|
UNITED STATES |
|
|
SECURITIES AND EXCHANGE COMMISSION |
|
|
Washington, D.C. 20549 |
|
|
|
|
|
SCHEDULE 13D |
|
Under the Securities Exchange Act
of 1934
(Amendment No. 4)*
Qwest Communications International Inc.
(Name of Issuer)
Common Stock
(Title of Class of Securities)
74912110
(CUSIP Number)
Cannon Y. Harvey |
|
Charles D. Maguire, Jr., Esq. |
President |
|
Holme Roberts & Owen LLP |
The Anschutz Corporation |
|
1700 Lincoln, Suite 4100 |
555 Seventeenth Street, Suite 2400 |
|
Denver, CO 80203 |
Denver, CO 80202 |
|
(303) 861-7000 |
(303) 298-1000 |
|
|
(Name, Address and
Telephone Number of Person
Authorized to Receive Notices and Communications)
October 7, 2009
(Date of Event Which
Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of 17 C.F.R. §240.13d-1(e), 17 C.F.R. 240.13d-1(f), or 17 C.F.R. 240.13d-1(g), check the following box. o
Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See 17 C.F.R. §240.13d-7 for other parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
CUSIP No. 74912110 |
|||||
|
|||||
|
1. |
Names of Reporting Persons. I.R.S. Identification
Nos. of above persons (entities only). |
|||
|
|||||
|
2. |
Check the Appropriate Box if a Member of a Group (See Instructions) |
|||
|
|
(a) |
o |
||
|
|
(b) |
o |
||
|
|||||
|
3. |
SEC Use Only |
|||
|
|||||
|
4. |
Source of Funds (See
Instructions) |
|||
|
|||||
|
5. |
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) o |
|||
|
|||||
|
6. |
Citizenship or Place of Organization |
|||
|
|||||
Number of |
7. |
Sole Voting Power |
|||
|
|||||
8. |
Shared Voting Power |
||||
|
|||||
9. |
Sole Dispositive Power |
||||
|
|||||
10. |
Shared Dispositive Power |
||||
|
|||||
|
11. |
Aggregate Amount
Beneficially Owned by Each Reporting Person |
|||
|
|||||
|
12. |
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) o |
|||
|
|||||
|
13. |
Percent of Class
Represented by Amount in Row (11) |
|||
|
|||||
|
14. |
Type of Reporting Person
(See Instructions) |
|||
2
CUSIP No. 74912110 |
|||||
|
|||||
|
1. |
Names of Reporting Persons. I.R.S. Identification
Nos. of above persons (entities only). |
|||
|
|||||
|
2. |
Check the Appropriate Box if a Member of a Group (See Instructions) |
|||
|
|
(a) |
o |
||
|
|
(b) |
o |
||
|
|||||
|
3. |
SEC Use Only |
|||
|
|||||
|
4. |
Source of Funds (See
Instructions) |
|||
|
|||||
|
5. |
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) o |
|||
|
|||||
|
6. |
Citizenship or Place of Organization |
|||
|
|||||
Number of |
7. |
Sole Voting Power |
|||
|
|||||
8. |
Shared Voting Power |
||||
|
|||||
9. |
Sole Dispositive Power |
||||
|
|||||
10. |
Shared Dispositive Power |
||||
|
|||||
|
11. |
Aggregate Amount
Beneficially Owned by Each Reporting Person |
|||
|
|||||
|
12. |
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) o |
|||
|
|||||
|
13. |
Percent of Class
Represented by Amount in Row (11) |
|||
|
|||||
|
14. |
Type of Reporting Person
(See Instructions) |
|||
3
CUSIP No. 74912110 |
|||||
|
|||||
|
1. |
Names of Reporting Persons. I.R.S. Identification
Nos. of above persons (entities only). |
|||
|
|||||
|
2. |
Check the Appropriate Box if a Member of a Group (See Instructions) |
|||
|
|
(a) |
o |
||
|
|
(b) |
o |
||
|
|||||
|
3. |
SEC Use Only |
|||
|
|||||
|
4. |
Source of Funds (See
Instructions) |
|||
|
|||||
|
5. |
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) o |
|||
|
|||||
|
6. |
Citizenship or Place of Organization |
|||
|
|||||
Number of |
7. |
Sole Voting Power |
|||
|
|||||
8. |
Shared Voting Power |
||||
|
|||||
9. |
Sole Dispositive Power |
||||
|
|||||
10. |
Shared Dispositive Power |
||||
|
|||||
|
11. |
Aggregate Amount
Beneficially Owned by Each Reporting Person |
|||
|
|||||
|
12. |
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) o |
|||
|
|||||
|
13. |
Percent of Class
Represented by Amount in Row (11) |
|||
|
|||||
|
14. |
Type of Reporting Person
(See Instructions) |
|||
4
This Amendment No. 4 (Amendment No. 4) to Schedule 13D further amends Items 2, 4, 5, 6 and 7 of the Schedule 13D (the Schedule 13D) filed by the Reporting Persons (as defined below) on June 2, 2000, which relates to shares of common stock, $0.01 par value (the Common Stock), of Qwest Communications International Inc. (the Company), as amended by Amendment No. 1, which was filed on May 11, 2001, as further amended by Amendment No. 2, which was filed on March 13, 2003, and as further amended by Amendment No. 3, which was filed on October 20, 2003.
Item 2. Identity and Background
The information previously provided in response to Item 2 is amended to read as follows:
This statement is filed on behalf of Philip F. Anschutz (Anschutz), Anschutz Company, a Delaware corporation (AC) and Anschutz Family Investment Company LLC, a Colorado limited liability company (AFIC and, collectively, the Reporting Persons).
Anschutz owns 100% of the outstanding capital stock of AC. AC is the manager and one percent owner of AFIC. AC may be deemed to indirectly beneficially own the Common Stock directly owned by AFIC. Anschutz may be deemed to indirectly beneficially own the Common Stock directly owned by AC and AFIC.
During the past five years, none of Anschutz, AC or AFIC, or any executive officer or director of AC or any manager of AFIC, has been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors), or has been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree, or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.
AC and its affiliated companies are principally engaged in investments in natural resources, railroads, real estate, telecommunications, technology, entertainment, professional sports, and other businesses. AFIC is principally engaged in making minority investments in various businesses.
The (1) name, (2) principal office, business or residence address, and (3) position and present principal occupation or employment, and the name, principal business, and address of any corporation or other organization in which such employment is conducted, of Anschutz, AC and AFIC, each executive officer and director of AC, and the manager of AFIC (such executive officers and directors and manager, collectively, the Control Persons), as applicable, are set forth below. Each individual listed below is a citizen of the United States of America.
Filing
Persons, |
|
Position and Present Principal Occupation or |
|
Principal Office, Business |
AC |
|
AFIC: Manager |
|
555
Seventeenth Street |
|
|
|
|
|
AFIC |
|
Not applicable |
|
555
Seventeenth Street |
5
Filing
Persons, |
|
Position and Present Principal Occupation or |
|
Principal Office, Business |
Anschutz |
|
AC:
Chairman, Chief Executive Officer and Director |
|
555
Seventeenth Street |
|
|
|
|
|
Harvey, Cannon Y. |
|
AC:
President, Chief Operating Officer and Director |
|
555
Seventeenth Street |
|
|
|
|
|
Black, Bruce F. |
|
AC: Executive Vice President and General Counsel |
|
555
Seventeenth Street |
|
|
|
|
|
Slater, Craig D. |
|
AC:
Vice President and Director |
|
555
Seventeenth Street |
|
|
|
|
|
Jones, Richard M. |
|
AC:
Vice President, Senior General Counsel and Secretary |
|
555
Seventeenth Street |
|
|
|
|
|
Barnes, Wayne A. |
|
AC: Vice President and Chief Financial Officer |
|
555
Seventeenth Street |
|
|
|
|
|
Kundert, Thomas G. |
|
AC:
Treasurer and Assistant Secretary |
|
555
Seventeenth Street |
|
|
|
|
|
Carpenter, Scott T. |
|
AC: Vice President |
|
555
Seventeenth Street |
Item 4. Purpose of Transaction
The information previously furnished in response to this Item 4 is amended to add the following:
On October 7, 2009, AC settled a portion of a forward sale contract (the Contract) that was entered into on July 10, 2006 with Credit Suisse Capital LLC (the Purchaser) that relates to an aggregate of 45,000,000 shares of common stock by delivery to the purchaser of 8,330,000 shares of common stock. The Contract provides that AC will deliver to the purchaser on each of three days (each such day is referred to herein as a Settlement Date) a number of shares of common stock equal to (i) the applicable Base Amount (as hereinafter defined), and (ii) the applicable Exchange Rate, which will be determined as follows:
(a) If the value weighted average price (the Settlement Price) of the common stock on the 10 trading days ending on the relevant Valuation Date (as hereinafter defined) is less than or equal to $8.0939 (the Forward Floor Price), the Exchange Rate will be one; (b) if the Settlement Price is greater than the Forward Floor Price but less than or equal to $11.33146 (the Forward Cap Price), the Exchange Rate will be equal to the Forward Floor
6
Price divided by the Settlement Price; and (c) if the Settlement Price is greater than the Forward Cap Price, the Exchange Rate will be equal to the Adjusted Forward Floor Price (as hereinafter defined) divided by the Settlement Price. The Adjusted Forward Floor Price will be equal to the Forward Floor Price plus the Settlement Price minus the Forward Cap Price.
In consideration for entering into the Contract, AC received an aggregate prepayment amount of approximately $294,814,665. Under the formula described above, AC was to retain the first 40% of price appreciation in the common stock above $8.0939 per share. In the event of the payment of dividends (whether cash or in-kind), stock splits, reverse stock splits, spinoffs, mergers or similar events affecting the common stock, the Base Amounts and one or more of the Settlement Price, Forward Floor Price and Forward Cap Price are subject to adjustment depending on the nature of the transaction.
AC originally pledged 45,000,000 shares of common stock (now 36,670,000 shares of common stock after the settlement) (the Pledged Shares) to secure its obligations under the Contract. On October 2, 2009 (the Valuation Date), the Settlement Price was $3.6199. AC transferred to the purchaser 8,330,000 of the Pledged Shares by the applicable Settlement Date.
On October 28, 2009, AFIC sold all of the shares of Common Stock beneficially owned by it in open market transactions. AFIC owns no shares of Common Stock as of the date of this Amendment No. 4.
Item 5. Interest in Securities of the Issuer
The information previously provided in response to Item 5 is amended to read as follows:
Reporting Persons
As of the date of this Amendment No. 4, and after giving effect to the transaction described in Item 4 of this Amendment No. 15, AC is the direct beneficial owner of 195,378,000 shares of Common Stock. AFIC is the direct beneficial owner of 0 shares of Common Stock. Anschutz may be deemed to be the indirect beneficial owner of the shares of Common Stock directly owned by AC.
AC: |
|
|
|
|
(a) |
Amount beneficially owned: |
|
195,178,000 |
|
(b) |
Percent of Class: |
|
Approximately 11.3% |
|
(c) |
Number of shares as to which the person has: |
|
|
|
|
(i) |
Sole power to vote or to direct the vote: |
|
0 |
|
(ii) |
Shared power to vote or to direct the vote: |
|
195,178,000 |
|
(iii) |
Sole power to dispose or to direct the disposition of: |
|
0 |
|
(iv) |
Shared power to dispose or to direct the disposition of: |
|
195,178,000 |
AFIC: |
|
|
|
|
(a) |
Amount beneficially owned: |
|
0 |
|
(b) |
Percent of class: |
|
0% |
|
(c) |
Number of shares as to which the person has: |
|
|
|
|
(i) |
Sole power to vote or to direct the vote: |
|
0 |
|
(ii) |
Shared power to vote or to direct the vote: |
|
0 |
|
(iii) |
Sole power to dispose or to direct the disposition of: |
|
0 |
|
(iv) |
Shared power to dispose or to direct the disposition of: |
|
0 |
7
Anschutz: |
|
|
|
|
(a) |
Amount beneficially owned: |
|
195,378,000 |
|
(b) |
Percent of class: |
|
Approximately 11.3% |
|
(c) |
Number of shares as to which the person has: |
|
|
|
|
(i) |
Sole power to vote or to direct the vote: |
|
0 |
|
(ii) |
Shared power to vote or to direct the vote: |
|
195,378,000 |
|
(iii) |
Sole power to dispose or to direct the disposition of: |
|
0 |
|
(iv) |
Shared power to dispose or to direct the disposition of: |
|
195,378,000 |
Control Persons
As of the date of this Amendment No. 4, Scott T. Carpenter beneficially owns 4,246 shares of Common Stock.
Other than as noted above, none of the Control Persons beneficially own shares of Common Stock.
Except as set forth in this Amendment No. 4, none of the Reporting Persons or the Control Persons has effected any transaction in the Common Stock in the previous 60 days.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer
The information previously furnished with respect to this item is hereby amended to add the following:
On July 10, 2006, AC entered into the Contract with the Purchaser. AC settled a portion of the Contract on October 7, 2009, as further discussed in Item 4.
Item 7. Material to Be Filed as Exhibits
The information previously furnished in response to this item is amended by adding references to the following new exhibits being filed with this Amendment No. 4:
Exhibit Q. |
|
Confirmation dated as of July 10, 2006, by and between Anschutz Company and Credit Suisse Capital LLC. |
8
Signature
After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.
Date: November 9, 2009 |
ANSCHUTZ COMPANY |
|
|
By: |
Philip F. Anschutz, Chairman |
|
|
|
|
|
|
|
By: |
/s/Robert M. Swysgood |
|
|
Robert M. Swysgood, Attorney-in-fact |
|
|
|
|
|
|
Date: November 9, 2009 |
ANSCHUTZ FAMILY INVESTMENT |
|
|
COMPANY LLC |
|
|
By: |
Philip F. Anschutz, Chairman |
|
|
|
|
|
|
|
By: |
/s/Robert M. Swysgood |
|
|
Robert M. Swysgood, Attorney-in-fact |
|
|
|
|
|
|
Date: November 9, 2009 |
PHILIP F. ANSCHUTZ |
|
|
|
|
|
|
|
|
By: |
/s/Robert M. Swysgood |
|
|
Robert M. Swysgood, Attorney in fact |
Attention: Intentional
misstatements or omissions of fact
constitute Federal criminal violations (See 18 U.S.C. 1001)
9
EXHIBIT INDEX
Exhibit Q |
|
Confirmation dated as of July 10, 2006, by and between Anschutz Company and Credit Suisse Capital LLC. |
10
Exhibit Q
CREDIT SUISSE |
|
CREDIT SUISSE CAPITAL, LLC |
|
|
CREDIT SUISSE SECURITIES (USA) LLC |
|
|
Eleven Madison Avenue |
|
|
New York, NY 10010-3629 |
July 10, 2006
Anschutz Company
555 Seventeenth St., Suite 2400
Denver, Colorado 80202
Credit Suisse Capital LLC
Eleven Madison Avenue
New York, New York 10010
Transaction ID: Q###03E
External ID: 7016732 Risk ID: 4008208
Dear Sir or Madam,
The purpose of this letter agreement (this Confirmation) is to confirm the terms and conditions of the Transaction entered into between us on the Trade Date specified Confirmation as referred to in the Agreement specified
In this Confirmation, CS means Credit Suisse Capital LLC, Counterparty means Anschutz Company and Agent means Credit Suisse Securities (USA) LLC, solely in its capacity as agent for CS and Counterparty.
This Confirmation shall supplement, form a part of and be subject to an agreement (the Agreement) in the form of the 1992 ISDA Master Agreement (Multicurrency Cross Border) amended in the manner specified in Appendix B to the ISDA Users Guide to the 2002 Master Agreement to implement the Close-out Amount (the ISDA Form), as published by the International Swaps and Derivatives Association, Inc., as if CS and Counterparty had executed the ISDA Form (without any Schedule thereto except for the election of USD as the Termination Currency) on the date hereof. All provisions contained in the Agreement are incorporated into and shall govern this Confirmation
except as expressly modified below. This Confirmation evidences a complete and binding agreement between you and us as to the terms of the Transaction to which it relates and replaces any previous agreement between us with respect to the subject matter hereof. This Confirmation, together with all other confirmations or agreements between us referencing the ISDA Form, shall be deemed to supplement, form part of and be subject to the same, single Agreement.
If there exists any ISDA Master Agreement between CS and the Counterparty or any confirmation or other agreement between CS and Counterparty pursuant to which an ISDA Master Agreement is deemed to exist between CS and Counterparty, then notwithstanding anything to the contrary any such ISDA Master Agreement, such confirmation or agreement or any other agreement to which CS and Counterparty are parties, this Transaction shall not be considered a Transaction under, or otherwise governed by, such existing or deemed ISDA Master Agreement.
General Terms: |
|
|
|
|
|
Trade Date: |
|
July 10, 2006 |
|
|
|
Seller: |
|
Counterparty |
|
|
|
Buyer: |
|
CS |
|
|
|
Shares: |
|
Common stock, par value USD 0.01, of Qwest Communications International Inc. (the Issuer) (Exchange Symbol: Q). |
|
|
|
Number of Shares: |
|
8,330,000 |
|
|
|
Prepayment: |
|
Applicable |
|
|
|
Conditions to CSs Obligation to Pay Prepayment Amount: |
|
It shall be a condition to CSs obligation to pay any Prepayment Amount hereunder on any prepayment Date that Counterparty shall have performed its obligations under paragraphs 4.a., Delivery of Collateral, and 5, Agreements to Deliver Documents, below. |
|
|
|
Prepayment Amount: |
|
USD 54,834,464.69 |
|
|
|
Variable Obligation: |
|
Applicable |
|
|
|
Forward Floor Price: |
|
USD 8.0939 |
|
|
|
Forward Cap Price: |
|
USD 11.3315 |
|
|
|
2
CSs Initial Hedge: |
|
CSs Initial Hedge shall be established by selling shares in transactions conforming to the manner-of-sale conditions described in Rule 144(f) and (g) under the Securities Act of 1933, as amended, and otherwise in conformity with the interpretive letter specified below under Binding Commitment. |
|
|
|
Exchange: |
|
The New York Stock Exchange |
|
|
|
Related Exchange(s): |
|
All exchanges |
|
|
|
Valuation: |
|
|
|
|
|
Valuation Date: |
|
The final Averaging Date; scheduled to be October 2, 2009. |
|
|
|
Market Disruption Event: |
|
Section 6.3(a) of the 2002 Definitions is hereby amended by replacing clause (ii) thereof in its entirety with the following: (ii) and Exchange Disruption, or and inserting immediately following clause (iii) thereof the following: ; in each case that the Calculation Agent determines is material. |
|
|
|
Averaging Dates: |
|
The ten (10) consecutive Scheduled Trading Days starting on the First Averaging Date. |
|
|
|
First Averaging Date: |
|
The date ten (10) Scheduled Trading Days immediately prior to and including the Scheduled Maturity date. |
|
|
|
Averaging Date Disruption: |
|
Modified Postponement; provided that notwithstanding anything to the contrary in the 2002 Definitions, if a Market Disruption Event occurs on any Averaging Date, the Calculation Agent may determine that such Averaging Date is a Disrupted Day only in part, in which case the Calculation Agent shall make adjustments to the number of Shares for which such day shall be an Averaging Date and shall designate the Scheduled Trading day determined in the manner described in Section 6.7(c)(iii) of the 2002 Definitions as an Averaging Date for the remaining Shares, and shall determine any Settlement Price based on an appropriately weighted average instead of |
3
|
|
the arithmetic average described under Settlement Terms Settlement Price below. Such determination and adjustments will be based on, among other factors, the duration of any Market Disruption Event and the volume, historical trading patterns and price of the Shares. |
|
|
|
Relevant Price: |
|
VWAP Price |
|
|
|
VWAP Price: |
|
On any day, the Volume Weighted Average Price per Share on such day, as displayed on Bloomberg Page AQR (or any successor thereto) for the Issuer with respect to the period from 9:30 a.m. to 4:00 p.m. (New York City time) on such day, as determined by the Calculation Agent. |
|
|
|
Settlement Terms: |
|
|
|
|
|
Physical Settlement: |
|
Applicable. Notwithstanding any other provision of this Confirmation, including without limitation any provision that permits substitution of collateral, it shall be a condition precedent to Physical Settlement (including Automatic Physical Settlement) that any Shares delivered to CS shall at the time of delivery be subject to a pledge to CS. |
|
|
|
Settlement Method Election: |
|
Applicable |
|
|
|
Election Party: |
|
Counterparty |
|
|
|
Settlement Method Election Date: |
|
The date that is twenty (20) Scheduled Trading Days prior to the First Averaging Date |
|
|
|
Default Settlement Method: |
|
Physical Settlement |
|
|
|
Settlement Price: |
|
The arithmetic mean of the Relevant Prices on each Averaging Date |
|
|
|
Automatic Physical Settlement: |
|
If (x) Counterparty has not elected Cash Settlement, (y) by 10:00 A.M., New York City time, on the Settlement Date, Counterparty has not otherwise effected delivery of the Number of Shares to be Delivered and (z) the collateral |
4
|
|
then held hereunder by or on behalf of CS includes Shares with respect to which the Representation and Agreement set forth in Section 9.11 of the 2002 Definitions are true and satisfied (or, at the absolute discretion of CS, Shares with respect to which such Representation and Agreement are not true or satisfied), then the delivery required by Section 9.2 of the Equity Definitions shall be effected, in whole or in part, as the case may be, by delivery from the Custodial Account as defined below under Collateral Provisions) to CS of a number of Shares equal to the Number of Shares to be Delivered. |
|
|
|
Cash Settlement: |
|
If Applicable, Counterparty shall pay the Preliminary Cash Settlement Amount to CS on the Preliminary Cash Settlement Date. If the Preliminary Cash Settlement Amount exceeds the Forward Cash Settlement Amount, CS shall pay to Counterparty the amount of such excess on the Cash Settlement Payment Date. If the Forward Cash Settlement Amount exceeds the Preliminary Cash Settlement Amount, Counterparty shall pay to CS the amount of such excess on the Cash Settlement Payment Date. |
|
|
|
Preliminary Cash Settlement Amount: |
|
The Forward Cash Settlement amount that would apply if every Averaging Date were the Preliminary Cash Settlement Pricing Date. |
|
|
|
Preliminary Cash Settlement Pricing Date: |
|
The fourth (4th) Exchange Business Day immediately preceding the First Averaging Date. |
|
|
|
Preliminary Cash Settlement Date: |
|
The first (1st) Exchange Business day immediately preceding the First Averaging Date; provided that if such day is not a Currency Business Day, the next following Currency Business Day. |
|
|
|
Settlement Currency: |
|
USD |
5
Dividends: |
|
|
|
|
|
Extraordinary Dividend: |
|
Any dividend or distribution on the Shares (other than any dividend or distribution of the type described in Section 11.2(e)(i) or Section 11.2(e)(ii)(A) or (B) of the 2002 Definitions the amount or value of which exceeds the Ordinary Dividend Amount for such dividend or distribution, as determined by the Calculation Agent. |
|
|
|
Ordinary Dividend Amount: |
|
USD 0.0125 for the first dividend or distribution on the Shares for which the ex-dividend date falls within a regular quarterly dividend period of the Issuer, and zero for any subsequent dividend or distribution on the Shares for which the ex-dividend date falls within the same regular dividend period of the Issuer. |
|
|
|
Payment Obligation in Respect of Extraordinary Dividends: |
|
Within five (5) Business Days following the declaration by the Issuer of any Extraordinary Dividend, Counterparty shall give irrevocable written notice to CS of its election (i) to require cash payment of the amount by which the amount of the Extraordinary Dividend differs in amount from the Ordinary Dividend Amount for such dividend or distribution, as determined by the Calculation Agent, OR (ii) that Calculation Agent Adjustment shall apply for the purposes of determining the appropriate adjustments to the terms of the Transaction with respect to such Extraordinary Dividend. In the event that Counterparty elects that the provisions of clause (i) above shall apply, then the Counterparty shall make a cash payment to CS on the date such Extraordinary Dividend is paid to holders of Shares, in an amount equal to the product of (x) the number of shares that the Calculation Agent determines CS theoretically would be short on the Exchange Business Day immediately preceding the ex-dividend date for such Extraordinary Dividend and (y) the difference between the per Share amount or value of such Extraordinary Dividend and the Ordinary |
6
|
|
Dividend Amount, as determined by the Calculation Agent. In the event the Counterparty does not deliver notice to CS of its election with respect to such Extraordinary Dividend, the provisions of clause (ii) shall apply. |
|
|
|
Excess Dividend Amount: |
|
For the avoidance of doubt, all references to the Excess Dividend Amount shall be deleted from Section 8.4(b) and 9.2(a)(iii) of the 2002 Definitions. |
|
|
|
Share Adjustments: |
|
|
|
|
|
Potential Adjustment Events: |
|
If an event occurs that constitutes both a Potential Adjustment Event under Section 11.2(e)(ii)(C) of the 2002 Definitions, and a Spin-off as described below, it shall be treated hereunder as a Spin-off and not as a Potential Adjustment Event. |
|
|
|
Method of Adjustment: |
|
Calculation Agent Adjustment |
|
|
|
Spin-off: |
|
A Distribution of New Shares (the Spin-off Shares) of a subsidiary of the Issuer (the Spin-off Issuer) to holders of the Shares (the Original Shares). With respect to a Spin-off, New Shares shall have the meaning provided in Section 12.1(i) of the 2002 Definitions except that the phrase immediately preceding clause (i) thereof shall be replaced by the following: New Shares means ordinary or common shares of the Spin-off Issuer that are, or that as of the ex-dividend date of such Spin-off are scheduled promptly to be,. |
|
|
|
Consequences of Spin-offs: |
|
As of the ex-dividend date of a Spin-off, (i) Shares shall mean the Original Shares and the Spin-off Shares; (ii) the Transaction shall continue but as a Share Basket Forward Transaction with a Number of Baskets equal to the Number of Shares prior to such Spin-off, and each Basket shall consist of one Original Share and a number of Spin-off Shares that a holder of one Original Share would have been entitled to receive in such Spin-off; and (iii) the |
7
|
|
Calculation Agent shall make such adjustments to the exercise, settlement, payment or any other terms of the Transaction as the Calculation Agent determines appropriate to account for the economic effect on the Transaction of such Spin-off (provided that no adjustments will be made to account solely for changes in volatility, expected dividends, stock loan rate or liquidity relevant to the Shares or to the Transaction), which may, but need not, be determined by reference to the adjustment(s) made in respect of such Spin-off by an options exchange to options on the Shares traded on such options exchange. As of the ex-dividend date of any subsequent Spin-off, the Calculation Agent shall make adjustments to the composition of the Basket and other terms of the Transaction in accordance with the immediately preceding sentence. |
|
|
|
Extraordinary Events: |
|
|
|
|
|
Consequences of Merger Events: |
|
|
|
|
|
Share-for-Share: |
|
Calculation Agent Adjustment; provided that no adjustment will be made to account solely for changes in volatility, expected dividends, stock loan rate or liquidity relevant to the Shares or to the Transaction. |
|
|
|
Share-for-Other |
|
Cancellation and Payment |
|
|
|
Share-for-Combined: |
|
Component Adjustment |
|
|
|
Composition of Combined Consideration: |
|
Not Applicable |
|
|
|
Tender Offer |
|
Applicable |
|
|
|
Consequences of Tender Offers: |
|
|
|
|
|
Share-for-Share: |
|
Calculation Agent Adjustment |
|
|
|
Share-for-Other: |
|
Calculation Agent Adjustment |
8
Share-for-Combined: |
|
Calculation Agent Adjustment |
|
|
|
Nationalization, Insolvency or Delisting: |
|
Cancellation and Payment |
|
|
|
Additional Disruption Events: |
|
|
|
|
|
Change in Law: |
|
Applicable |
|
|
|
Failure to Deliver: |
|
Not Applicable |
|
|
|
Insolvency Filing: |
|
Applicable |
|
|
|
Hedging Disruption: |
|
Not Applicable |
|
|
|
Increased Cost of Hedging: |
|
Not Applicable |
|
|
|
Loss of Stock Borrow: |
|
Applicable |
|
|
|
Maximum Stock Loan Rate: |
|
Two percent (2%) per annum |
|
|
|
Increased Cost of Stock Borrow: |
|
Not Applicable |
|
|
|
Hedging Party: |
|
CS |
|
|
|
Determining Party: |
|
CS |
|
|
|
Non-Reliance: |
|
Applicable |
|
|
|
Agreements and Acknowledgments Regarding Hedging Activities: |
|
Applicable |
|
|
|
Additional Acknowledgments: |
|
Applicable |
|
|
|
Credit Support Documents: |
|
Section 4 shall be a Credit Support Document under the Agreement with respect to Counterparty.
Guarantee dated May 16, 2001 made by Credit Suisse (USA), Inc., a Delaware corporation, in favor of each and every counterparty to one or more Financial Transactions (as defined therein) with CS shall be a Credit Support Document under the Agreement with respect to CS. |
|
|
|
Account Details: |
|
|
9
Payments to CS: |
|
Bank Name: Citibank N.A., New York ABA Number: 021-000-089 For A/C of: Credit Suisse Capital, LLC Acct. #: 30459883 |
|
|
|
Payments to Counterparty: |
|
Bank Name: Wells Fargo Bank, N.A., Denver CO ABA Number: 121-000-248 Acct. #: 1018106698 Credit: Anschutz Company |
|
|
|
Delivery of Shares to CS: |
|
Credit Suisse Securities (USA) LLCDTC# 355 Account # 2HRY60 Account Name: CS Capital LLC Collateral Management Account |
|
|
|
Office: |
|
CS is acting through its New York Office for the purposes of the Transaction; Counterparty is not a Multibranch Party. |
|
|
|
Calculation Agent: |
|
CS. The Calculation Agent will have no responsibility for good faith errors or omissions in any determination under the Transaction. |
Termination by Counterparty:
At any time, Counterparty may terminate the Transaction in whole or in part upon 35 Exchange Business Days prior written notice to CS (the termination date specified in such notice, the Optional Termination Date). Notwithstanding any other provision of this Confirmation, if Counterparty terminates the Transaction in whole, Counterparty shall make a cash payment to CS (or vice versa, as the case may be) on the optional Termination Date in an amount equal to the amount that would be payable under Section 6 of the Agreement if (i) such Optional Termination Date were an Early Termination Date (without regard to the provisions set forth under Payment on Early Termination below), and Second Method and Loss applies, (ii) Counterparty were the sole Affected party and (iii) the Transaction were the only Terminated Transaction. Notwithstanding any other provision of this Confirmation, if Counterparty terminates the Transaction in part, Counterparty shall specify the number of Shares with respect to which the Transaction is to be terminated and Counterparty shall make a cash payment to CS on the Optional
10
Termination Date (or vice versa, as the case may be) in an amount equal to the amount that would be payable under Section 6 of the agreement if (i) such Optional Termination Date were an Early Termination Date (without regard to the provision set forth under Payments on Early Termination below); and Second Method and Loss applied, (ii) Counterparty were in the sole Affected Party and (iii) the Transaction were the only Terminated Transaction; provided that (a) for purposes of such calculation, the Number of Shares shall be deemed to be such number of Shares with respect to which the Transaction is to be terminated, and (b) the Number of Shares shall be reduced by such number of Shares with respect to which such Transaction is to be terminated.
Additional Representations and Warranties of Counterparty:
Counterparty hereby represents and warrants to CS as of the date hereof that:
11
12
Representations, Warranties and Covenants of CS:
13
U.S. Private Placement Representations:
Each of CS and Counterparty hereby represents and warrants to the other party as of the date hereof that:
Covenants of Counterparty:
Binding Commitment:
The parties intend that this Confirmation constitutes a Final Agreement as described in the letter dated December 14, 1999 submitted by Robert W. Reeder and Alan L. Beller to Michael Hyatte of the staff of the Securities and Exchange Commission (the Staff) to which the Staff responded in an interpretative letter dated December 20,1999.
Payments on Early Termination:
Upon (x) the occurrence or effective designation of an Early Termination Date in respect of the Transaction or (y) the occurrence of an Extraordinary Event that results in the cancellation or termination of the Transaction pursuant to Section 12.2, 12.3, 12.6 or 12.9 of the 2002 Definitions (any such event as
14
described in clause (x) or (y) above, an Early Termination Event), if Counterparty owes any amount to CS pursuant to Section 6(d)(ii) of the Agreement (determined as if the Transaction were the only Transaction under the Agreement) or any Cancellation Amount pursuant to Section 12.2, 12.3, 12.6 or 12.9 of the 2002 Definitions (any such amount, a Counterparty Payment Amount) and fails to pay such Counterparty Payment Amount on the due date specified in the Agreement or the 2002 Definitions (any such failure to pay any such amount, a Counterparty Payment Event), then, except to the extent that CS proceeds to realize upon the Collateral and to apply the proceeds of such realizations to any obligation of Counterparty hereunder and under the Agreement.
Securities Contract:
The parties hereto intend that each of CS and the Custodian (as defined in Section 4 below) is a stockbroker within the meaning of Section 101 (53A) of Title 11 of the United States Code (the Bankruptcy Code) and that the Custodian is acting as agent and custodian for CS in connection with the Transaction and that CS is a customer of the Custodian within the meaning of Section 741(2) of the Bankruptcy Code. The parties hereto further recognize that the Transaction is a securities contract, as such term is defined in Section 741(7) of the Bankruptcy Code, entitled to the protection of, among other provisions, Sections 555 and 362(b)(6) of the Bankruptcy Code, and that each
15
payment or delivery of cash, Shares or other property or assets hereunder is a settlement payment within the meaning of Section 741(8) of the Bankruptcy Code.
Assignment:
The rights and duties under this Confirmation may not be assigned or transferred by any party hereto without the prior written consent of the other parties hereto, such consent not to be unreasonably withheld; provided that (i) CS may assign or transfer any of its rights or duties hereunder to any of its affiliates without the prior written consent of Counterparty and (ii) the Agent may assign or transfer any of its rights or duties hereunder without the prior written consent of the other parties hereto in each case to any affiliate of CS, so long as such affiliate is a broker-dealer registered with the Securities and Exchange Commission and the senior unsecured debt rating (Credit Rating) of each affiliate (or any guarantor of its obligations under the transferred Transaction) is equal to or greater than the Credit Rating of Credit Suisse, as specified by S&P, and Moodys, at the time of such assignment or transfer.
Non-Confidentiality:
The parties hereby agree that (i) effective from the date of commencement of discussions concerning the Transaction, Counterparty and each of its employees, representatives, or other agents may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the Transaction and all materials of any kind, including opinions or other tax analyses, provided by CS and its affiliates to Counterparty relating to such tax treatment and tax structure (provided that the foregoing does not constitute an authorization to disclose the identity of CS or its affiliates, agents or advisers, or, except to the extent relating to such tax structure or tax treatment, any specific pricing terms or commercial or financial information except as required by applicable securities laws) and (ii) CS does not assert any claim of proprietary ownership in respect of any description contained herein or therein relating to the use of any entities, plans or arrangements to give rise to a particular United States federal income tax treatment for Counterparty.
Matters relating to Credit Suisse Capital LLC and Credit Suisse Securities (USA) LLC:
16
Counterparty has granted to CS a security interest in the Collateral to secure Counterpartys obligations set forth herein and pursuant to the Transaction. Counterparty and CS now wish to (i) set forth additional understandings and agreements relating to such security interest and (ii) confirm, on the terms set forth herein, the continuation of such security interest.
17
18
In order to secure the full and punctual observance and performance of the covenants and agreements contained in this Confirmation and in the Agreement, Counterparty hereby assigns and pledges to CS, and grants to CS, as secured party, security interests in and to, and a lien upon and right of set-off against, and transfers to CS, as and by way of a security interest having priority over all other security interests, with power of sale, all of Counterpartys right, title and interest in and to (i) the Collateral; (ii) all additions to and substitutions for the Shares (including, without limitation, any securities, instruments or other property delivered or pledged hereunder) (such additions and substitutions, the Additions and Substitutions); (iii) the Custodial Account maintained by the Custodian and all securities and other financial assets (each as defined in Section 8-102 of the UCC) and other funds, property or assets from time to time held therein or credited thereto; and (iv) all income, proceeds and collections received or to be received, or derived or to be derived, at the time that the Shares were delivered to the Custodian or any time thereafter (whether before or after the commencement of any proceeding under applicable bankruptcy, insolvency or similar law, by or against Counterparty, with respect to Counterparty) from or in connection with the Shares or the Additions and Substitutions, excluding any Excluded Proceeds (collectively, the Collateral). The parties hereto expressly agree that all rights, assets and property at any time held in or credited to the Custodial Account shall be treated as financial assets (as defined in Section 8-102 of the UCC). Excluded Proceeds means any ordinary cash dividend, to the extent not an Extraordinary Dividend, in respect of Shares that is not distributed after the occurrence and during the continuance of an Event of Default.
Counterparty agrees that, so long as any of Counterpartys obligations under the Agreement remain outstanding:
19
20
21
22
Any such amount not paid on demand shall bear interest (computed on the basis of a year of 360 days and payable for the actual number of days elapsed) at a rate per annum equal to 5% plus the prime rate as published from time to time in The Wall Street Journal, Eastern Edition.
The parties hereto agree that, notwithstanding anything to the contrary in this Confirmation, CS may not sell, lend, pledge, rehypothecate, assign, invest, use, commingle or otherwise dispose of, or otherwise use in its business any Collateral.
CS shall have the right to receive and retain as Collateral hereunder all proceeds, excluding any Excluded Proceeds, but including, without limitation, any Extraordinary Dividend in excess of the Ordinary Dividend Amount and interest of the Collateral; provided that CS shall have such right with respect to any and all proceeds, including, without limitation, any Excluded Proceeds, after the occurrence and during the continuance of a Default Event (such proceeds as CS shall have the right to receive and retain at any time, Retained Proceeds), and Counterparty shall take all such action as CS shall deem necessary or appropriate to give effect to such right. All such Retained Proceeds that are received by Counterparty shall be received in trust for the benefit of CS and, if CS so directs, shall be segregated from other funds of Counterparty and shall, forthwith upon demand by CS, be delivered over to the Custodian on behalf of CS as Collateral in the same form as received (with any necessary endorsement) and become subject to the SACA.
23
Unless a Default Event shall have occurred and be continuing, Counterparty shall have the right to vote and to give consents, ratifications and waivers with respect to the Collateral, and CS shall, upon receiving a written request from a duly authorized officer of Counterparty accompanied by a certificate from a duly authorized officer of Counterparty stating that no Default Event shall have occurred and be continuing, take all such commercially reasonable action as may be necessary or appropriate to give effect to such right to vote and give consents, ratifications and waivers (including, without limitation, the issuance of instructions to Custodian); provided, however, that (i) CS shall only be required to deliver such proxies, powers of attorney, consents, ratifications and waivers to Counterparty as have actually been received by CS or its designated nominee in respect of the Collateral and (ii) CS shall only be required to issue or modify instructions to Custodian as quickly as reasonably practicable after it receives a request from Counterparty, notification from Custodian or otherwise becomes aware of the need for any such action. CS shall not be responsible to Counterparty for any failure by Custodian to act in a timely fashion after CS instructs the Custodian.
If a Default Event shall have occurred and be continuing, CS shall have the right, to the extent permitted by law, and Counterparty shall take all such action as may be necessary or appropriate to give effect to such right, to vote and to give consents, ratifications and waivers, and to take any other action with respect to any or all of the Collateral with the same force and effect as if CS were the absolute and sole owner thereof.
If any Counterparty Payment Event shall have occurred, CS may exercise all the rights of a secured party under the UCC (whether or not in effect in the jurisdiction where such rights are exercised).
Counterparty hereby irrevocably appoints CS as Counterpartys true and lawful attorney (which power of attorney is coupled with an interest), with full power of substitution, in the name of Counterparty, CS or otherwise, for the sole use and benefit of CS, but at the expense of Counterparty, to the extent permitted by law, to exercise, at any time and from time to time while a Counterparty Payment Event has occurred, all or any of the following powers with respect to all or any of the Collateral:
24
provided that CS shall give Counterparty not less than one days prior written notice of the time and place of any sale or other intended disposition of any of the Collateral, except any Collateral that (A) threatens to decline speedily in value, including, without limitation, equity securities, or (B) is of a type customarily sold on a recognized market. CS and Counterparty agree that such notice constitutes reasonable authenticated notification within the meaning of Section 9-611(b) of the UCC. Notwithstanding the foregoing, CS and Counterparty agree that prior to exercising the powers with respect to the Collateral set forth in this Section 4(g)(i)-(iv), CS shall provide notice to Counterparty of its intention to exercise such powers and shall allow Counterparty two (2) Business Days after such notice to remedy the Counterparty Payment Event.
The rights hereby granted by Counterparty in the Collateral shall cease, terminate and be void upon fulfillment of all of the obligations of Counterparty under this Confirmation. Any Collateral remaining at the time of such termination shall be fully released and discharged from the security interests in the Collateral created hereby and delivered to Counterparty by CS, all at the request and expense of Counterparty.
Termination Provisions.
25
Tax Representations. None.
Agreements to Deliver Documents. For the purpose of Sections 4(a)(i) and (ii) of the Agreement, each of CS and Counterparty agrees to deliver the following document, as applicable:
26
Such document shall be covered by the representation set forth in Section 3(d) of the Agreement.
Miscellaneous:
Address for notices or communications to CS (other than by facsimile) for all purposes):
Address: |
|
Credit Suisse Capital LLC |
|
|
|
c/o Credit Suisse Securities (USA) LLC |
|
|
|
Eleven Madison Avenue |
|
|
|
New York, NY 10010 |
|
|
|
Attn: |
Senior Legal Officer |
|
|
Tel: |
(212) 538-2616 |
|
|
Fax: |
(212) 325-8036 |
|
|
|
|
With a copy to: |
|
Credit Suisse Securities (USA) LLC |
|
|
|
One Madison Avenue, 8th Floor |
|
|
|
New York, NY 10010 |
|
|
|
|
|
|
|
For payments and deliveries: |
|
|
|
Attn: |
Mike Sergio / Allison Williston |
|
|
Tel: |
(212) 538-0317 / (212) 538-6216 |
|
|
Fax: |
(212) 325-8175 |
|
|
|
|
|
|
For all other communications: |
|
|
|
Attn: |
Cynthya Tran |
|
|
Tel: |
(212) 538-0889 |
|
|
Fax: |
(212) 538-8898 |
Designated responsible employee for the purposes of Section 12(a)(iii) of the Agreement: Senior Legal Officer
Address for notices or communications to Counterparty:
Address: |
|
555 Seventeenth St., Suite 2400 |
|
|
Denver, Colorado 80202 |
Tel: |
|
(303) 298-1000 |
Fax: |
|
(303) 299-1333 |
27
28
Please confirm that the foregoing correctly sets forth the terms of our agreement by signing and returning this Confirmation.
|
Yours faithfully, |
|
|
|
|
|
CREDIT SUISSE CAPITAL LLC |
|
|
|
|
|
|
|
|
By: |
/s/ Linda Steinmuller |
|
Name: |
Linda Steinmuller |
|
Title: |
Vice President, Complex Product Support |
Confirmed as of the date first written above: |
|
|
|
|
|
ANSCHUTZ COMPANY |
|
|
|
|
|
|
|
|
By: |
/s/ Scott T. Carpenter |
|
Name: |
Scott T. Carpenter |
|
Title: |
Vice President |
|
CREDIT SUISSE SECURITIES (USA) LLC, as Agent |
|
|
|
|
|
|
|
|
By: |
/s/ John Ryan |
|
Name: |
John Ryan |
|
Title: |
Assistant Vice President, Complex Product Support |
|
29