured indebtedness and effectively junior to any secured indebtedness we may incur. As of September 30, 2007, we did not have any outstanding secured indebtedness, although the indenture governing the securities permits us to incur secured debt under specified circumstances. If we incur secured debt, our assets securing that indebtedness will be subject to prior claims by our secured creditors. In the event of our bankruptcy, insolvency, liquidation, reorganization, dissolution or other winding up, our assets that secure debt will be available to pay obligations on the securities only after all debt secured by those assets has been repaid in full. Holders of the securities will participate in any remaining assets ratably with all of our other unsecured and unsubordinated creditors, including trade creditors. If there are not sufficient assets remaining to pay all these creditors, then all or a portion of the securities then outstanding would remain unpaid. S-8 We intend to continue repurchasing our stock, which will reduce cash reserves available for repayment of the securities. We have repurchased, and expect to continue to repurchase, our common stock in the open market or in privately negotiated transactions. These purchases may be significant, and any purchase would reduce cash available to repay the securities. On November 7, 2007, our board of directors authorized us to expend up to an additional $1 billion to repurchase shares of our common stock. We have made only limited covenants in the indenture governing the securities. The indenture governing the securities contains limited covenants, including those restricting our ability and certain of our subsidiaries’ ability to create certain liens and enter into certain sale and leaseback transactions. The limitation on liens and limitation on sale and leaseback covenants contain exceptions that will allow us and our subsidiaries to incur liens with respect to material assets. See “Description of Debt Securities—Covenants” in the accompanying prospectus. In light of these exceptions, holders of the securities may be structurally or contractually subordinated to new lenders. The provisions in the indenture and the securities relating to change of control transactions will not necessarily protect you in the event of a highly leveraged transaction. The provisions contained in the indenture and the securities will not necessarily afford you protection in the event of a highly leveraged transaction that may adversely affect you, including a reorganization, restructuring, merger or other similar transaction involving us. These transactions may not involve a change in voting power or beneficial ownership or, even if they do, may not involve a change of the magnitude required under the definition of change of control repurchase event in the securities as described under “Description of the Securities—Change of Control Repurchase Event”. Except as described under “Description of the Securities—Change of Control Repurchase Event”, the indenture and the securities do not contain provisions that permit the holders of the securities to require us to repurchase the securities in the event of a takeover, recapitalization or similar transaction. We may not be able to repurchase all of the securities upon a change of control repurchase event. As described under “Description of the Securities—Change of Control Repurchase Event”, we will be required to offer to repurchase the securities upon the occurrence of a change of control repurchase event. We may not have sufficient funds to repurchase the securities in cash at that time or have the ability to arrange necessary financing on acceptable terms. In addition, the terms of our other debt agreements or applicable law may limit our ability to repurchase the securities for cash. There are no existing markets for the securities. If one develops, it may not be liquid. There are currently no established markets for the securities. We do not intend to list the securities on any national securities exchange or to seek their quotation on any automated dealer quotation system. The underwriters have advised us that they currently intend to make a market in the securities of each series following the offering, as permitted by applicable laws and regulations. However, the underwriters have no obligation to make a market in either series of securities and they may cease market-making activities at any time without notice. Further, we cannot provide assurances about the liquidity of any markets that may develop for the securities, your ability to sell your securities or the prices at which you will be able to sell your securities. Any trading markets for the securities that develop and any future trading prices of the securities may be affected by many factors, including: |
• | prevailing interest rates; |
• | our financial condition and results of operations; |
• | the then-current ratings assigned to the securities; |
S-9 |
• | the market for similar securities; |
• | the time remaining to the maturity of the securities; |
• | the outstanding amount of the securities; and |
• | the terms related to optional redemption of the securities. |
Ratings of the securities may change after issuance and affect the market price and marketability of the securities. We currently expect that, before they are issued, the securities will be rated by Fitch Ratings Ltd., Moody’s Investors Service Inc. and Standard & Poor’s Rating Services. Those ratings are limited in scope, and do not address all material risks relating to an investment in the securities, but rather reflect only the view of each rating agency at the time the rating is issued. An explanation of the significance of the rating may be obtained from the applicable rating agency. We cannot provide assurances that the credit ratings will be issued or remain in effect or that the ratings will not be lowered, suspended or withdrawn entirely by the rating agencies. It is also possible that the ratings may be lowered in connection with future events, such as acquisitions. If rating agencies lower, suspend or withdraw the ratings, the market price or marketability of the securities may be adversely affected. In addition, any decline in the ratings of the securities may make it more difficult for us to raise capital on acceptable terms. S-10 USE OF PROCEEDS We estimate that we will receive net proceeds from this offering of approximately $ million, after deducting underwriters’ discounts and commissions and other estimated offering expenses payable by us. We intend to use some of the net proceeds from this offering to repay at maturity our 6.15% notes due January 15, 2008. We intend to use the remaining net proceeds from this offering for general corporate purposes, which may include repayment of commercial paper, acquisitions, investments, additions to working capital, share repurchases, capital expenditures and advances to or investments in our subsidiaries. Net proceeds may be temporarily invested before use. CAPITALIZATION The following table sets forth our capitalization as of September 30, 2007 and as adjusted to give effect to the sale of the securities in this offering and the application of the net proceeds therefrom as described under “Use of Proceeds”. You should read this table in conjunction with “Use of Proceeds” and our consolidated financial statements and related notes incorporated by reference in this prospectus supplement and the accompanying prospectus. The as adjusted information may not reflect our cash, short-term debt and capitalization in the future. |
September 30, 2007 | ||||||||
---|---|---|---|---|---|---|---|---|
Actual | As Adjusted | |||||||
(in millions) |
||||||||
Cash and cash equivalents |
$ |
624.2 |
$ |
|||||
|
|
|||||||
Short-term debt |
$ |
173.2 |
$ |
173.2 | ||||
Current portion of long-term debt | 348.2 | — | ||||||
Long-term debt | ||||||||
6.15% notes due January 2008 | 348.2 | — | ||||||
6.70% debentures due January 2028 | 250.0 | 250.0 | ||||||
5.20% debentures due January 2098 | 200.0 | 200.0 | ||||||
% notes due December 2017 offered hereby | — | |||||||
% debentures due December 2037 offered hereby | — | |||||||
Unamortized discount and other | (44.3 | ) | (44.3 | ) | ||||
|
|
|||||||
Total | 753.9 | |||||||
Less current portion | (348.2 | ) | — | |||||
|
|
|||||||
Total long-term debt | 405.7 | |||||||
|
|
|||||||
Total debt | 927.1 | |||||||
Total shareowner's equity | 1,742.8 | 1,742.8 | ||||||
|
|
|||||||
Total capitalization |
$ |
2,669.9 |
$ |
|||||
|
|
The
Note |
The
Debentures |
|||||||
---|---|---|---|---|---|---|---|---|
Initial aggregate principal
amount |
$ |
|
$ |
|
||||
Maturity |
December 1, 2017 |
December 1, 2037 |
||||||
Annual interest
rate |
|
% |
|
% |
• | the principal amount of the securities being redeemed, and |
• | as determined by the quotation agent, the sum of the present values of the remaining scheduled payments of the securities to be redeemed (excluding interest accrued as of the redemption date), discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate plus basis points in the case of the notes and basis points in the case of the debentures, |
S-12 plus, in either case, any accrued interest on the securities to be redeemed to the redemption date. Notice of any redemption will be mailed at least 30 days but not more than 60 days before the date of redemption to each holder of the securities to be redeemed. For purposes of determining the optional redemption price of the securities, the following definitions will apply: “Treasury rate” means, with respect to any redemption date, the rate per annum equal to the semi-annual equivalent yield to maturity, computed as of the third business day immediately preceding the redemption date, of the comparable treasury issue, assuming a price for the comparable treasury issue (expressed as a percentage of its principal amount) equal to the applicable comparable treasury price for the redemption date. “Comparable treasury issue” means the United States Treasury security selected by the quotation agent as having a maturity comparable to the remaining term of the securities 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 securities to be redeemed. “Comparable treasury price” means, with respect to any redemption date, (i) the average of the reference treasury dealer quotations for the redemption date, after excluding the highest and lowest reference treasury dealer quotations, or (ii) if the quotation agent obtains fewer than three reference treasury dealer quotations, the average of all reference treasury dealer quotations. “Quotation agent ” means the reference treasury dealer appointed by us. “Reference treasury dealer” means each of Banc of America Securities LLC, Barclays Bank PLC, Citigroup Global Markets Inc., Goldman, Sachs & Co., J.P. Morgan Securities Inc. and UBS Securities LLC and their respective successors; provided, however, that if any of the foregoing ceases to be a primary U.S. Government securities dealer in the United States (a “primary treasury dealer”), we will substitute another primary treasury dealer. “Reference treasury dealer quotations” means, with respect to each reference treasury dealer and any redemption date, the average, as determined by us, of the bid and asked prices for the comparable treasury issue (expressed in each case as a percentage of its principal amount) quoted in writing to the quotation agent at 5:00 p.m., New York City time, on the third business day immediately preceding that redemption date. “Remaining scheduled payments” means, with respect to the securities to be redeemed, the remaining scheduled payments of the principal of and interest on those securities that would be due after the related redemption date but for the redemption; provided, however, that if the redemption date is not an interest payment date with respect to the securities to be redeemed, the amount of the next succeeding scheduled interest payment on those securities will be reduced by the amount of interest accrued on those securities to the redemption date. Unless we default in payment of the redemption price, from the redemption date, interest will stop accruing on the securities or any part of the securities called for redemption. By any redemption date, we will deposit with a paying agent (or the trustee) money sufficient to pay the redemption price of and accrued interest on the securities to be redeemed. If less than all the securities of any series are to be redeemed and the securities are not global securities, the trustee will select the securities to be redeemed by any method the trustee deems fair and appropriate. S-13 Change of Control Repurchase Event If a change of control repurchase event occurs, unless we have exercised our right to redeem the securities as described above under “—Optional Redemption”, you will have the right to require us to repurchase all or any part (in integral multiples of $1,000) of your securities at a repurchase price in cash equal to 101% of the aggregate principal amount of the applicable series of securities repurchased plus any accrued and unpaid interest on the securities repurchased to, but not including, the date of repurchase. Within 30 days following any change of control repurchase event or, at our option, before any change of control, but after the public announcement of the change of control, we will mail a notice to you describing the transaction or transactions that constitute or may constitute the change of control repurchase event and offering to repurchase the applicable series of securities on the repurchase date specified in the notice, which date will be no earlier than 30 days and no later than 60 days from the date the notice is mailed. The notice will, if mailed before the date of consummation of the change of control, state that the offer to purchase is conditioned on a change of control repurchase event occurring by the repurchase date specified in the notice. We will comply with the requirements of Rule 14e-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and any other securities laws and regulations to the extent those laws and regulations apply to the repurchase of the securities as a result of a change of control repurchase event. To the extent that the provisions of any securities laws or regulations conflict with the change of control repurchase event provisions of the securities, we will comply with the applicable securities laws and regulations and will not be deemed to have breached our obligations under the change of control repurchase event provisions of the securities by complying with those securities laws or regulations or because of such conflicts. On the repurchase date following a change of control repurchase event, we will, to the extent lawful: |
• | accept for payment all the securities properly tendered pursuant to our offer; |
• | deposit with the paying agent the aggregate purchase price for all the securities properly tendered; and |
• | deliver to the trustee for cancellation the securities properly accepted, together with an officers’ certificate stating the aggregate principal amount of each series of securities being purchased by us. |
For purposes of the foregoing discussion of a repurchase at the option of holders upon the occurrence of a change of control repurchase event, the following definitions apply: “Change of control repurchase event” means the occurrence of both a change of control and a below investment grade rating event. “Below investment grade rating event” means the applicable series of securities are rated below an investment grade rating by each of the rating agencies on any date from the date of the public notice of an arrangement that could result in a change of control until the end of the 60-day period following public notice of the occurrence of the change of control (which 60-day period will be extended so long as the rating of the applicable series of securities is under publicly announced consideration for possible downgrade by any of the rating agencies); provided, however, that a below investment grade rating event otherwise arising by virtue of a particular reduction in rating will not be deemed to have occurred in respect of a particular change of control (and thus will not be deemed a below investment grade rating event for purposes of the definition of change of control repurchase event) if the rating agencies making the reduction in rating to which this definition would otherwise apply do not announce or S-14 publicly confirm or inform the trustee in writing at its request that the reduction was the result, in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the applicable change of control (whether or not the applicable change of control will have occurred at the time of the below investment grade rating event). “Change of control” means any of the following: |
• | the direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets of ours and our subsidiaries taken as a whole to any “person” (as that term is used in Section 13(d)(3) of the Exchange Act) other than us or our subsidiaries; |
• | the adoption of a plan relating to our liquidation or dissolution; |
• | the consummation of any transaction (such as any merger or consolidation) the result of which is that any “person” (as that term is used in Section 13(d)(3) of the Exchange Act) or group of persons, other than us or our subsidiaries, becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 of the Exchange Act), directly or indirectly, of more than 50% of the combined voting power of our voting stock or other voting stock into which our voting stock is reclassified, consolidated, exchanged or changed, measured by voting power rather than number of shares; or |
• | the first day when a majority of our directors are not continuing directors. |
• | a citizen or individual resident of the United States; |
• | a corporation, or other entity taxable as a corporation for United States federal income tax purposes, created or organized in or under the laws of the United States or of any political subdivision thereof; |
• | an estate whose income is subject to United States federal income tax on a net basis with respect to its worldwide income; or |
• | a trust if (i) a court within the United States is able to exercise primary supervision over the administration of the trust and one or more United States fiduciaries have the authority to control all substantial decisions of the trust or (ii) the trust has a valid election in effect under applicable United States Treasury regulations to be treated as a United States person. |
A “Non-United States Holder” means a beneficial owner of a security that is not a partnership and that is not a United States Holder. If a partnership (including any entity treated as a partnership or other pass through entity for United States federal income tax purposes) is a holder of a security, the United States federal income tax treatment of a partner in the partnership will generally depend on the status of the partner and the activities of such partnership. Such persons should consult their own tax advisors as to the particular United States federal income tax consequences to them. This summary does not discuss the particular United States federal income tax consequences that may be relevant to a holder in light of such holder’s particular circumstances or if such holder is subject to special rules under United States federal income tax laws. Special rules apply, for example, to: |
• | some financial institutions; |
• | insurance companies; |
• | tax-exempt organizations; |
• | brokers or dealers in securities or foreign currencies; |
• | persons holding securities as part of a hedge, straddle or integrated transaction; |
• | United States Holders whose functional currency is not the United States dollar; |
S-18 |
• | United States expatriates; |
• | foreign corporations that are classified as “passive foreign investment companies” or “controlled foreign corporations” for United States federal income tax purposes; |
• | partnerships or other flow-through entities; or |
• | persons subject to the alternative minimum tax. |
• | the Non-United States Holder does not own, actually or constructively, 10 percent or more of the total combined voting power of all classes of our stock entitled to vote; |
S-20 |
• | the Non-United States Holder is not a controlled foreign corporation related, directly or indirectly, to us through stock ownership; o the Non-United States Holder is not a bank receiving certain types of interest; and |
• | the Non-United States Holder is not a bank receiving certain types of interest; and |
• | either |
• | the Non-United States Holder certifies under penalties of perjury on Internal Revenue Service Form W-8BEN (or a suitable substitute form) that it is not a United States person as defined in the Internal Revenue Code, and provides its name and address, or |
• | a securities clearing organization, bank, or other financial institution that holds customers’ securities in the ordinary course of its trade or business and holds the securities on behalf of the Non-United States Holder certifies under penalties of perjury that such a statement has been received from the Non-United States Holder and furnishes a copy to us. |
• | the individual does not own, actually or constructively, 10 percent or more of the total combined voting power of all classes of our stock entitled to vote; and |
• | the income on the security is not effectively connected to the conduct by such individual of a trade or business in the United States. |
S-21 UNDERWRITING We and Banc of America Securities LLC, Goldman, Sachs & Co. and UBS Securities LLC, the representatives for the underwriters for the offering named below, have entered into an underwriting agreement with respect to the securities. Subject to certain conditions, each underwriter has severally agreed to purchase the principal amount of securities indicated in the following table. |
Underwriters |
Principal Amount |
Principal Amount |
||||||
Banc of America Securities LLC | $ | $ | ||||||
Goldman, Sachs & Co. | ||||||||
UBS Securities LLC | ||||||||
|
|
|||||||
Total | $ | $ | ||||||
|
|
• | 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; |
• | 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; |
• | to fewer than 100 natural or legal persons (other than qualified investors as defined in the Prospectus Directive) subject to obtaining the prior consent of the representatives for the underwriters for any such offer; or |
• | in any other circumstances which do not require the publication by us of a prospectus pursuant to Article 3 of the Prospectus Directive. |
• | it has only communicated or caused to be communicated and will only communicate or cause to be communicated an invitation or inducement to engage in investment activity |
S-23 |
(within the meaning of Section 21 of the Financial Services and Markets Act 2000 (“FSMA”)) received by it in connection with the issue or sale of the securities in circumstances in which Section 21(1) of the FSMA does not apply to us; and |
• | it has complied and will comply with all applicable provisions of the FSMA with respect to anything done by it in relation to the securities in, from or otherwise involving the United Kingdom. |