e424b5
Filed Pursuant to
Rule 424(b)(5)
Registration No. 333-124683
PROSPECTUS SUPPLEMENT
(To prospectus dated May 19,
2005)
$1,000,000,000
E. I. du Pont de Nemours and
Company
$600,000,000 5.25% Notes due
December 15, 2016
$400,000,000 5.60% Notes due
December 15, 2036
We will pay interest on the notes
referenced above (collectively, the Notes) on
June 15 and December 15 of each year, beginning
June 15, 2007. We may redeem the Notes prior to maturity,
in whole or in part, as described in this prospectus supplement.
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Public |
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Underwriting |
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Proceeds before |
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Offering Price(1) |
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Discount |
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expenses |
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Per 5.25% Note
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99.654 |
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0.45 |
% |
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99.204 |
% |
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Total
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$ |
597,924,000 |
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$ |
2,700,000 |
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$ |
595,224,000 |
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Per 5.60% Note
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98.712 |
% |
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0.875 |
% |
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97.837 |
% |
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Total
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$ |
394,848,000 |
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$ |
3,500,000 |
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$ |
391,348,000 |
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(1) Plus accrued interest, if
any, from December 15, 2006.
Neither the Securities and
Exchange Commission nor any state securities commission has
approved or disapproved of these securities or determined if
this prospectus supplement or either accompanying prospectus is
truthful or complete. Any representation to the contrary is a
criminal offense.
The Notes will be ready for
delivery in book-entry form only through The Depository Trust
Company, Clearstream, Luxembourg or the Euroclear System, as the
case may be, on or about December 15, 2006.
Joint
Bookrunners
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Goldman, Sachs & Co. |
Morgan Stanley |
Co-Managers
Banc of America Securities,
llc
Citigroup
Credit Suisse
Deutsche Bank
Securities
JPMorgan
RBS Greenwich Capital
The date of this prospectus
supplement is December 12, 2006.
TABLE OF CONTENTS
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Page |
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Prospectus Supplement |
About DuPont
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S-3 |
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Ratios of Earnings to Fixed Charges
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S-3 |
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Use of Proceeds
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S-3 |
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Description of Notes
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S-4 |
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United States Federal Taxation
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S-10 |
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Underwriting
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S-14 |
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Legal Opinions
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S-16 |
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Prospectus |
About this Prospectus
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1 |
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Where You Can Find More Information
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1 |
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Forward Looking Information
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2 |
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About DuPont
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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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3 |
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Plan of Distribution
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11 |
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Legal Opinion
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12 |
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Experts
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12 |
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You should rely only on the information contained in this
prospectus supplement and the accompanying prospectus. We have
not authorized anyone to provide you with information different
from that contained in this prospectus supplement and the
accompanying prospectus. We are offering to sell Notes and
making offers to buy Notes only in jurisdictions in which offers
and sales are permitted. The information contained in this
prospectus supplement and the accompanying prospectus is
accurate only as of the date of this prospectus supplement,
regardless of the time of delivery of this prospectus supplement
and the accompanying prospectus or any sale of the Notes. In
this prospectus supplement and the accompanying prospectus, the
Company, we, us and
our refer to E. I. du Pont de Nemours
and Company.
If we use a capitalized term in this prospectus supplement and
do not define the term, it is defined in the accompanying
prospectus.
The Notes are offered globally for sale only in those
jurisdictions in the United States, Canada, Europe, Asia and
elsewhere in which it is lawful to make such offers. See
Underwriting.
The distribution of this prospectus supplement and the
accompanying prospectus and the offering of the Notes in certain
jurisdictions may be restricted by law. Persons into whose
possession this prospectus supplement and the accompanying
prospectus come should inform themselves about and observe any
such restrictions. This prospectus supplement and the
accompanying prospectus do not constitute, and may not be used
in connection with, an offer or solicitation by anyone in any
jurisdiction in which such offer or solicitation is not
authorized or in which the person making such offer or
solicitation is not qualified to do so or to any person to whom
it is unlawful to make such offer or solicitation. See
Underwriting.
References herein to $ and dollars are
to the currency of the United States.
S-2
ABOUT DUPONT
We were founded in 1802 and incorporated in Delaware in 1915. We
have been in continuous operation for over 200 years. Our
principal offices are at 1007 Market Street in Wilmington,
Delaware.
We are a world leader in science and technology in a range of
disciplines including biotechnology, electronics, materials
science, safety and security, and synthetic fibers. We operate
globally, manufacturing a wide range of products for
distribution and sale to many different markets, including the
transportation, safety and protection, construction, motor
vehicle, agriculture, home furnishings, medical, electronics,
communications, protective apparel, and the nutrition and health
markets.
We are strategically aligned into five market- and
technology-focused growth platforms consisting of
Agriculture & Nutrition, Coatings & Color
Technologies, Electronic & Communication Technologies,
Performance Materials, and Safety & Protection. In
addition to the five growth platforms, our reportable segments
include Pharmaceuticals, which represents our retained interest
in
Cozaar®/
Hyzaar®
drugs. We include non-aligned and developmental businesses, such
as bio-based materials, in Other.
RATIOS OF EARNINGS TO FIXED CHARGES
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Nine Months |
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Ended |
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September 30, |
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Year Ended December 31, |
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2006 |
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2005 |
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2004 |
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2003 |
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2002 |
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2001 |
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Ratio of Earnings to Fixed Charges
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7.9 |
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7.0 |
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5.0 |
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2.3 |
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5.5 |
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10.5 |
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USE OF PROCEEDS
We will use the net proceeds from the sale of the Notes, which
are expected to be $986,572,000 after payment of expenses
related to the offering, for general corporate purposes. These
purposes may include repayment and refinancing of debt,
acquisitions, working capital, capital expenditures and
repurchases and redemptions of securities. Pending any specific
application, we may initially invest funds in short-term
marketable securities or apply them to the reduction of
short-term indebtedness.
S-3
DESCRIPTION OF NOTES
The following description of the particular terms of the
5.25% Notes due December 15, 2016 (the 5.25%
Notes) and the 5.60% Notes due December 15, 2036 (the
5.60% Notes) offered hereby (referred to in the
prospectus as the Debt Securities) supplements the
description of the general terms and provisions of the Debt
Securities included in the accompanying prospectus. The 5.25%
Notes and the 5.60% Notes are collectively referred to in this
prospectus supplement as the Notes. Each series
constitutes a separate series of notes for purposes of the
Indenture. The following summary of the Notes is qualified in
its entirety by reference in the accompanying prospectus to the
description of the indenture dated as of June 1, 1992,
between the Company and Deutsche Bank Trust Company Americas,
formerly known as Bankers Trust Company, as trustee (the
Indenture).
General
The 5.25% Notes will mature at par on December 15, 2016.
The 5.60% Notes will mature at par on December 15, 2036.
The Notes will constitute part of the senior debt of the Company
and will rank pari passu with all other unsecured and
unsubordinated indebtedness of the Company. The Notes will be
issued in fully registered form only, in denominations of $2,000
and additional multiples of $1,000. Principal of and interest on
the Notes will be payable, and the transfer of Notes will be
registerable, through the Depositary, as described below.
Each 5.25% Note will bear interest from December 15, 2006
at the annual rate of 5.25%. Each 5.60% Note will bear interest
from December 15, 2006, at the annual rate of 5.60%.
Interest on the 5.25% Notes and the 5.60% Notes will be payable
semiannually on June 15 and December 15, commencing
June 15, 2007, to the person in whose name such Note is
registered at the close of business on the immediately preceding
June 1 or December 1.
Interest payable at the maturity of the Notes will be payable to
registered holders of the Notes to whom principal is payable.
Interest will be computed on the basis of a
360-day year of twelve
30-day months.
If any interest payment date falls on a day that is not a
Business Day, the interest payment will be postponed to the next
day that is a Business Day, and no interest on such payment will
accrue for the period from and after such interest payment date.
If the maturity date of the Notes falls on a day that is not a
Business Day, the payment of interest and principal may be made
on the next succeeding Business Day, and no interest on such
payment will accrue for the period from and after the maturity
date.
Interest payments for the Notes will include accrued interest
from and including the date of issue or from and including the
last date in respect of which interest has been paid, as the
case may be, to but excluding the interest payment date or the
date of maturity, as the case may be.
The 5.25% Notes and the 5.60% Notes will each constitute a
separate series of Debt Securities under the Indenture.
The Company may, without the consent of the holders of a series
of Notes, issue additional notes having the same ranking and the
same interest rate, maturity and other terms as the applicable
series of Notes. Any additional notes having such similar terms,
together with such applicable Notes, will constitute a single
series of notes under the Indenture. No additional Notes may be
issued if an Event of Default has occurred with respect to the
applicable series of Notes.
As used in this prospectus supplement, Business Day
means any day, other than a Saturday or Sunday, that is not a
day on which banking institutions are authorized or required by
law or regulation to close in The City of New York.
Book-Entry, Delivery and Form
The Notes will be issued in the form of one or more fully
registered global notes (the Global Notes)
registered in the name of The Depository Trust Company, New
York, New York (the Depositary or DTC)
or Cede & Co., the Depositarys nominee. Beneficial
interests in the Global
S-4
Notes will be represented through book-entry accounts of
financial institutions acting on behalf of beneficial owners as
direct and indirect participants in the Depositary.
Investors may elect to hold interests in the Global Notes
through the Depositary, Clearstream Banking Luxembourg S.A.
(Clearstream) or Euroclear Bank S.A./N.A., as
operator of the Euroclear System (Euroclear) if they
are participants of such systems, or indirectly through
organizations which are participants in such systems.
Clearstream and Euroclear will hold interests on behalf of their
participants through customers securities accounts in
Clearstreams and Euroclears names on the books of
their respective depositaries, which in turn will hold such
interests in customers securities accounts in the
depositaries names on the books of the Depositary.
Citibank, N.A. will act as depositary for Clearstream and
JPMorgan Chase Bank, N.A., successor to The Chase Manhattan
Bank, will act as depositary for Euroclear (in such capacities,
the U.S. Depositaries). Beneficial interest in the
Global Notes will be held in denominations of $2,000 and
additional multiples of $1,000. Except as described below, the
Global Notes may be transferred, in whole and not in part, only
to another nominee of the Depositary or to a successor of the
Depositary or its nominee.
The Depositary has advised the Company as follows: the
Depositary 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
Federal Reserve System, a clearing corporation
within the meaning of the New York Uniform Commercial Code, and
a clearing agency registered pursuant to the
provisions of Section 17A of the Exchange Act. The
Depositary holds securities deposited with it by its
participants and records the settlement of transactions among
its participants in such securities through electronic
computerized book-entry changes in accounts of the participants,
thereby eliminating the need for physical movement of securities
certificates. The Depositarys participants include
securities brokers and dealers (including the Underwriters),
banks, trust companies, clearing corporations and certain other
organizations, some of whom (and/or their representatives) own
the Depositary. Access to the Depositary book-entry system is
also available to others, such as banks, brokers, dealers and
trust companies that clear through or maintain a custodial
relationship with a participant, either directly or indirectly.
Clearstream advises that it is incorporated under the laws of
Luxembourg as a bank. Clearstream holds securities for its
customers (Clearstream Customers) and facilitates
the clearance and settlement of securities transactions between
Clearstream Customers through electronic book-entry transfers
between their accounts. Clearstream provides to Clearstream
Customers, among other things, services for safekeeping,
administration, clearance and settlement of internationally
traded securities and securities lending and borrowing.
Clearstream interfaces with domestic securities markets in over
30 countries through established depository and custodial
relationships. As a bank, Clearstream is subject to regulation
by the Luxembourg Commission for the Supervision of the
Financial Sector (Commission de Surveillance du Secteur
Financier). Clearstream Customers are recognized financial
institutions around the world, including underwriters,
securities brokers and dealers, banks, trust companies, clearing
corporations and certain other organizations. Clearstreams
U.S. customers are limited to securities brokers and dealers and
banks. Indirect access to Clearstream is also available to other
institutions such as banks, brokers, dealers and trust
companies, that clear through or maintain a custodial
relationship with a Clearstream Customer.
Distributions with respect to the Notes held through Clearstream
will be credited to cash accounts of Clearstream Customers in
accordance with its rules and procedures, to the extent received
by the U.S. Depositary for Clearstream.
Euroclear advises that it was created in 1968 to hold securities
for its participants (Euroclear Participants) and to
clear and settle transactions between Euroclear Participants
through simultaneous electronic book-entry delivery against
payment, thereby eliminating the need for physical movement of
certificates and any risk from lack of simultaneous transfers of
securities and cash. Euroclear provides various other services,
including securities lending and borrowing, and interfaces with
domestic markets in several countries. Euroclear is operated by
Euroclear Bank S.A./N.A. (the Euroclear Operator),
under contract with Euroclear Clearance Systems, S.C., a Belgian
cooperative corporation (the Cooperative).
S-5
All operations are conducted by the Euroclear Operator, and all
Euroclear securities clearance accounts and Euroclear cash
accounts are accounts with the Euroclear Operator, not the
Cooperative. The Cooperative establishes policy for Euroclear on
behalf of Euroclear Participants. Euroclear Participants include
banks (including central banks), securities brokers and dealers
and other professional financial intermediaries and may include
the Underwriters. Indirect access to Euroclear is also available
to other firms that clear through or maintain a custodial
relationship with a Euroclear Participant, either directly or
indirectly.
Securities clearance accounts and cash accounts with the
Euroclear Operator are governed by the Terms and Conditions
Governing Use of Euroclear and the related Operating Procedures
of the Euroclear System, and applicable Belgian law
(collectively, the Terms and Conditions). The Terms
and Conditions govern transfers of securities and cash within
Euroclear, withdrawals of securities and cash from Euroclear,
and receipts of payments with respect to securities in
Euroclear. All securities in Euroclear are held on a fungible
basis without attribution of specific certificates to specific
securities clearance accounts. The Euroclear Operator acts under
the Terms and Conditions only on behalf of Euroclear
Participants and has no record of or relationship with persons
holding through Euroclear Participants.
Distributions with respect to the Notes held beneficially
through Euroclear will be credited to the cash accounts of
Euroclear Participants in accordance with the Terms and
Conditions, to the extent received by the U.S. Depositary
for Euroclear.
Euroclear further advises that investors that acquire, hold and
transfer interests in the Notes by book-entry through accounts
with the Euroclear Operator or any other securities intermediary
are subject to the laws and contractual provisions governing
their relationship with their intermediary, as well as the laws
and contractual provisions governing the relationship between
such an intermediary and each other intermediary, if any,
standing between themselves and the Global Notes.
The Euroclear Operator advises as follows: Under Belgian law,
investors that are credited with securities on the records of
the Euroclear Operator have a co-property right in the fungible
pool of interests in securities on deposit with the Euroclear
Operator in an amount equal to the amount of interests in
securities credited to their accounts. In the event of the
insolvency of the Euroclear Operator, Euroclear Participants
would have a right under Belgian law to the return of the amount
and type of interests in securities credited to their accounts
with the Euroclear Operator. If the Euroclear Operator did not
have a sufficient amount of interests in securities on deposit
of a particular type to cover the claims of all Participants
credited with such interests in securities on the Euroclear
Operators records, all Participants having an amount of
interests in securities of such type credited to their accounts
with the Euroclear Operator would have the right under Belgian
law to the return of their pro rata share of the amount
of interests in securities actually on deposit.
Under Belgian law, the Euroclear Operator is required to pass on
the benefits of ownership in any interests in securities on
deposit with it (such as dividends, voting rights and other
entitlements) to any person credited with such interests in
securities on its records.
Individual certificates in respect of the Notes will not be
issued in exchange for the Global Notes, except in very limited
circumstances. If DTC notifies the Company that it is unwilling
or unable to continue as a clearing system in connection with
the Global Notes, or ceases to be a clearing agency registered
under the Exchange Act, and a successor clearing system is not
appointed by the Company within 90 days after receiving
such notice from DTC or upon becoming aware that DTC is no
longer so registered, the Company will issue or cause to be
issued individual certificates in registered form on
registration of transfer of, or in exchange for, book-entry
interests in the Notes represented by such Global Notes upon
delivery of such Global Notes for cancellation.
Title to book-entry interests in the Notes will pass by
book-entry registration of the transfer within the records of
Clearstream, Euroclear or DTC, as the case may be, in accordance
with their respective procedures. Book-entry interests in the
Notes may be transferred within Clearstream and within Euroclear
S-6
and between Clearstream and Euroclear in accordance with
procedures established for these purposes by Clearstream and
Euroclear. Book-entry interests in the Notes may be transferred
within DTC in accordance with procedures established for this
purpose by DTC. Transfers of book-entry interests in the Notes
among Clearstream and Euroclear and DTC may be effected in
accordance with procedures established for this purpose by
Clearstream, Euroclear and DTC.
A further description of the Depositarys procedures with
respect to the Global Notes is set forth in the accompanying
prospectus under Description of Debt
Securities Global Securities. The
Depositary has confirmed to the Company, the Underwriters and
the Trustee that it intends to follow such procedures.
Global Clearance and Settlement Procedures
Initial settlement for the Notes will be made in immediately
available funds. We will make all payments of principal,
premium, if any, and interest in respect of the Notes in
immediately available funds while the Notes are held in
book-entry only form. Secondary market trading between DTC
participants will occur in the ordinary way in accordance with
the Depositarys rules and will be settled in immediately
available funds using the Depositarys Same-Day Funds
Settlement System. Secondary market trading between Clearstream
Customers and/or Euroclear Participants will occur in the
ordinary way in accordance with the applicable rules and
operating procedures of Clearstream and Euroclear and will be
settled using the procedures applicable to conventional
Eurobonds in immediately available funds.
Cross-market transfers between persons holding directly or
indirectly through the Depositary on the one hand, and directly
or indirectly through Clearstream Customers or Euroclear
Participants, on the other, will be effected in the Depositary
in accordance with the Depositarys rules on behalf of the
relevant European international clearing system by its U.S.
Depositary; however, such cross-market transactions will require
delivery of instructions to the relevant European international
clearing system by the counterparty in such system in accordance
with its rules and procedures and within its established
deadlines (European time). The relevant European international
clearing system will, if the transaction meets its settlement
requirements, deliver instructions to its U.S. Depositary to
take action to effect final settlement on its behalf by
delivering interests in the Notes to or receiving interests in
the Notes from the Depositary, and making or receiving payment
in accordance with normal procedures for same-day funds
settlement applicable to the Depositary. Clearstream Customers
and Euroclear Participants may not deliver instructions directly
to their respective U.S. Depositaries.
Because of time-zone differences, credits of interests in the
Notes received in Clearstream or Euroclear as a result of a
transaction with a DTC participant will be made during
subsequent securities settlement processing and dated the
business day following the Depositary settlement date. Such
credits or any transactions involving interests in such Notes
settled during such processing will be reported to the relevant
Clearstream Customers or Euroclear Participants on such business
day. Cash received in Clearstream or Euroclear as a result of
sales of interests in the Notes by or through a Clearstream
Customer or a Euroclear Participant to a DTC participant will be
received with value on the Depositary settlement date but will
be available in the relevant Clearstream or Euroclear cash
account only as of the business day following settlement in the
Depositary.
Although the Depositary, Clearstream and Euroclear have agreed
to the foregoing procedures in order to facilitate transfers of
interests in the Notes among participants of the Depositary,
Clearstream and Euroclear, they are under no obligation to
perform or continue to perform such procedures and such
procedures may be changed or discontinued at any time.
Optional Redemption
The 5.25% Notes will be redeemable as a whole at any time or in
part from time to time, at the option of the Company, at a
redemption price equal to the greater of (i) 100% of the
principal amount of the 5.25% Notes or (ii) the sum of the
present values of the remaining scheduled payments of principal
and interest thereon from the redemption date to the applicable
maturity date (exclusive of any accrued interest) discounted to
the redemption date on a semiannual basis (assuming a 360-day
year consisting of
S-7
twelve 30-day months) at the Treasury Rate plus 15 basis points,
plus, in each case, any interest accrued but not paid to the
date of redemption.
The 5.60% Notes will be redeemable as a whole at any time or in
part from time to time, at the option of the Company, at a
redemption price equal to the greater of (i) 100% of the
principal amount of the 5.60% Notes or (ii) the sum of the
present values of the remaining scheduled payments of principal
and interest thereon from the redemption date to the applicable
maturity date (exclusive of any accrued interest) discounted to
the redemption date on a semiannual basis (assuming a 360-day
year consisting of twelve 30-day months) at the Treasury Rate
plus 20 basis points, plus, in each case, any interest accrued
but not paid to the date of redemption.
Treasury Rate means, with respect to any redemption
date for the Notes (i) 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 United States Treasury securities adjusted to constant
maturity under the caption Treasury Constant
Maturities, for the maturity corresponding to the
Comparable Treasury Issue (if no maturity is within three months
before or after the maturity date for the Notes, yields for the
two published maturities most closely corresponding to the
Comparable Treasury Issue shall be determined and the Treasury
Rate shall be interpolated or extrapolated from such yields on a
straight line basis, rounding to the nearest month) or
(ii) if that release (or any successor release) is not
published during the week preceding the calculation date or does
not contain such 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 for that
redemption date. The Treasury Rate shall be calculated on the
third business day preceding the redemption date.
Comparable Treasury Issue means the United States
Treasury security selected by an Independent Investment Banker
as having a maturity comparable to the remaining term of the
Notes, as the case may be, 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
such securities. Independent Investment Banker means
one of the Reference Treasury Dealers appointed by the Trustee
after consultation with the Company.
Comparable Treasury Price means with respect to any
redemption date for the Notes (i) the average of four
Reference Treasury Dealer Quotations for that redemption date,
after excluding the highest and lowest such Reference Treasury
Dealer Quotations, or (ii) if the trustee obtains fewer
than four such Reference Treasury Dealer Quotations, the average
of all such quotations.
Reference Treasury Dealer means each of Goldman,
Sachs & Co., Morgan Stanley & Co. Incorporated
and two other primary U.S. Government securities dealers in
New York City (each, a Primary Treasury Dealer)
appointed by the trustee in consultation with the Company;
provided, however, that if any of the foregoing shall
cease to be a Primary Treasury Dealer, the Company shall
substitute therefor 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 the trustee, 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 trustee by that Reference Treasury Dealer at
5:00 p.m. (New York City time) on the third business day
preceding that redemption date.
Unless the Company defaults in payment of the redemption price,
on and after the redemption date interest will cease to accrue
on the Notes or portions thereof called for redemption.
S-8
Applicable Law
The Notes and the Indenture will be governed by and construed in
accordance with the laws of the State of New York.
Tax Redemption
The Notes may be redeemed as a whole, at the option of the
Company at any time prior to maturity, upon the giving of a
notice of redemption as described below, if the Company
determines that, as a result of any change in or amendment to
the laws (or any regulations or rulings promulgated thereunder)
of the United States or of any political subdivision or taxing
authority thereof or therein, or any change in official position
regarding the application or interpretation of such laws,
regulations or rulings, which change or amendment becomes
effective on or after the date of this prospectus supplement,
the Company has or will become obligated to pay Additional
Amounts (as defined below) with respect to such Notes for
reasons outside its control and after taking reasonable measures
to avoid such obligation. The Notes will be redeemed at a
redemption price equal to 100% of the principal amount thereof,
together with accrued interest to the date fixed for redemption.
Prior to the giving of any notice of redemption pursuant to this
paragraph, the Company will deliver to the Trustee (i) a
certificate stating that the Company is entitled to effect such
redemption and setting forth a statement of facts showing that
the conditions precedent to the right of the Company to so
redeem have occurred and (ii) an opinion of independent
counsel satisfactory to such Trustee to the effect that the
Company has or will become obligated to pay Additional Amounts
for the reasons described above; provided that no such notice of
redemption shall be given earlier than 60 days prior to the
earliest date on which the Company would be obligated to pay
such Additional Amounts if a payment in respect of the Notes
were then due. Notice of redemption will be given not less than
30 nor more than 60 days prior to the date fixed for
redemption, which date and the applicable redemption price will
be specified in the notice.
Payment of Additional Amounts
The Company will, subject to certain exceptions and limitations
set forth below, pay such additional amounts (Additional
Amounts) to the beneficial owner of any Note who is a
United States Alien as may be necessary in order that every net
payment of principal of and interest on such Note and any other
amounts payable on such Note, after withholding for or on
account of any present or future tax, assessment or governmental
charge imposed upon or as a result of such payment by the United
States (or any political subdivision or taxing authority thereof
or therein), will not be less than the amount provided for in
such Note to be then due and payable. The Company will not,
however, be required to make any payment of Additional Amounts
to any beneficial owner for or on account of:
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(a) any such tax, assessment or other governmental charge
that would not have been so imposed but for the existence of any
present or former connection between such beneficial owner (or
between a fiduciary, settlor, beneficiary, member or shareholder
of such beneficial owner, if such beneficial owner is an estate,
a trust, a partnership or a corporation) and the United States
and its possessions, including, without limitation, such
beneficial owner (or such fiduciary, settlor, beneficiary,
member or shareholder) being or having been a citizen or
resident thereof or being or having been engaged in a trade or
business or present therein or having, or having had, a
permanent establishment therein; |
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(b) any estate, inheritance, gift, sales, transfer or
personal property tax or any similar tax, assessment or
governmental charge; |
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(c) any tax, assessment or other governmental charge
imposed by reason of such beneficial owners past or
present status as a personal holding company or foreign personal
holding company or controlled foreign corporation or passive
foreign investment company with respect to the United States or
as a corporation that accumulates earnings to avoid United
States federal income tax; |
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(d) any tax, assessment or other governmental charge that
is payable otherwise than by withholding from payments on or in
respect of any Note; |
S-9
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(e) any tax, assessment or other governmental charge that
would not have been imposed but for the failure to comply with
certification, information or other reporting requirements
concerning the nationality, residence or identity of the
beneficial owner of such Note, if such compliance is required by
statute or by regulation of the United States or of any
political subdivision or taxing authority thereof or therein as
a precondition to relief or exemption from such tax, assessment
or other governmental charge; |
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(f) any tax, assessment or other governmental charge
imposed by reason of such beneficial owners status
(including past status) as the actual or constructive owner of
10% or more of the total combined voting power of all classes of
stock entitled to vote of the Company or as a controlled foreign
corporation that is related directly or indirectly to the
Company through stock ownership; or |
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(g) any combination of items (a), (b), (c), (d),
(e) or (f); |
nor shall Additional Amounts be paid with respect to any payment
on a Note to a United States Alien who is a fiduciary or
partnership or other than the sole beneficial owner of such
payment to the extent such payment would be required by the laws
of the United States (or any political subdivision thereof) to
be included in the income, for tax purposes, of a beneficiary or
settlor with respect to such fiduciary or a member of such
partnership or a beneficial owner who would not have been
entitled to the Additional Amounts had such beneficiary,
settlor, member or beneficial owner held its interest in the
Note directly.
The term United States Alien means any person that
is, for United States federal income tax purposes, a foreign
corporation, a nonresident alien individual, a nonresident alien
fiduciary of a foreign estate or trust, or a foreign partnership
to the extent that one or more of its members is a foreign
corporation, a nonresident alien individual or a nonresident
alien fiduciary of a foreign estate or trust.
UNITED STATES FEDERAL TAXATION
TO ENSURE COMPLIANCE WITH TREASURY DEPARTMENT CIRCULAR 230,
INVESTORS ARE HEREBY NOTIFIED THAT: (A) ANY DISCUSSION OF
FEDERAL TAX ISSUES IN THIS PROSPECTUS SUPPLEMENT IS NOT INTENDED
OR WRITTEN BY US TO BE RELIED UPON, AND CANNOT BE RELIED UPON,
BY INVESTORS FOR THE PURPOSE OF AVOIDING PENALTIES THAT MAY BE
IMPOSED ON INVESTORS UNDER THE INTERNAL REVENUE CODE;
(B) SUCH DISCUSSION IS INCLUDED HEREIN BY THE COMPANY IN
CONNECTION WITH THE PROMOTION OR MARKETING (WITHIN THE MEANING
OF CIRCULAR 230) BY THE COMPANY OF THE TRANSACTIONS OR MATTERS
ADDRESSED HEREIN; AND (C) INVESTORS SHOULD SEEK ADVICE
BASED ON THEIR PARTICULAR CIRCUMSTANCES FROM AN INDEPENDENT TAX
ADVISOR.
The following summary describes the material United States
federal income and certain estate tax consequences of ownership
and disposition of the Notes. This summary provides general
information only and is directed solely to original beneficial
owners purchasing Notes at the issue price, that is,
the first price at which a substantial amount of Notes is sold
to the public (excluding sales to bond houses, brokers or
similar persons or organizations acting in the capacity of
underwriters, placement agents or wholesalers). This summary is
based on the Internal Revenue Code of 1986, as amended to the
date hereof (the Code), existing administrative
pronouncements and judicial decisions, existing and proposed
Treasury Regulations currently in effect, and interpretations of
the foregoing, changes to any of which subsequent to the date of
this prospectus supplement may affect the tax consequences
described herein, possibly with retroactive effect. This summary
deals only with Notes held as capital assets within the meaning
of Section 1221 of the Code. This summary does not discuss all
of the tax consequences that may be relevant to a beneficial
owner in light of his particular circumstances or to beneficial
owners subject to special rules, such as certain financial
institutions, insurance companies, dealers in securities,
persons holding Notes in connection with a hedging transaction,
straddle, conversion transaction or other integrated
transaction or persons who have ceased to be United States
citizens or to be taxed as resident aliens. Persons considering
the purchase of Notes should consult their own tax advisors with
regard to the
S-10
application of the United States federal income and estate tax
laws to their particular situations, as well as any tax
consequences arising under the laws of any state, local or
foreign taxing jurisdiction.
Tax Consequences to United States Persons
For purposes of the following discussion, United States
person means a beneficial owner of a Note that is, for
United States federal income tax purposes, (i) a citizen or
resident of the United States, (ii) a corporation or other
entity treated as a corporation for United States federal income
tax purposes created or organized in or under the laws of the
United States, any State or the District of Columbia,
(iii) an estate the income of which is subject to United
States federal income taxation regardless of its source, or
(iv) a trust (A) if a court within the United States
is able to exercise primary supervision over the administration
of the trust and one or more United States persons have the
authority to control all substantial decisions of the trust or
(B) that has made a valid election to be treated as a U.S.
person for U.S. federal income tax purposes. Partnerships are
subject to special tax rules and should contact their own tax
advisors.
Payments of Interest
Interest on a Note will generally be taxable to a United States
person as ordinary interest income at the time it is accrued or
is received in accordance with the United States persons
method of accounting for tax purposes.
Sale, Exchange or Retirement of the Notes
Upon the sale, exchange or retirement of a Note, a United States
person will recognize taxable gain or loss equal to the
difference between the amount realized on the sale, exchange or
retirement and the United States persons adjusted tax
basis in the Note. For these purposes, the amount realized does
not include any amount attributable to accrued interest on the
Note. Amounts attributable to accrued interest are treated as
interest as described under Payments of Interest
above. A United States persons adjusted tax basis in a
Note generally will equal the cost of the Note to the United
States person.
In general, gain or loss realized on the sale, exchange or
redemption of a Note will be capital gain or loss. Prospective
investors should consult their own tax advisors regarding the
treatment of capital gains (which may be taxed at lower rates
than ordinary income for taxpayers who are individuals, trusts
or estates) and losses (the deductibility of which is subject to
limitations).
Backup Withholding and Information Reporting
Backup withholding and information reporting requirements may
apply to certain payments of principal, premium and interest on
a Note, and to payments of proceeds of the sale or redemption of
a Note, to certain non-corporate United States persons. The
Company, its agent, a broker, or any paying agent, as the case
may be, will be required to withhold from any payment a tax at a
rate currently equal to 28 percent of such payment if the
United States person fails to furnish or certify its correct
taxpayer identification number to the payor in the manner
required, fails to certify that such United States person is not
subject to backup withholding, or otherwise fails to comply with
the applicable requirements of the backup withholding rules. Any
amounts withheld under the backup withholding rules from a
payment to a United States person may be credited against such
United States persons United States federal income tax and
may entitle such United States person to a refund, provided that
the required information is furnished to the Internal Revenue
Service.
Tax Consequences to Non-United States Persons
As used herein, the term non-United States person
means a beneficial owner of a Note that is not a United States
person.
S-11
Income and Withholding Tax
Subject to the discussion of backup withholding below:
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(a) payments of principal and interest on a Note that is
beneficially owned by a non-United States person will not be
subject to United States federal withholding tax; provided, that
in the case of interest, (1)(i) the beneficial owner does
not actually or constructively own 10% or more of the total
combined voting power of all classes of stock of the Company
entitled to vote, (ii) the beneficial owner is not a
controlled foreign corporation that is related, directly or
indirectly, to the Company through stock ownership,
(iii) the beneficial owner of the Notes is not a bank whose
receipt of interest is described in Section 881(c)(3)(A) of
the Code; and (iv) either (A) the beneficial owner of
the Note provides an IRS
Form W-8 or
W-8 BEN (or
successor form) certifying to the person otherwise required to
withhold United States federal income tax from such interest,
under penalties of perjury, that it is not a United States
person and provides its name and address or (B) a
securities clearing organization, bank or other financial
institution that holds customers securities in the
ordinary course of its trade or business (a financial
institution) and holds an interest in the Note certifies
to the person otherwise required to withhold United States
federal income tax from such interest, under penalties of
perjury, that such statement has been received from the
beneficial owner by it or by a financial institution between it
and the beneficial owner and furnishes the payor with a copy
thereof; (2) the beneficial owner is entitled to the
benefits of an income tax treaty under which the interest is
exempt from United States federal withholding tax and the
beneficial owner of the Note or such owners agent provides
an IRS
Form W-8 BEN
(or successor form) claiming the exemption; or (3) the
beneficial owner conducts a trade or business in the United
States to which the interest is effectively connected and the
beneficial owner of the Note or such owners agent provides
an IRS
Form W-8 ECI
(or successor form) provided that in each such case, the
relevant certification or IRS Form is delivered pursuant to
applicable procedures and is properly transmitted to the person
otherwise required to withhold United States federal income tax,
and none of the persons receiving the relevant certification or
IRS Form has actual knowledge that the certification or any
statement on the IRS Form is false. The
Forms W-8 ECI
and W-8 BEN must
be periodically updated. |
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(b) a non-United States person will not be subject to
United States federal withholding tax on any gain realized on
the sale, exchange or other disposition of a Note unless the
gain is effectively connected with the beneficial owners
trade or business in the United States or, in the case of an
individual, the beneficial owner is present in the United States
for 183 days or more in the taxable year in which the sale,
exchange or other disposition occurs and certain other
conditions are met, or the non-United States person is subject
to U.S. tax under provisions applicable to certain U.S.
expatriates, and |
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(c) a Note owned by an individual who at the time of death
is not, for United States estate tax purposes, a citizen or
resident of the United States generally will not be subject to
United States federal estate tax as a result of such
individuals death if the individual does not actually or
constructively own 10% or more of the total combined voting
power or all classes of stock of the Company entitled to vote
and, at the time of such individuals death the income on
the Note would not have been effectively connected with a United
States trade or business of the individual. |
If a non-United States person owning a Note is engaged in a
trade or business in the United States, and if interest on the
Note (or gain realized on its sale, exchange or other
disposition) is effectively connected with the conduct of such
trade or business, such owner, although exempt from the
withholding tax discussed in the preceding paragraphs, will
generally be subject to regular United States income tax on such
effectively connected income in the same manner as if it were a
United States person. In addition, if such owner is a foreign
corporation, it may be subject to a 30% branch profits tax
(unless reduced or eliminated by an applicable treaty) of its
effectively connected earnings and profits for the taxable year,
subject to certain adjustments. For purposes of the branch
profits tax, interest on, and any gain recognized on the sale,
exchange or other disposition of, a Note will be included in the
effectively connected earnings and profits of such owner if such
interest or gain, as the case may be, is effectively connected
with the conduct by such owner of a trade or business in the
United States.
S-12
Each owner of a Note should be aware that if it does not
properly provide the required IRS form, or if the IRS form (or,
if permissible, a copy of such form) is not properly transmitted
to and received by the United States person otherwise required
to withhold United States federal income tax, interest on the
Note may be subject to United States withholding tax at a 30%
rate or a lower applicable treaty rate, and the owner will not
be entitled to any Additional Amounts from the Company described
under the heading Description of Notes Payment
of Additional Amounts with respect to such tax. Such tax,
however, may in certain circumstances be allowed as a refund or
as a credit against such owners United States federal
income tax. The foregoing does not deal with all aspects of
federal income tax withholding that may be relevant to foreign
owners of the Notes. Investors are advised to consult their own
tax advisors for specific advice concerning the ownership and
disposition of Notes.
Backup Withholding and Information Reporting
Under current Treasury Regulations, backup withholding (imposed
at a rate currently equal to 28 percent) will not apply to
payments made by the Company or a Paying Agent to an owner in
respect of a Note if the certifications described above are
received, provided in each case that the Company or the Paying
Agent, as the case may be, does not have actual knowledge that
the payee is a United States person.
Backup withholding is not a separate tax, but is allowed as a
refund or credit against the owners United States federal
income tax, provided the necessary information is furnished to
the Internal Revenue Service.
Interest on a Note that is beneficially owned by a non-United
States person will be reported annually on IRS Form 1042S, which
must be filed with the Internal Revenue Service and furnished to
such beneficial owner.
The United States federal income tax discussion set forth above
is included for general information only and may not be
applicable depending upon an owners particular situation.
Owners should consult their own tax advisors with respect to the
tax consequences to them of the ownership and disposition of the
Notes, including the tax consequences under state, local,
foreign and other tax laws and the possible effects of changes
in federal or other tax laws.
S-13
UNDERWRITING
Under the terms and subject to the conditions set forth in the
Underwriting Agreement, dated December 12, 2006 (the
Underwriting Agreement), the underwriters named
below (the Underwriters) have severally agreed to
purchase, and the Company has agreed to sell to them, severally,
the respective principal amount of the Notes set forth opposite
their respective names below:
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Principal | |
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Principal | |
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Amount of | |
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Amount of | |
Name |
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5.25% Notes | |
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5.60% Notes | |
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Goldman, Sachs & Co.
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$ |
270,000,000 |
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$ |
180,000,000 |
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Morgan Stanley & Co. Incorporated
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270,000,000 |
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180,000,000 |
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Banc of America Securities LLC
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10,000,000 |
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6,666,667 |
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Citigroup Global Markets Inc.
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10,000,000 |
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6,666,667 |
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Credit Suisse Securities (USA) LLC
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10,000,000 |
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6,666,667 |
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Deutsche Bank Securities Inc.
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10,000,000 |
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6,666,667 |
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Greenwich Capital Markets, Inc.
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10,000,000 |
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6,666,666 |
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J.P. Morgan Securities Inc.
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10,000,000 |
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6,666,666 |
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Total
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$ |
600,000,000 |
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$ |
400,000,000 |
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The Underwriting Agreement provides that the obligations of the
several Underwriters to pay for and accept delivery of the Notes
are subject to, among other things, the approval of certain
legal matters by their counsel and certain other conditions. The
Underwriters are obligated to take and pay for all the Notes if
any are taken.
The Underwriters propose initially to offer part of the Notes to
the public at the public offering prices set forth on the cover
page hereof and in part to certain dealers at prices that
represent a concession not in excess of 0.25% of the principal
amount of the 5.25% Notes and 0.50% of the principal amount of
the 5.60% Notes. Any Underwriter may allow, and such dealers may
reallow, a concession not in excess of 0.125% of the principal
amount of the 5.25% Notes and 0.25% of the principal amount of
the 5.60% Notes to certain other dealers. After the initial
offering of the Notes, the offering price and other selling
terms may from time to time be varied by the Underwriters.
In order to facilitate 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 this offering,
creating short positions in the Notes for their own account. In
addition, to cover over-allotments or to stabilize the price of
the Notes, the Underwriters may bid for, and purchase, Notes in
the open market. Finally, the Underwriters may reclaim selling
concessions allowed to an underwriter or dealer for distributing
Notes in this offering, if the Underwriters repurchase
previously distributed Notes in transactions that cover
syndicate short positions, in 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 these activities, and
may end any of these activities at any time.
Certain of the Underwriters and their affiliates engage in
transactions with, and perform services for, the Company in the
ordinary course of business and have engaged, and may in the
future engage, in commercial banking and investment banking
transactions with the Company.
The Notes are offered for sale in those jurisdictions in the
United States, Canada, Europe, Asia and elsewhere where it is
lawful to make such offers.
Each of the Underwriters has represented and agreed that it has
not and will not offer, sell or deliver any of the Notes
directly or indirectly, or distribute this prospectus supplement
or the prospectus or any other offering material relating to the
Notes, in or from any jurisdiction except under circumstances
that
S-14
will result in compliance with the applicable laws and
regulations thereof and that will not impose any obligations on
the Company except as set forth in the Underwriting Agreement.
In particular, each Underwriter has represented and agreed that:
In relation to each Member State of the European Economic Area
which has implemented the Prospectus Directive (each, a
Relevant Member State), each Underwriter has
represented and agreed that, with effect from and including the
date on which the Prospectus Directive is implemented in that
Relevant Member State (the Relevant Implementation
Date), it has not made and will not make an offer of Notes
to the public in that Relevant Member State prior to the
publication of a prospectus in relation to the 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,
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 at any time:
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(a) to legal entities which are authorised or regulated to
operate in the financial markets or, if not so authorised or
regulated, whose corporate purpose is solely to invest in
securities; |
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(b) to any legal entity which has two or more of
(1) an average of at least 250 employees during the last
financial year; (2) a total balance sheet of more than
43,000,000 and
(3) an annual net turnover of more than
50,000,000, as
shown in its last annual or consolidated accounts; or |
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(c) in any other circumstances which do not require the
publication by the issuer of a prospectus pursuant to
Article 3 of the Prospectus Directive. |
For the purposes of this provision, the expression an
offer of 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 for the Notes, as
the same may be varied in that Relevant Member State by any
measure implementing the Prospectus Directive in that Relevant
Member State and the expression Prospectus Directive means
Directive 2003/71/ EC and includes any relevant implementing
measure in each Relevant Member State.
With respect to sales to residents of the United Kingdom:
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(a) (i) it is a qualified investor within the meaning
of Section 86(7) of the Financial Services and Markets Act
2000 (the FSMA), and (ii) 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
within the meaning of Section 86(7) of the FSMA 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 FSMA; |
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(b) it has only communicated or caused to be communicated
and will only communicate or cause to be communicated an
invitation or inducement to engage in investment activity
(within the meaning of Section 21 of the FSMA) received by
it in connection with the issue or sale of the Notes in
circumstances in which Section 21(1) of the FSMA does not
apply to the Issuer; and |
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(c) 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. |
The Notes may not be offered or sold by means of any document
other than to persons whose ordinary business is to buy or sell
shares or debentures, whether as principal or agent, or in
circumstances which do not constitute an offer to the public
within the meaning of the Companies Ordinance
(Cap. 32) of Hong Kong, and no advertisement,
invitation or document relating to the Notes may be issued,
whether in Hong Kong or elsewhere, which is directed at, or
the contents of which are likely to be accessed or read by, the
public in Hong Kong (except if permitted to do so under the
securities laws of Hong Kong) other than with respect to Notes
which are or are intended to be disposed of only to persons
outside Hong Kong
S-15
or only to professional investors within the meaning
of the Securities and Futures Ordinance (Cap. 571) of Hong Kong
and any rules made thereunder.
The securities have not been and will not be registered under
the Securities and Exchange Law of Japan (the Securities
and Exchange Law) and each underwriter has agreed that it
will not offer or sell any securities, directly or indirectly,
in Japan or to, or for the benefit of, any resident of Japan
(which term as used herein means any person resident in Japan,
including any corporation or other entity organized under the
laws of Japan), or to others for re-offering or resale, directly
or indirectly, in Japan or to a resident of Japan, except
pursuant to an exemption from the registration requirements of,
and otherwise in compliance with, the Securities and Exchange
Law and any other applicable laws, regulations and ministerial
guidelines of Japan.
This prospectus supplement has not been registered as a
prospectus with the Monetary Authority of Singapore.
Accordingly, this prospectus supplement and any other document
or material in connection with the offer or sale, or invitation
for subscription or purchase, of the Notes may not be circulated
or distributed, nor may the Notes be offered or sold, or be made
the subject of an invitation for subscription or purchase,
whether directly or indirectly, to persons in Singapore other
than (i) to an institutional investor under
Section 274 of the Securities and Futures Act,
Chapter 289 of Singapore (the SFA),
(ii) to a relevant person, or any person pursuant to
Section 275(1A), and in accordance with the conditions,
specified in Section 275 of the SFA or (iii) otherwise
pursuant to, and in accordance with the conditions of, any other
applicable provision of the SFA.
Where the Notes are subscribed or purchased under
Section 275 by a relevant person which is: (a) a
corporation (which is not an accredited investor) the sole
business of which is to hold investments and the entire share
capital of which is owned by one or more individuals, each of
whom is an accredited investor; or (b) a trust (where the
trustee is not an accredited investor) whose sole purpose is to
hold investments and each beneficiary is an accredited investor,
shares, debentures and units of shares and debentures of that
corporation or the beneficiaries rights and interest in
that trust shall not be transferable for six months after that
corporation or that trust has acquired the notes under
Section 275 except: (1) to an institutional investor
under Section 274 of the SFA or to a relevant person, or
any person pursuant to Section 275(1A), and in accordance
with the conditions, specified in Section 275 of the SFA;
(2) where no consideration is given for the transfer; or
(3) by operation of law.
The Notes are a new issue of securities with no established
trading market. The Underwriters have advised the Company the
Underwriters intend to make a market in the Notes. The
Underwriters are not obligated, however, to do so and may
discontinue their market making at any time without notice. No
assurance can be given as to the liquidity of the trading market
for the Notes.
The Bookrunners have agreed to reimburse us $500,000.
Expenses associated with this offering, to be paid by the
Company, are estimated to be $500,000.
The Company has agreed to indemnify the Underwriters against
certain liabilities, including liabilities under the Securities
Act.
LEGAL OPINIONS
The validity of the Notes offered hereby will be passed on for
the Company by Stacey J. Mobley, Esq., Senior Vice
President, Chief Administrative Officer and General Counsel of
the Company, and for the Underwriters by Cravath,
Swaine & Moore LLP. Certain matters will be passed upon
for the Company by Skadden, Arps, Slate, Meagher & Flom
LLP. Mr. Mobley beneficially owned as of November 30,
2006, 85,670 shares of the Common Stock of the Company,
plus 557,000 shares of which he has the right to acquire
beneficial ownership within 60 days through the exercise of
stock options awarded under the Companys Stock Option
Plan. Cravath, Swaine & Moore LLP performs legal
services for the Company from time to time.
S-16
E. I. du Pont de Nemours
and Company
1007 Market Street
Wilmington, Delaware 19898
(302) 774-1000
$3,000,000,000
debt securities
We will provide the specific terms of the securities in
supplements to this prospectus. You should read this prospectus
and any supplement carefully before you invest.
Neither the Securities and Exchange Commission nor any state
securities commission has approved or disapproved of these
securities or determined whether this prospectus is truthful or
complete. Any representation to the contrary is a criminal
offense.
The date of this prospectus is May 19, 2005
TABLE OF CONTENTS
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About This Prospectus
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1 |
Where You Can Find More Information
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1 |
Forward-Looking Information
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2 |
About DuPont
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3 |
Use Of Proceeds
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3 |
Ratio Of Earnings To Fixed Charges
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3 |
Description of Debt Securities
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3 |
Plan of Distribution
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11 |
Legal Opinion
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12 |
Experts
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12 |
i
ABOUT THIS PROSPECTUS
This prospectus is part of a registration statement that we have
filed with the Securities and Exchange Commission using a
shelf registration process. Using this process, we
may offer the securities described in this prospectus in one or
more offerings with a total initial offering price of up to
$3,000,000,000. This prospectus provides you with a general
description of the securities we may offer. Each time we offer
securities, we will provide a supplement to this prospectus. The
prospectus supplement will describe the specific terms of that
offering. The prospectus supplement may also add, update or
change the information contained in this prospectus. Please
carefully read this prospectus and the prospectus supplement, in
addition to the information contained in the documents we refer
you to under the heading Where You Can Find More
Information.
WHERE YOU CAN FIND MORE INFORMATION
We file annual, quarterly and special reports, proxy statements
and other information with the SEC. You can read and copy any
materials we file with the SEC at the SECs Public
Reference Room at 450 Fifth Street, N.W., Washington, D.C.
20549. You can obtain information about the operation of the
SECs Public Reference Room by calling the SEC at
1-800-SEC-0330. The SEC
also maintains a web site that contains information we file
electronically with the SEC, which you can access over the
internet at http://www.sec.gov. You can obtain information about
us at the offices of the New York Stock Exchange, 20 Broad
Street, New York, New York 10005.
This prospectus is part of a registration statement we have
filed with the SEC relating to the debt securities. As permitted
by SEC rules, this prospectus does not contain all of the
information we have included in the registration statement and
the accompanying exhibits and schedules we file with the SEC.
You may refer to the registration statement, the exhibits and
schedules for more information about us and the debt securities.
The registration statement, exhibits and schedules are available
at the SECs Public Reference Room or through its web site.
The SEC allows us to incorporate by reference the
information we file with them, which means that we can disclose
important information to you by referring you to those
documents. The information we incorporate by reference is an
important part of this prospectus, and later information that we
file with the SEC will automatically update and supersede this
information. We incorporate by reference the documents listed
below, and any future filings we make with the SEC under
Sections 13(a), 13(c), 14 or 15(d) of the Securities
Exchange Act of 1934 until we sell all the debt securities. The
documents we incorporate by reference are:
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our annual report on
Form 10-K for the
year ended December 31, 2004; |
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our quarterly report on
Form 10-Q for the
quarter ended March 31, 2005; and |
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our current report(s) on
Form 8-K as filed
with the SEC on January 4, 2005, January 19, 2005,
February 1, 2005, February 8, 2005, May 4, 2005
and May 5, 2005. |
You may request a copy of these filings (other than an exhibit
to these filings unless we have specifically incorporated that
exhibit by reference into the filing), at no cost, by writing or
telephoning us at the following address:
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DuPont Company |
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1007 Market Street |
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Wilmington, DE 19898 |
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Attention: Treasury |
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Telephone: (302) 774-1000 |
You should rely only on the information we have provided or
incorporated by reference in this prospectus, any prospectus
supplement or any incorporated document. We have not authorized
anyone to provide you with different information. You should not
assume that the information in this prospectus, any prospectus
supplement, or any incorporated document is accurate as of any
date other than the date on its cover.
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FORWARD-LOOKING INFORMATION
This prospectus and the information incorporated by reference
contains forward-looking statements which may be identified by
their use of words like plans, expects,
will, anticipates, intends,
projects, estimates or other words of
similar meaning. All statements that address expectations or
projections about the future, including statements about our
strategy for growth, product development, market position,
expenditures, and financial results, are forward-looking
statements.
Forward-looking statements are based on certain assumptions and
expectations of future events. We cannot guarantee that these
assumptions and expectations are accurate or will be realized.
In addition, the following are some of the important factors
that could cause our actual results to differ materially from
those projected in any forward-looking statements:
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Since DuPont conducts business throughout the world,
governmental and quasi-governmental activities, including
changes in the laws or policies of any country in which the
company operates, could affect our business and profitability in
that country. Also, our business and profitability in a
particular country could be affected by political or economic
repercussions on a domestic, country specific or global level
from acts of terrorism or war (whether or not declared) and the
response to such activities. In addition, economic factors
(including cyclical economic growth, particularly in the United
States, Europe and Asia Pacific, inflation or fluctuations in
interest and currency exchange rates) and competitive factors
(such as greater price competition or expiration of patent
protection) could affect our financial results. |
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DuPonts growth objectives are largely dependent on its
ability to renew its pipeline of new products and services and
to bring those products and services to market. This ability may
be adversely affected by difficulties or delays in product
development such as the inability to: identify viable new
products; successfully complete research and development; obtain
relevant regulatory approvals; obtain adequate intellectual
property protection; or gain market acceptance of the new
products and services. |
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DuPonts ability to grow earnings is significantly affected
by cost of energy and energy-related raw materials. We may not
be able to fully offset the effects of higher raw material costs
through price increases or productivity improvements. |
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As part of its strategy for growth, DuPont has made and may
continue to make acquisitions and divestitures and form
strategic alliances. There can be no assurance that these will
be completed or beneficial to DuPont. |
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To a significant degree, results in Agriculture &
Nutrition reflect changes in agricultural conditions, including
weather and government programs. These results also reflect the
seasonality of sales of agricultural products; highest sales in
the Northern Hemisphere occur in the first half of the year. In
addition, demand for products produced in this segment may be
affected by market acceptance of genetically enhanced products. |
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DuPont has undertaken and may continue to undertake productivity
initiatives, including cost reduction programs, organizational
restructurings and Six Sigma productivity improvement projects,
to improve performance and generate cost savings. There can be
no assurance that these will be completed or beneficial to
DuPont. Also, there can be no assurance that any estimated cost
savings from such activities will be realized. |
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DuPonts facilities are subject to a broad array of
environmental laws and regulations. The costs of complying with
complex environmental laws and regulations, as well as internal
voluntary programs, are significant and will continue to be so
for the foreseeable future. DuPonts accruals for such
costs and liabilities may not be adequate since the estimates on
which the accruals are based depend on a number of factors
including the nature of the allegation, the complexity of the
site, the nature of the remedy, the outcome of discussions with
regulatory agencies and other potentially responsible parties
(PRPs) at multi-party sites, and the number and financial
viability of other PRPs. |
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DuPonts results of operations could be affected by
significant litigation adverse to DuPont, including product
liability claims, patent infringement claims and antitrust
claims. |
The foregoing list of important factors is not inclusive, or
necessarily in order of importance.
ABOUT DUPONT
We were founded in 1802 and incorporated in Delaware in 1915. We
have been in continuous operation for over 200 years. Our
principal offices are at 1007 Market Street in Wilmington,
Delaware.
We are a world leader in science and technology in a range of
disciplines including biotechnology, electronics, materials
science, safety and security and synthetic fibers. We operate
globally manufacturing a wide range of products for distribution
and sale to many different markets, including the
transportation, safety and protection, construction, motor
vehicle, agriculture, home furnishings, medical, packaging,
electronics and the nutrition and health markets.
Our operating and financial reporting segments are
Agriculture & Nutrition, Coatings & Color
Technologies, Electronics & Communication Technologies,
Performance Materials, Pharmaceuticals and Safety &
Protection.
USE OF PROCEEDS
Unless we inform you otherwise in a prospectus supplement, we
will use the net proceeds from the sale of the offered
securities for general corporate purposes. These purposes may
include repayment and refinancing of debt, acquisitions, working
capital, capital expenditures and repurchases and redemptions of
securities. Pending any specific application, we may initially
invest funds in short-term marketable securities or apply them
to the reduction of short-term indebtedness.
RATIO OF EARNINGS TO FIXED CHARGES
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Three Months |
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Year Ended December 31, |
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Ended |
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March 31, 2005 |
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2004 |
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2003 |
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2002 |
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2001 |
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2000 |
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Ratio of Earnings to Fixed Charges
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12.2 |
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5.0 |
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2.3 |
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5.5 |
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10.5 |
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4.5 |
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DESCRIPTION OF DEBT SECURITIES
We will issue the debt securities under one of two indentures:
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an indenture dated as of June 1, 1992 between us and
Deutsche Bank (formerly Bankers Trust Company), as trustee; or |
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an indenture dated as of June 1, 1992 between us and
JPMorgan Chase Bank successor to The Chase Manhattan Bank and
Chemical Bank, as trustee. |
Each indenture is incorporated into or filed as an exhibit to
the registration statement, of which this prospectus is a part.
The trustee will be designated in the prospectus supplement for
each offering of debt securities. All references to the
trustee mean the trustee identified in the
prospectus supplement. The following summaries of certain
provisions of the indentures are not complete. We encourage you
to read the indentures.
General
The indentures do not limit the amount of debt securities that
we may issue. Each provides that debt securities may be issued
up to the aggregate principal amount that we authorize from time
to time. The
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debt securities will be unsecured and will rank on a parity with
all of our other unsecured and unsubordinated indebtedness.
The prospectus supplement relating to a series of debt
securities will describe the terms of that series, including,
where applicable:
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the designation, aggregate principal amount, currency or
currencies and denominations of the debt securities; |
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whether the debt securities may be convertible into or
exchangeable for other securities; |
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the price or prices, expressed as a percentage of aggregate
principal amount, at which the debt securities will be issued; |
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the date or dates on which the debt securities will mature; |
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the currency or currencies in which the debt securities are
being sold and in which the principal of and any interest on the
debt securities will be payable and whether the holder of the
debt securities may elect the currency in which payments are to
be made, and, if so, the manner of such election; |
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the rate or rates, which may be fixed or variable, at which the
debt securities will bear interest, if any; |
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the date from which interest on the debt securities will accrue,
the dates on which interest will be payable and the date on
which payment of interest will commence; |
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the dates on which and the price or prices at which the debt
securities will, under any mandatory sinking fund provision, or
may, under any optional redemption or required repayment
provisions, be redeemed or repaid and the other terms and
provisions of any mandatory sinking fund, optional redemption or
required repayment; |
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whether the debt securities are to be issuable as registered
securities, bearer securities or both and the terms upon which
any bearer securities of a series may be exchanged for
registered securities of that series; |
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whether the debt securities are to be issued in whole or in part
in the form of one or more global securities and, if so, the
identity of the depositary or depositaries for the global
security or securities; |
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any special provisions for the payment of additional amounts on
the debt securities; |
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if a temporary global security is to be issued for a series, the
requirements for certification of ownership by non-United States
persons that will apply before (a) the issuance of a
definitive bearer security or (b) the payment of interest
on an interest payment date that occurs before the issuance of a
definitive bearer security; |
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if a temporary global security is to be issued with respect to
the series, the terms upon which interests in the temporary
global security may be exchanged for interests in a definitive
global security or for definitive debt securities of the series
and the terms upon which interests in a definitive global
security, if any, may be exchanged for definitive debt
securities of the series; |
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any additions, modifications or deletions to the restrictive
covenants included for the benefit of holders of the debt
securities; |
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any additions, modifications or deletions to the events of
default provided with respect to the debt securities; |
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if the debt securities of the series are subject to defeasance
at our option, the provisions, Federal income tax consequences
and other considerations applicable thereto; |
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the designated trustee for the debt securities
(Section 301); and |
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any other terms of the debt securities not inconsistent with the
provisions of the applicable indenture. |
Debt securities of a series may be issuable in whole or in part
in the form of one or more global securities, as described below
under Global Securities. Registered securities
denominated in U.S. dollars will ordinarily be issued only in
denominations of $1,000 or any integral multiple of $1,000. One
or more global securities will be issued in a denomination or
aggregate denominations equal to the aggregate principal amount
of outstanding debt securities of the series. The prospectus
supplement relating to a series of debt securities denominated
in a foreign or composite currency will specify the allowable
denominations and any special U.S. Federal income tax and other
considerations. No service charge will be made for any tender or
exchange of debt securities but we may require payment of a sum
sufficient to cover any tax or other governmental charge.
(Sections 302 and 305)
Debt securities may be presented for exchange, and registered
securities that are not in global form may be presented for
transfer, with the form of transfer endorsed thereon duly
executed, at the office of any transfer agent or at the office
of the security registrar, without service charge and upon
payment of any taxes and other governmental charges as described
in the indenture. Transfers or exchanges will be effected once
the transfer agent or the security registrar, as the case may
be, is satisfied with the documents of title and identity of the
person making the request. (Section 305)
Debt securities may be issued under the indenture as original
issue discount securities to be offered and sold at a
substantial discount below their stated principal amount.
Original issue discount securities means any debt
securities that provide for an amount less than their principal
amount to be due and payable upon a declaration of acceleration
of maturity upon the occurrence and continuation of an event of
default and any debt securities issued with original issue
discount for U.S. Federal income tax purposes.
(Section 101) A prospectus supplement will describe
U.S. Federal income tax consequences and other special
considerations applicable to any original issue discount
securities.
Global Securities
The debt securities of a series may be issued in whole or in
part in the form of one or more global securities that will be
deposited with, or on behalf of, a depositary identified in the
prospectus supplement relating to that series. Global securities
may be issued in either registered or bearer form and in either
temporary or definitive form. Unless and until it is exchanged
in whole or in part for debt securities in definitive form, a
global security may not be transferred except as a whole by the
depositary to a nominee of the depositary or by a nominee of the
depositary to the depositary or another nominee of the
depositary or by the depositary or any nominee to a successor of
the depositary or a nominee of that successor.
(Sections 303 and 305)
The specific terms of the depositary arrangement with respect to
any debt securities of a series will be described in the
prospectus supplement relating to that series. We anticipate
that the following provisions will apply to all depositary
arrangements.
Upon the issuance of a global security, the depositary will
credit, on its book-entry registration and transfer system, the
respective principal amounts of the debt securities represented
by the global security to the accounts of
participants that have accounts with the depositary.
The accounts to be credited shall be designated by the
underwriters of debt securities, by certain of our agents or by
us if we sell debt securities directly. Ownership of beneficial
interests in a global security will be limited to participants
or persons that may hold interests through participants.
Ownership of beneficial interests in a global security will be
shown on, and the transfer of that ownership will be effected
only through, records maintained by the depositary or by
participants or persons that hold through participants. The laws
of some states require that certain purchasers of securities
take physical delivery of securities in definitive form. These
limits and laws may impair the ability to transfer beneficial
interests in a global security.
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So long as the depositary or its nominee is the owner of a
global security, the depositary or its nominee, as the case may
be, will be considered the sole owner or holder of the debt
securities represented by that global security for all purposes
under the indenture. Except as set forth below, owners of
beneficial interests in a global security will not be entitled
to have debt securities of the series represented by that global
security registered in their names, will not receive or be
entitled to receive physical delivery of debt securities in
definitive form and will not be considered the owners or holders
of the debt securities under the indenture governing the debt
securities. Accordingly, each person owning a beneficial
interest in a global security must rely on the procedures of the
depositary and, if such person is not a participant, on the
procedures of the participant and, if applicable, the indirect
participant, through which such person owns its interest, to
exercise any right of a holder under the indenture.
Principal, premium, if any, and interest payments on debt
securities registered in the name of or held by a depositary or
its nominee will be made to the depositary or its nominee, as
the case may be, as the registered owner or the holder of the
global security representing those debt securities. Neither we,
the trustee, any paying agent nor the security registrar will
have any responsibility or liability for any aspect of the
records relating to or payments made on account of beneficial
ownership interests in a global security or for maintaining,
supervising or reviewing any records relating to beneficial
ownership interests.
We expect that the depositary for debt securities of a series,
upon receipt of any payment of principal, premium or interest in
respect of a definitive global security, will credit immediately
participants accounts with payments in amounts
proportionate to their respective beneficial interests in the
principal amount of the global security as shown on the records
of the depositary. We also expect that payments by participants
to owners of beneficial interests in a global security held
through those participants will be governed by standing
instructions and customary practices, as is now the case with
securities held for the accounts of customers in bearer form or
registered in street name, and will be the
responsibility of those participants.
If a depositary for debt securities of a series is at any time
unwilling or unable to continue as depositary and we do not
appoint a successor depositary within 90 days, we will
issue debt securities of that series in definitive form in
exchange for the global security or securities representing the
debt securities of that series. In addition, we may at any time
and in our sole discretion determine not to have any debt
securities of a series represented by one or more global
securities. In that event, we will issue debt securities of that
series in definitive form in exchange for the global security or
securities representing those debt securities. An owner of a
beneficial interest in a global security representing debt
securities of a series may, on terms acceptable to us and the
depositary for such global security, receive debt securities of
that series in definitive form. In any of these instances, an
owner of a beneficial interest in a global security will be
entitled to physical delivery in definitive form of debt
securities of the series represented by that global security
equal in principal amount to that beneficial interest and to
have debt securities registered in its name if the debt
securities of that series are issuable as registered securities.
Debt securities of that series issued in definitive form will be
issued only in authorized denominations.
Payment and Paying Agents
Payment of principal of and any premium on registered securities
will be made in the designated currency against surrender of any
registered securities at the corporate trust office of the
trustee in New York City. Payment of any installment of interest
on registered securities will ordinarily be made to the person
in whose name the debt security is registered at the close of
business on the regular record date for that interest payment.
Payments of interest will be made at the corporate trust office
of the trustee in New York City or by a check in the designated
currency mailed to each holder at the holders registered
address. (Sections 307 and 1001)
The paying agents outside the United States that we initially
appoint for a series of debt securities will be named in the
prospectus supplement. We may terminate the appointment of any
of the paying agents from time to time, except that we will
maintain at least one paying agent in New York City for payments
on registered securities. So long as any series of debt
securities is listed on The International
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Stock Exchange of the United Kingdom and the Republic of Ireland
Limited or the Luxembourg Stock Exchange or any other stock
exchange located outside the United States and it is a
requirement of that stock exchange, we will maintain a paying
agent in London or Luxembourg or any other required city located
outside the United States, as the case may be, for that series
of debt securities. (Section 1002)
All moneys that we pay to a paying agent for the payment of
principal of or any premium, or interest on any debt security
that remains unclaimed at the end of two years after it became
due and payable will be repaid to us and the holder of that debt
security will thereafter look only to us for payment.
(Section 1003)
Certain Covenants
Liens. We covenant that, so long as any of the debt
securities remain outstanding, we will not, nor will we permit
any Restricted Subsidiary (as defined below, in Definition
of Certain Terms) to issue, assume, or guarantee any debt
for money borrowed if that debt is secured by a mortgage on any
Principal Property (as defined), or on any shares of stock or
indebtedness of any Restricted Subsidiary (whether the Principal
Property, shares of stock, or indebtedness are now owned or
hereafter acquired) without in any such case effectively
providing that the debt securities shall be secured equally and
ratably with such debt. This restriction, however, shall not
apply to:
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mortgages on property, shares of stock, or indebtedness of any
corporation existing at the time such corporation becomes a
Restricted Subsidiary; |
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mortgages on property existing at the time that it is acquired,
or to secure debt incurred for the purpose of financing the
purchase price of such property or improvements or construction
on the property, which debt is incurred prior to, at the time of
or within one year after such acquisition, completion of such
construction, or the commencement of commercial operation of
such property thereon; |
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mortgages securing debt owing by any Restricted Subsidiary to us
or another Restricted Subsidiary; |
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mortgages on property of a corporation existing at the time that
corporation is merged into or consolidated with us or a
Restricted Subsidiary or at the time of a sale, lease or other
disposition of the properties of a corporation as an entirety or
substantially as an entirety to us or a Restricted Subsidiary; |
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mortgages on property of us or a Restricted Subsidiary in favor
of the United States of America or any State thereof, or any
department, agency or instrumentality or political subdivision
of the United States of America or any State thereof or in favor
of any other country, or any political subdivision thereof, to
secure certain payments pursuant to any contract or statute or
to secure any indebtedness incurred for the purpose of financing
all or any part of the purchase price or the cost of
construction of the property subject to such mortgages,
including without limitation mortgages incurred in connection
with pollution control, industrial revenue or similar financings; |
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mortgages existing at the date of the indenture; |
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mortgages on particular property, or any proceeds of the sale of
that property, to secure all or any part of the cost of
exploration, drilling, mining or development of that property,
including construction of facilities for field processing of
minerals, intended to obtain or materially increase the
production and sale or other disposition of oil, gas, coal,
uranium, copper or other minerals of that property, or any
indebtedness created, issued, assumed or guaranteed to provide
funds for any or all such purposes; or |
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any extension, renewal or replacement or successive extensions,
renewals or replacements, in whole or in part, of any mortgage
referred to in the clauses immediately above. |
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Notwithstanding the above, we and one or more of our Restricted
Subsidiaries may, without securing the debt securities, issue,
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subject to the above restrictions, provided that the aggregate
amount of that debt that would then be outstanding, with certain
exceptions does not at any one time exceed 10% of the
Consolidated Net Tangible Assets (as defined) of us and our
consolidated subsidiaries. (Section 1004) |
For the purposes of this covenant, the following types of
transactions shall not be deemed to create debt secured by a
mortgage: the sale or other transfer of
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oil, gas, coal, uranium, copper or other minerals in place for a
period of time until, or in an amount such that, the purchaser
will realize therefrom a specified amount of money (however
determined) or a specified amount of such minerals; or |
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any other interest in property of the character commonly
referred to as a production payment.
(Section 1004) |
Sale and Leaseback Transactions. Sale and leaseback
transactions by us or any Restricted Subsidiary of any Principal
Property are prohibited unless (a) we or such Restricted
Subsidiary would be entitled to issue, assume, or guarantee debt
secured by the property involved at least equal in amount to the
Attributable Debt (as defined) for that transaction without
equally and ratably securing the debt securities or (b) an
amount equal to the Attributable Debt for that transaction is
applied to the retirement of our nonsubordinated debt or that of
a Restricted Subsidiary, which by its terms matures at or is
extendible or renewable at the option of the obligor to a date
more than twelve months after its creation.
(Section 1005)
Consolidation or Merger. We will not consolidate or merge
with or dispose of all or substantially all of our property to
any corporation unless the surviving corporation, if other than
us, shall assume our obligations under the indenture and under
the debt securities. (Section 801) If on any
consolidation or merger of us or any Restricted Subsidiary with
or into any other corporation, or on any sale, conveyance, or
lease of substantially all our or a Restricted Subsidiarys
properties, any Principal Property or any shares of stock or
indebtedness of any Restricted Subsidiary would then become
subject to any mortgage, pledge, security interest, or other
lien or encumbrance, we, prior to such event, will secure the
debt securities by a direct lien on that Principal Property,
shares of stock or indebtedness, prior to all liens other than
any previously existing. (Section 802)
Except for the limitations on secured debt and sale and
leaseback transactions described above, the indenture and debt
securities do not contain any covenants or other provisions
designed to afford holders of the debt securities protection in
the event of a highly leveraged transaction involving us.
Definition of Certain Terms
Subsidiary is defined to mean any corporation which
is consolidated in our accounts and any corporation of which at
least a majority of the outstanding stock having voting power
under ordinary circumstances to elect a majority of the board of
directors of that corporation shall at the time be owned or
controlled by us or by us and one or more Subsidiaries or by one
or more Subsidiaries. (Section 101)
Restricted Subsidiary is defined to mean any
wholly-owned subsidiary
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substantially all the property of which is located within the
continental United States of America, |
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which owns a Principal Property, and |
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in which our investment exceeds 1% of our consolidated assets as
of the end of the preceding year. |
The term Restricted Subsidiary does not include any
wholly-owned subsidiary which is principally engaged in leasing
or in financing installment receivables or which is principally
engaged in financing our operations outside the continental
United States. (Section 101)
Principal Property is defined as any manufacturing
plant or facility or any mineral producing property or any
research facility located within the continental United States
owned by us or any Restricted Subsidiary, unless, in the opinion
of our Board or Directors, such plant facility, property or
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research facility is not of material importance to the total
business conducted by us and our Restricted Subsidiaries.
(Section 101)
Attributable Debt is defined as the present value,
discounted as provided in the indenture, of the obligation of a
lessee for rental payments during the remaining term of any
lease. (Section 1005)
Consolidated Net Tangible Assets means the total
amount of assets less applicable reserves and other properly
deductible items after deducting (a) all current
liabilities excluding any thereof which are by their terms
extendible or renewable at the option of the obligor thereon to
a time more than 12 months after the time as of which the
amount thereof is being computed, and (b) all goodwill,
trade names, trademarks, patents, purchased technology,
unamortized debt discount and other like intangible assets, all
as set forth on our most recent quarterly balance sheet and
computed in accordance with generally accepted accounting
principles. (Section 101)
Modification of the Indenture
The indenture permits us and the trustee, with the consent of
the holders of not less than a majority in principal amount of
the debt securities at the time outstanding and affected, to
execute a supplemental indenture modifying the indenture or the
rights of the holders of debt securities and any related
coupons. No modification shall, without the consent of the
holder of each debt security affected thereby,
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change the maturity of any debt security or coupon, or reduce
its principal amount, or reduce the rate or change the time of
payment of interest, or change any place of payment or change
the coin or currency in which a debt security or coupon is
payable or impair the right of any holder to institute suit for
the enforcement of payment in accordance with the foregoing, or |
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reduce the percentage of debt securities, the consent of the
holders of which is required for any modification.
(Section 902) |
The indenture contains provisions for convening meetings of the
holders of debt securities of a series.
(Section 1401) A meeting may be called at any time
by the trustee or upon our request or the request of holders of
at least 10% in principal amount of the outstanding debt
securities of the series, upon notice given in accordance with
the indenture. (Section 1402) Except as limited in
the preceding paragraph, any resolution presented at a meeting
or adjourned meeting at which a quorum is present may be adopted
by the affirmative vote of the holders of not less than a
majority in principal amount of the outstanding debt securities
of that series. Except as limited in the preceding paragraph,
any resolution with respect to any demand, consent, waiver or
other action that may be made, given or taken by the holders of
a specified percentage, which is less than a majority in
principal amount of outstanding debt securities of a series, may
be adopted at a meeting or adjourned meeting at which a quorum
is present by the affirmative vote of the holders of such
specified percentage in principal amount of the outstanding debt
securities of that series. (Section 1403)
Any resolution passed or decision taken at any meeting of
holders of debt securities of any series duly held in accordance
with the indenture will be binding on all holders of debt
securities of that series and the related coupons. The quorum at
any meeting called to adopt a resolution, and at any reconvened
meeting, will be persons holding or representing not less than a
majority in principal amount of the outstanding debt securities
of a series. (Section 1403)
Events of Default
The indenture defines an event of default with respect to any
series of debt securities as any one of the following events and
any other event that is established for the debt securities of a
particular series:
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default for 30 days in any payment of interest on the
series; |
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default in any payment of principal and premium, if any, on the
series; |
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default in the payment of any sinking fund installment; |
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default for 60 days after appropriate notice in performance
of any other covenant in the indenture; or |
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certain events involving bankruptcy, insolvency or
reorganization. |
No event of default with respect to a particular series of debt
securities issued under the indenture necessarily constitutes an
event of default with respect to any other series of debt
securities. (Section 501).
We are required to file with the trustee annually an
officers certificate indicating whether we are in default
under the indenture. (Section 1008)
The indenture provides that if an event of default shall occur
and be continuing with respect to any series of debt securities,
either the trustee or the holders of 25% in principal amount of
the debt securities of the series (in the case of defaults under
the final two clauses listed above, the holders of 25% in
principal amount of all the debt securities) then outstanding
may declare the principal, or in the case of original issue
discount securities, that portion of the principal amount as may
be specified, of the debt securities of the series or of all the
debt securities, as the case may be to be due and payable.
(Section 502) In certain cases, the holders of a
majority in principal amount of the outstanding debt securities
of any series or in the case of defaults under the final two
clauses listed above, the holders of a majority in principal
amount of all the debt securities may on behalf of the holders
of all the debt securities of any such series or of all the debt
securities, as the case may be waive any past default or event
of default except a default not previously cured in payment of
the principal of or premium, if any, or interest on any of the
debt securities of such series or of all the debt securities.
(Sections 502 and 513)
The indenture contains a provision entitling the trustee,
subject to the duty of the trustee during default to act with
the required standard of care, to be indemnified by the holders
of the debt securities of any series before exercising any right
or power under the indenture at the request of the holders.
(Section 603) The indenture provides that no holder
of any debt securities of any series may institute any
proceeding, judicial or otherwise, to enforce the indenture
except, among other things, where the trustee has, for
60 days after it is given notice of default, failed to act,
and where there has been both a request to enforce the indenture
by the holders of not less than 25% in aggregate principal
amount of the then outstanding debt securities of that series
and an offer of reasonable indemnity to the trustee.
(Section 507) This provision will not prevent any
holder of debt securities from enforcing payment of the
principal thereof and premium, if any, and interest thereon at
their due dates. (Section 508) The holders of a
majority in aggregate principal amount of the debt securities of
any series then outstanding may direct the time, method and
place of conducting any proceedings for any remedy available to
the trustee or exercising any trust or power conferred on it for
the debt securities of that series. However, the trustee may
refuse to follow any direction that conflicts with law or the
indenture or which would be unjustly prejudicial to the other
holders. (Section 512)
The indenture provides that the trustee will, within
90 days after the occurrence of a default on any series of
debt securities known to it, give to the holders of that series
notice of the default if not cured or waived. Except in the case
of a default in the payment of principal of, any premium, or
interest on, any debt securities, the trustee shall be protected
in withholding such notice if it determines in good faith that
doing so is in the holders interests.
(Section 602)
Discharge and Defeasance
The indenture provides that we may specify that, for debt
securities of a certain series, we will be discharged from any
and all obligations regarding those debt securities if we
irrevocably deposit with the trustee, in trust, money and/or
U.S. Government Obligations which through the payment of
interest and principal will provide enough money to pay any
installment of principal, any premium, and, any interest, and
any mandatory sinking fund payments of such debt securities on
their stated maturity in accordance with the terms of the
indenture and the debt securities. A trust may only be
established if it would not cause the debt securities of a
series listed on any nationally recognized securities exchange
to be de-listed. Establishment of a trust may be conditioned on
our delivery to the trustee of an opinion of counsel, who
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may be our counsel, to the effect that, based upon applicable
U.S. Federal income tax law or a ruling published by the United
States Internal Revenue Service, a defeasance and discharge will
not be deemed, or result in, a taxable event to holders of the
debt securities. (Section 1301) Defeasance, however,
will not end our obligations to register the transfer or
exchange of debt securities, to replace stolen, lost or
mutilated debt securities, to maintain paying agencies and hold
monies for payment in trust and, if so specified for debt
securities of a certain series, to pay the principal of and
premium, if any, and interest, if any, on those debt securities.
Trustees Relationship with Issuer
JPMorgan Chase Bank acts as depositary for funds of, makes loans
to, and performs other services for us in the normal course of
business. It also acts as trustee for our Medium-Term Notes
Series G, 8.25% Notes Due 2006, and 4.125% Notes Due 2013.
Deutsche Bank acts as depositary for funds of, makes loans to,
and performs other services for us in the normal course of
business. It also acts as trustee for our Medium-Term Notes
Series F, 6.75% Notes Due 2007, 3.375% Notes Due 2007,
5.875% Euro Notes Due 2009, 6.875% Notes Due 2009, 4.125% Notes
Due 2010, 4.75% Notes Due 2012, 4.875% Notes Due 2014 and 6.50%
Debentures Due 2028. It also acts as fiscal agent for our 5.875%
Euro Notes Due 2009.
PLAN OF DISTRIBUTION
We may sell the debt securities in and outside the United States
(a) through underwriters or dealers, (b) directly to
purchasers or (c) through agents. The prospectus supplement
will 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 from us 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 |
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any underwriting discounts and other items constituting
underwriters compensation |
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any initial public offering price |
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any discounts or concessions allowed or reallowed or paid to
dealers |
If we use underwriters in the sale, the underwriters will
acquire the debt securities for their own account. The
underwriters may resell the securities from time to time in one
or more transactions, including negotiated transactions, at a
fixed public offering price or at varying prices determined at
the time of sale. Underwriters may offer securities to the
public either through underwriting syndicates represented by one
or more managing underwriters or directly by one or more firms
acting as underwriters. Unless we inform you otherwise in the
prospectus supplement, the obligations of the underwriters to
purchase the securities will be subject to certain conditions,
and the underwriters will be obligated to purchase all the
offered securities if they purchase any of them. The
underwriters may change from time to time any initial public
offering price and any discounts or concessions allowed or
re-allowed or paid to dealers.
During and after an offering through underwriters, the
underwriters may purchase and sell the securities in the open
market. These transactions may include over-allotment and
stabilizing transactions and purchases to cover syndicate short
positions created in connection with the offering. The
underwriters may also impose a penalty bid, whereby selling
concessions allowed to syndicate members or other broker-dealers
for the offered securities sold for their account may be
reclaimed by the syndicate if those offered securities are
repurchased by the syndicate in stabilizing or covering
transactions. These activities may
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stabilize, maintain or otherwise affect the market price of the
offered securities, which may be higher than the price that
might otherwise prevail in the open market. If commenced, these
activities may be discontinued at any time.
If we use dealers in the sale of securities, we will sell the
securities to them as principals. They may then resell those
securities to the public at varying prices determined by the
dealers at the time of resale. We will include in the prospectus
supplement the names of the dealers and the terms of the
transaction.
We may sell the securities directly. In that case, no
underwriters or agents would be involved. We may also sell the
securities through agents we designate from time to time. In the
prospectus supplement, we will name any agent involved in the
offer or sale of the offered securities, and we will describe
any commissions payable by us to the agent. Unless we inform you
otherwise in the prospectus supplement, any agent will agree to
use its reasonable best efforts to solicit purchases for the
period of its appointment.
We may sell the securities directly to institutional investors
or others who may be deemed to be underwriters within the
meaning of the Securities Act of 1933 with respect to any sale
of those securities. We will describe the terms of any such
sales in the prospectus supplement.
If we so indicate in the prospectus supplement, we may authorize
agents, underwriters or dealers to solicit offers from certain
types of institutions to purchase securities from us at the
public offering price under delayed delivery contracts. These
contracts would provide for payment and delivery on a specified
date in the future. The contracts would be subject only to those
conditions described in the prospectus supplement. The
prospectus supplement will describe the commission payable for
solicitation of those contracts.
We may have agreements with the agents, dealers and underwriters
to indemnify them against certain civil liabilities, including
liabilities under the Securities Act of 1933, or to contribute
to payments that the agents, dealers or underwriters may be
required to make. Agents, dealers and underwriters may be
customers of, engage in transactions with or perform services
for us in the ordinary course of their businesses.
LEGAL OPINION
Stacey J. Mobley, our General Counsel, or another of our
lawyers, will issue an opinion about the legality of the offered
securities for us. Any underwriters will be advised about other
issues relating to any offering by their own legal counsel.
EXPERTS
The consolidated financial statements and managements
assessment of the effectiveness of internal control over
financial reporting (which is included in Managements
Report on Internal Control over Financial Reporting)
incorporated in this prospectus by reference to the Annual
Report on
Form 10-K for the
year ended December 31, 2004 have been so incorporated in
reliance on the report of PricewaterhouseCoopers LLP, an
independent registered public accounting firm, given on the
authority of said firm as experts in auditing and accounting.
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