DESCRIPTION OF THE NEW NOTES
General
The term "new notes" refers to AECOM's $1,000,000,000 5.125% Senior Notes due 2027 that have been registered under the
Securities Act. The term "old notes" refers collectively to AECOM's $1,000,000,000 outstanding unregistered 5.125% Senior Notes due 2027. We refer to the new notes and the old notes (to the extent not
exchanged for new notes) in this section as the "notes."
The
terms of the old notes are identical in all material respects to those of the new notes, except that: (1) the old notes have not been registered under the Securities Act, are
subject to certain restrictions on transfer and are entitled to certain rights under the registration rights agreement (which rights will terminate upon consummation of the exchange offer, except
under limited circumstances); and (2) the new notes will not provide for any additional interest as a result of our failure to fulfill certain registration obligations.
The
Company issued the old notes and will issue the new notes pursuant to the indenture dated as of February 21, 2017, among the Company, the subsidiary guarantors party thereto
and U.S. Bank National Association, as trustee (as amended, modified or supplemented, the "Indenture").The terms of the notes include those stated in the Indenture and those made part of the Indenture
by reference to the TIA. You should refer to the Indenture and the TIA for a complete statement of the terms applicable to the notes.
The
following is a summary of material provisions of the Indenture. The following summary of the terms of the notes and the Indenture is not complete and is subject to, and is qualified
by reference to, the notes and the Indenture, including the definitions therein of certain capitalized terms used but not defined in this description of the new notes. We urge you to read the entire
Indenture because that document, and not this description, defines your rights as holders of the new notes. For the definitions of certain capitalized terms, see "Certain Definitions" below.
For
purposes of this section, the terms "Company", "we", "us" and "our" refer only to AECOM and not to any of its subsidiaries. Certain of the Company's subsidiaries guarantee the new
notes and will be subject to many of the provisions described in this section. Each subsidiary that guarantees the new notes is referred to in this section as a "Subsidiary Guarantor." Each such
guarantee is referred to as a "Subsidiary Guarantee."
Overview of the Notes and the Subsidiary Guarantees
The old notes are and the new notes will be:
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senior unsecured obligations of the Company;
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equal in right of payment with all of the Company's existing and future senior Indebtedness;
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senior in right of payment to all of the Company's future Indebtedness that is subordinated in right of payment to the notes;
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effectively subordinated to all Secured Indebtedness of the Company and its Subsidiaries, including Indebtedness under the Credit Agreement, to
the extent of the value of the assets securing such Indebtedness;
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structurally subordinated to all liabilities, including Preferred Stock, of each Subsidiary of the Company that is not a Subsidiary Guarantor;
and
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guaranteed on a general senior unsecured basis by the Subsidiary Guarantors.
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The Subsidiary Guarantors
The old notes are and the new notes will be guaranteed by each Domestic Restricted Subsidiary of the Company that from time to time is a
borrower under or guarantees Indebtedness of the Company under any Material Credit Facility. The Subsidiary Guarantee of each
Subsidiary Guarantor with respect to old notes, are, and with respect to new notes, will be:
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a senior unsecured obligation of such Subsidiary Guarantor;
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equal in right of payment with all of such Subsidiary Guarantor's existing and future senior Indebtedness;
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senior in right of payment to all of such Subsidiary Guarantor's future Indebtedness that is subordinated in right of payment to such
Subsidiary Guarantee; and
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effectively subordinated to all Secured Indebtedness of such Subsidiary Guarantor and its Subsidiaries, including their guarantees of
Indebtedness under the Credit Agreement, to the extent of the value of the assets securing such Indebtedness.
Not
all of our subsidiaries will guarantee the notes. The non-Guarantor subsidiaries of the Company accounted for 48% of the Company's consolidated revenue and 53% of the Company's
Adjusted Consolidated EBITDA for the twelve months ended March 31, 2017 and represented 50% of the Company's total assets (excluding intercompany assets) and 31% of the Company's total
liabilities (excluding intercompany liabilities) recorded on the Company's balance sheet as of March 31, 2017.
Principal, Maturity and Interest
The Company may issue additional notes (the "Additional Notes") from time to time after this offering. Any offering of Additional Notes is
subject to the covenant described below under the caption "Certain CovenantsLimitation on Indebtedness".
Additional Notes that are not fungible with other notes for federal income tax purposes may trade under a separate CUSIP and may be treated as a separate class for purposes of transfers and exchanges.
Nevertheless, the notes and any Additional Notes subsequently issued under the Indenture would be treated as a single class of notes for all other purposes under the Indenture, including, without
limitation, waivers, amendments, redemptions and offers to purchase. The Company will issue new notes in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. The new
notes will mature on March 15, 2027.
Each
new note will bear interest at a rate of 5.125% per annum from the Closing Date, or from the most recent date on which interest has been paid or provided for. We will pay interest
semi-annually to Holders of record at the close of business on March 1 or September 1 immediately preceding the interest payment date on March 15 and September 15 of each
year. The first interest payment date will be September 15, 2017. We will pay interest on overdue principal at 1% per annum in excess of the interest rate, and we will pay interest on overdue
installments of interest at this higher rate to the extent lawful.
Interest
will be computed on the basis of a 360-day year composed of twelve 30-day months.
Paying Agent and Registrar
We will pay the principal of, premium, if any, and interest on the notes at any office of ours or any agency designated by us. We have initially
designated the corporate trust office of the trustee to act as the agent of the Company in these matters. The location of the corporate trust office is currently 633 West Fifth Street,
24th Floor, Los Angeles, California 90071, Attn: B. Scarbrough (AECOM Senior Notes due 2027). We reserve the right to pay interest to Holders by check mailed directly to Holders at their
registered addresses.
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Transfer and Exchange
A Holder of outstanding notes will be able to transfer or exchange notes. Upon any transfer or exchange, the registrar and the trustee may
require a Holder, among other things, to furnish appropriate endorsements and transfer documents and the Company may require a Holder to pay any taxes required by law or permitted by the Indenture.
The Company will not be required to transfer or exchange any outstanding note selected for redemption or purchase or to transfer or exchange any outstanding note for a period of 15 days prior
to the mailing of a notice of redemption or purchase of notes to be redeemed or purchased or within 15 days of an interest payment date. The notes will be issued in registered form and the
Holder will be treated as the owner of such note for all purposes.
Form, Denomination and Registration
The old notes are and the new notes will be transferable and exchangeable at the office of the Registrar or any co-registrar and are or will be,
as applicable, issued in fully registered form, without coupons, in minimum denominations of $2,000 and any integral multiple of $1,000 in excess thereof. We may require payment of an amount
sufficient to cover any tax or other governmental charge payable in connection with certain transfers and exchanges.
Optional Redemption
We may not redeem the notes except pursuant to this paragraph and the two immediately following paragraphs. At any time and from time to time
prior to December 15, 2026 (three months prior to the maturity date), the Company may redeem on one or more occasions all or part of the notes upon not less than 30 nor more than
60 days' prior notice at a redemption price equal to the sum of (i) 100% of the principal amount thereof, plus (ii) the Applicable Premium as of the date of redemption, plus
(iii) accrued and unpaid interest to, but excluding, the date of redemption. In addition, on or after December 15, 2026 (three months prior to the maturity date), the notes may be
redeemed by us upon not less than 30 nor more than 60 days' prior notice at a redemption price of 100% of the principal amount thereof, plus accrued and unpaid interest to, but excluding, the
date of redemption.
In
addition, at any time and from time to time prior to March 15, 2020, we may redeem, on one or more occasions, up to a maximum of 35% of the original aggregate principal amount
of the notes, calculated after giving effect to any issuance of Additional Notes, with the Net Cash Proceeds of one or more Qualified Equity Offerings at a redemption price equal to 105.125% of the
principal amount thereof, plus accrued and unpaid interest thereon to, but excluding, the redemption date, subject to the right of Holders of record on the relevant record date to receive interest due
on the relevant interest payment date; provided, however, that after giving effect to any such redemption:
(1) at
least 65% of the original aggregate principal amount of the notes, calculated after giving effect to any issuance of Additional Notes, remains outstanding immediately
after such redemption; and
(2) any
such redemption by the Company must be made within 90 days of such Qualified Equity Offering and must be made in accordance with the procedures set forth in
the Indenture.
The
Company will have the right to redeem the notes at 101% of the principal amount thereof, plus accrued and unpaid interest to, but excluding, the date of redemption, following the
consummation of a Change of Control if at least 90% of the notes outstanding prior to such consummation are purchased pursuant to a Change of Control Offer with respect to such Change of Control.
Any
notice of redemption in connection with any Qualified Equity Offering or other securities offering or any other financing, or in connection with a transaction (or series of related
transactions) that constitute a Change of Control, may, at the Company's discretion, be given prior to the completion
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thereof
and be subject to one or more conditions precedent, including completion of the related Qualified Equity Offering, securities offering, financing or Change of Control.
Selection
If we redeem less than all of the notes, the trustee or applicable depositary will select the notes to be redeemed on a pro rata basis, by lot
or by such other method as is required by or in accordance with the procedures of the applicable depositary, although no note of $2,000 in original principal amount or less may be redeemed in part. If
we redeem any note in part only, the
notice of redemption relating to that note will state the portion of the principal amount thereof to be redeemed. A new note in principal amount equal to the unredeemed portion of the note will be
issued in the name of the Holder upon cancellation of the original note. On and after the redemption date, interest will cease to accrue on the notes or portions thereof called for redemption so long
as we have deposited with the paying agent funds sufficient to pay the principal of, plus accrued and unpaid interest on, the notes to be redeemed.
Ranking
The old notes are and the new notes will be senior unsecured obligations of the Company; equal in right of payment with all of the Company's
existing and future senior Indebtedness and senior in right of payment to all of the Company's existing and future Indebtedness that is subordinated in right of payment to the notes. The notes will
also be effectively subordinated to all Secured Indebtedness of the Company and its Subsidiaries, including Indebtedness under the Credit Agreement, to the extent of the value of the assets securing
such Indebtedness.
The
Subsidiary Guarantees with respect to the old notes are and with respect to the new notes will be the senior unsecured obligations of each Subsidiary Guarantor equal in right of
payment with all of such Subsidiary Guarantor's existing and future senior Indebtedness and senior in right of payment to all of such Subsidiary Guarantor's future Indebtedness that is subordinated in
right of payment to such Subsidiary Guarantee. The Subsidiary Guarantees will also be effectively subordinated to all Secured Indebtedness of the applicable Subsidiary Guarantor and its Subsidiaries,
including their guarantees of Indebtedness under the Credit Agreement, to the extent of the value of the assets securing such Indebtedness.
To
the extent a Subsidiary is not a Subsidiary Guarantor, creditors of the Subsidiary, including trade creditors, and preferred stockholders, if any, of the Subsidiary generally will
have priority with respect to the assets and earnings of the Subsidiary over the claims of creditors of the Company, including Holders. The notes, therefore, will be structurally subordinated to the
claims of creditors, including trade creditors, and preferred stockholders, if any, of Subsidiaries of the Company that are not Subsidiary Guarantors.
As
of March 31, 2017, we and our subsidiaries had approximately $4.3 billion of indebtedness (excluding intercompany indebtedness) outstanding, of which $1.2 billion
was secured (exclusive of $51.0 million of undrawn letters of credit) and we had an additional $870.1 million of availability under our Credit Agreement (after giving effect to
outstanding letters of credit), all of which would be secured debt if drawn, effectively ranking senior to the notes to the extent of the value of the collateral securing such Indebtedness. See "Risk
FactorsRisks Relating to the New NotesOur substantial leverage and significant debt service obligations could adversely affect our financial condition and our ability to
fulfill our obligations and operate our business."
Although
the Indenture limits the Incurrence of Indebtedness by the Company and the Restricted Subsidiaries (including the issuance of Preferred Stock by the Restricted Subsidiaries),
this limitation is subject to a number of significant qualifications. The Company and its Subsidiaries may be able to
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Incur
substantial amounts of Indebtedness in certain circumstances. See "Certain CovenantsLimitation on Indebtedness" below.
Subsidiary Guarantees
As of the date hereof, all of our subsidiaries are Restricted Subsidiaries. The new notes will be guaranteed by each Domestic Restricted
Subsidiary of the Company that, from time to time, is a borrower under or guarantees Indebtedness of the Company under any Material Credit Facility. The Guarantors will jointly and severally
irrevocably and unconditionally Guarantee as primary obligors and not merely as sureties, on an unsecured senior basis, the performance and full and punctual payment when due, whether at Stated
Maturity, by acceleration or otherwise, of all obligations of the Company under the Indenture, including obligations to the trustee, and the new notes, whether for payment of principal of, or premium
or interest on the new notes, expenses, indemnification or otherwise (all such obligations Guaranteed by such Subsidiary Guarantors being herein called the "Guaranteed Obligations"). Each Subsidiary
Guarantee with respect to old notes is and with respect to new notes will be limited in amount to an amount not to exceed the maximum amount that can be Guaranteed by the applicable Subsidiary
Guarantor without rendering the Subsidiary Guarantee, as it relates to that Subsidiary Guarantor, voidable under applicable law relating to fraudulent conveyance or fraudulent transfer or similar laws
affecting the rights of creditors generally. In a Florida bankruptcy case, subsidiary guarantees containing this kind of provision were found to be fraudulent conveyances and thus unenforceable and
the court stated that this kind of limitation is ineffective. See "Risk FactorsRisks Relating to the New NotesFederal and state statutes allow courts, under specific
circumstances, to void guarantees and require note holders to return payments received from guarantors." The Company will cause each future Domestic Restricted Subsidiary that, from time to time, is a
borrower under or guarantees Indebtedness of the Company under any Material Credit Facility to execute and deliver to the trustee a supplemental indenture pursuant to which the Subsidiary will
Guarantee payment of the notes. See "Certain CovenantsFuture Subsidiary Guarantors" below.
Each
Subsidiary Guarantee is a continuing guarantee and shall, except as set forth in the four immediately succeeding paragraphs, (a) remain in full force and effect until payment
in full of all the Guaranteed Obligations, (b) be binding upon each Subsidiary Guarantor and its successors and (c) inure
to the benefit of, and be enforceable by, the trustee, the Holders and their successors, transferees and assigns.
In
the event the Capital Stock of a Subsidiary Guarantor is sold or all of the assets of a Subsidiary Guarantor are sold (including by way of merger, consolidation or otherwise) by the
Company or a Restricted Subsidiary and the sale complies with the provisions described below under the caption "Certain CovenantsLimitation on Sales of Assets and Subsidiary
Stock", if as a result of such sale, such Subsidiary Guarantor ceases to be a Restricted Subsidiary, such Subsidiary Guarantor shall be released from its Subsidiary Guarantee at the time of such sale
(it being understood that only such portion of the Net Cash Proceeds as is or is required to be applied on or before the date of such release in accordance with the terms of the Indenture needs to be
so applied before such release).
Upon
the designation of any Subsidiary Guarantor to be an Unrestricted Subsidiary in compliance with the definition of "Unrestricted Subsidiary," such Subsidiary Guarantor will be
released from its Subsidiary Guarantee.
Upon
legal defeasance or satisfaction and discharge of the new notes in compliance with the provisions of the Indenture described below under the caption "Defeasance" or
"Satisfaction and Discharge", as applicable, the Subsidiary Guarantors shall be released from their Subsidiary Guarantees.
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If
any Subsidiary Guarantor shall have been released from its guarantees of Indebtedness of the Company under all Material Credit Facilities, such Subsidiary Guarantor shall be released
from its Subsidiary Guarantee.
Change of Control
Upon the occurrence of any Change of Control (as defined below), each Holder will have the right to require the Company to purchase all or any
part of such Holder's notes at a purchase price in cash equal to 101% of the principal amount thereof plus accrued and unpaid interest to the date of purchase, subject to the right of Holders of notes
of record on the relevant record date
to receive interest due on the relevant interest payment date; provided, however, that notwithstanding the occurrence of a Change of Control, the Company shall not be obligated to purchase the notes
pursuant to this section in the event that it has exercised its right to redeem all the notes under the terms of the section titled "Optional Redemption." A "Change of Control" means any event or
series of events by which any "person" or "group" (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act, but excluding any employee benefit plan of such person or its
subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the "beneficial owner" (as defined in Rules 13d-3
and 13d-5 under the Exchange Act), directly or indirectly, of 50% or more of the equity securities of the Company entitled to vote for members of the board of directors or equivalent governing body of
the Company on a fully-diluted basis.
Within
45 days following any Change of Control, the Company shall mail, or cause to be mailed, or, in the case of global notes, send in accordance with the applicable procedures
of the depositary, a notice to each Holder with a copy to the trustee (the "Change of Control Offer") stating:
(1) that
a Change of Control has occurred and that such Holder has the right to require the Company to purchase all or a portion of such Holder's notes at a purchase price
in cash equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the date of purchase (subject to the right of Holders of notes of record on the relevant record date to
receive interest on the relevant interest payment date);
(2) the
purchase date, which shall be no earlier than 30 days nor later than 60 days from the date such notice is mailed; and
(3) the
instructions determined by the Company, consistent with this covenant, that a Holder must follow in order to have its notes purchased.
The
Company will not be required to make a Change of Control Offer upon a Change of Control if a third party makes the Change of Control Offer in the manner, at the times and otherwise
in compliance with the requirements set forth in the Indenture applicable to a Change of Control Offer made by the Company and purchases all notes validly tendered and not withdrawn under such Change
of Control Offer. Notwithstanding anything to the contrary contained herein, a Change of Control Offer may be made in advance of a Change of Control, with the obligation to pay and the timing of
payment conditioned upon the consummation of the Change of Control, if a definitive agreement to effect a Change of Control is in place at the time of the Change of Control Offer.
The
Company will comply, to the extent applicable, with the requirements of Section 14(e) of the Exchange Act and any other securities laws or regulations in connection with the
purchase of notes pursuant to this covenant. To the extent that the provisions of any securities laws or regulations conflict with provisions of this covenant, the Company will comply with the
applicable securities laws and
regulations and will not be deemed to have breached its obligations under this covenant by virtue thereof.
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The
Change of Control purchase feature is a result of negotiations between the Company and the initial purchasers. Management has no present intention to engage in a transaction
involving a Change of Control, although it is possible that the Company will decide to do so in the future.
Subject
to the limitations discussed below, the Company could, in the future, enter into certain transactions, including acquisitions, refinancings or recapitalizations, that would not
constitute a Change of Control under the Indenture, but that could increase the amount of Indebtedness outstanding at such time or otherwise affect the Company's capital structure or credit ratings.
Restrictions on the ability of the Company to Incur additional Indebtedness are contained in the covenant described below under the caption "Certain CovenantsLimitation on
Indebtedness". Such restrictions can only be waived with the consent of the Holders of a majority in principal amount of the notes then outstanding. Except for the limitations contained in that
covenant and the covenant described below under the caption "Merger and Consolidation", however, the Indenture will not contain any covenants or provisions that may afford Holders
protection in the event of a highly leveraged transaction.
The
occurrence of a Change of Control would constitute a default under the Credit Agreement. In addition, future Indebtedness of the Company could contain prohibitions of certain events
that would constitute a Change of Control or require such Indebtedness to be repurchased or repaid upon a Change of Control. Moreover, the exercise by the Holders of their right to require the Company
to purchase the notes could cause a default under such Indebtedness, even if the Change of Control itself does not, due to the financial effect of the repurchase on the Company. Finally, the Company's
ability to pay cash to the Holders upon a purchase may be limited by the Company's then existing financial resources. We cannot assure you that sufficient funds will be available when necessary to
make any required purchases. Even if sufficient funds were otherwise available, the terms of the Credit Agreement may prohibit, subject to limited exceptions, the Company's prepayment of notes prior
to their scheduled maturity. If the Company is not able to prepay Indebtedness outstanding under the Credit Agreement and any other Indebtedness containing similar restrictions or obtain requisite
consents, the Company will not be able to fulfill its repurchase obligations upon holders of notes exercising their purchase rights following a Change of Control, and such failure will result in a
default under the Indenture and, in turn, constitute a default under the Credit Agreement. Furthermore, the Change of Control provisions may in some circumstances make more difficult or discourage a
takeover of the Company and the removal of incumbent management.
Covenant Suspension When New Notes Rated Investment Grade
If on any date (the "Suspension Date"):
(1) the
notes are rated Baa3 or better by Moody's and BBB or better by S&P (or, if either such entity ceases to rate the notes for reasons outside of the
control of the Company, the equivalent investment grade credit rating from any other "nationally recognized statistical rating organization" within the meaning of Section 3(a)(62) under the
Exchange Act selected by the Company as a replacement agency); and
(2) no
Default or Event of Default shall have occurred and be continuing (the occurrence of the events described in the foregoing clause (1) and this
clause (2) being collectively referred to as a "Covenant Suspension Event"),
then,
beginning on that day and subject to the provisions of the following paragraph, the covenants under the Indenture described under the following captions will be suspended (such suspended
covenants, collectively, the "Suspended Covenants"):
(a) "Certain
CovenantsLimitation on Indebtedness";
(b) "Certain
CovenantsLimitation on Sales of Assets and Subsidiary Stock"; and
(c) clause (3)
of the covenant described below under the caption "Merger and Consolidation".
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Upon
the occurrence of a Covenant Suspension Event, the amount of Net Available Cash that has not been applied as provided under the caption "Certain
CovenantsLimitation on Sales of Assets and Subsidiary Stock" below shall be set at zero and shall remain at zero during the period of time commencing on and after the Suspension Date and
ending prior to the Reversion Date (as defined below) (such period, the "Suspension Period").
Notwithstanding
the foregoing, if on any date (the "Reversion Date") subsequent to any Suspension Date, the rating on the notes assigned by either such rating agency should subsequently
decline to below Baa3 for Moody's or BBB for S&P, the Suspended Covenants will be reinstituted as of and from the Reversion Date. On the Reversion Date, all Indebtedness Incurred
during the Suspension Period will be classified as having been outstanding on the Closing Date, so that it is classified as permitted under clause (b)(3)(B) under the caption
"Certain CovenantsLimitation on Indebtedness". Notwithstanding the reinstatement of the Suspended Covenants, no Default or Event of Default will be deemed to have occurred
solely as a result of a failure to comply with the Suspended Covenants during the Suspension Period (or upon termination of the Suspension Period or thereafter based solely on events that occurred
during the Suspension Period). We cannot assure you that the notes will ever achieve an investment grade rating or that any such rating will be maintained.
We
will notify in writing the trustee and the Holders upon the occurrence of the Suspension Date and the Reversion Date. The Trustee shall have no duty to monitor or notify the Holders
of the ratings of the notes, the occurrence of the Suspension Date or the Reversion Date.
Certain Covenants
The Indenture contains covenants, including, among others, the following:
Limitation on Indebtedness
(a) The
Company will not, and will not permit any Restricted Subsidiary to, Incur, directly or indirectly, any Indebtedness; provided, however, that the Company or any
Restricted Subsidiary may Incur Indebtedness if on the date of such Incurrence and after giving effect thereto and to the application of the net proceeds therefrom the Consolidated Coverage Ratio
would be greater than 2.0:1.0.
(b) Notwithstanding
the foregoing paragraph (a), the Company and its Restricted Subsidiaries may Incur the following Indebtedness:
(1) Indebtedness
under Credit Facilities in an aggregate principal amount not to exceed $5,300 million at any time outstanding;
(2) Indebtedness
of the Company owed to and held by any Restricted Subsidiary or Indebtedness of a Restricted Subsidiary owed to and held by the Company or any other
Restricted Subsidiary; provided, however, that any subsequent issuance or transfer of any Capital Stock or any other event that results in any such Restricted Subsidiary ceasing to be a Restricted
Subsidiary or any subsequent transfer of any such Indebtedness (except to the Company or a Restricted Subsidiary) shall be deemed, in each case, to constitute an Incurrence of such Indebtedness by the
issuer thereof not permitted by this clause (2);
(3) Indebtedness
(A) represented by the notes (not including any Additional Notes) and the Subsidiary Guarantees (and any exchange notes and Guarantees thereof) or
(B) outstanding on the Closing Date (other than the Indebtedness described in clause (1) or (2) above but including the Existing Notes and the guarantees thereof) after giving
effect to the use of proceeds from the old notes and the other Transactions;
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(4) the
Incurrence by the Company or any Restricted Subsidiary of the Company of Refinancing Indebtedness in exchange for, or the net proceeds of which are used to Refinance
Indebtedness (other than intercompany Indebtedness) that was permitted by the Indenture to be Incurred under paragraph (a) of this covenant or clause (3) (including the exchange notes
and any Guarantees thereof), (4), (8), or (10) of this paragraph (b);
(5) obligations
(contingent or otherwise) existing or arising under any Swap Contract, provided that such obligations are (or were) entered into by such Person for the
purpose of directly mitigating risks associated with fluctuations in interest rates or foreign exchange rates;
(6) Indebtedness
consisting of Guarantees by the Company or any Restricted Subsidiary of Indebtedness of the Company or any Restricted Subsidiary otherwise permitted under
this covenant;
(7) Indebtedness
of the Company or any of its Restricted Subsidiaries arising from the honoring by a bank or other financial institution of a check, draft or similar
instrument drawn against insufficient funds in the ordinary course of business; provided, however, that such Indebtedness is extinguished within five Business Days of its Incurrence;
(8) Indebtedness
in respect of Capitalized Leases, Synthetic Lease Obligations and purchase money obligations for fixed or capital assets within the limitations set forth in
clause (5) of the definition of "Permitted Liens"; provided, however, that the aggregate amount of all such Indebtedness outstanding as of the date of any such incurrence shall not exceed the
greater of (A) $300,000,000 and (B) 7.5% of Consolidated Net Worth as of the last day of the most recent fiscal year;
(9) Indebtedness
in the nature of Qualified Receivables Transactions and/or factoring arrangements entered into on customary terms, including limited recourse of the obligee
thereof to the relevant Receivables Subsidiary and the receivables being securitized and/or factored (and customary replacements or substitutions thereof), in an aggregate amount not to exceed
$400,000,000 at any time outstanding;
(10) Indebtedness
of any Person that becomes a Restricted Subsidiary of the Company or related to any asset acquired after the Closing Date pursuant to an acquisition
permitted hereunder and any Refinancing Indebtedness thereof; provided that, (A) such Indebtedness was not incurred in anticipation of such acquisition, (B) neither the Company nor any
Restricted Subsidiary (other than the acquired Restricted Subsidiaries) is an obligor with respect to such Indebtedness and (C) such Indebtedness is either unsecured or secured solely by Liens
on assets of the acquired Restricted Subsidiary, or on the acquired assets, and, in each case, proceeds thereof, permitted by, and within the limitations set forth in clause (6) of the
definition of "Permitted Liens";
(11) Indebtedness
of a foreign Restricted Subsidiary in an aggregate principal amount outstanding as of the date of any such incurrence not to exceed the greater of
(A) $300,000,000 and (B) 7.5% of Consolidated Net Worth as of the last day of the most recent fiscal year;
(12) obligations
(including in respect of letters of credit, bank guarantees, bankers' acceptances, warehouse receipts or similar instruments issued or created in the
ordinary course of business) in respect of bids, tenders, trade contracts, governmental contracts and leases, construction contracts, statutory obligations, surety, stay, customs, bid, and appeal
bonds, performance and return of money bonds, performance and completion guarantees, agreements with utilities and other obligations of a like nature (including those to secure health, safety and
environmental obligations), in each case in the ordinary course of business and either (A) consistent with past practices, (B) reasonably necessary for the operation of the
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business
of the Company and its Restricted Subsidiaries as determined by the Company or such Restricted Subsidiary in good faith or (C) not in connection with the borrowing of money;
(13) Indebtedness
of AECOM Capital (or Subsidiaries of, or Joint Ventures formed by, AECOM Capital) in connection with projects or investments of AECOM Capital (or
Subsidiaries of, or Joint Ventures formed by, AECOM Capital);
(14) vendor
financing in an aggregate principal amount not to exceed $100,000,000 at any time outstanding;
(15) Indebtedness
relating to insurance premium financings incurred in the ordinary course of business;
(16) Indebtedness
arising from agreements of the Company or a Restricted Subsidiary providing for indemnification, adjustment of purchase price, earn-out or similar
obligations, or letters of credit, surety bonds or performance bonds securing any obligations of the Company or any of its Restricted Subsidiaries pursuant to such agreements, in each case, Incurred
or assumed in connection with the acquisition or disposition of any business or assets of the Company or any business, assets or Capital Stock of a Restricted Subsidiary or any business, assets or
Capital Stock of any Person;
(17) Indebtedness
to the extent that the net proceeds thereof are promptly deposited to defease or to satisfy and discharge the notes in each case in accordance with the
requirements of the Indenture; and
(18) other
Indebtedness in an aggregate principal amount outstanding as of the date of any such incurrence not to exceed the greater of (A) $400,000,000 and
(B) 12% of Consolidated Net Worth as of the last day of the most recent fiscal year.
(c) Notwithstanding
any other provision of this covenant, the maximum amount of Indebtedness that the Company or any Restricted Subsidiary may Incur pursuant to this
covenant shall not be deemed to be exceeded solely as a result of fluctuations in the exchange rates of currencies. For purposes of determining the outstanding amount of any particular Indebtedness
Incurred pursuant to this covenant:
(1) Indebtedness
Incurred pursuant to the Credit Agreement prior to or on the Closing Date shall be treated as Incurred pursuant to clause (1) of paragraph (b)
above,
(2) Indebtedness
permitted by this covenant need not be permitted solely by reference to one provision permitting such Indebtedness but may be permitted in part by one such
provision and in part by one or more other provisions of this covenant permitting such Indebtedness,
(3) in
the event that Indebtedness meets the criteria of more than one of the types of Indebtedness described in this covenant, the Company, in its sole discretion, shall
classify (and, except as provided in clause (1) of this paragraph (c), may later reclassify) such Indebtedness and only be required to include the amount of such Indebtedness in one of
such clauses; and
(4) Guarantees
of, or obligations in respect of letters of credit relating to, Indebtedness that is otherwise included in the determination of a particular amount of
Indebtedness shall not be included in the calculation of such particular amount.
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Accrual of interest, accrual of dividends, the accretion of accreted value, the amortization of debt discount, and the payment of interest in the form of
additional Indebtedness will not be deemed to be an incurrence of Indebtedness for purposes of this covenant.
The
Company will not Incur any Indebtedness if such Indebtedness is subordinate or junior in ranking in any respect to any other Indebtedness unless such Indebtedness is expressly
subordinated in right of payment to the notes to the same extent. No Subsidiary Guarantor will Incur any Indebtedness if such Indebtedness is subordinate or junior in ranking in any respect to any
other Indebtedness of such Subsidiary Guarantor unless such Indebtedness is expressly subordinated in right of payment to the Subsidiary Guarantee of such Subsidiary Guarantor to the same extent. For
purposes of the foregoing, no Indebtedness will be deemed to be subordinated in right of payment to any other Indebtedness of the Company or any Subsidiary Guarantor, as applicable, solely by reason
of any Liens or Guarantees arising or created in respect of such other Indebtedness of the Company or any Subsidiary Guarantor or by virtue of the fact that the holders of any Secured Indebtedness
have entered into intercreditor agreements giving one or more of such holders priority over the other holders in the collateral held by them.
Limitation on Liens
The Company will not, and will not permit any Restricted Subsidiary to, directly or indirectly, create, incur, assume or suffer to exist any
Lien securing Indebtedness on any property or asset now owned or hereafter acquired by the Company or such Restricted Subsidiary, except Permitted Liens, without making effective provision whereby any
and all notes and Subsidiary Guarantees then or thereafter outstanding will be secured by a Lien equally and ratably with or prior to any and all Indebtedness thereby secured for so long as any such
Indebtedness shall be so secured.
Any
Lien created for the benefit of Holders pursuant to the preceding paragraph may provide by its terms that any such Lien shall be automatically and unconditionally released and
discharged upon the release and discharge of the Lien securing such other Indebtedness.
Limitation on Sales of Assets and Subsidiary Stock
(a) The
Company will not, and will not permit any Restricted Subsidiary to, make any Asset Disposition unless:
(1) the
Company or such Restricted Subsidiary receives consideration (including by way of relief from, or by any other Person assuming sole responsibility for, any
liabilities, contingent or otherwise) at the time of such Asset Disposition at least equal to the Fair Market Value of the shares and assets subject to such Asset Disposition,
(2) at
least 75% of the consideration thereof received by the Company or such Restricted Subsidiary is in the form of cash, assets useful in a Permitted Business or
Permitted Securities, or the assumption by the purchaser of liabilities of the Company or any Restricted Subsidiary (other than liabilities that are by their terms subordinated to the notes) as a
result of which the Company and the Restricted Subsidiaries are no longer obligated with respect to those liabilities; provided that the amount of any Designated Noncash Consideration received by the
Company or any of its Restricted Subsidiaries in such Asset Disposition shall be deemed to be cash for the purposes of this provision (but for no other purpose) so long as such amount, taken together
with the Fair Market Value when received of all other Designated Noncash Consideration that is at that time outstanding (i.e., that has not been sold for or otherwise converted into cash or
Permitted Securities), does not exceed $50.0 million; provided, further,
that (a) securities or other assets received by the Company or any Restricted Subsidiary from the transferee that are converted by the Company or such Restricted Subsidiary into cash within
180 days after the closing of such Asset Disposition shall be considered to be cash to the extent of the cash received in that
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conversion;
and (b) any cash consideration paid to the Company or the Restricted Subsidiary in connection with the Asset Disposition that is held in escrow or on deposit to support
indemnification, adjustment of purchase price or similar obligations in respect of such Asset Disposition shall be considered to be cash, and
(3) an
amount equal to 100% of the Net Available Cash from such Asset Disposition is applied by the Company (or such Restricted Subsidiary, as the case may be) within
365 days (or, in the case of a Foreign Disposition as provided in paragraph (c) of this covenant below, 730 days) after the later of the date of such Asset Disposition and the
receipt of such Net Available Cash:
(a) to
prepay, repay, purchase, repurchase, redeem, retire, defease or otherwise acquire for value Secured Indebtedness of the Company or a Subsidiary Guarantor (other than
any Disqualified Stock or Subordinated Obligations) or Indebtedness of a Restricted Subsidiary that is not a Subsidiary Guarantor, in each case other than Indebtedness owed to the Company or an
Affiliate of the Company;
(b) to
reinvest in Additional Assets (including by means of an Investment in Additional Assets by a Restricted Subsidiary with Net Available Cash received by the Company or
another Restricted Subsidiary); provided, that a binding commitment to apply Net Available Cash in accordance with this clause (b) shall be treated as an application of such Net Available Cash
from the date of such commitment if (i) such reinvestment is consummated within 180 days at the end of such 365-day period (or, in the case of a Foreign Disposition as provided in
paragraph (c) of this covenant below, 730-day period) referred to in this clause (3) and (ii) if such reinvestment is not consummated within the period set forth in
subclause (i) or such binding commitment is terminated, the Net Available Cash shall constitute available Net Available Cash; or
(c) (i)
redeem the notes or make open market purchases thereof at a price not less than 100% of the principal amount thereof or (ii) to make an Offer (as defined in
paragraph (b) of this covenant below) to purchase notes pursuant to and subject to the conditions set forth in paragraph (b) of this covenant;
provided, however, that if the Company elects (or is required by the terms of any Pari Passu Indebtedness), such Offer may be made ratably (determined based upon the respective principal amounts of
the notes and such Pari Passu Indebtedness being purchased or repaid) to purchase the notes and to purchase or otherwise repay such Pari Passu Indebtedness;
provided
that pending final application of any such Net Available Cash in accordance with clause (a), (b) or (c) above, the Company and the Restricted Subsidiaries may temporarily
reduce revolving Indebtedness outstanding under the Credit Agreement or otherwise invest such Net Available Cash in any manner not prohibited by the Indenture.
To
the extent of the balance of such Net Available Cash after application in accordance with clause (a), (b) and (c) above, the Company or such Restricted
Subsidiary, as the case may be, may use such balance for any general corporate purpose not prohibited by the terms of the Indenture. In connection with any prepayment, repayment, purchase, repurchase,
redemption, retirement, defeasance or other acquisition for value of Indebtedness pursuant to clause (a) or (c) above, the Company or such Restricted Subsidiary, as the case may be, will
retire such Indebtedness and will cause the related loan commitment (if any) to be permanently reduced in an amount equal to the principal amount so prepaid, repaid, purchased, repurchased, redeemed,
retired, defeased or otherwise acquired for value.
Notwithstanding
the foregoing provisions of this covenant, the Company and the Restricted Subsidiaries will not be required to apply any Net Available Cash in accordance with this
covenant except to the extent that the aggregate Net Available Cash from all Asset Dispositions that is not applied in accordance with this covenant exceeds $50.0 million.
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(b) In
the event of an Asset Disposition that requires the purchase of notes pursuant to clause (a)(3)(c) above, the Company will be required (a) to purchase
notes tendered pursuant to an offer by the Company for the notes (the "Offer") at a purchase price of 100% of their principal amount plus accrued and unpaid interest thereon to the date of purchase
(subject to the right of Holders of record on the relevant date to receive interest due on the relevant interest payment date) in accordance with the procedures, including prorating in the event of
oversubscription, set forth in the Indenture, and (b) to purchase or otherwise repay Pari Passu Indebtedness of the Company on the terms and to the extent contemplated thereby at the purchase
price set forth in the relevant documentation (including accrued and unpaid interest to the date of acquisition, the "purchase price"), provided that to the extent the purchase price of any such Pari
Passu Indebtedness exceeds 100% of the principal amount thereof, plus accrued and unpaid interest thereon to the date of acquisition, the Company shall not use any Net Available Cash to pay such
purchase price, except as permitted by the next sentence. If the aggregate purchase price of notes and Pari Passu Indebtedness tendered pursuant to the Offer is less than the Net Available Cash
allotted to the purchase of the notes and other Pari Passu Indebtedness, the Company will apply the remaining Net Available Cash for any general corporate purpose not prohibited by the terms of the
Indenture. The Company will not be required to make an Offer for notes and Pari Passu Indebtedness pursuant to this covenant if the Net Available Cash available therefor (after application of the
proceeds as provided in clauses (3)(a) and (b)) is less than $50.0 million for any particular Asset Disposition (which lesser amount will be carried forward for purposes of determining
whether an Offer is required with respect to the Net Available Cash from any subsequent Asset Disposition). Upon consummation of any Offer, the Net Available Cash in respect of any Asset
Disposition(s) shall be reduced to zero.
(c) Notwithstanding
any other provisions of this covenant, to the extent that an amount equal to any or all of the Net Available Cash of any Asset Disposition by a Foreign
Subsidiary (a "Foreign Disposition") is (x) prohibited or delayed by applicable local law, (y) restricted by applicable organizational documents or any agreement or (z) subject to
other onerous organizational or administrative impediments from being repatriated to the United States, solely with respect to an amount equal to the portion of such Net Available Cash so affected,
the 365-day period set forth in clause (a)(3) above shall be extended to 730 days.
(d) The
Company will comply, to the extent applicable, with the requirements of Section 14(e) of the Exchange Act and any other securities laws or regulations in
connection with the repurchase of notes pursuant to this covenant. To the extent that the provisions of any securities laws or regulations conflict with provisions of this covenant, the Company will
comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under this covenant by virtue thereof.
SEC Reports
Whether or not required by the SEC's rules and regulations, the Company will file with the SEC within the time periods specified in the SEC's
rules and regulations, and provide the trustee and Holders and prospective Holders (upon request) within 15 days after it files them with the
SEC, copies of its annual report and the information, documents and other reports that are specified in Sections 13 and 15(d) of the Exchange Act unless the SEC will not accept such filings;
provided that for purposes of this covenant, such information, documents and other reports shall be deemed to have been furnished to the trustee, Holders and prospective Holders if they are
electronically available via the SEC's EDGAR System. Even if the Company is entitled under the Exchange Act not to furnish such information to the SEC, it will nonetheless continue to furnish
information that would be required to be furnished by the Company by Section 13 or 15(d) of the Exchange Act (excluding exhibits) to the trustee and the Holders of notes of as if it were
subject to such periodic reporting requirements. The Company also will comply with the other provisions of Section 314(a) of the TIA.
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To
the extent any information is not provided within the time periods specified in this section "SEC Reports" and such information is subsequently provided within the grace
period set forth below under the caption "Defaults", the Company will be deemed to have satisfied its obligations with respect thereto at such time and any Default with respect thereto
shall be deemed to have been cured unless the notes have been accelerated. Delivery of reports, information and documents to the trustee under the indenture is for informational purposes only and the
information and the trustee's receipt of the foregoing shall not constitute constructive notice of any information contained therein, or determinable from information contained therein including our
compliance with any of our covenants thereunder (as to which the trustee is entitled to rely exclusively on Officers' Certificates).
Future Subsidiary Guarantors
The Company will cause each Domestic Restricted Subsidiary that, from time to time, is a borrower under or guarantees Indebtedness of the
Company under any Material Credit Facility to become a Subsidiary Guarantor within 30 days of becoming a guarantor under such Material Credit Facility and, if applicable, execute and deliver to
the trustee a supplemental indenture in the form set forth in the Indenture pursuant to which such Subsidiary will Guarantee payment of the notes within such 30 day period. Each Subsidiary
Guarantee will be limited to an amount not to exceed the maximum amount that can be Guaranteed by that Subsidiary Guarantor, without rendering the Subsidiary Guarantee, as it relates to such
Subsidiary Guarantor, voidable under applicable law relating to fraudulent conveyance or fraudulent transfer or similar laws affecting the rights of creditors generally.
Merger and Consolidation
The Company will not consolidate with or merge with or into, or convey, transfer or lease all or substantially all of its assets and its
Subsidiaries' assets (taken as a whole) to, any Person, unless:
(1) the
resulting, surviving or transferee Person (the "Successor Company") will be a corporation, limited partnership or limited liability company organized and existing
under the laws of the United States of America, any State thereof or the District of Columbia, and the Successor Company (if not the Company) will expressly assume, by a supplemental indenture,
executed and delivered to the trustee, in form reasonably satisfactory to the trustee, all the obligations of the Company under the notes, the Indenture and the Registration Rights Agreement; provided
that in the case where the Successor Company is not a corporation, a co-obligor on the notes is a corporation;
(2) immediately
after giving effect to such transaction (and treating any Indebtedness that becomes an obligation of the Successor Company or any Restricted Subsidiary as a
result of such transaction as having been Incurred by the Successor Company or such Restricted Subsidiary at the time of such transaction), no Default shall have occurred and be continuing;
(3) immediately
after giving effect to such transaction, the Successor Company would have a Consolidated Coverage Ratio equal to or greater than the Consolidated Coverage
Ratio of the Company immediately prior to such transaction or would be able to Incur an additional $1.00 of Indebtedness under paragraph (a) of the covenant described above under the caption
"Limitation on Indebtedness"; and
(4) the
Company shall have delivered to the trustee an Officers' Certificate and an Opinion of Counsel, each stating that such consolidation, merger or transfer and such
supplemental indenture (if any) complies with the Indenture and, in the case of the Opinion of Counsel, that such supplemental indenture (if any) is the valid, binding obligation of the Successor
Company, enforceable against the Successor Company in accordance with its terms.
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The
Successor Company will succeed to, and be substituted for, and may exercise every right and power of, the Company under the notes, the Indenture and the Registration Rights
Agreement, and the predecessor Company (except in the case of a lease of all or substantially all its assets) will be released from the obligation to pay the principal of and interest on the notes.
Notwithstanding
the foregoing, for the avoidance of doubt, any Subsidiary may consolidate with, merge into or transfer all or part of its properties and assets to (i) the Company
in a transaction in which the Company is the surviving entity or (ii) any Subsidiary, in each case without any requirement for compliance with the provisions of this covenant described under
"Merger and Consolidation".
Defaults
Each of the following is an Event of Default:
(1) a
default in any payment of interest on any note when due and payable continued for 30 days;
(2) a
default in the payment of principal of any note when due and payable at its Stated Maturity, upon required redemption or repurchase, upon acceleration or otherwise;
(3) the
failure by the Company to comply with its obligations under the covenant described above under the caption "Merger and Consolidation";
(4) the
failure by the Company or any Restricted Subsidiary to comply for 60 days after receipt of the written notice referred to below with its other agreements
contained in the notes or the Indenture;
(5) the
failure by the Company or any Restricted Subsidiary that is a Significant Subsidiary to pay any Indebtedness within any applicable grace period after final maturity
or the acceleration of any such Indebtedness by the holders thereof because of a default if the total amount of such Indebtedness unpaid or accelerated exceeds $150.0 million (or its foreign
currency equivalent) (the "cross acceleration provision") and such failure continues for 10 days after receipt of the written notice referred to below;
(6) specified
events of bankruptcy, insolvency or reorganization of the Company or any Restricted Subsidiary that is a Significant Subsidiary Guarantor (the "bankruptcy
provisions");
(7) the
rendering of any judgment or decree for the payment of money in excess of $150.0 million or its foreign currency equivalent (in excess of the amount for which
liability for payment is covered by insurance or bonded) against the Company or a Restricted Subsidiary that is a Significant Subsidiary Guarantor if:
(a) an
enforcement proceeding thereon is commenced by any creditor, or
(b) such
judgment or decree remains outstanding for a period of 60 calendar days following such judgment and is not paid, discharged, waived or stayed (the "judgment default
provision"); or
(8) any
Subsidiary Guarantee of a Significant Subsidiary Guarantor as of and for the twelve months ended on the end of the most recent fiscal quarter for which financial
statements are publicly available ceases to be in full force and effect (except as contemplated by the terms thereof) or any such Significant Subsidiary Guarantor or Person acting by or on behalf of
any such Significant Subsidiary Guarantor denies or disaffirms such Significant Subsidiary Guarantor's obligations under the Indenture or any Subsidiary Guarantee and such Default continues for
10 days after receipt of the notice specified in the Indenture.
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The
foregoing Events of Default will constitute Events of Default whatever the reason for any such Event of Default and whether it is voluntary or involuntary or is effected by operation of law or
pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body.
If
a Default occurs and is continuing and is actually known to a Trust Officer of the trustee, the trustee must mail, or in the case of global notes, send in accordance with the
applicable procedures of the depositary, to each Holder of the notes notice of the Default within the earlier of 90 days after it occurs and 30 days after it is actually known to a Trust
Officer or written notice of it is received by the trustee. Except in the case of a default in the payment of principal of, premium, if any, or interest on any note, including payments pursuant to the
redemption provisions of such note, the trustee may withhold notice if and so long as a committee of its trust officers in good faith determines that withholding such notice is in the interests of the
Holders. In addition, the Company will be required to deliver to the trustee, within 120 days after the end of each fiscal year, a certificate indicating whether the officers signing such
certificate on behalf of the Company know of any Default that occurred during the previous year. The Company will also be required to deliver to the trustee, within 30 days after the occurrence
thereof, written notice of any event which would constitute an Event of Default, the status and what action the Company is taking or proposes to take in respect thereof.
A
Default under clause (4), (5) or (8) above will not constitute an Event of Default until the trustee notifies the Company or the Holders of at least 25% in
principal amount of the outstanding notes notify the Company and the trustee of the Default and the Company or the Subsidiary Guarantor, as applicable, does not cure such Default within the time
specified in clause (4), (5) or (8) above after receipt of such notice. The notice must specify the Default, demand that it be remedied and state that the notice is a "Notice of
Default."
If
an Event of Default (other than an Event of Default relating to certain events of bankruptcy, insolvency or reorganization of the Company) occurs and is continuing, the trustee or the
Holders of at least 25% in principal amount of the outstanding notes by notice to the Company and the trustee (if given by the Holders) may declare the principal of and accrued but unpaid interest on
all the notes to be due and payable. Upon such a declaration, such principal and interest will be due and payable immediately. If an Event of Default relating to specified events of bankruptcy,
insolvency or reorganization of the Company occurs, the principal of and interest on all the notes will become immediately due and payable without any declaration or other act on the part of the
trustee or any Holders. Under certain circumstances, the Holders of a majority in principal amount of the outstanding notes may rescind any such acceleration with respect to the notes and its
consequences.
The
trustee shall not be under any obligation to exercise any of the trusts or powers vested in it by the Indenture at the request or direction of any of the Holders, unless such Holders
shall have offered to such trustee security or indemnity satisfactory to the trustee. The Holders of a majority in aggregate principal amount of the notes affected and then outstanding shall have the
right to direct the time, method and place of conducting any proceeding for any remedy available to the trustee under the Indenture or exercising any trust or power conferred on the trustee with
respect to the notes;
provided
that the trustee may refuse to follow any direction that is in conflict with any law or the Indenture or that the trustee
determines is unduly prejudicial to the rights of any other Holder or that would involve the trustee in personal liability.
Except
to enforce the right to receive payment of principal, premium, if any, or interest with respect to the notes when due, no Holder may pursue any remedy with respect to the
Indenture or the notes unless:
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(2) Holders
of at least 25% in principal amount of the outstanding notes have requested the trustee in writing to pursue the remedy;
(3) such
Holders have offered the trustee security or indemnity reasonably satisfactory to the trustee against any loss, liability or expense;
(4) the
trustee has not complied with such request within 60 days after the receipt of the request and the offer of security or indemnity; and
(5) the
Holders of a majority in principal amount of the outstanding notes have not given the trustee a direction inconsistent with such request within such 60-day period.
Amendments and Waivers
Subject to certain exceptions, the Indenture or the notes may be amended with the written consent of the Holders of a majority in principal
amount of the notes then outstanding and any past default or compliance with any provisions may be waived with the consent of the Holders of a majority in principal amount of the notes then
outstanding (including consents obtained in connection with a purchase of, or tender offer or exchange offer for the notes).
The
Indenture provides that without the consent of each Holder of an outstanding note adversely affected thereby, no amendment may:
(1) reduce
the amount of notes whose Holders must consent to an amendment;
(2) reduce
the rate of or extend the time for payment of interest on any note; (3) reduce the principal of or extend the Stated Maturity of any note;
(4) reduce
the premium payable upon the redemption of any note or change the time at which any note may be redeemed as described above under the caption
"Optional Redemption";
(5) make
any note payable in money other than that stated in the note;
(6) impair
the right of any Holder to receive payment of principal of, and interest on, such Holder's notes on or after the due dates therefor or to institute suit for the
enforcement of any payment on or with respect to such Holder's notes;
(7) make
any change in the amendment provisions which require each Holder's consent or in the waiver provisions; or
(8) release
all or substantially all of the Subsidiary Guarantees.
Without
the consent of any Holder, the Company, the Subsidiary Guarantors and the trustee may amend the Indenture to:
(1) convey,
transfer, assign, mortgage or pledge any property or assets to the trustee as security for the notes;
(2) evidence
the succession of another Person to the Company or any Subsidiary Guarantor, or successive successions, and the assumption by the successor Person of the
covenants, agreements and obligations of the Company or any Subsidiary Guarantor under the Indenture pursuant to the provisions described above under the caption "Merger and
Consolidation";
(3) add
to the covenants of the Company and the Subsidiary Guarantors further covenants, restrictions, conditions or provisions for the protection of the Holders of notes;
or make any change that does not adversely affect the rights of any holder of the notes;
(4) cure
any ambiguity or correct or supplement any provision contained in the Indenture that may be defective or inconsistent with any other provision contained in the
Indenture, or make
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such
other provisions in regard to matters or questions arising under the Indenture as the Board of Directors may deem necessary or desirable and that shall not materially and adversely affect the
interests of the Holders of notes;
(5) evidence
and provide for the acceptance of appointment under the Indenture by a successor trustee with respect to the notes and add to or change any of the provisions of
the Indenture as shall be necessary to provide for or facilitate the administration of the trusts under the Indenture by more than the one trustee pursuant to the requirements of the Indenture;
(6) provide
for uncertificated notes in addition to or in place of certificated notes (provided, however, that the uncertificated notes are issued in registered form for
purposes of Section 163(f) of the Code, or in a manner such that the uncertificated notes are described in Section 163(f)(2)(B) of the Code);
(7) add
additional Subsidiary Guarantees with respect to the notes and release any Subsidiary Guarantor in accordance with the Indenture;
(8) provide
for the issuance of Additional Notes;
(9) conform
the text of the Indenture or the notes to any provision of this Description of the New Notes; or
(10) comply
with any requirement of the SEC in connection with the qualification of the indenture under the TIA.
The
consent of the Holders will not be necessary to approve the particular form of any proposed amendment. It will be sufficient if such consent approves the substance of the proposed amendment.
After
an amendment becomes effective, the Company is required to mail, or in the case of global notes, send in accordance with the applicable procedures of the depositary, to Holders
(with a copy to
the trustee) a notice briefly describing such amendment. However, the failure to give such notice to all Holders, or any defect therein, will not impair or affect the validity of the amendment.
Defeasance
The Company may at any time terminate all its obligations under the notes and the Indenture ("legal defeasance"), except for certain
obligations, including those respecting the defeasance trust and obligations to register the transfer or exchange of the notes, to replace mutilated, destroyed, lost or stolen notes and to maintain a
registrar and paying agent in respect of the notes.
In
addition, the Company may at any time terminate:
(1) its
obligations under the covenants described above under the captions "Change of Control" and "Certain Covenants", and
(2) the
operation of the cross acceleration provision, the bankruptcy provisions with respect to Significant Subsidiaries, the judgment default provision and the note
guaranty provision described under "Defaults" above and the limitations contained in clauses (3) under the first paragraph under the caption "Merger and Consolidation" above
("covenant defeasance").
In
the event that the Company exercises its legal defeasance option or its covenant defeasance option, each Subsidiary Guarantor will be released from all of its obligations with respect to its
Subsidiary Guarantee.
The
Company may exercise its legal defeasance option notwithstanding its prior exercise of its covenant defeasance option. If the Company exercises its legal defeasance option, payment
of the notes may not be accelerated because of an Event of Default with respect thereto. If the Company exercises its covenant defeasance option, payment of the notes may not be accelerated because of
an Event of
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Default
specified in clause (4) and (5) (with respect only to the applicable Restricted Subsidiaries), (6) and (7) (with respect only to Significant Subsidiary Guarantors)
or (8) under the caption "Defaults" above or because of the failure of the Company to comply with clause (3) under the first paragraph under the caption "Merger
and Consolidation" above.
In
order to exercise either defeasance option, the Company must irrevocably deposit in trust (the "defeasance trust") with the trustee money in an amount sufficient or U.S. Government
Obligations, the principal of and interest on which will be sufficient, or a combination thereof sufficient, to pay the principal of, premium, if any, and interest on the notes to redemption or
maturity, as the case may be, and must comply with specified other conditions, including delivery to the trustee of an Opinion of Counsel to the effect that Holders will not recognize income, gain or
loss for Federal income tax purposes as a result of such deposit and defeasance and will be subject to Federal income tax on the same amounts and in the same manner and at the same times as would have
been the case if such deposit and defeasance had not occurred and, in the case of legal defeasance only, such Opinion of Counsel must be based on a ruling of the Internal Revenue Service or other
change in applicable Federal income tax law.
Satisfaction and Discharge
The Indenture (including the Subsidiary Guarantees) will be discharged and will cease to be of further effect (except as to surviving rights of
registration of transfer or exchange of notes and certain rights of the Trustee and the Company's obligations with respect thereto, as expressly provided for in the Indenture) as to all notes issued
thereunder when:
(1) all
outstanding notes (other than notes replaced or paid) have been canceled or delivered to the trustee for cancellation; or
(2) all
outstanding notes have become due and payable, whether at maturity or as a result of the mailing of a notice of redemption, or will become due and payable within one
year, and the Company irrevocably deposits with the trustee funds in an amount sufficient or U.S. Government Obligations, the principal of and interest on which will be sufficient, or a combination
thereof sufficient, in the written opinion of a nationally recognized firm of independent public accountants delivered to the trustee (which opinion shall only be required to be delivered if U.S.
Government Obligations have been so deposited), to pay the principal of and interest on the outstanding notes when due at maturity or upon redemption of, including interest thereon to maturity or such
redemption date (other than notes replaced or paid); and, in either case
(3) the
Company pays all other sums payable under the Indenture by it.
Concerning the Trustee
U.S. Bank National Association is the trustee under the Indenture and has been appointed by the Company as registrar and paying agent with
regard to the notes. The Company and its subsidiaries may maintain accounts and conduct other banking transactions with affiliates of the trustee.
No Personal Liability of Directors, Officers, Employees and Stockholders
No director, officer, employee, incorporator, stockholder, member, manager or partner of the Company or any Subsidiary Guarantor, as such, will
have any liability for any obligations of the Company or the Subsidiary Guarantors under the notes, the Indenture, the Subsidiary Guarantees or for any claim based on, in respect of, or by reason of,
such obligations or their creation. Each Holder of notes by accepting a note waives and releases all such liability. The waiver and release are part of the consideration for issuance of the notes. The
waiver may not be effective to waive liabilities under the federal securities laws.
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Governing Law
The Indenture and the notes are governed by, and construed in accordance with, the laws of the State of New York.
Certain Definitions
"
Additional Assets
" means:
(1) any
property or assets (other than Indebtedness and Capital Stock) to be used by the Company or a Restricted Subsidiary in a Permitted Business;
(2) the
Capital Stock of a Person that becomes a Restricted Subsidiary as a result of the acquisition of such Capital Stock by the Company or another Restricted Subsidiary;
or
(3) Capital
Stock constituting a minority interest in any Person that at such time is a Restricted Subsidiary;
provided
,
however
, that any such Restricted Subsidiary
described in clause (1) or (2) above is primarily engaged in a Permitted Business.
"
Adjusted Consolidated EBITDA
" means, with respect to any Person for any period, the Consolidated Net Income of such Person for such
period:
(a) increased
(without duplication) by the following to the extent deducted in calculating the Consolidated Net Income of such Person for such period:
(1) provision
for Federal, state, local and foreign taxes based on income or profits or capital (including, without limitation, state franchise, excise and similar taxes and
foreign withholding taxes of such Person) paid or accrued during such period, including any penalties and interest relating to any tax examinations, and (without duplication) net of any tax credits
applied during such period (including tax credits applicable to taxes paid in earlier periods);
plus
(2) Consolidated
Interest Expense;
plus
(3) depreciation
and amortization expense;
plus
(4) any
expenses or charges (other than depreciation or amortization expense) related to any equity offering, Investment, acquisition, Asset Disposition or recapitalization
permitted under Indenture or the incurrence of Indebtedness permitted to be incurred under the Indenture (including a refinancing thereof) (whether or not successful), including (A) such fees,
expenses or charges related to the Transactions and any other credit facilities and (B) any amendment or other modification of the Credit Agreement and any other credit facilities;
plus
(5) the
amount of any restructuring charge or reserve or integration cost, including any one-time costs incurred in connection with the Transactions and acquisitions or
divestitures after the Closing Date;
plus
(6) other
non-cash charges, write-downs, expenses, losses or items reducing Consolidated Net Income of such Person for such period, including any impairment charges or the
impact of purchase accounting, (excluding (A) any such non-cash charge, writedown or item to the extent it represents an accrual or reserve for a cash expenditure for a future period and
(B) any such non-cash charge related to project writedowns or operations)
less
other non-cash items of income increasing Consolidated Net Income
(excluding any such non-cash item of income to the extent it represents a receipt of cash in any future period so long as such receipt of cash is not included in calculating Consolidated Net Income or
Adjusted Consolidated EBITDA in such later period);
plus
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(7) all
expenses and charges relating to non-controlling Capital Stock and equity income in non-wholly owned Restricted Subsidiaries;
plus
(8) any
costs or expense incurred pursuant to any management equity plan or stock option plan or any other management or employee benefit plan or agreement or any stock
subscription or shareholder agreement;
plus
(9) cash
receipts (or any netting arrangements resulting in reduced cash expenditures) not included in Adjusted Consolidated EBITDA or Consolidated Net Income in any period
to the extent non-cash gains relating to such receipts were deducted in the calculation of Adjusted Consolidated EBITDA pursuant to paragraph (b) below for any previous period and not otherwise
added back in such period or any other period;
plus
(10) cash
distributions of income received from non-consolidated Joint Ventures and other non-consolidated Minority Investment entities, attributable to the ownership of
such Person in such entities;
plus
(11) cost
savings, expense reductions, operating improvements, integration savings and synergies, in each case, projected by the Company in good faith to be realized as a
result, and within 18 months, of the Transactions;
(b) decreased
(without duplication) by the following to the extent included in calculating the Consolidated Net Income of such Person for such period:
(1) non-cash
gains other than (A) non-cash gains to the extent they represent the reversal of an accrual or cash reserve for a potential cash item that reduced
Adjusted Consolidated EBITDA in any prior period and (B) non-cash gains with respect to cash actually received in a prior period so long as such cash did not increase Adjusted Consolidated
EBITDA in such prior period;
plus
(2) earnings
of non-consolidated Joint Ventures and other non-consolidated Minority Investment entities, attributable to the ownership of such Person in such entities.
"
AECOM Capital
" means AECOM Capital, Inc. and all existing or newly formed Persons engaged in any similar line of business to AECOM
Capital, Inc., including infrastructure public-private partnership, design-build-finance, real estate investment, development and related assets.
"
Affiliate
" means, with respect to any Person, another Person that directly, or indirectly through one or more intermediaries, Controls or
is Controlled by or is under common Control with the Person specified.
"
Applicable Premium
" means, with respect to a Note at any date of redemption, the greater of (i) 1.0% of the principal amount of
such Note and (ii) the excess of (A) the present value at such date of redemption of (1) the redemption price of such Note at December 15, 2026 (three months prior to the
maturity date)
plus
(2) all remaining required interest payments due on such Note through December 15, 2026 (three months prior to the
maturity date) (excluding accrued but unpaid interest to the date of redemption), computed using a discount rate equal to the Treasury Rate
plus
50
basis points, over (B) the principal amount of such Note. In each case, the applicable premium shall be determined by the Company and the trustee shall have no duty to calculate or verify the
calculations of the Applicable Premium.
"
Asset Disposition
" means any sale, lease, transfer or other disposition (or series of related sales, leases, transfers or dispositions
that are part of a common plan) by the Company or any Restricted Subsidiary (other than operating leases entered into in the ordinary course of business), including any
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disposition
by means of a merger, consolidation, or similar transaction (each referred to for the purposes of this definition as a "disposition"), of:
(1) any
shares of Capital Stock of a Restricted Subsidiary (other than directors' qualifying shares or shares required by applicable law to be held by a Person other than
the Company or a Restricted Subsidiary),
(2) all
or substantially all the assets of any division or line of business of the Company or any Restricted Subsidiary or
(3) any
other assets of the Company or any Restricted Subsidiary outside of the ordinary course of business of the Company or such Restricted Subsidiary, other than, in each
of cases (1), (2) and (3) above,
(A) any
disposition by a Restricted Subsidiary to the Company or by the Company or a Restricted Subsidiary to a Restricted Subsidiary;
(B) any
dividend, distribution, payment, purchase, redemption, repurchase, defeasance or retirement or other distribution on or with respect to Capital Stock of the Company
or any Restricted Subsidiary;
(C) a
disposition of assets with a Fair Market Value of less than $20.0 million;
(D) any
disposition of surplus, obsolete, discontinued or worn-out equipment or other assets no longer useful in the ongoing business of the Company and its Restricted
Subsidiaries;
(E) (A)
any disposition of cash or Cash Equivalents or readily marketable securities or (B) any disposition resulting from the liquidation or dissolution of any
Restricted Subsidiary,
(F) any
Investment;
(G) the
creation of any Permitted Lien and any disposition pursuant thereto;
(H) the
unwinding of any obligations (contingent or otherwise) existing or arising under any Swap Contract;
(I) any
disposition arising from foreclosure, condemnation or similar action with respect to any property or other assets, or exercise of termination rights under any lease,
license, concession or other agreement, or disposition of properties that have been subject to a casualty to the respective insurer of such property or its designee as part of an insurance settlement;
and any surrender or waiver of contract rights or a settlement, release or surrender of contract, tort or other claims in the ordinary course of business;
(J) a
sale, contribution, conveyance or other transfer of Receivables and related assets of the type specified in the definition of Qualified Receivables Transaction by or
to a Receivables Subsidiary in a Qualified Receivables Transaction;
(K) any
disposition of securities of any Unrestricted Subsidiary;
(L) the
sale or other transfer of accounts receivable in connection with factoring arrangements, which sale is non-recourse to the extent customary in factoring arrangements
and consistent with past practice;
(M) dispositions
of assets (including, without limitation, assets of acquired Subsidiaries) within 365 days after the acquisition thereof (or, as applicable, the
acquisition of such acquired Subsidiary) if such assets are not used or useful in the core or principal business of the Company and its Restricted Subsidiaries; and
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(N) in
order to collect receivables in the ordinary course of business, resolve disputes that occur in the ordinary course of business or engage in transactions with
government agencies in the ordinary course of business, disposition of, discount or otherwise compromise of for less than the face value thereof, notes or accounts receivable, so long as no such
disposition, discount or other compromise gives rise to
any Indebtedness, any Lien on any note or account receivable, or is made as part of any account receivable securitization program.
"
Attributable Indebtedness
" means, on any date, (a) in respect of any Capitalized Lease of any Person, the capitalized amount
thereof that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP and (b) in respect of any Synthetic Lease Obligation, the capitalized amount of the
remaining lease or similar payments under the relevant lease or other applicable agreement or instrument that would appear on a balance sheet of such Person prepared as of such date in accordance with
GAAP if such lease or other agreement or instrument were accounted for as a Capitalized Lease.
"
Average Life
" means, as of the date of determination, with respect to any Indebtedness or Preferred Stock, the quotient obtained by
dividing:
(1) the
sum of the products of the numbers of years from the date of determination to the dates of each successive scheduled principal payment of such Indebtedness or
scheduled redemption or similar payment with respect to such Preferred Stock multiplied by the amount of such payment
by
(2) the
sum of all such payments.
"
Board of Directors
" means the Board of Directors of the Company or any committee thereof duly authorized to act on behalf of the Board of
Directors of the Company.
"
Business Day
" means each day that is not a Legal Holiday.
"
Capital Stock
" means, with respect to any Person, all of the shares of capital stock of (or other ownership or profit interests in) such
Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, all of the
securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from
such Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including partnership, member or trust interests therein), whether voting or
nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any date of determination.
"
Capitalized Leases
" means all leases that have been or should be, in accordance with GAAP, recorded as capitalized leases.
"
Cash Equivalents
" means any of the following types of Investments, to the extent owned by the Company or any of its Restricted
Subsidiaries:
(1) readily
marketable obligations issued or directly and fully guaranteed or insured by the United States of America or any agency or instrumentality thereof having
maturities of not more than one year from the date of acquisition thereof;
provided
that the full faith and credit of the United States of America is
pledged in support thereof, or, in the case of a Foreign Subsidiary, readily marketable obligations issued or directly and fully guaranteed or insured by the government, governmental agency or
applicable multinational intergovernmental organization of the country of such Foreign Subsidiary or backed by the full faith and credit of the government, governmental agency or applicable
multinational intergovernmental organization of the country of such Foreign Subsidiary having maturities of not more than one year from the date of acquisition thereof;
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(2) readily
marketable obligations issued by any state of the United States of America or any political subdivision of any such state or any public instrumentality thereof
maturing within one year from the date of acquisition thereof and having, at the time of acquisition, the highest rating obtainable from Moody's or S&P;
(3) demand
deposits, time deposits, Eurodollar time deposits, repurchase agreements or reverse repurchase agreements with, or insured certificates of deposit or bankers'
acceptances of, or that are guaranteed by, any commercial bank that (i) is organized under the laws of the United States of America, any state thereof or the District of Columbia or is the
principal banking subsidiary of a bank holding company organized under the laws of the United States of America, any state thereof or the District of Columbia, and is a member of the Federal Reserve
System, (ii) issues (or the parent of which issues) commercial paper rated as described in clause (3) of this definition and (iii) has combined capital and surplus of at least
$500,000,000, in each case with maturities of not more than one year from the date of acquisition thereof;
(4) commercial
paper issued by any Person organized under the laws of any state of the United States of America and rated at least "Prime-2" (or the then equivalent grade)
by Moody's or at least "A-2" (or the then equivalent grade) by S&P, in each case with maturities of not more than one year from the date of acquisition thereof;
(5) corporate
promissory notes or other obligations maturing not more than one year after the date of acquisition which at the time of such acquisition have, or are
supported by, an unconditional guaranty
from a corporation with similar obligations which have the highest rating obtainable from Moody's or S&P;
(6) Investments,
classified in accordance with GAAP as current assets of the Company or any of its Restricted Subsidiaries, in money market investment programs registered
under the Investment Company Act of 1940, which are administered by financial institutions that have the highest rating obtainable from either Moody's or S&P, and the portfolios of which are limited
solely to Investments of the character, quality and maturity described in clauses (1), (2), (3), (4) and (5) of this definition;
(7) other
short-term investments utilized by Foreign Subsidiaries in accordance with normal investment practices for cash management in investments of a type analogous to
the foregoing; and
(8) solely
with respect to any Foreign Subsidiary, non-Dollar denominated (i) certificates of deposit of, bankers acceptances of, or time deposits with, any
commercial bank which is organized and existing under the laws of the country in which such Foreign Subsidiary maintains its chief executive office and principal place of business provided such
country is a member of the Organization for Economic Cooperation and Development, and whose short-term commercial paper rating from S&P is at least A-1 or the equivalent thereof or from Moody's is at
least P-1 or the equivalent thereof (any such bank being an "
Approved Foreign Bank
") and maturing within 180 days of the date of acquisition and
(ii) equivalents of demand deposit accounts which are maintained with an Approved Foreign Bank.
"
Closing Date
" means the date the notes were originally issued.
"
Code
" means the Internal Revenue Code of 1986, as amended.
"
Commodity Exchange Act
" means the Commodity Exchange Act (7 U.S.C. § 1
et
seq
.), as amended from time to time, and any successor statute.
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"
Consolidated Coverage Ratio
" as of any date of determination means the ratio of:
(1) the
aggregate amount of Adjusted Consolidated EBITDA of the Company and its Restricted Subsidiaries for the period of the most recent four consecutive fiscal quarters
for which financial statements are then publicly available to
(2) Consolidated
Interest Expense for such four fiscal quarters;
provided
,
however
, that:
(A) if
the Company or any Restricted Subsidiary has Incurred any Indebtedness since the beginning of such period that remains outstanding on such date of determination, or
if the transaction giving rise to the need to calculate the Consolidated Coverage Ratio is an Incurrence of Indebtedness, Adjusted Consolidated EBITDA and Consolidated Interest Expense for such period
shall be calculated after giving effect on a pro forma basis to such Indebtedness as if such Indebtedness had been Incurred on the first day of such period and the discharge of any other Indebtedness
repaid, repurchased, defeased or otherwise discharged with the proceeds of such new Indebtedness as if such discharge had occurred on the first day of such period,
(B) if
the Company or any Restricted Subsidiary has repaid, repurchased, defeased or otherwise discharged any Indebtedness since the beginning of such period or if any
Indebtedness is to be repaid, repurchased, defeased or otherwise discharged (in each case other than Indebtedness Incurred under any revolving credit facility or similar arrangement , unless such
Indebtedness has been permanently repaid and the related commitment has been terminated and not been replaced) on the date of the transaction giving rise to the need to calculate the Consolidated
Coverage Ratio, Adjusted Consolidated EBITDA and Consolidated Interest Expense for such period shall be calculated on a pro forma basis as if such discharge had occurred on the first day of such
period,
(C) if
since the beginning of such period the Company or any Restricted Subsidiary shall have made any Asset Disposition, the Adjusted Consolidated EBITDA for such period
shall be reduced by an amount equal to the Adjusted Consolidated EBITDA, if positive, directly attributable to the assets that are the subject of such Asset Disposition for such period or increased by
an amount equal to the Adjusted Consolidated EBITDA (if negative) directly attributable thereto for such period and Consolidated Interest Expense for such period shall be reduced by an amount equal to
the Consolidated Interest Expense directly attributable to any Indebtedness of the Company or any Restricted Subsidiary repaid, repurchased, defeased or otherwise discharged with respect to the
Company and its continuing Restricted Subsidiaries in connection with such Asset Disposition for such period or, if the Capital Stock of any Restricted Subsidiary is sold, the Consolidated Interest
Expense for such period directly attributable to the Indebtedness of such Restricted Subsidiary to the extent the Company and its continuing Restricted Subsidiaries are no longer liable for such
Indebtedness after such sale,
(D) if
since the beginning of such period the Company or any Restricted Subsidiary, by merger or otherwise, shall have made an Investment in any Restricted Subsidiary or any
Person that becomes a Restricted Subsidiary or an acquisition of assets, including any acquisition of assets occurring in connection with a transaction causing a calculation to be made hereunder,
which constitutes all or substantially all of an operating unit of a business, Adjusted Consolidated EBITDA and Consolidated Interest Expense for such period shall be calculated after giving pro forma
effect thereto, including the
Incurrence of any Indebtedness as if such Investment or acquisition occurred on the first day of such period, and
(E) if
since the beginning of such period any Person that subsequently became a Restricted Subsidiary or was merged with or into the Company or any Restricted Subsidiary
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since
the beginning of such period, shall have made any Asset Disposition or any Investment or acquisition of assets that would have required an adjustment pursuant to clause (C) or
(D) above if made by the Company or a Restricted Subsidiary during such period, Adjusted Consolidated EBITDA and Consolidated Interest Expense for such period shall be calculated after giving
pro forma effect thereto as if such Asset Disposition, Investment or acquisition of assets occurred on the first day of such period.
For
purposes of this definition, whenever pro forma effect is to be given to any transaction under this definition, the pro forma calculations shall be determined in good faith by a
responsible financial or accounting Officer of the Company, but may also include, in the case of sales of assets, Investments or acquisitions referred to above, the net reduction in costs that have
been realized or are reasonably anticipated to be realized in good faith with respect to such sale of assets, Investment or acquisition within twelve months of the date thereof and that are reasonable
and factually supportable, as if all such reductions in costs had been effected as of the beginning of such period, decreased by any incremental expenses incurred or to be incurred during such
four-quarter period in order to achieve such reduction in costs, as set forth in an Officers' Certificate delivered to the trustee that outlines the specific actions taken or to be taken and the net
reduction in costs achieved or to be achieved from each such action and that certifies that such cost reductions meet the criteria set forth in this sentence.
For
purposes of the pro forma calculation under paragraph (a) of the covenant described under "Limitation on Indebtedness" and for purposes of the calculation of
Consolidated Senior Secured Leverage Ratio, such calculation shall not give effect to any Indebtedness Incurred on the date of determination pursuant to the provisions described in
paragraph (b) of the covenant described under "Limitation on Indebtedness".
If
any Indebtedness bears a floating rate of interest and is being given pro forma effect, the interest expense on such Indebtedness shall be calculated as if the rate in effect on the
date of determination had been the applicable rate for the entire period, taking into account any Swap Contract applicable to
such Indebtedness if such Swap Contract has a remaining term as at the date of determination in excess of 12 months. If the interest on any such Indebtedness may be determined based on rates
chosen by the Company, pro forma interest expense may be determined based on such optional rate chosen as the Company may designate.
"
Consolidated Funded Indebtedness
" means, as of any date of determination, for the Company and its Restricted Subsidiaries on a
consolidated basis in accordance with GAAP and without duplication, all (a) Indebtedness for borrowed money and all obligations evidenced by notes, bonds, debentures, loan agreements or similar
instruments, (b) Indebtedness in respect of the deferred purchase price of property or services (which such Indebtedness excludes, for the avoidance of doubt, trade accounts payable or similar
obligations to a trade creditor in the ordinary course of business and any contingent earn-out obligation or other contingent obligation related to an acquisition or an Investment permitted
hereunder), (c) Indebtedness arising under letters of credit (excluding Performance Letters of Credit), (d) all Indebtedness with respect to Disqualified Stock or Preferred Stock of
Restricted Subsidiaries, (e) Guarantees of the foregoing types of Indebtedness and (f) all Indebtedness of the types referred to in clauses (a) through (e) above of any
partnership in which the Company or a Restricted Subsidiary is a general partner;
provided
that "Consolidated Funded Indebtedness" shall exclude
(i) Performance Contingent Obligations and (ii) all obligations under any Swap Contract.
"
Consolidated Interest Expense
" means, for any period, the total interest expense (excluding any interest in respect of Indebtedness of
any Receivables Subsidiary) of the Company and its Restricted Subsidiaries,
plus
, to the extent Incurred by the Company and its Restricted Subsidiaries
in such period but not included in such interest expense, without duplication:
(1) interest
expense attributable to Capitalized Leases and the interest expense attributable to leases constituting part of a Sale/Leaseback Transaction,
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(2) amortization
of debt discount and debt issuance costs,
(3) capitalized
interest,
(4) non-cash
interest expense,
(5) commissions,
discounts and other fees and charges attributable to letters of credit and bankers' acceptance financing,
(6) interest
accruing on any Indebtedness of any other Person to the extent such Indebtedness is Guaranteed by the Company or any Restricted Subsidiary,
(7) net
payments, if any, under Swap Contracts,
(8) all
dividends in respect of all Disqualified Stock of the Company and all Preferred Stock of any of the Subsidiaries of the Company (other than dividends payable solely
in Capital Stock of the Company (other than Disqualified Stock) or to the Company or a Restricted Subsidiary), and
(9) the
cash contributions to any employee stock ownership plan or similar trust to the extent such contributions are used by such plan or trust to pay interest or fees to
any Person (other than the Company) in connection with Indebtedness Incurred by such plan or trust.
"
Consolidated Net Income
" shall mean, for any Person for any period of measurement, the consolidated net income (or net loss) of such
Person for such period, determined on a consolidated basis in accordance with GAAP;
provided
that in computing such amount for the Company and its
Restricted Subsidiaries, there shall be excluded extraordinary gains and extraordinary losses of such Person for such period.
"
Consolidated Net Worth
" means, as of any date of determination, the consolidated stockholders' equity of the Company and its Restricted
Subsidiaries determined in accordance with GAAP,
plus
redeemable common stock and common stock units shown on the Company's consolidated balance sheet,
plus
an amount equal to the principal amount or liquidation preference of issued and outstanding preferred stock of the Company and its Restricted
Subsidiaries.
"
Consolidated Senior Secured Indebtedness
" means, at any time, without duplication, the aggregate principal amount of all Consolidated
Funded Indebtedness of the Company and its Restricted Subsidiaries outstanding on such date, determined on a consolidated basis in accordance with GAAP that, as of such date, is secured by a Lien on
any asset of the Company or any Restricted Subsidiary.
"
Consolidated Senior Secured Leverage Ratio
" means, as of any date of determination, the ratio of (a) Consolidated Senior Secured
Indebtedness as of such date to (b) Adjusted Consolidated EBITDA of the Company and its Restricted Subsidiaries on a consolidated basis for the most recently completed four fiscal quarters of
the Company. The Consolidated Senior Secured Leverage Ratio shall be calculated consistent with the pro forma adjustments contemplated by the definition of Consolidated
Coverage Ratio; provided, that such calculation shall not give effect to Indebtedness Incurred on the date of determination secured by Liens pursuant to clauses (1) through (19) the
definition of "Permitted Liens" other than clause (16) of such definition.
"
Consolidation
" means the consolidation of the accounts of each of the Restricted Subsidiaries with those of the Company in accordance
with GAAP consistently applied;
provided
,
however
, that "Consolidation" will not include consolidation
of the accounts of any Unrestricted Subsidiary, but the interest of the Company or any Restricted Subsidiary in an Unrestricted Subsidiary will be accounted for as an Investment. The term
"Consolidated" has a correlative meaning.
"
Control
" means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a
Person, whether through the ability to exercise voting power, by contract or otherwise. "
Controlling
" and
"
Controlled
" have meanings correlative thereto.
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"
Credit Agreement
" means that certain Credit Agreement, dated as of October 17, 2014, among the Company and certain subsidiaries of
the Company, as borrowers, each lender from time to time party thereto, Bank of America, N.A., as administrative agent and the other agents party thereto, as such agreement may be amended, restated,
supplemented, waived, replaced, whether or not upon termination, and whether with the original lenders or otherwise, refinanced, restructured or otherwise modified from time to time.
"
Credit Facilities
" means, one or more debt facilities (including, without limitation, the Credit Agreement), commercial paper facilities
or indentures, in each case with banks or other institutional lenders or a trustee, providing for revolving credit loans, term loans, receivables financing (including through the sale of receivables
to such lenders or to special purpose entities formed to borrow from such lenders against such receivables), letters of credit or issuances of notes, in each case, as amended, restated, modified,
renewed, refunded, replaced or refinanced in whole or in part from time to time.
"
Default
" means any event or condition that constitutes an Event of Default or that, with the giving of any notice, the passage of time,
or both, would be an Event of Default.
"
Designated Noncash Consideration
" means the Fair Market Value of non-cash consideration received by the Company or one of its Restricted
Subsidiaries in connection with an Asset Disposition that is so designated as Designated Noncash Consideration pursuant to an Officers' Certificate, setting forth the basis of such valuation.
"
Disqualified Stock
" means, with respect to any Person, any Capital Stock that by its terms, or by the terms of any security into which it
is convertible or for which it is exchangeable or exercisable, or upon the happening of any event:
(1) matures
or is mandatorily redeemable pursuant to a sinking fund obligation or otherwise,
(2) is
convertible or exchangeable for Indebtedness or Disqualified Stock, excluding Capital Stock convertible or exchangeable solely at the option of the Company or a
Restricted Subsidiary;
provided
,
however
, that any such conversion or exchange shall be deemed an
Incurrence of Indebtedness or Disqualified Stock, as applicable, or
(3) is
redeemable at the option of the holder thereof, in whole or in part, in the case of each of clauses (1), (2) and (3), on or prior to the date that is
one year after the Stated Maturity of the notes;
provided
,
however
, that any Capital Stock that would
not constitute Disqualified Stock but for provisions thereof giving holders thereof the right to require such Person to repurchase or redeem such Capital Stock upon the occurrence of an "asset sale"
or "change of control" occurring prior to the date that is one year after the Stated Maturity of the notes shall not constitute Disqualified Stock if the "asset sale" or "change of control" provisions
applicable to such Capital Stock are not more favorable to the holders of such Capital Stock than the provisions of the covenants described under "Change of Control" and
"Certain CovenantsLimitation on Sales of Assets and Subsidiary Stock."
"
Domestic Restricted Subsidiary
" means a Restricted Subsidiary that is not a Foreign Subsidiary.
"
Exchange Act
" means the Securities Exchange Act of 1934, as amended.
"
Existing Notes
" means the Company's existing 5.750% Senior Notes due 2022 and 5.875% Senior Notes due 2024 issued under an indenture
dated as of October 6, 2014 among the Company, U.S. Bank National Association and the other parties thereto.
"
Existing URS Notes
" means (a) the existing senior unsecured 3.850% notes due 2017 of URS Fox US LP, a Delaware limited
partnership and URS Corporation, a Delaware corporation (the "
URS Notes Issuers
") , issued pursuant to that certain indenture dated as of
March 15, 2012 and that first supplemental indenture dated as of March 15, 2012 and (b) existing senior unsecured 5.000% notes due
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2022
of the URS Notes Issuers issued pursuant to that certain Indenture dated as of March 15, 2012 and that certain second supplemental indenture dated as of March 15, 2012.
"
Fair Market Value
" means, with respect to any asset or property, the price that could be negotiated in an arm's-length, free market
transaction, for cash, between a willing seller and a willing and able buyer, neither of whom is under undue pressure or compulsion to complete the transaction, as determined by an Officer in good
faith. The Fair Market Value of property or assets other than cash which involves an aggregate amount in excess of $100.0 million shall have been determined by the Board of Directors in good
faith and evidenced by a resolution of the Board of Directors.
"
Foreign Subsidiary
" means (i) any Subsidiary that is organized under the laws of a jurisdiction other than the United States, a
State thereof or the District of Columbia and any direct or indirect Subsidiary of such Subsidiary, and (ii) any Person substantially all of whose assets consist of equity interests and/or
indebtedness of one or more Foreign Subsidiaries and any other assets incidental thereto.
"
GAAP
" means generally accepted accounting principles in the United States of America as in effect as of the Closing Date, including those
set forth in:
(1) the
opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants,
(2) statements
and pronouncements of the Public Company Accounting Oversight Board,
(3) such
other statements by such other entities as approved by a significant segment of the accounting profession, and
(4) the
rules and regulations of the SEC governing the inclusion of financial statements (including pro forma financial statements) in periodic reports required to be filed
pursuant to Section 13 of the Exchange Act, including opinions and pronouncements in staff accounting bulletins and similar written statements from the accounting staff of the SEC;
provided
with respect to any reports or financial information required to be delivered pursuant to the covenant described above under
"Certain CovenantsSEC Reports," such reports or financial information shall be prepared in accordance with GAAP as in effect on the date thereof.
All
ratios and computations based on GAAP contained in the Indenture shall be computed in conformity with GAAP.
"
Governmental Authority
" means the government of the United States or any other nation, or of any political subdivision thereof, whether
state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative
powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).
"
Guarantee
" means any obligation, contingent or otherwise, of any Person directly or indirectly guaranteeing any Indebtedness or other
obligation of any other Person and any obligation, direct or indirect, contingent or otherwise, of such Person:
(1) to
purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation of such other Person (whether arising by virtue of
partnership arrangements, or by agreement to keep-well, to purchase assets, goods, securities or services, to take-or-pay, or to maintain financial statement conditions or otherwise) or
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(2) entered
into for purposes of assuring in any other manner the obligee of such Indebtedness or other obligation of the payment thereof or to protect such obligee against
loss in respect thereof (in whole or in part);
provided
,
however
, that the term "Guarantee" shall not
include endorsements for collection or deposit in the ordinary course of business. The term "Guarantee" used as a verb has a corresponding meaning. The term "Guarantor" shall mean any Person
Guaranteeing any obligation.
The amount of any Guarantee or other contingent liability, to the extent constituting Indebtedness or Investments, shall be (i) determined in accordance
with GAAP, in the case of any such Guarantee or other contingent liability related to Indebtedness or other obligations of AECOM Capital (or Subsidiaries of, or Joint Ventures formed by, AECOM
Capital) in connection with projects of AECOM Capital (or Subsidiaries of, or Joint Ventures formed by, AECOM Capital) and (ii) deemed to be an amount equal to the stated or determinable amount
of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as
determined by the guaranteeing Person or entity in good faith, in the case of any such Guarantee or other contingent liability not described in clause (i) of this proviso. For the avoidance of
doubt, the stated or determinable amount of any undrawn revolving facility shall be zero.
"
Holder
" means the Person in whose name a note is registered on the registrar's books.
"
Incur
" means to issue, assume, Guarantee, incur or otherwise become liable for;
provided
,
however
, that any Indebtedness
or Capital Stock of a Person existing at the time such Person becomes a Subsidiary (whether by merger, consolidation,
acquisition or otherwise) shall be deemed to be Incurred by such Person at the time it becomes a Subsidiary. The term "Incurrence" when used as a noun shall have a correlative meaning. The accretion
of principal of a non-interest bearing or other discount security or accrual of payment-in-kind interest shall not be deemed the Incurrence of Indebtedness.
"
Indebtedness
" means, as to any Person at a particular time, without duplication, all of the following, whether or not included as
indebtedness or liabilities in accordance with GAAP:
(1) all
obligations of such Person for borrowed money and all obligations of such Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments;
(2) the
maximum amount of all direct or contingent obligations of such Person arising under letters of credit (including standby and commercial), bankers' acceptances, bank
guaranties, surety bonds and similar instruments (other than Performance Contingent Obligations and any Guarantees thereof and contingent obligations under or relating to bank guaranties or surety
bonds);
(3) net
obligations of such Person under any Swap Contract if and to the extent such obligations would appear as a liability upon a balance sheet (excluding the footnotes
thereto) of such Person prepared in accordance with GAAP;
(4) all
obligations of such Person to pay the deferred purchase price of property or services (other than trade accounts payable or similar obligations to a trade creditor
in the ordinary course of business and other than any contingent earn-out obligation or other contingent obligation related to an acquisition or an Investment permitted hereunder);
(5) Indebtedness
of other Persons secured by a Lien on any asset of such Person, whether or not such Indebtedness is assumed by such Person;
provided
,
however
, that the
amount of Indebtedness of such Person shall be the lesser of (i) the
Fair Market Value of such asset at such date of determination and (ii) the amount of such Indebtedness of such other Person;
(6) all
Attributable Indebtedness in respect of Capitalized Leases and Synthetic Lease Obligations of such Person;
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(7) the
amount of all obligations of such Person with respect to the redemption, repayment or other repurchase of any Disqualified Stock or, with respect to any Subsidiary
of such Person, any Preferred Stock (but excluding, in each case, any accrued dividends); and
(8) all
Guarantees of such Person in respect of any of the foregoing Indebtedness.
For
all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any partnership in which such Person is a general partner. The amount of any net obligation
under any Swap Contract on any date shall be deemed to be the Swap Termination Value thereof as of such date. The amount of any Guarantee of Indebtedness shall be determined in accordance with the
definition of "Guarantee." Notwithstanding the foregoing, Indebtedness of the Company and its Restricted Subsidiaries shall not include short-term intercompany payables between or among two or more of
the Company and its Restricted Subsidiaries arising from cash management transactions.
"
Investment
" means, as to any Person, any direct or indirect acquisition or investment by such Person in another Person, whether by means
of (a) the purchase or other acquisition of Capital Stock of another Person, (b) a loan, advance or capital contribution to, Subsidiary Guarantee or assumption of debt of, or purchase or
other acquisition of any other debt or interest in, another Person, or (c) the purchase or other acquisition (in one transaction or a series of transactions) of assets of another Person that
constitute a business unit. For purposes of covenant compliance, the amount of any Investment at any time outstanding shall be (i) the amount actually invested, without adjustment for
subsequent increases or decreases in the value of such Investment, minus (ii) the amount of dividends or distributions received in connection with such Investment and any return of capital or
repayment of principal received in respect of such Investment that, in each case, is received in cash or Cash Equivalents.
"
Joint Venture
" means a joint venture, partnership or similar arrangement formed for the purpose of performing a single project or series
of related projects, whether in corporate, partnership or other legal form;
provided
that, in no event shall a Subsidiary be considered a "Joint
Venture."
"
Laws
" means, collectively, all international, foreign, Federal, state and local statutes, treaties, rules, guidelines, regulations,
ordinances, codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement,
interpretation or administration thereof, and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority,
in each case whether or not having the force of law.
"
Legal Holiday
" means a Saturday, Sunday or other day on which banking institutions are not required by law or regulation to be open in
the State of New York or the place of payment. If a payment date is a Legal Holiday at a place of payment, payment may be made at that place on the next succeeding day that is not a Legal Holiday, and
no other interest shall accrue on such payment for the intervening period.
"
Lien
" means any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance (including any easement, right-of-way or
other encumbrance on title to real property), lien (statutory or other), charge, or preference, priority or other security interest or preferential arrangement in the nature of a security interest of
any kind or nature whatsoever (including any conditional sale or other title retention agreement, and any financing lease having substantially the same economic effect as any of the foregoing).
"
Material Credit Facility
" means any Credit Facility under which there is outstanding (without duplication) Indebtedness of the Company or
any Guarantor in an aggregate principal amount equal to or greater than $150.0 million (other than, for the avoidance of doubt, the Existing URS Notes and any Receivables financing (including
without limitation any Qualified Receivables Transaction)).
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"
Minority Investment
" means an Investment by the Company or any Restricted Subsidiary in the Capital Stock of another Person (other than
the Company or any Restricted Subsidiary) whose primary business at such time is the same as that of the Company that results in the direct ownership by the Company or a Restricted Subsidiary of less
than 50% of the outstanding Capital Stock of such other Person, irrespective of whether the board of directors (or other governing body) of such Person has approved such Investment;
provided
that a
"Minority Investment" shall not include (a) Investments in Joint Ventures existing on the Closing Date, (b) Investments in
any securities received in satisfaction or partial satisfaction from financially troubled account debtors or (c) Investments made or deemed made as a result of the receipt of non-cash
consideration in connection with Asset Dispositions otherwise permitted hereunder.
"
Net Available Cash
" from an Asset Disposition means cash consideration received (including any cash payments received by way of deferred
payment of principal pursuant to a note or installment receivable or otherwise and proceeds from the sale or other disposition of any securities received as consideration, but only as and when
received, but excluding any other consideration received in the form of assumption by the acquiring Person of Indebtedness or other obligations relating to the properties or assets that are the
subject of such Asset Disposition or received in any other non-cash form) therefrom, in each case net of:
(1) all
legal, title and recording tax expenses, commissions and other fees and expenses incurred, and all Federal, state, provincial, foreign and local taxes required to be
paid or accrued as a liability under GAAP, as a consequence of such Asset Disposition,
(2) all
payments made on any Indebtedness which is secured by any assets subject to such Asset Disposition, in accordance with the terms of any Lien upon or other security
agreement of any kind with respect to such assets, or which must by its terms, or in order to obtain a necessary consent to such Asset Disposition, or by applicable law be repaid out of the proceeds
from such Asset Disposition,
(3) all
distributions and other payments required to be made to minority interest holders in Subsidiaries or joint ventures as a result of such Asset Disposition,
(4) payments
of unassumed liabilities relating to the assets sold at the time of, or within 60 days after, the date of such sale to the extent required by any
agreement or contract relating to such liabilities, and
(5) appropriate
amounts to be provided by the seller as a reserve against any liabilities associated with the property or other assets disposed of in such Asset Disposition
and retained by the Company or any Restricted Subsidiary after such Asset Disposition, including indemnification obligations associated with such Asset Disposition.
"
Net Cash Proceeds
," with respect to any issuance or sale of Capital Stock, means the cash proceeds of such issuance or sale net of
attorneys' fees, accountants' fees, underwriters' or placement agents' fees, discounts or commissions and brokerage, consultant and other fees actually incurred in connection with such issuance or
sale and net of taxes paid or payable as a result thereof.
"
Officer
" means the Chairman of the Board, the Chief Executive Officer, the Chief Financial Officer, the President, any Vice President,
the Treasurer or the Secretary of the Company or of a Subsidiary Guarantor, as appropriate.
"
Officers' Certificate
" means a certificate signed by two Officers.
"
Opinion of Counsel
" means a written opinion from legal counsel, which counsel shall be satisfactory to the trustee. The counsel may be an
employee of or counsel to the Company or a Subsidiary Guarantor.
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"
Pari Passu Indebtedness
" means Indebtedness that ranks equally in right of payment to the notes, in the case of the Company, or the
applicable Subsidiary Guarantee, in the case of any Subsidiary Guarantor (without giving effect to collateral arrangements).
"
Performance Contingent Obligations
" means any bid, performance or similar project related bonds, parent company guarantees, bank
guaranties or surety bonds or Performance Letters of Credit.
"
Performance Letter of Credit
" means a standby letter of credit used directly or indirectly to cover bid, performance, advance and
retention obligations, including, without limitation, letters of credit issued in favor of sureties who in connection therewith cover bid, performance, advance and retention obligations.
"
Permitted Business
" means the businesses engaged in by the Company and its Subsidiaries on the Closing Date and any Related Business.
"
Permitted Liens
" means:
(1) Liens
securing Indebtedness under a Credit Facility permitted to be incurred pursuant to clause (1) of paragraph (B) of the covenant described under the
caption "Certain CovenantsLimitation on Indebtedness";
(2) Liens
outstanding on the Closing Date (other than Liens referred to in clause (1) above) and any Replacement Liens thereof;
(3) (a)
Liens for Taxes, assessments or charges of any Governmental Authority or claims not yet due (or, if failure to pay prior to delinquency but after the due date does
not result in additional amounts being due, which are not yet delinquent) or which are being contested in good faith by appropriate proceedings and with respect to which adequate reserves are being
maintained in accordance with the provisions of GAAP or equivalent accounting standards in the country of organization, (b) statutory Liens of landlords and Liens of carriers, warehousemen,
mechanics, materialmen, customs and revenue authorities and other Liens imposed by law and created in the ordinary course of business for amounts not yet due or which are being contested in good faith
by appropriate proceedings and with respect to
which adequate reserves or other appropriate provisions are being maintained in accordance with the provisions of GAAP, (c) Liens (other than any Lien imposed under ERISA) incurred or deposits
made in the ordinary course of business (including, without limitation, surety bonds and appeal bonds and Liens securing obligations under indemnity agreements for surety bonds) or other Liens in
connection with workers' compensation, unemployment insurance and other types of social security benefits, (d) Liens consisting of any right of offset, or statutory or consensual banker's lien,
on bank deposits or securities accounts maintained in the ordinary course of business so long as such bank deposits or securities accounts are not established or maintained for the purpose of
providing such right of offset or banker's lien, (e) easements (including, without limitation, reciprocal easement agreements and utility agreements), rights-of-way, covenants, consents,
reservations, encroachments, variations and other restrictions, charges or encumbrances (whether or not recorded), which do not interfere materially and adversely with the ordinary conduct of the
business of the Company and its Restricted Subsidiaries taken as a whole, (f) building restrictions, zoning laws, entitlements, conservation and environmental restrictions and other similar
statutes, law, rules, regulations, ordinances and restrictions, now or at any time hereafter adopted by any Governmental Authority having jurisdiction, (g) Liens in connection with sales of
receivables in connection with energy service company projects, (h) licenses, sublicenses, leases or subleases granted to third parties and not interfering in any material respect with the
ordinary conduct of the business of the Company and the Restricted Subsidiaries, taken as a whole, (i) any (A) interest or title of a lessor or sublessor under any lease not prohibited
by the Indenture, (B) Lien or restriction that the interest or title of such lessor or sublessor may be subject to, or (C) subordination of the interest of the lessee or
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sublessee
under such lease to any Lien or restriction referred to in the preceding clause (B), so long as the holder of such Lien or restriction agrees to recognize the rights of such lessee or
sublessee under such lease, (j) Liens in favor of customs and revenue authorities arising as a matter of Law to secure payment of customs duties in connection with the importation of goods,
(k) Liens in favor of United States or Canadian Governmental Authorities on deposit accounts in connection with auctions conducted on behalf of such Governmental Authorities in the ordinary
course of business; provided that such Liens apply only to the amounts actually obtained from auctions conducted on behalf of such Governmental Authorities, (l) the reservations, limitations,
provisos and conditions expressed in any original grants from the Crown in right of Canada of real or immoveable property, which do not materially impair the use of the affected land for the purpose
used or intended to be used by that Person and (m) any security interest for the purposes of Section 12(3) of the Personal Property Securities Act 2009 (Cth) that does not secure payment
or performance of an obligation;
(4) any
attachment or judgment Lien not otherwise constituting an Event of Default under clause (8) of "Defaults" in existence less than sixty (60) days after
the entry thereof or with respect to which (i) execution has been stayed, (ii) payment is covered in full by insurance, or (iii) the Company or any of its Restricted Subsidiaries
shall in good faith be prosecuting an appeal or proceedings for review and
shall have set aside on its books such reserves as may be required by GAAP with respect to such judgment or award;
(5) Liens
securing Indebtedness permitted under clause (b)(8) of the covenant described under "Limitation on Indebtedness";
provided
that (i) such Liens do not at any time encumber any property
other than the property financed by such Indebtedness and the products and
proceeds thereof and (ii) the Indebtedness secured thereby does not exceed the cost or Fair Market Value, whichever is lower, of the property being acquired on the date of acquisition;
(6) Liens
(i) on assets of any Restricted Subsidiary which are in existence at the time that such Restricted Subsidiary is acquired after the Closing Date, and
(ii) on assets of any Loan Party or any Restricted Subsidiary which are in existence at the time that such assets are acquired after the Closing Date, and, in each case, any Replacement Liens
thereof;
provided
that such Liens (A) are not incurred or created in anticipation of such transaction and (B) attach only to the acquired
assets or the assets of such acquired Restricted Subsidiary and the proceeds and products of such assets (and the proceeds and products thereof);
(7) Liens
on or transfers of accounts receivable and contracts and instruments related thereto arising solely in connection with the sale of such accounts receivable
pursuant to the covenant described under the caption "Limitation on Sales of Assets and Subsidiary Stock" and, to the extent constituting Indebtedness of the Company or any Restricted
Subsidiary, so long as such Indebtedness is permitted by paragraph (a) or clause (b)(9) of the covenant described under "Limitation on Indebtedness";
(8) Liens
securing bilateral letter of credit facilities in an aggregate principal amount not to exceed, at the time of incurrence thereof, the greater of
(i) $600,000,000 and (ii) 15% of Consolidated Net Worth as of the last day of the most recent fiscal year;
(9) Liens
on assets of a foreign Restricted Subsidiary securing Indebtedness or other obligations of such foreign Restricted Subsidiary otherwise permitted hereunder;
(10) Liens
on project-related assets securing surety bonds in the ordinary course of business of such projects;
(11) Liens
solely on assets of AECOM Capital (or Subsidiaries of, or Joint Ventures formed by, AECOM Capital) securing Indebtedness permitted in accordance with the
Indenture of AECOM Capital (or Subsidiaries of, or Joint Ventures formed by, AECOM Capital);
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(12) Liens
on project-related assets of Joint Ventures and other unconsolidated entities to secure Indebtedness or other obligations of such Joint Ventures and other
unconsolidated entities so long as such Liens do not encumber assets of the Company or any of its consolidated Restricted Subsidiaries;
(13) Liens
securing Swap Contracts of the Company or any of its Restricted Subsidiaries permitted to be incurred under the Indenture;
(14) Liens
on property necessary to defease Indebtedness that was not incurred in violation of the Indenture;
(15) Liens
arising out of conditional sale, title retention, consignment or similar arrangements for the sale or purchase of goods entered into by the Company or any
Restricted Subsidiary in the ordinary course of business;
(16) Liens
securing Indebtedness, so long as, on the date of Incurrence and after giving effect to the Incurrence thereof (including, without limitation, the Incurrence of
any Indebtedness secured by such Liens), the Consolidated Senior Secured Leverage Ratio of the Company would not exceed 2.25 to 1.0, and any Replacement Liens thereof;
(17) Liens
securing the notes or the exchange notes and the Guarantees thereof;
(18) any
pledge of the Capital Stock of an Unrestricted Subsidiary to secure Indebtedness of such Unrestricted Subsidiary; and
(19) other
Liens securing obligations outstanding in aggregate amount not to exceed, at the time of incurrence thereof, the greater of (i) $250.0 million and
(ii) 6.25%% of Consolidated Net Worth as of the last day of the most recent fiscal year.
"
Permitted Securities
" means, with respect to any Asset Disposition, Voting Stock of a Person primarily engaged in a Permitted Business;
provided
that after giving
effect to the Asset Disposition such Person shall become a Restricted Subsidiary.
"
Person
" means any natural person, corporation, limited liability company, trust, Joint Venture, association, company, partnership,
Governmental Authority or other entity.
"
Preferred Stock
," as applied to the Capital Stock of any Person, means Capital Stock of any class or classes (however designated) that is
preferred as to the payment of dividends, or as to the distribution of assets upon any voluntary or involuntary liquidation or dissolution of such Person, over shares of Capital Stock of any other
class of such Person.
"
Qualified Equity Offering
" means an offering for cash by the Company of its common stock.
"
Qualified Receivables Transaction
" means any transaction or series of transactions that may be entered into by the Company, any
Restricted Subsidiary or any Receivables Subsidiary in which the Company or such Restricted Subsidiary or such Receivables Subsidiary may sell, contribute, convey or otherwise transfer to, or grant a
security interest in for the benefit of, (1) a Receivables Subsidiary (in the case of a transfer by the Company or any Restricted Subsidiaries) and (2) any other Person (in the case of a
transfer by a Receivables Subsidiary), any Receivables (whether now existing or arising in the future) of the Company or any Restricted Subsidiary, and any related assets, including, without
limitation, all collateral securing such Receivables, all contracts and all guarantees or other obligations in respect of such Receivables, proceeds of such Receivables and other assets (including
contract rights) which are customarily transferred or in respect of which security interests are customarily granted in connection with asset securitization transactions involving Receivables.
"
Receivable
" means any Indebtedness and other payment obligations owed to the Company, any Restricted Subsidiary or any Receivables
Subsidiary, whether constituting an account, chattel paper,
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payment
intangible, instrument or general intangible, in each case arising in connection with (a) the sale of goods or the rendering of service or (b) the lease, license, rental or use
of equipment, facilities or software, including the obligation to pay any finance charges, fees and other charges with respect thereto.
"
Receivables Subsidiary
" means a wholly owned Subsidiary of the Company (or another Person formed for the purpose of engaging in a
Qualified Receivables Transaction with the Company or any Restricted Subsidiary of the Company in which the Company or any Restricted Subsidiary of the Company makes an Investment and to which the
Company or any Restricted Subsidiary of the Company transfers Receivables) that engages in no activities other than in connection with the financing of Receivables, all proceeds thereof and all rights
(contractual or other), collateral and other assets relating thereto, and any business or activities incidental or reasonably related to such business, and that is designated by the Company's Board of
Directors (as provided below) as a Receivables Subsidiary and:
(1) no
portion of the Indebtedness or any other obligations (contingent or otherwise) of which (a) is guaranteed by the Company or any Restricted Subsidiary
(excluding guarantees of obligations (other than the principal of, and interest on, Indebtedness) pursuant to representations, warranties, covenants, indemnities and performance guarantees that are
reasonably customary in an accounts receivables financings), (b) is recourse to or obligates the Company or any Restricted Subsidiary in any way other than pursuant to representations,
warranties, covenants, indemnities and performance guarantees that are reasonably customary in accounts receivables financings or (c) subjects any property or asset of the Company or of any
Restricted Subsidiary, directly or indirectly, contingently or otherwise, to the satisfaction thereof, other than pursuant to representations, warranties, covenants, indemnities and performance
guarantees reasonably customary in accounts receivables financings and other than any interest in the Receivables (whether in the form of an equity interest in such Receivables payable primarily from
such Receivables) retained or acquired by the Company or any Restricted Subsidiaries;
(2) with
which neither the Company nor any Restricted Subsidiary has any material contract, agreement, arrangement or understanding other than on terms no less favorable to
the Company or such Restricted Subsidiary than those that might be obtained at the time from Persons who are not Affiliates of the Company, other than fees payable in the ordinary course of business
in connection with servicing Receivables; and
(3) with
which neither the Company nor any Restricted Subsidiary has any obligation to maintain or preserve such Receivables Subsidiary's financial condition (other than
customary requirements for the maintenance of a minimum net worth) or cause such Receivables Subsidiary to achieve certain levels of operating results.
"
Refinance
" means, in respect of any Indebtedness, to refinance, extend, renew, refund, repay, prepay, redeem, defease or retire, or to
issue other Indebtedness in exchange or replacement for, such Indebtedness. "Refinanced" and "Refinancing" shall have correlative meanings.
"
Refinancing Indebtedness
" means Indebtedness that is Incurred to Refinance any Indebtedness of the Company or any Restricted Subsidiary
Incurred in compliance with the Indenture;
provided
,
however
, that:
(1) the
Refinancing Indebtedness has a Stated Maturity no earlier than the Stated Maturity of the Indebtedness being Refinanced,
(2) the
Refinancing Indebtedness has an Average Life at the time such Refinancing Indebtedness is Incurred that is equal to or greater than the Average Life of the
Indebtedness being Refinanced,
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(3) such
Refinancing Indebtedness is Incurred in an aggregate principal amount (or if issued with original issue discount, an aggregate issue price) that is equal to or less
than the aggregate principal amount (or if issued with original issue discount, the aggregate accreted value) then outstanding of the Indebtedness being Refinanced
(
plus
all accrued interest thereon and the amount of any reasonably determined premium necessary to accomplish the Refinancing and such reasonable
expenses incurred in connection therewith) and
(4) (A)
if the Indebtedness being Refinanced is subordinated in right of payment to the notes or any Subsidiary Guarantee, such Refinancing Indebtedness is subordinated in
right of payment to the notes or the Subsidiary Guarantee at least to the same extent as the Indebtedness being Refinanced and (B) if the Indebtedness being Refinanced is
pari passu
in right of
payment with the notes or any Subsidiary Guarantee, such Refinancing Indebtedness is
pari
passu
with or subordinated in right of payment to the notes or such Subsidiary Guarantee;
provided further
,
however
, that
Refinancing Indebtedness shall not include (i) Indebtedness of a Restricted Subsidiary that is not a Subsidiary Guarantor that
Refinances Indebtedness of the Company or (ii) Indebtedness of the Company or a Restricted Subsidiary that Refinances Indebtedness of an Unrestricted Subsidiary.
"
Registration Rights Agreement
" means the Registration Rights Agreement, dated the Closing Date, among the Company, the Subsidiary
Guarantors and the initial purchasers of the notes.
"
Related Business
" means any business reasonably similar, incidental, complementary or related to, or a reasonable extension, development
or expansion of, or necessary to, the businesses of the Company and the Restricted Subsidiaries on the Closing Date and reasonable extensions thereof.
"
Replacement Lien
" means, with respect to any Lien, any modifications, replacements, refinancings, renewals or extensions of such Lien,
provided
that (A) the
property covered thereby is not increased other than the addition of proceeds, products, accessions and improvements to
such property on customary terms, (B) the amount of Indebtedness, if any, secured thereby is not increased unless permitted under the caption "Limitation on Indebtedness" and
(C) any modification,
replacement, refinancing, renewal or extension of the Indebtedness, if any, secured or benefited thereby is permitted by clause (b)(4) under the caption "Limitation on
Indebtedness".
"
Restricted Subsidiary
" means any Subsidiary of the Company that is not an Unrestricted Subsidiary.
"
Sale/Leaseback Transaction
" means an arrangement relating to property now owned or hereafter acquired by the Company or a Restricted
Subsidiary whereby the Company or a Restricted Subsidiary transfers such property to a Person and the Company or such Restricted Subsidiary leases it from such Person, other than leases between the
Company and a Restricted Subsidiary or between Restricted Subsidiaries.
"
SEC
" means the Securities and Exchange Commission.
"
Secured Indebtedness
" means any Indebtedness of the Company secured by a Lien. "Secured Indebtedness" of a Subsidiary Guarantor has a
correlative meaning.
"
Significant Subsidiary
" means any Restricted Subsidiary that would be a "Significant Subsidiary" of the Company within the meaning of
Rule 1-02 under Regulation S-X promulgated by the SEC.
"
Significant Subsidiary Guarantor
" means a Significant Subsidiary that is a Subsidiary Guarantor.
"
Stated Maturity
" means, with respect to any Indebtedness, the date specified in such security as the fixed date on which the final
payment of principal of such Indebtedness is due and payable, including pursuant to any mandatory redemption provision (but excluding any provision providing for
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the
repurchase of such Indebtedness at the option of the holder thereof upon the happening of any contingency beyond the control of the issuer unless such contingency has occurred).
"
Subordinated Obligation
" means any Indebtedness of the Company (whether outstanding on the Closing Date or thereafter Incurred) that is
subordinate or junior in right of payment to the notes
pursuant to a written agreement. "Subordinated Obligation" of a Subsidiary Guarantor has a correlative meaning.
"
Subsidiary
" of any Person means any corporation, association, partnership or other business entity of which more than 50% of the total
voting power of shares of Capital Stock or other interests (including partnership interests) entitled (without regard to the occurrence of any contingency) to vote in the election of directors,
managers or trustees thereof is at the time owned, directly or indirectly, by:
(1) such
Person,
(2) such
Person and one or more Subsidiaries of such Person or
(3) one
or more Subsidiaries of such Person.
"
Subsidiary Guarantee
" means each Guarantee of the obligations with respect to the notes issued by a Restricted Subsidiary of the Company
pursuant to the terms of the Indenture.
"
Subsidiary Guarantor
" means any Restricted Subsidiary that has issued a Subsidiary Guarantee and its successors and assigns until
released from its obligations under its Subsidiary Guarantee in accordance with the terms of the Indenture.
"
Swap Contract
" means (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate
transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward
bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions,
cross- currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the
foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject
to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master
Agreement, or any other master agreement (any such master agreement, together with any related schedules, a "
Master Agreement
"), including any such
obligations or liabilities under any Master Agreement.
"
Swap Termination Value
" means, in respect of any one or more Swap Contracts, after taking into account the effect of any legally
enforceable netting agreement relating to such Swap Contracts, (a) for
any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the
date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily available
quotations provided by any recognized dealer in such Swap Contracts.
"
Synthetic Lease Obligation
" means the monetary obligation of a Person under a so-called synthetic, off-balance sheet or tax retention
lease.
"
Taxes
" means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments,
fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.
"
TIA
" means the Trust Indenture Act of 1939 (15 U.S.C. §§77aaa-77bbbb) as amended.
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"
Transactions
" means (i) the issuance and sale of the notes, (ii) the refinancing of certain existing Indebtedness of the
Company and its Subsidiaries, (iii) transactions related to the foregoing and (iv) the payment of fees and expenses in connection with the foregoing.
"
Treasury Rate
" means the weekly average rounded to the nearest 1/100
th
of a percentage point (for the most recently
completed week for which such information is available as of the date that is two business days prior to the redemption date) of the yield to maturity at the time of computation of United States
Treasury securities with a constant maturity (as compiled and published in Federal Reserve Statistical Release H.15 with respect to each applicable day during such week (or, if such Statistical
Release is no longer published, any publicly available source for similar market data)) most nearly equal to the then remaining term of the notes to December 15, 2026 (three months prior to the
maturity date);
provided
,
however
, that if the then remaining term of the notes to December 15,
2026 (three months prior to the maturity date) is not equal to the constant maturity of a United States Treasury security for which such yield is given, the Treasury Rate will be obtained by linear
interpolation (calculated to the nearest one-twelfth of a year) from the weekly average yields of United States Treasury securities for which such yields are given, except that if the then remaining
term of the notes to December 15, 2026 (three months prior to the maturity date) is less than one year, the weekly average yield on actually traded United States Treasury securities adjusted to
a constant maturity of one year will be used. In each case, the Company or its agent shall obtain the Treasury Rate.
"
trustee
" means the party named as such in the Indenture until a successor replaces it and, thereafter, means the successor.
"
Trust Officer
" means any officer or assistant officer of the trustee assigned by the trustee to administer the Indenture, or any other
officer to whom a particular matter relating to the Indenture is referred because of such person's knowledge and familiarity with the subject.
"
Unrestricted Subsidiary
" means:
(1) any
Subsidiary of the Company that at the time of determination shall be designated an Unrestricted Subsidiary by the Board of Directors or an Officer in the manner
provided below, and
(2) any
Subsidiary of an Unrestricted Subsidiary.
The
Board of Directors or an Officer may designate any Subsidiary of the Company, including any newly acquired or newly formed Subsidiary of the Company, to be an Unrestricted Subsidiary
unless such Subsidiary or any of its Subsidiaries owns any Capital Stock or Indebtedness of, or owns or holds any Lien on any property of, the Company or any other Restricted Subsidiary;
provided
,
however
, that the aggregate amount of Investments at any time outstanding made by the Company
and its Restricted Subsidiaries in Unrestricted Subsidiaries shall not at any time exceed the greater of (i) $150,000,000 and (ii) 3.75% of Consolidated Net Worth as of the last day of
the most recent fiscal year. If a Restricted Subsidiary is designated as an Unrestricted Subsidiary, the aggregate Fair Market Value of the Subsidiary (or, the case of a non-wholly owned Subsidiary,
of the Company's or its Restricted Subsidiaries' interest therein) designated as an Unrestricted Subsidiary will be deemed to be an Investment made as of the time of the designation and will reduce
the amount available for Investments in Unrestricted Subsidiaries set forth in the preceding sentence.
The
Board of Directors or an Officer may designate any Unrestricted Subsidiary to be a Restricted Subsidiary;
provided, however
, that
immediately after giving effect to such designation:
(x) the
Company could Incur $1.00 of additional Indebtedness under paragraph (a) of the covenant described under "Certain
CovenantsLimitation on Indebtedness" or the Company would have a Consolidated Coverage Ratio equal to or greater than the Consolidated Coverage Ratio of the Company immediately prior to
such transaction; and
(y) no
Default shall have occurred and be continuing.
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Any
such designation of a Subsidiary as a Restricted Subsidiary or Unrestricted Subsidiary by the Board of Directors or an Officer shall be evidenced to the trustee by filing with the
trustee (i) a copy of the resolution of the Board of Directors (if applicable) giving effect to such designation and (ii) an Officers' Certificate (a) certifying that such
designation complied with the foregoing provisions and (b) giving the effective date of the designation, and the filing with the trustee shall occur after the end of the fiscal quarter of the
Company in which such designation is made within the time period for which reports are to be required to be provided under "Certain CovenantsSEC Reports."
"
U.S. Government Obligations
" means direct obligations (or certificates representing an ownership interest in such obligations) of the
United States of America (including any agency or instrumentality thereof) for the payment of which the full faith and credit of the United States of America is pledged and which are not callable or
redeemable at the issuer's option.
"
Voting Stock
" of a Person means all classes of Capital Stock or other interests (including partnership interests) of such Person then
outstanding and normally entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof.
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BOOK ENTRY; DELIVERY AND FORM
New notes will be offered and exchanged in minimum principal amounts of $2,000 and integral multiples of $1,000 in excess thereof. We will issue
the new notes in the form of one or more permanent global notes in fully registered, book-entry form without interest coupons, which we refer to as the "global notes."
Each
such global note will be deposited with, or on behalf of, DTC, as depositary, and registered in the name of Cede & Co. (DTC's partnership nominee). Investors may elect
to hold their interests in the global notes through either DTC (in the United States), or Euroclear Bank S.A./N.V., as the operator of the Euroclear System ("Euroclear") or Clearstream Banking,
société anonyme, Luxembourg ("Clearstream") if they are participants in those systems, or indirectly through organizations that are participants in those systems. Each of
Euroclear and Clearstream will appoint a DTC participant to act as its depositary for the interests in the global notes that are held within DTC for the account of each settlement system on behalf of
its participants.
Depository Procedures
The following description of the operations and procedures of DTC, Euroclear and Clearstream are provided solely as a matter of convenience.
These operations and procedures are solely within the control of the respective settlement systems and are subject to changes by them. We take no responsibility for these operations and procedures and
urge investors to contact the system or their participants directly to discuss these matters.
DTC
has advised us that DTC is a limited-purpose trust company created to hold securities for its participating organizations (collectively, the "participants") and to facilitate the
clearance and settlement of transactions in those securities between participants through electronic book-entry changes in accounts of its participants. The participants include securities brokers and
dealers, banks, trust companies, clearing corporations and certain other organizations. Access to DTC's system is also available to other entities such as banks, brokers, dealers and trust companies
that clear through or maintain a custodial relationship with a participant, either directly or indirectly (collectively, the "indirect participants"). Persons who are not participants may beneficially
own securities held by or on behalf of DTC only through the participants or the indirect participants. The ownership interests in, and transfers of ownership interests in, each security held by or on
behalf of DTC are recorded on the records of the participants and indirect participants.
DTC
has also advised us that, pursuant to procedures established by it:
-
(1)
-
upon
deposit of the global notes, DTC will credit the accounts of participants designated by the initial purchasers with portions of the principal amount of the
global notes; and
-
(2)
-
ownership
of these interests in the global notes will be shown on, and the transfer of ownership thereof will be effected only through, records maintained by DTC
(with respect to the participants) or by the participants and the indirect participants (with respect to other owners of beneficial interest in the global notes).
Investors
who are participants in DTC's system may hold their interests in the global notes directly through DTC. Investors who are not participants may hold their interests in the
global notes indirectly through organizations (including Euroclear and Clearstream) which are participants in such system. All
interests in a global note, including those held through Euroclear or Clearstream, may be subject to the procedures and requirements of DTC. Those interests held through Euroclear or Clearstream may
also be subject to the procedures and requirements of such systems.
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Except
as described below, owners of interests in the global notes will not have new notes registered in their names, will not receive physical delivery of new notes in certificated form
and will not be considered the registered owners or "Holders" thereof under the Indenture for any purpose.
Payments
in respect of the principal of, premium, if any, interest, and additional interest on the old notes, if any, on a global note registered in the name of DTC or its nominee will
be payable to DTC or its nominee in its capacity as the registered Holder under the Indenture. Under the terms of the Indenture, we and the trustee will treat the persons in whose names the new notes,
including the global notes, are registered as the owners thereof for the purpose of receiving payments and for all other purposes. Consequently, neither we, the trustee nor any agent of ours or the
trustee has or will have any responsibility or liability for:
-
(1)
-
any
aspect of DTC's records or any participant's or indirect participant's records relating to or payments made on account of beneficial ownership interest in the
global notes or for maintaining, supervising or reviewing any of DTC's records relating to the identity of the participants to whose accounts the global notes are credited or any participant's or
indirect participant's records relating to the beneficial ownership interests in the global notes; or
-
(2)
-
any
other matter relating to the actions and practices of DTC or any of its participants or indirect participants.
DTC
has advised us that its current practice, upon receipt of any payment in respect of securities such as the new notes (including principal and interest), is to credit the accounts of
the relevant participants with the payment on the payment date unless DTC has reason to believe it will not receive payment on such payment date. Each relevant participant is credited with an amount
proportionate to its interest in the principal amount of the relevant security as shown on the records of DTC. Payments by the participants and the indirect participants to the beneficial owners of
new notes will be governed by standing instructions and customary practices and will be the responsibility of the participants or the indirect participants and will not be the responsibility of DTC,
the trustee or us. Neither we nor the trustee will be liable for any delay by DTC or any of its participants in identifying the beneficial owners
of the new notes, and we and the trustee may conclusively rely on, and will be protected in relying on, instructions from DTC or its nominee for all purposes.
Transfers
between participants in DTC will be effected in accordance with DTC's procedures, and transfers between participants in Euroclear and Clearstream will be effected in accordance
with their respective rules and operating procedures.
Cross-market
transfers between the participants in DTC, on the one hand, and Euroclear or Clearstream participants, on the other hand, will be effected through DTC in accordance with
DTC's rules on behalf of Euroclear or Clearstream, as the case may be, by its respective depositary; however, such cross-market transactions will require delivery of instructions to Euroclear or
Clearstream, as the case may be, by the counterparty in such system in accordance with the rules and procedures and within the established deadlines (Brussels time) of such system. Euroclear or
Clearstream, as the case may be, will, if the transaction meets its settlement requirements, deliver instructions to its respective depositary to take action to effect final settlement on its behalf
by delivering or receiving interests in the relevant global note in DTC, and making or receiving payment in accordance with normal procedures for same-day funds settlement applicable to DTC. Euroclear
and Clearstream participants may not deliver instructions directly to the depositories for Euroclear or Clearstream.
DTC
has advised us that it will take any action permitted to be taken by a Holder of new notes only at the direction of one or more participants to whose account DTC has credited the
interests in the global notes and only in respect of such portion of the aggregate principal amount of the new notes as to which such participant or participants have given such direction.
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Although
DTC, Euroclear and Clearstream have agreed to the foregoing procedures to facilitate transfers of interests in the global notes among participants in DTC, Euroclear and
Clearstream, they are under no obligation to perform or to continue to perform such procedures, and may discontinue such procedures at any time. Neither we nor the trustee nor any of our respective
agents will have any responsibility for the performance by DTC, Euroclear or Clearstream or their respective participants or indirect participants of their respective obligations under the rules and
procedures governing their operations.
Exchange of Global Notes for Certificated Notes
A global note is exchangeable for definitive notes in registered certificated form ("certificated notes"), if DTC (a) notifies us that it
is unwilling or unable to continue as depositary for the global notes or (b) has ceased to be a clearing agency registered under the Exchange Act, and in each case we fail to appoint a
successor depositary.
In
all cases, certificated notes delivered in exchange for any global note or beneficial interests in global notes will be registered in the names, and issued in any approved
denominations, requested by or on behalf of the depositary (in accordance with its customary procedures).
Same Day Settlement and Payment
The new notes represented by the global notes are expected to trade in DTC's Same-Day Funds Settlement System, and any permitted secondary
market trading activity in such notes will, therefore, be required by DTC to be settled in immediately available funds. We expect that secondary trading in any certificated notes will also be settled
in immediately available funds.
We
expect that, because of time zone differences, the securities account of a Euroclear or Clearstream participant purchasing an interest in a global note from a participant in DTC will
be credited, and any such crediting will be reported to the relevant Euroclear or Clearstream participant, during the securities settlement processing day (which must be a business day for Euroclear
and Clearstream) immediately following the settlement date of DTC. DTC has advised us that cash received in Euroclear or Clearstream as a result of sales of interests in a global note by or through a
Euroclear or Clearstream participant to a participant in DTC will be received with value on the settlement date of DTC but will be available in the relevant Euroclear or Clearstream cash account only
as of the business day for Euroclear or Clearstream following DTC's settlement date.
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