UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE TO
TENDER OFFER STATEMENT UNDER SECTION 14(D)(1) OR 13(E)(1)
OF THE SECURITIES EXCHANGE ACT OF 1934
GRAFTECH
INTERNATIONAL LTD.
(Name of Subject Company (Issuer))
BCP IV GRAFTECH HOLDINGS LP
(Offeror)
and
ATHENA ACQUISITION SUBSIDIARY INC.
its wholly-owned direct subsidiary
(Names of Filing Persons)
Common Stock, Par Value $0.01 Per Share
(Title of Class of Securities)
384313201
(Cusip Number of
Class of Securities)
David Nowak
Managing Partner
c/o BCP
IV GrafTech Holdings LP
Brookfield Place, 181 Bay Street, Suite 300
Toronto, Ontario MJ5 2T3
(416) 363-9491
(Name,
Address and Telephone Number of Person Authorized to Receive Notices and Communications on Behalf of Filing Persons)
With copies
to:
Michael J. Aiello, Esq.
Jackie Cohen, Esq.
Weil,
Gotshal & Manges LLP
767 Fifth Avenue
New York, NY 10153
(212)
310-8000
CALCULATION OF FILING FEE
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Transaction Valuation* |
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Amount of Filing Fee** |
$704,729,817.53 |
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$81,889.60 |
* |
Estimated solely for purposes of calculating the filing fee. This calculation is based on the offer to purchase all of the issued and outstanding shares of common stock, par value $0.01 per share, of GrafTech
International Ltd. (the Company), at a purchase price of $5.05 per share in cash, without interest thereon and subject to any required tax withholding. The underlying value of the transaction was calculated based on the sum of:
(i) 137,240,008 issued and outstanding shares of common stock of the Company, multiplied by $5.05 per share; (ii) 524,283 shares of common stock of the Company underlying outstanding options with an exercise price that is less than $5.05
per share, multiplied by $0.81 per share (which is equal to the difference between $5.05 and $4.24, the exercise price of such options); and (iii) 2,226,358 shares of common stock of the Company underlying outstanding restricted stock units,
multiplied by $5.05 per share. The foregoing numbers of shares of common stock, options and restricted stock units have been provided by the issuer to the offeror and are as of the close of business on May 22, 2015, the most recent practicable date.
The filing fee was determined by multiplying 0.000116200 by the proposed maximum aggregate value of the transaction of $704,729,817.53. |
** |
The filing fee was calculated in accordance with Rule 0-11 under the Securities Exchange Act of 1934, as amended, and Fee Rate Advisory No. 1 for Fiscal Year 2015, issued August 29, 2014, by multiplying the
transaction value by 0.000116200. |
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Check box if any part of the fee is offset as provided by Rule 0-11(a)(2) and identify the filing with which the offsetting fee was previously paid. Identify the previous filing by registration statement number, or the
Form or Schedule and the date of its filing. |
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Amount Previously Paid: Not applicable. |
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Filing Party: Not applicable. |
Form or Registration No.: Not applicable. |
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Date Filed: Not applicable. |
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Check the box if the filing relates solely to preliminary communications made before the commencement of a tender offer. |
Check the appropriate boxes below to designate any transactions to which the statement relates:
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third-party tender offer subject to Rule 14d-1 |
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issuer tender offer subject to Rule 13e-4 |
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going-private transaction subject to Rule 13e-3 |
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amendment to Schedule 13D under Rule 13d-2 |
Check the following box if the filing is a final
amendment reporting the results of the tender offer. ¨
If applicable, check the
appropriate box(es) below to designate the appropriate rule provision(s) relied upon:
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Rule 13e-4(i) (Cross-Border Issuer Tender Offer) |
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Rule 14d-1(d) (Cross-Border Third-Party Tender Offer) |
This Tender Offer Statement on Schedule TO (together with any amendments and supplements hereto,
this Schedule TO) is filed by BCP IV GrafTech Holdings LP, a Delaware limited partnership (Purchaser) and Athena Acquisition Subsidiary Inc., a Delaware corporation (Acquisition Sub). This Schedule TO relates to
the offer by Purchaser and Acquisition Sub to purchase all of the issued and outstanding shares of common stock, par value, $0.01 per share (the Shares), of GrafTech International Ltd., a Delaware corporation (the Company),
at a purchase price of $5.05 per Share in cash (the Offer Price), without interest thereon and subject to any required tax withholding, upon the terms and subject to the conditions set forth in the Offer to Purchase, dated May 26, 2015
(the Offer to Purchase), and in the related Letter of Transmittal (the Letter of Transmittal), copies of which are attached hereto as Exhibits (a)(1)(A) and (a)(1)(B), respectively (which, together with any amendments or
supplements thereto, collectively constitute the Offer).
All information contained in the Offer to Purchase (including
Schedule I to the Offer to Purchase) and the accompanying Letter of Transmittal is hereby expressly incorporated herein by reference in response to Items 1 through 9 and Item 11 of this Schedule TO.
The Agreement and Plan of Merger, dated as of May 17, 2015 (as it may be amended from time to time, the Merger Agreement), by
and among the Company, Purchaser, and Acquisition Sub, a copy of which is attached as Exhibit (d)(1) hereto, and the Tender and Support Agreement, dated as of May 17, 2015 (as it may be amended from time to time, the Tender and Support
Agreement) with Nathan Milikowsky, a member of the Companys Board of Directors and a stockholder of the Company, and certain of his affiliates, a copy of which is attached as Exhibit (d)(2) hereto, is incorporated herein by reference
with respect to Items 4, 5, 6 and 11 of this Schedule TO. The Confidentiality Agreement, dated as of March 20, 2015, by and between Brookfield Capital Partners LLC and the Company, a copy of which is attached as Exhibit (d)(3) hereto, and the
Investment Agreement, dated as of May 4, 2015, by and between the Company and Purchaser, a copy of which is attached as Exhibit (d)(4), is incorporated herein by reference with respect to Items 5, 8 and 11 of this Schedule TO.
Item 1. Summary Term Sheet.
The information set forth in the Summary Term Sheet of the Offer to Purchase is incorporated herein by reference.
Item 2. Subject Company Information.
(a) The name of the subject company and the issuer of the securities to which this Schedule TO relates is the Company. The Companys
principal executive offices are located at Suite 300 Park Center I, 6100 Oak Tree Boulevard, Independence, OH 44131. The Companys telephone number is (216) 676-2000.
(b) This Schedule TO relates to the issued and outstanding shares of common stock, par value $0.01 per share, of the Company. The Company has
advised Purchaser and Acquisition Sub that, as of the close of business on May 22, 2015 (the most recent practicable date) there were: (i) 137,240,008 shares of common stock of the Company that were issued and outstanding; (ii) outstanding
options to purchase 524,283 shares of common stock of the Company; and (iii) outstanding restricted stock units to receive 2,226,358 shares of common stock of the Company.
(c) The information set forth in The Tender Offer Section 6Price Range of Shares; Dividends in the Offer to Purchase is
incorporated herein by reference.
Item 3. Identity and Background of Filing Person.
(a) (c) This Schedule TO is filed by Purchaser and Acquisition Sub. The information set forth in The Tender Offer
Section 8Certain Information Concerning Purchaser and Acquisition Sub in the Offer to Purchase and Schedule I to the Offer to Purchase is incorporated herein by reference.
Item 4. Terms of the Transaction.
(a)(1)(i) (viii), (xii), (a)(2)(i) (iii), (vii) The information set forth in the following sections of the Offer to Purchase is incorporated
herein by reference:
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the Summary Term Sheet |
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Special Factors Section 2 Purpose of the Offer; Plans for the Company |
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Special Factors Section 5 Certain Effects of the Offer |
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Special Factors Section 6 The Merger Agreement; Other Agreements |
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Special Factors Section 7 Appraisal Rights |
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The Tender Offer Section 1 Terms of the Offer |
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The Tender Offer Section 2 Acceptance for Payment and Payment for Shares |
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The Tender Offer Section 3 Procedures for Accepting the Offer and Tendering Shares |
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The Tender Offer Section 4 Withdrawal Rights |
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The Tender Offer Section 5 Certain U.S. Federal Income Tax Consequences of the Offer |
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The Tender Offer Section 9 Source and Amount of Funds |
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The Tender Offer Section 11 Conditions of the Offer |
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The Tender Offer Section 12 Certain Legal Matters; Regulatory Approvals |
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The Tender Offer Section 14 Miscellaneous |
(a)(1)(ix) (xi), (a)(2)(iv)
(vi) Not applicable.
Item 5. Past Contacts, Transactions, Negotiations and Agreements.
(a), (b) The information set forth in the following sections of the Offer to Purchase is incorporated herein by reference:
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the Summary Term Sheet |
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Special Factors Section 1 Background of the Offer; Past Contacts or Negotiations with the Company |
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Special Factors Section 2 Purpose of the Offer; Plans for the Company |
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Special Factors Section 6 The Merger Agreement; Other Agreements |
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The Tender Offer Section 8 Certain Information Concerning Purchaser and Acquisition Sub |
Item 6. Purposes of the Transaction and Plans or Proposals.
(a), (c)(1)-(7) The information set forth in the following sections of the Offer to Purchase is incorporated herein by reference:
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the Summary Term Sheet |
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Special Factors Section 1 Background of the Offer; Past Contacts or Negotiations with the Company |
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Special Factors Section 2 Purpose of the Offer; Plans for the Company |
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Special Factors Section 5 Certain Effects of the Offer |
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Special Factors Section 6 The Merger Agreement; Other Agreements |
Item 7. Source and Amount of Funds or Other Consideration.
(a), (b), (d) The information set forth in the following sections of the Offer to Purchase is incorporated herein by reference:
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the Summary Term Sheet |
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The Tender Offer Section 9 Source and Amount of Funds |
Item 8. Interest in
Securities of the Subject Company.
(a) The information set forth in the following sections of the Offer to Purchase is incorporated herein by
reference:
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the Summary Term Sheet |
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Special Factors Section 2 Purpose of the Offer; Plans for the Company |
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Special Factors Section 6 The Merger Agreement; Other Agreements |
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The Tender Offer Section 8 Certain Information Concerning Purchaser and Acquisition Sub |
(b) |
The information set forth in the following sections of the Offer to Purchase is incorporated herein by reference: |
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The Tender Offer Section 8 Certain Information Concerning Purchaser and Acquisition Sub |
Item 9. Persons/Assets, Retained, Employed, Compensated or Used.
(a) The information set forth in the following sections of the Offer to Purchase is incorporated herein by reference:
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the Summary Term Sheet |
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Special Factors Section 1 Background of the Offer; Past Contacts or Negotiations with the Company |
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The Tender Offer Section 3 Procedures for Accepting the Offer and Tendering Shares |
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The Tender Offer Section 13 Fees and Expenses |
Item 10. Financial Statements.
Not applicable.
Item 11.
Additional Information.
(a)(1) The information set forth in the following sections of the Offer to Purchase is incorporated herein by
reference:
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Special Factors Section 1 Background of the Offer; Past Contacts or Negotiations with the Company |
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Special Factors Section 2 Purpose of the Offer; Plans for the Company |
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Special Factors Section 6 The Merger Agreement; Other Agreements |
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The Tender Offer Section 8 Certain Information Concerning Purchaser and Acquisition Sub |
(a)(2) The information set forth in the following sections of the Offer to Purchase is incorporated herein by reference:
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Special Factors Section 2 Purpose of the Offer; Plans for the Company |
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The Tender Offer Section 11 Conditions of the Offer |
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The Tender Offer Section 12 Certain Legal Matters; Regulatory Approvals |
(a)(3) The
information set forth in the following sections of the Offer to Purchase is incorporated herein by reference:
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The Tender Offer Section 11 Conditions of the Offer |
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The Tender Offer Section 12 Certain Legal Matters; Regulatory Approvals |
(a)(4) The
information set forth in the following sections of the Offer to Purchase is incorporated herein by reference:
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Special Factors Section 5 Certain Effects of the Offer |
(a)(5) The information set forth in
the following sections of the Offer to Purchase is incorporated herein by reference:
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The Tender Offer Section 12 Certain Legal Matters; Regulatory Approvals |
(c) The
information set forth in the Offer to Purchase and the Letter of Transmittal, copies of which are attached hereto as Exhibits (a)(1)(A) and (a)(1)(B), respectively, to the extent not otherwise incorporated herein by reference, is incorporated herein
by reference.
5
Item 12. Exhibits.
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Exhibit No. |
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Description |
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(a)(1)(A) |
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Offer to Purchase dated May 26, 2015.* |
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(a)(1)(B) |
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Letter of Transmittal (including IRS Form W-9).* |
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(a)(1)(C) |
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Notice of Guaranteed Delivery.* |
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(a)(1)(D) |
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Letter to Brokers, Dealers, Commercial Banks, Trust Companies and Other Nominees.* |
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(a)(1)(E) |
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Letter to Clients for use by Brokers, Dealers, Commercial Banks, Trust Companies and Other Nominees.* |
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(a)(1)(F) |
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Summary Advertisement as published in the Wall Street Journal on May 26, 2015.* |
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(a)(1)(G) |
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Letter to Participants in the GrafTech International Holdings Inc. Savings Plan.* |
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(b) |
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Not applicable. |
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(d)(1) |
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Agreement and Plan of Merger, dated as of May 17, 2015, by and among BCP IV GrafTech Holdings LP, Athena Acquisition Subsidiary Inc. and GrafTech International Ltd. (incorporated by reference to Exhibit 2.1 to the Current Report on
Form 8-K filed by GrafTech International Ltd. with the Securities and Exchange Commission on May 18, 2015). |
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(d)(2) |
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Tender and Support Agreement, dated as of May 17, 2015, by and among BCP IV GrafTech Holdings LP, Athena Acquisition Subsidiary Inc. and Nathan Milikowsky and certain of his affiliates (incorporated by reference to Exhibit 10.2 to
the Current Report on Form 8-K filed by GrafTech International Ltd. with the Securities and Exchange Commission on May 18, 2015). |
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(d)(3) |
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Confidentiality Agreement, dated as of March 20, 2015, by and between Brookfield Capital Partners LLC and GrafTech International Ltd.* |
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(d)(4) |
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Investment Agreement, dated as of May 4, 2015, by and between GrafTech International Ltd. and BCP IV Holdings LP (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by GrafTech International Ltd. with
the Securities and Exchange Commission on May 4, 2015). |
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(g) |
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Not applicable. |
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(h) |
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Not applicable. |
6
SIGNATURES
After due inquiry and to the best knowledge and belief of the undersigned, each of the undersigned certifies that the information set forth in
this statement is true, complete and correct.
Date: May 26, 2015
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BCP IV GRAFTECH HOLDINGS LP |
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By: |
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BPE IV (Non-Cdn) GP LP, |
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its general partner |
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By: |
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Brookfield Capital Partners Ltd., |
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its general partner |
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By: |
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/s/ David Nowak |
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David Nowak |
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Managing Partner |
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By: |
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/s/ J. Peter Gordon |
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J. Peter Gordon |
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Managing Partner |
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ATHENA ACQUISITION SUBSIDIARY INC. |
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By: |
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/s/ David Neiman |
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Name: David Neiman |
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Title: Senior Vice President |
7
EXHIBIT INDEX
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Exhibit No. |
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Description |
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(a)(1)(A) |
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Offer to Purchase dated May 26, 2015.* |
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(a)(1)(B) |
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Letter of Transmittal (including IRS Form W-9).* |
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(a)(1)(C) |
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Notice of Guaranteed Delivery.* |
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(a)(1)(D) |
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Letter to Brokers, Dealers, Commercial Banks, Trust Companies and Other Nominees.* |
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(a)(1)(E) |
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Letter to Clients for use by Brokers, Dealers, Commercial Banks, Trust Companies and Other Nominees.* |
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(a)(1)(F) |
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Summary Advertisement as published in the Wall Street Journal on May 26, 2015.* |
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(a)(1)(G) |
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Letter to Participants in the GrafTech International Holdings Inc. Savings Plan.* |
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(b) |
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Not applicable. |
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(d)(1) |
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Agreement and Plan of Merger, dated as of May 17, 2015, by and among BCP IV GrafTech Holdings LP, Athena Acquisition Subsidiary Inc. and GrafTech International Ltd. (incorporated by reference to Exhibit 2.1 to the Current Report on
Form 8-K filed by GrafTech International Ltd. with the Securities and Exchange Commission on May 18, 2015). |
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(d)(2) |
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Tender and Support Agreement, dated as of May 17, 2015, by and among BCP IV GrafTech Holdings LP, Athena Acquisition Subsidiary Inc. and Nathan Milikowsky and certain of his affiliates (incorporated by reference to Exhibit 10.2 to
the Current Report on Form 8-K filed by GrafTech International Ltd. with the Securities and Exchange Commission on May 18, 2015). |
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(d)(3) |
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Confidentiality Agreement, dated as of March 20, 2015, by and between Brookfield Capital Partners LLC and GrafTech International Ltd.* |
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(d)(4) |
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Investment Agreement, dated as of May 4, 2015, by and between GrafTech International Ltd. and BCP IV Holdings LP (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K
filed by GrafTech International Ltd. with the Securities and Exchange Commission on May 4, 2015). |
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(g) |
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Not applicable. |
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(h) |
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Not applicable. |
Exhibit (a)(1)(A)
Offer To Purchase
All
Outstanding Shares of Common Stock
of
GRAFTECH INTERNATIONAL LTD.
at
$5.05 Per Share in
Cash
by
BCP IV
GRAFTECH HOLDINGS LP
and
ATHENA ACQUISITION SUBSIDIARY INC.,
its wholly-owned subsidiary
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT MIDNIGHT, NEW YORK CITY TIME, ON JULY 7, 2015, UNLESS THE OFFER IS EXTENDED.
BCP IV GrafTech Holdings LP, a Delaware limited partnership (Purchaser) and Athena Acquisition Subsidiary Inc., a
Delaware corporation (Acquisition Sub), are offering to purchase all of the issued and outstanding shares of common stock, par value $0.01 per share (the Shares), of GrafTech International Ltd., a Delaware corporation (the
Company), at a purchase price of $5.05 per Share in cash (the Offer Price), without interest thereon and subject to any required tax withholding, upon the terms and subject to the conditions set forth in this Offer to
Purchase and in the related Letter of Transmittal (which, together with this Offer to Purchase, as they may be amended or supplemented from time to time, collectively constitute the Offer).
The Offer is being made pursuant to an Agreement and Plan of Merger, dated as of May 17, 2015 (as it may be amended from time to time,
the Merger Agreement), by and among the Company, Purchaser and Acquisition Sub, pursuant to which, after the consummation of the Offer and subject to the satisfaction or waiver of certain conditions to the merger, including that the
number of Shares validly tendered and not withdrawn in accordance with the terms of the Offer, when combined with the number of Shares owned by Brookfield Capital Partners Ltd. (Brookfield) and its controlled affiliates (including
Purchaser and Acquisition Sub), including any Shares issuable upon conversion of the Series A Convertible Preferred Stock (Series A Preferred Stock) issued and outstanding as of such date (including Series A Preferred Stock issuable upon
conversion of the Companys Series B Convertible Preferred Stock (Series B Preferred Stock and collectively with the Series A Preferred Stock, the Preferred Stock) issued and outstanding as of such date) (the
Underlying Shares), represents at least 80% of the then-outstanding Shares plus all Underlying Shares (the Merger Condition), Purchaser will transfer the Preferred Stock (and any Shares owned by Purchaser) to Acquisition Sub,
Acquisition Sub (instead of Purchaser) will accept the Shares for purchase in the Offer and Acquisition Sub will merge with and into the Company upon the terms and subject to the conditions set forth in the Merger Agreement, with the Company
continuing as the surviving corporation (the Surviving Corporation) and becoming a wholly-owned subsidiary of Purchaser (the Merger). In the Merger, (i) each Share issued and outstanding immediately prior to the
effective time of the Merger (other than (A) Shares owned by Purchaser, Acquisition Sub or the Company, (B) Shares held by any subsidiary of the Company or Purchaser (other than Acquisition Sub), and (C) Shares held by Company
stockholders who have properly and validly perfected their statutory rights of appraisal in respect of such Shares in accordance with Section 262 of the General Corporation Law of the State of Delaware (the DGCL)) will be cancelled
and converted into the right to receive cash in an amount equal to the Offer Price and (ii) each share of Preferred Stock issued and outstanding immediately prior to the effective time of the Merger, if any, will remain issued and outstanding,
except that shares of Preferred Stock owned by the Purchaser and its subsidiaries will be cancelled and cease to exist and any accrued but unpaid dividends payable in respect of the Preferred Stock will be paid to Purchaser. Under no
circumstances will interest be paid on the purchase price for the Shares, regardless of any extension of the Offer or any delay in making payment for Shares.
The Offer is not subject to any financing condition. The obligation of Purchaser or, if the Merger Condition is satisfied, Acquisition Sub, to
accept for payment or, subject to any applicable rules and regulations of the Securities and Exchange Commission (SEC), pay for any Shares that are validly tendered in the Offer and not withdrawn prior to the expiration of the Offer, is
subject to the satisfaction of various conditions set forth in the Merger Agreement, including, among other conditions: (i) that prior to the expiration of the Offer, there be validly tendered and not withdrawn in accordance with the terms of
the Offer a number of Shares that, when
combined with the number of Shares and Underlying Shares owned by Brookfield and its controlled affiliates (including Purchaser and Acquisition Sub), represents at least 30% of the
then-outstanding Shares plus all Underlying Shares (the Minimum Condition); (ii) the timely submission by the Company of a notice (including all required accompanying materials) to the U.S. Department of State Directorate of Defense
Trade Controls in accordance with International Traffic in Arms Regulations; (iii) the termination or expiration of any waiting period (and extension thereof) applicable to the transactions contemplated by the Merger Agreement under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the regulations thereunder; (iv) the receipt of any applicable clearances under the competition laws of Mexico, Russia, South Africa, and Turkey; (v) the receipt of
clearance from the Committee on Foreign Investment in the United States of America (CFIUS) without any required condition to mitigate any threat to the national security of the United States that is unacceptable to Purchaser and, if the
Merger Condition is not satisfied, the Company, unless Purchaser and the Company determine that CFIUS clearance is unnecessary because CFIUS clearance was obtained in connection with the Investment Agreement; (vi) the satisfaction of other
customary conditions as described in this Offer to Purchase; and (vii) if the number of Shares validly tendered in this Offer and not withdrawn is greater than the Minimum Condition but less than the Merger Condition, the execution by the
Company and Purchaser of the Amended and Restated Stockholders Rights Agreement in substantially the form attached to the Merger Agreement. See The Tender Offer Section 11 Conditions of the Offer in this Offer to Purchase.
After the consummation of the Offer and subject to the satisfaction or waiver of the remaining conditions set forth in the Merger Agreement,
if the Merger Condition is satisfied, Purchaser, Acquisition Sub and the Company will cause the Merger to become effective as soon as practicable without a meeting of stockholders of the Company in accordance with Section 251(h) of the DGCL.
The Board of Directors of the Company has: (i) determined that the Offer and the Merger are advisable, fair to and in the best
interests of the Company and its stockholders (other than Purchaser and its affiliates), (ii) approved and adopted the Merger Agreement and the transactions contemplated thereby and (iii) resolved to recommend that the stockholders of the Company
accept the Offer and tender their Shares pursuant to the Offer.
A summary of the principal terms and conditions of the Offer appears
in the Summary Term Sheet below. You should read this entire document carefully before deciding whether to tender your Shares in the Offer.
NEITHER THE OFFER NOR THE MERGER HAS BEEN APPROVED OR DISAPPROVED BY THE SEC OR ANY STATE SECURITIES COMMISSION, NOR HAS THE SEC OR ANY
STATE SECURITIES COMMISSION PASSED UPON THE FAIRNESS OR MERITS OF THE OFFER OR THE MERGER OR UPON THE ACCURACY OR ADEQUACY OF THE INFORMATION CONTAINED IN THIS OFFER TO PURCHASE OR THE LETTER OF TRANSMITTAL. ANY REPRESENTATION TO THE CONTRARY IS
UNLAWFUL AND A CRIMINAL OFFENSE.
The Information Agent for the Offer is:
480 Washington Boulevard, 26th Floor
Jersey City, NJ 07310
Shareholders, Banks and Brokers
Call Toll Free:
866-856-2826
Or email: graftech@georgeson.com
May 26, 2015
IMPORTANT
If you wish to tender all or a portion of your Shares to Purchaser or, if the Merger Condition is satisfied, Acquisition Sub, in the Offer,
you should either (i) complete and sign the Letter of Transmittal (or a facsimile thereof) that accompanies this Offer to Purchase in accordance with the instructions in the Letter of Transmittal and mail or deliver the Letter of Transmittal
and all other required documents to the Depositary (as defined below in the Summary Term Sheet) together with certificates representing the Shares tendered or follow the procedure for book-entry transfer set forth in The Tender Offer
Section 3 Procedures for Accepting the Offer and Tendering Shares in this Offer to Purchase or (ii) request that your broker, dealer, commercial bank, trust company or other nominee effect the transaction for you. If your
Shares are registered in the name of a broker, dealer, commercial bank, trust company or other nominee, you must contact that institution in order to tender your Shares.
If you wish to tender Shares and cannot deliver certificates representing such Shares and all other required documents to the Depositary on or
prior to the Expiration Date (as defined below in the Summary Term Sheet) or you cannot comply with the procedures for book-entry transfer on a timely basis, you may tender your Shares by following the guaranteed delivery procedures
described in The Tender Offer Section 3 Procedures for Accepting the Offer and Tendering Shares in this Offer to Purchase.
Questions and requests for assistance should be directed to the Information Agent (as defined below in the Summary Term Sheet) at
the address and telephone numbers set forth on the back cover of this Offer to Purchase. Additional copies of this Offer to Purchase, the related Letter of Transmittal, the related Notice of Guaranteed Delivery and other materials related to the
Offer may also be obtained at our expense from the Information Agent. Additionally, copies of this Offer to Purchase, the related Letter of Transmittal, the related Notice of Guaranteed Delivery and any other material related to the Offer may be
found at www.sec.gov. You may also contact your broker, dealer, commercial bank, trust company or other nominee for assistance.
This
Offer to Purchase and the related Letter of Transmittal contain important information, and you should read both carefully and in their entirety before making a decision with respect to the Offer.
TABLE OF CONTENTS
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SUMMARY TERM SHEET
The information contained in this summary term sheet is a summary only and is not meant to be a substitute for the more detailed
description and information contained in the remainder of this Offer to Purchase, the Letter of Transmittal and the Notice of Guaranteed Delivery. You are urged to read carefully this Offer to Purchase, the Letter of Transmittal and the Notice of
Guaranteed Delivery in their entirety. This summary term sheet includes cross-references to other sections of this Offer to Purchase where you will find more complete descriptions of the topics mentioned below. The information concerning the Company
contained in this summary term sheet and elsewhere in this Offer to Purchase has been provided to Purchaser and Acquisition Sub by the Company or has been taken from, or is based upon, publicly available documents or records of the Company on file
with the SEC or other public sources at the time of the Offer. Purchaser and Acquisition Sub have not independently verified the accuracy and completeness of such information.
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Securities Sought |
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All of the issued and outstanding shares of common stock, par value $0.01 per share, of the Company (the Shares). |
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Price Offered Per Share |
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$5.05, in cash, without interest thereon and subject to any required tax withholding. |
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Scheduled Expiration of Offer |
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Midnight, New York City time, on July 7, 2015, unless the Offer is otherwise extended. |
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Purchaser |
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BCP IV GrafTech Holdings LP, a Delaware limited partnership or, if the Merger Condition is satisfied, Athena Acquisition Subsidiary Inc., a Delaware corporation and a wholly-owned subsidiary of BCP IV GrafTech Holdings LP |
Who is offering to buy my securities?
BCP IV GrafTech Holdings LP (Purchaser), a Delaware limited partnership and Athena Acquisition Subsidiary Inc. (Acquisition
Sub), a Delaware corporation, each of which was formed for the purpose of the Offer, is offering to buy your Shares. Purchaser and Acquisition Sub are controlled by Brookfield Capital Partners Ltd. (Brookfield), which is an
indirect wholly owned subsidiary of Brookfield Asset Management Inc. (BAM).
Unless the context indicates otherwise, in this
Offer to Purchase, we use the terms us, we and our to refer to Purchaser and, where appropriate, Acquisition Sub. We use the term Purchaser to refer to BCP IV GrafTech Holdings LP, the term
Acquisition Sub to refer to Athena Acquisition Subsidiary Inc. and the term the Company to refer to GrafTech International Ltd., a Delaware corporation.
See The Tender Offer Section 8 Certain Information Concerning Purchaser and Acquisition Sub.
What is the class and amount of securities sought pursuant to the Offer?
Purchaser is offering to purchase all of the issued and outstanding shares of common stock, par value $0.01 per share, of the Company, on the
terms and subject to the conditions set forth in this Offer to Purchase and the related Letter of Transmittal. In this Offer to Purchase, we use the term Offer to refer to this offer and the term Shares to refer to the shares
of the Companys common stock that are the subject of the Offer.
See The Tender Offer Section 1 The Terms of The
Offer.
Why are you making the Offer?
We are making the Offer because we want to acquire an additional investment in, and potentially control of and/or the entire equity interest
in, the Company. Following consummation of the Offer, if and only if the Merger Condition (as defined below) is satisfied, we intend to complete the Merger (as defined below) as promptly as
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practicable. Upon completion of the Merger, the Company will become a direct wholly-owned subsidiary of Purchaser. In addition, if the Merger Condition (as defined below) is satisfied, we intend
to cause the Company to be delisted from the New York Stock Exchange (NYSE) and deregistered under the Securities Exchange Act of 1934, as amended (the Exchange Act), after completion of the Merger.
On May 4, 2015, the Company and Purchaser entered into an Investment Agreement (the Investment Agreement) pursuant to which
the Company agreed to issue and sell to Purchaser (i) shares of the Companys Series A Convertible Preferred Stock, par value $0.01 per share in an amount equal to 19.9% of the Companys outstanding Shares (the Series A
Preferred Shares) and (ii) shares of the Companys Series B Convertible Preferred Stock, par value $0.01 per share, in an amount equal to 150,000 less the number of Series A Preferred Shares, for an aggregate purchase price of
$150,000,000. The Company and Purchaser expect the transactions contemplated by the Investment Agreement to be consummated prior to the consummation of the Offer.
Who can participate in the Offer?
The Offer is open to all holders and beneficial owners of Shares.
How much are you offering to pay?
Purchaser is offering to pay $5.05 per Share, in cash, without interest thereon and subject to any required tax withholding. We refer to this
amount as the Offer Price.
See the Introduction.
Will I have to pay any fees or commissions?
If you are the record owner of your Shares and you directly tender your Shares to us in the Offer, you will not have to pay brokerage fees or
similar expenses. If you own your Shares through a broker or other nominee, and your broker or other nominee tenders your Shares on your behalf, your broker or other nominee may charge you a fee for doing so. You should consult your broker or other
nominee to determine whether any charges will apply.
See the Introduction and The Tender Offer Section 13
Fees and Expenses.
Is there an agreement governing the Offer?
Yes. The Company, Purchaser and Acquisition Sub have entered into an Agreement and Plan of Merger, dated as of May 17, 2015 (as it may be
amended from time to time, the Merger Agreement). The Merger Agreement provides, among other things, for the terms and conditions of the Offer and the potential subsequent merger of Acquisition Sub with and into the Company, with the
Company surviving such merger as a direct, wholly-owned subsidiary of Purchaser (such merger, the Merger). In addition, concurrently with entering into the Merger Agreement, Purchaser and Acquisition Sub entered into a Tender and Support
Agreement with the Supporting Stockholders (as defined below in Special Factors Section 6 The Merger Agreement; Other Agreements), which provides that the Supporting Stockholders will tender into the Offer, and, subject to certain
exceptions, not withdraw, all outstanding Shares the Supporting Stockholders own of record or beneficially (within the meaning of Rule 13d-3 under the Exchange Act).
See Special Factors Section 6 The Merger Agreement; Other Agreements and The Tender Offer Section 11
Conditions of the Offer.
What are the material U.S. federal income tax consequences of tendering my Shares in the Offer or having my Shares
exchanged for cash pursuant to the Merger?
The receipt of cash in exchange for your Shares in the Offer or, assuming you do not
tender your Shares pursuant to the Offer, if the Offer is consummated and the Merger Condition is satisfied, the receipt of cash in
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exchange for your Shares in the Merger, will be a taxable transaction for U.S. federal income tax purposes. In general, provided that you hold your Shares as capital assets, you will recognize
capital gain or loss in an amount equal to the difference between (i) the Offer Price and (ii) your adjusted tax basis in the Shares sold pursuant to the Offer or, if the Merger Condition is satisfied, exchanged for cash pursuant to the
Merger. This capital gain or loss will be long-term capital gain or loss if you have held the Shares for more than one year as of the date of your sale or exchange of the Shares pursuant to the Offer or the Merger. See The Tender Offer
Section 5 Certain U.S. Federal Income Tax Consequences of the Offer for a more detailed discussion of the tax treatment of the Offer and the Merger.
We urge you to consult with your own tax advisor as to the particular tax consequences to you of the Offer and, if the Merger Condition is
satisfied, the Merger.
Do you have the financial resources to pay for all of the Shares that Purchaser is offering to purchase pursuant to the
Offer?
Yes. We estimate that we will need approximately $705 million to purchase all of the Shares we are seeking to purchase
pursuant to the Offer and, if the conditions to the merger, including the Merger Condition, are satisfied, to complete the Merger. Purchaser will have, at the expiration of the Offer, sufficient funds for this purpose and, if the Merger Condition is
satisfied, will provide sufficient funds to Acquisition Sub. Purchaser expects to obtain the necessary funds to pay for Shares validly tendered, and not withdrawn, pursuant to the Offer, and if applicable, to consummate the Merger, from any or all
of cash on hand and by means of equity capital contributions at or about the first time as of which Purchaser or Acquisition Sub, if the Merger Condition is satisfied, accepts any Shares for payment pursuant to the Offer (such time, the
Acceptance Time).
Concurrently with the execution of the Merger Agreement, Brookfield Capital Partners IV L.P. (Capital
Partners), which has committed capital in excess of $705 million, delivered a limited guarantee (the Limited Guarantee) in favor of the Company, pursuant to which Capital Partners guaranteed the payment, performance and discharge
of the obligations of Purchaser and Acquisition Sub under the Merger Agreement until the Limited Guarantee is terminated pursuant to its terms. See The Tender Offer Section 9 Source and Amount of Funds.
Is Purchasers or Acquisition Subs financial condition relevant to my decision to tender my Shares in the Offer?
No. We do not think Purchasers or Acquisition Subs financial condition is relevant to your decision whether to tender Shares and
accept the Offer because:
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Purchaser and Acquisition Sub were formed solely in connection with the Investment Agreement, the Offer and the Merger and, prior to the Expiration Date (as defined below), will not carry on any activities other than in
connection with the Investment Agreement, the Offer and the Merger; |
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the Offer is being made for all issued and outstanding Shares solely for cash; |
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if we consummate the Offer and the Merger Condition is satisfied, we intend to complete the Merger, in which all Shares (subject to limited exceptions for Shares subject to appraisal rights in connection with the Merger
and any Shares held by Purchaser, Acquisition Sub or the Company, or any subsidiary of the Company or Purchaser) that then remain issued and outstanding will be converted into the right to receive the Offer Price in cash; |
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Purchaser or, if the Merger Condition is satisfied, Acquisition Sub, will have sufficient funds available to purchase all Shares validly tendered, and not withdrawn, in the Offer and, if applicable, all Shares converted
into the right to receive the Offer Price in cash in the Merger; |
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the Offer and the Merger are not subject to any financing or funding condition; and |
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Capital Partners has delivered a limited guarantee in favor of the Company, pursuant to which Capital Partners has irrevocably guaranteed the payment, performance and discharge of the obligations of Purchaser and
Acquisition Sub under the Merger Agreement. |
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See The Tender Offer Section 9 Source and Amount of Funds and Special Factors
Section 6 The Merger Agreement; Other Agreements.
Is there a minimum number of Shares that must be tendered in order for you to
purchase any securities?
Yes. The obligation of Purchaser to accept for payment or, subject to any applicable rules and
regulations of the Securities and Exchange Commission (SEC), pay for any Shares that are validly tendered in the Offer and not withdrawn prior to the expiration of the Offer, is subject to the satisfaction of various conditions set forth
in The Tender Offer Section 11 Conditions of the Offer, including, among other conditions, the condition that, prior to the expiration of the Offer, there be validly tendered and not withdrawn in accordance with the terms of the
Offer a number of Shares that, together with the Shares owned by Brookfield and its controlled affiliates (including Purchaser and Acquisition Sub), including any Shares issuable upon conversion of the Companys Series A Convertible Preferred
Stock (Series A Preferred Stock) issued and outstanding as of such date (including Series A Preferred Stock issuable upon conversion of the Companys Series B Convertible Preferred Stock (Series B Preferred Stock and
collectively with the Series A Preferred Stock, the Preferred Stock) issued and outstanding as of such date) (the Underlying Shares), represents at least thirty percent (30%) of all then outstanding Shares plus all
Underlying Shares (the Minimum Condition).
How long do I have to decide whether to tender my Shares in the Offer?
You will have until midnight, New York City time, on the Expiration Date to tender your Shares in the Offer. The term Expiration
Date means July 7, 2015, unless the expiration of the Offer is extended to a subsequent date in accordance with the terms of the Merger Agreement, in which event the term Expiration Date means such subsequent date. In addition, if
pursuant to the Merger Agreement we decide to, or are required to, extend the Offer or we decide to provide a subsequent offering period for the Offer as described below, you will have an additional opportunity to tender your Shares.
If you cannot deliver everything required to make a valid tender by the scheduled expiration of the Offer, you may still participate in the
Offer by using the guaranteed delivery procedures that are described in The Tender Offer Section 3 Procedures for Accepting the Offer and Tendering Shares prior to the scheduled expiration of the Offer.
See The Tender Offer Section 1 Terms of the Offer and The Tender Offer Section 3 Procedures for
Accepting the Offer and Tendering Shares.
Can the Offer be extended and under what circumstances?
Yes. The Merger Agreement provides that:
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Purchaser will extend the Offer for any period required by any law or order, or any rule, regulation, interpretation or position of the SEC or its staff or the NYSE, in any such case which is applicable to the Offer.
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in the event that (A) the Minimum Condition is satisfied and any or all of the other conditions of the Offer are not satisfied or waived (if permitted) as of July 7, 2015 (the Initial Expiration Date)
or the Go-Shop Extension Date (as defined in Special Factors Section 6 The Merger Agreement; Other Agreements), Purchaser will extend the Offer for successive extension periods of ten business days (or any longer or
shorter period as may be approved in advance by the Company) in order to permit the satisfaction of all of the conditions of the Offer; provided, that Purchaser shall not be required to extend the Offer past the Termination Date (as defined below)
or (B) the Minimum Condition is not satisfied as of the Initial Expiration Date or the Go-Shop Extension Expiration Date, Purchaser may (in its sole discretion) extend the Offer for successive extension periods of up to ten business days each
(or any longer period as may be approved in advance by the Company) in order to permit the satisfaction of the Minimum Condition and certain other conditions set forth in the Merger Agreement that have not then been satisfied or waived (if
permitted); and |
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in the event the Company receives an acquisition proposal during the Go-Shop Period which is, or could reasonably be expected to result in a Superior Proposal during the Go-Shop Period (as defined in Special Factors
Section 6 The Merger Agreement; Other Agreements The Merger Agreement Acquisition Proposals), the Company may extend the Go-Shop Period by the Go-Shop Extension (see Special Factors
Section 6 The Merger Agreement; Other Agreements), and Purchaser will extend the Offer until ten business days after the expiration of the Go-Shop Extension (or for such longer period as Purchaser may deem reasonably
necessary as may be approved in advance by the Company). |
Neither Purchaser nor Acquisition Sub is permitted to extend the
Offer in any manner other than the foregoing without the prior written consent of the Company.
See The Tender Offer Section 1
Terms of the Offer and Special Factors Section 6 The Merger Agreement; Other Agreements and The Tender Offer Section 11 Conditions of the Offer.
Will there be a subsequent offering period?
It is not expected that there will be a subsequent offering period. However, the Merger Agreement provides that Purchaser may (but
shall not be required to), and in the Offer to Purchase shall reserve the right to, provide for a subsequent offering period (within the meaning of Rule 14d-11 under the Exchange Act) of not less than three nor more than twenty business
days immediately following the expiration of the Offer. Subject to the terms and conditions of the Merger Agreement and the Offer, Purchaser or, if the Merger Condition is satisfied, Acquisition Sub, shall accept for payment, and pay for, all Shares
that are validly tendered during the subsequent offering period promptly (within the meaning of Section 14e-1(c) under the Exchange Act) after any such Shares are validly tendered during the subsequent offering period.
A subsequent offering period is different from an extension of the Offer. During a subsequent offering period,
you would not be able to withdraw any of the Shares that you had already tendered. You also would not be able to withdraw any of the Shares that you tender during the subsequent offering period.
Purchaser will have or obtain or, if the Merger Condition is satisfied, will provide or cause to be provided to Acquisition Sub on a timely
basis, the funds necessary to pay for any Shares that Purchaser or, if the Merger Condition is satisfied, Acquisition Sub, becomes obligated to purchase during the subsequent offering period. The Offer Price payable in respect of each
Share that is validly tendered during the subsequent offering period shall be paid in cash, subject to reduction for any applicable withholding taxes payable in respect thereof.
See The Tender Offer Section 1 Terms of the Offer.
How will I be notified if the Offer is extended?
If we extend the Offer, we will inform Computershare Trust Company, N.A., which is the depositary for the Offer (the Depositary),
of any extension, and will issue a press release announcing the extension no later than 9:00 a.m. New York City time, on the next business day after the previously scheduled Expiration Date.
See The Tender Offer Section 1 Terms of the Offer.
What are the most significant conditions of the Offer?
The obligation of Purchaser or, if the Merger Condition is satisfied, Acquisition Sub, to accept for payment and pay for Shares validly
tendered (and not withdrawn) pursuant to the Offer is subject to the satisfaction of a number of conditions by midnight, New York City time, on the scheduled Expiration Date of the Offer, including, among other conditions:
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the receipt of clearance from the Committee on Foreign Investment in the United States of America without any required condition to mitigate any threat to the national security of the United States that is unacceptable
to Purchaser and, if the Merger Condition is not satisfied, the Company; |
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the timely submission by the Company of a notice (including all required accompanying materials) to the U.S. Department of State Directorate of Defense Trade Controls in accordance with International Traffic in Arms
Regulations; |
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the termination or expiration of any waiting period (and extension thereof) applicable to the transactions contemplated by the Merger Agreement under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended,
and the regulations thereunder; |
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the receipt of any applicable clearances under the antitrust laws of Mexico, Russia, South Africa, and Turkey; |
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the accuracy of the Companys representations and warranties set forth in the Merger Agreement, and the performance of the Companys obligations set forth in the Merger Agreement, to specified standards of
materiality; and |
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if the number of Shares validly tendered in this Offer and not withdrawn is greater than the Minimum Condition but less than the Merger Condition, the execution by the Company and Purchaser of the Amended and Restated
Stockholders Rights Agreement in substantially the form attached to the Merger Agreement. |
The above conditions of the Offer
are further described, and other conditions of the Offer are described, below in The Tender Offer Section 11 Conditions of the Offer. The Offer is not subject to any financing condition.
How do I tender my Shares?
If you
hold your Shares directly as the registered owner and such Shares are represented by stock certificates, you may tender your Shares in the Offer by delivering the certificates representing your Shares, together with a completed and signed Letter of
Transmittal and any other documents required by the Letter of Transmittal, to the Depositary, not later than the Expiration Date. If you hold your Shares as registered owner and such Shares are represented by book-entry positions, you may follow the
procedures for book-entry transfer set forth in The Tender Offer Section 3 Procedures for Payment and Payment for Shares, not later than the Expiration Date. The Letter of Transmittal is enclosed with this Offer to Purchase.
If you hold your Shares in street name through a broker, dealer, commercial bank, trust company or other nominee, you must contact the
institution that holds your Shares and give instructions that your Shares be tendered. You should contact the institution that holds your Shares for more details.
If you are unable to deliver everything that is required to tender your Shares to the Depositary by the Expiration Date, you may obtain a
limited amount of additional time by having a broker, a bank or another fiduciary that is an eligible institution guarantee that the missing items will be received by the Depositary within three NYSE trading days using the enclosed Notice of
Guaranteed Delivery. To validly tender Shares in this manner, however, the Depositary must receive the missing items within the time period specified in the notice.
See The Tender Offer Section 3 Procedures for Accepting the Offer and Tendering Shares.
Until what time may I withdraw previously tendered Shares?
You may withdraw your previously tendered Shares at any time until midnight, New York City time, on the Expiration Date. In addition, if we
have not accepted your Shares for payment by the end of July 25, 2015, you may withdraw them at any time after that date until we accept your Shares for payment. This right to withdraw will not, however, apply to Shares tendered in any
subsequent offering period, if one is provided.
See The Tender Offer Section 4 Withdrawal Rights.
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How do I withdraw previously tendered Shares?
To withdraw previously tendered Shares, you must deliver a written notice of withdrawal, or a facsimile of one, with the required information
to the Depositary while you still have the right to withdraw Shares. If you tendered Shares by giving instructions to a broker, banker or other nominee, you must instruct the broker, banker or other nominee to arrange for the withdrawal of your
Shares.
See The Tender Offer Section 4 Withdrawal Rights.
Has the Offer been approved by the Companys Board of Directors?
Yes. The Companys Board of Directors has: (i) determined that the Offer and the Merger are advisable, fair to and in the best
interests of the Company and its stockholders (other than Purchaser and its affiliates), (ii) approved and adopted the Merger Agreement and the transactions contemplated thereby and (iii) resolved to recommend that the stockholders of the
Company accept the Offer and tender their Shares pursuant to the Offer.
A more complete description of the reasons for the Companys
Board of Directors approval of the Offer and the Merger is set forth in the Companys Solicitation/Recommendation Statement on Schedule 14D-9 (the Schedule 14D-9) to be filed by the Company with the SEC under the Exchange Act
and mailed to you and other stockholders in connection with the Offer.
If Shares tendered pursuant to the Offer are purchased by Purchaser or
Acquisition Sub, will the Company continue as a public company?
If the Offer is consummated, and the Merger Condition is not
satisfied, the Company is expected to continue as a public company.
If the Offer is consummated and the Merger Condition is satisfied, we
expect to complete the Merger as promptly as practicable following the consummation of the Offer. Once the Merger takes place, the Company will be a wholly-owned, direct subsidiary of Purchaser. Following the Merger, we intend to cause the Company
to be delisted from the NYSE and deregistered under the Exchange Act.
See Special Factors Section 5 Certain Effects of
the Offer.
Will a meeting of the Companys stockholders be required to approve the Merger?
No. Section 251(h) of the General Corporation Law of the State of Delaware (the DGCL) provides that, unless expressly required
by its certificate of incorporation, no vote of stockholders will be necessary to authorize the merger of a constituent corporation whose shares are listed on a national securities exchange or held of record by more than 2,000 holders immediately
prior to the execution of the applicable agreement of merger by such constituent corporation if, subject to certain statutory provisions:
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the agreement of merger provides that the merger shall be governed by Section 251(h) of the DGCL; |
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an acquiring corporation consummates a tender offer for any and all of the outstanding stock of such constituent corporation; |
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following the consummation of the tender offer, the acquiring corporation holds at least the amount of shares of each class of stock of such constituent corporation that would otherwise be required to adopt the
agreement of merger for such constituent corporation; and |
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the other stockholders receive the same consideration for their stock in the merger as was payable in the tender offer. |
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If the Offer is consummated and the Merger Condition is satisfied (along with certain other
conditions), we intend to effect the Merger pursuant to Section 251(h) of the DGCL without a meeting of the Companys stockholders and without a vote or any further action by the stockholders. If we are prohibited from effecting the Merger
pursuant to Section 251(h) of the DGCL, we reserve the right to effect the Merger in any other manner that complies with the DGCL.
If I do not
tender my Shares but the Offer is consummated, what will happen to my Shares?
If the Offer is consummated, and the Merger
Condition is not satisfied, you will own the same number of Shares as prior to the Offer and the Company is expected to remain a public company listed on the NYSE. As a result, you will continue to participate in the future performance of the
Company. Stockholders that do not tender their Shares pursuant to the Offer may be able to sell their Shares in the future on the NYSE, or otherwise, at a net price higher or lower than the Offer Price. In addition, we can give no assurance as to
the price at which a Company stockholder may be able to sell his, her or its Shares in the future.
If the Offer is consummated and the
Merger Condition is satisfied (along with certain other conditions), Acquisition Sub expects to effect the Merger pursuant to Section 251(h) of the DGCL. At the effective time of the Merger, (i) each of the then issued and outstanding
Shares (other than (A) Shares owned by Purchaser, Acquisition Sub or the Company, (B) Shares held by any subsidiary of the Company or Purchaser (other than Acquisition Sub) and (C) Shares held by the Company stockholders who have
properly and validly perfected their statutory rights of appraisal in connection with the Merger in respect of such Shares in accordance with Section 262 of the DGCL) will be converted in the Merger into the right to receive an amount in cash
equal to the Offer Price, without interest thereon and subject to any required tax withholding and (ii) each share of Preferred Stock issued and outstanding immediately prior to the effective time of the Merger, if any, shall remain issued and
outstanding, except that shares of Preferred Stock owned by the Purchaser and its subsidiaries will be cancelled and cease to exist and any accrued but unpaid dividends payable in respect of such Preferred Stock will be paid to Purchaser.
If the Merger is completed, the Companys stockholders who do not tender their Shares in the Offer (other than stockholders who properly
perfect appraisal rights) will receive the same amount of cash per Share that they would have received had they tendered their Shares in the Offer. Therefore, if the Offer is consummated, the Merger Condition is satisfied and the Merger is
completed, the only differences to you between tendering your Shares and not tendering your Shares in the Offer are that (i) you will be paid earlier if you tender your Shares in the Offer and (ii) appraisal rights will not be available to
you if you tender Shares in the Offer, but will be available to you in the Merger if you do not tender Shares in the Offer. See Special Factors Section 7 Appraisal Rights. However, if the Offer is consummated and the Merger
Condition satisfied, but the Merger is not completed, the number of the Companys stockholders and the number of Shares that are still in the hands of the public may be so small that there will no longer be an active public trading market (or,
possibly, there may not be any public trading market) for the Shares. Also, in such event, it is possible that the Company will be delisted from the NYSE, will no longer be required to make filings with the SEC under the Exchange Act, or will
otherwise not be required to comply with the rules relating to publicly held companies to the same extent as it is now.
See the
Introduction to this Offer to Purchase, Special Factors Section 5 Certain Effects of the Offer and Special Factors Section 6 The Merger Agreement; Other Agreements.
What will happen to stock options, restricted stock units and preferred stock in the Offer?
The Offer is being made only for Shares, and not for outstanding stock options or restricted stock units (including restricted stock units
subject to performance- and time-based vesting criteria) issued by the Company. Holders of outstanding stock options or restricted stock units issued by the Company may participate in the Offer only if they first exercise such stock options or
become vested in such restricted stock units (for which no further action on the part of such holders of restricted stock units is required), as applicable, and settle them for Shares in
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accordance with the terms of the applicable equity incentive plan or other applicable agreements of the Company, and tender the Shares, if any, issued upon such exercise or in connection with
such vesting and settlement. Any such exercise or settlement should be completed sufficiently in advance of the Expiration Date to assure the holder of such outstanding stock options or restricted stock units that the holder will have sufficient
time to comply with the procedures for tendering Shares described below in The Tender Offer Section 3 Procedures for Accepting the Offer and Tendering Shares.
If the Offer is consummated and the Merger Condition is not satisfied, or if the Merger is otherwise not completed, the Offer will have no
effect on the outstanding stock options or restricted stock units.
If the Offer is consummated, the Merger Condition is satisfied and the
Merger is completed, at the effective time of the Merger, (i) the vesting of each option that remains outstanding as of immediately prior to the effective time of the Merger shall be accelerated in full, (ii) each option that remains
outstanding as of immediately prior to the effective time of the Merger shall be cancelled and terminated as of the effective time of the Merger and (iii) each holder of each such option shall cease to have any rights with respect thereto,
except the right to be paid at or promptly after the effective time of the Merger an amount in cash (without interest), if any, equal to the product obtained by multiplying (x) the aggregate number of Shares that were issuable upon exercise of
such option immediately prior to the effective time of the Merger, by (y) the Offer Price, less the per share exercise price of such option (less applicable withholding). If the aggregate exercise price payable upon exercise of an option equals
or exceeds the product of the Offer Price multiplied by the number of Shares underlying such option, such option shall be cancelled for no consideration.
If the Offer is consummated, the Merger Condition is satisfied and the Merger is completed, at the effective time of the Merger, (i) the
vesting of each restricted stock unit that remains outstanding as of immediately prior to the effective time of the Merger shall be accelerated in full, provided that each such restricted stock unit subject to performance-based vesting criteria
shall vest in an amount assuming achievement of applicable performance goals at the target level, (ii) each restricted stock unit that remains outstanding as of immediately prior to the effective time of the Merger shall be cancelled and
terminated as of the effective time of the Merger and (iii) each holder of a restricted stock unit shall be paid at or promptly after the effective time of the Merger an amount in cash (without interest) equal to the number of Shares subject to
such cancelled restricted stock unit multiplied by the Offer Price (less applicable withholding).
If the Offer is consummated, the Merger
Condition is satisfied and the Merger is completed, at the effective time of the Merger, the Preferred Stock issued and outstanding, if any, shall remain issued and outstanding unless converted prior to the effective time of the Merger; provided,
however, that the Preferred Stock owned by Purchaser and its subsidiaries shall be cancelled and cease to exist and any accrued but unpaid dividends payable in respect of such Preferred Stock will be paid to Purchaser.
See Special Factors Section 6 The Merger Agreement; Other Agreements.
What is the market value of my Shares as of a recent date?
On April 29, 2015, the last full day of trading before we announced that certain letter of intent, dated as of April 29, 2015, by and
between Brookfield and the Company, relating to the transactions contemplated by the Merger Agreement (the Letter of Intent), the reported closing price of the Shares on the NYSE was $4.33 per Share. On May 22, 2015, the last full
day of trading before commencement of the Offer, the reported closing price of the Shares on the NYSE was $5.03 per Share. We encourage you to obtain a recent market quotation for Shares before deciding whether to tender your Shares.
See The Tender Offer Section 6 Price Range of Shares; Dividends.
x
Have any stockholders already agreed to tender their Shares in the Offer or to otherwise support the Offer?
Yes. Concurrently with entering into the Merger Agreement, Purchaser and Acquisition Sub entered into a Tender and Support
Agreement with the Supporting Stockholders (as defined below in Special Factors Section 6 The Merger Agreement; Other Agreements), which provides that the Supporting Stockholders will tender into the Offer, and, subject to certain
exceptions, not withdraw, all outstanding Shares the Supporting Stockholders own of record or beneficially (within the meaning of Rule 13d-3 under the Exchange Act). The Tender and Support Agreement also provides that the Supporting Stockholders
will vote their Shares against certain alternative corporate transactions. Excluding Shares underlying options, restricted stock units and warrants, as of May 17, 2015, the Supporting Stockholders collectively beneficially owned, in the aggregate,
15,263,969 Shares (or approximately 11.1% of all Shares outstanding as of May 17, 2015). Including Shares which may be issued under options and warrants which are exercisable for or may become vested and settled for Shares, the Supporting
Stockholders beneficially owned, in the aggregate, 15,278,969 Shares as of May 17, 2015 (or approximately 11.1% of the total of all Shares that are outstanding and all additional Shares that are deemed outstanding for purposes of calculating
the Supporting Stockholders percentage ownership in accordance with Rule 13d-3(d)(1)(i) under the Exchange Act as of May 17, 2015).
See Special Factors Section 6 The Merger Agreement; Other Agreements.
Will I have appraisal rights in connection with the Offer?
No appraisal rights will be available to you in connection with the Offer. However, if the Offer is consummated, the Merger Condition is
satisfied and the Merger is completed, holders of Shares immediately prior to the effective time of the Merger who (i) did not tender their Shares in the Offer, (ii) follow the procedures set forth in Section 262 of the DGCL and
(iii) do not thereafter lose such holders appraisal rights (by withdrawal, failure to perfect or otherwise), will be entitled to have their Shares appraised by the Delaware Court of Chancery and to receive payment of the fair
value of such shares, exclusive of any element of value arising from the accomplishment or expectation of the Merger, together with interest, thereon. The fair value could be greater than, less than or the same as the Offer Price.
See Special Factors Section 7 Appraisal Rights.
Whom should I call if I have questions about the Offer?
You may call Georgeson Inc., the information agent for the Offer (the Information Agent) at 866-856-2826. See the back cover of
this Offer to Purchase for additional contact information.
xi
INTRODUCTION
BCP IV GrafTech Holdings LP, a Delaware limited partnership (Purchaser) and Athena Acquisition Subsidiary, Inc. are offering to
purchase all of the issued and outstanding shares of common stock, par value $0.01 per share (the Shares), of GrafTech International Ltd., a Delaware corporation (the Company), at a purchase price of $5.05 per Share, in cash
(the Offer Price), without interest thereon and subject to any required tax withholding, upon the terms and subject to the conditions set forth in this Offer to Purchase and in the related Letter of Transmittal (which, together with this
Offer to Purchase, as they may be amended or supplemented from time to time, collectively constitute the Offer).
The Offer is
being made pursuant to an Agreement and Plan of Merger, dated as of May 17, 2015 (as it may be amended from time to time, the Merger Agreement), by and among the Company, Purchaser and Acquisition Sub, pursuant to which, after the
consummation of the Offer and subject to the satisfaction or waiver of certain conditions to the merger, including that the number of Shares validly tendered and not withdrawn in accordance with the terms of the Offer, when combined with the number
of Shares owned by Brookfield Capital Partners Ltd. (Brookfield) and its controlled affiliates (including Purchaser and Acquisition Sub), including any Shares issuable upon conversion of the Companys Series A Convertible Preferred
Stock (Series A Preferred Stock) issued and outstanding as of such date (including Series A Preferred Stock issuable upon conversion of the Companys Series B Convertible Preferred Stock (Series B Preferred Stock and
collectively with the Series A Preferred Stock, the Preferred Stock) issued and outstanding as of such date) (the Underlying Shares), represents at least 80% of the then-outstanding Shares plus all Underlying Shares (the
Merger Condition), Purchaser will transfer the Preferred Stock (and any Shares owned by Purchaser) to Acquisition Sub, Acquisition Sub (instead of Purchaser) will accept the Shares for purchase in the Offer and Acquisition Sub will merge
with and into the Company upon the terms and subject to the conditions set forth in the Merger Agreement, with the Company continuing as the surviving corporation (the Surviving Corporation) and becoming a wholly-owned subsidiary of
Purchaser (the Merger).
In the Merger, (i) each Share issued and outstanding immediately prior to the effective time of
the Merger (other than (A) Shares owned by Purchaser, Acquisition Sub or the Company, (B) Shares held by any subsidiary of the Company or Purchaser (other than Acquisition Sub) and (C) Shares held by Company stockholders who have
properly and validly perfected their statutory rights of appraisal in respect of such Shares in accordance with Section 262 of the General Corporation Law of the State of Delaware (the DGCL)) will be cancelled and converted into the
right to receive cash in an amount equal to the Offer Price and (ii) each share of Preferred Stock issued and outstanding immediately prior to the effective time of the Merger, if any, shall remain issued and outstanding, except that shares of
Preferred Stock owned by the Purchaser and its subsidiaries will be cancelled and cease to exist and any accrued but unpaid dividends payable in respect of such Preferred Stock will be paid to Purchaser. Under no circumstances will interest be paid
on the purchase price for the Shares, regardless of any extension of the Offer or any delay in making payment for the Shares. The Merger Agreement is more fully described in Special Factors Section 6 The Merger Agreement; Other
Agreements.
Tendering stockholders who are record owners of their Shares and who tender directly to Computershare Trust Company, N.A.
(the Depositary) will not be obligated to pay brokerage fees or commissions or, except as otherwise provided in Section 6 of the Letter of Transmittal, stock transfer taxes with respect to the purchase of Shares by Purchaser or
Acquisition Sub pursuant to the Offer. Stockholders who hold their Shares through a broker, banker or other nominee should consult such institution as to whether it charges any service fees or commissions.
The Companys Board of Directors has: (i) determined that the Offer and the Merger are advisable, fair to and in the best
interests of the Company and its stockholders (other than Purchaser and its affiliates), (ii) approved and adopted the Merger Agreement and the transactions contemplated thereby and (iii) resolved to recommend that the stockholders of the
Company accept the Offer and tender their Shares pursuant to the Offer.
A more complete description of the Companys Board of
Directors reasons for authorizing and approving the Merger Agreement and the transactions contemplated thereby, including the Offer and the Merger, is set forth
in the Companys Solicitation/Recommendation Statement on Schedule 14D-9 (the Schedule 14D-9). Stockholders should carefully read the information set forth in the Schedule 14D-9,
including the information set forth in Item 4 under the sub-heading Background and Reasons for the Boards Recommendation.
The obligation of Purchaser or, if the Merger Condition is satisfied, Acquisition Sub, to accept for payment and pay for Shares validly
tendered (and not withdrawn) pursuant to the Offer is subject to various conditions set forth in the Merger Agreement, including, among others: (i) that prior to the expiration of the Offer, there be validly tendered and not withdrawn in
accordance with the terms of the Offer a number of Shares that, when combined with the number of Shares and Underlying Shares owned by Brookfield and its controlled affiliates (including Purchaser and Acquisition Sub), represents at least 30% of the
then outstanding Shares plus all Underlying Shares (the Minimum Condition); (ii) the timely submission by the Company of a notice (including all required accompanying materials) to the U.S. Department of State Directorate of Defense
Trade Controls in accordance with International Traffic in Arms Regulations; (iii) the termination or expiration of any waiting period (and extension thereof) applicable to the transactions contemplated by the Merger Agreement under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the regulations thereunder; (iv) the receipt of any applicable clearances under the competition laws of Mexico, Russia, South Africa, and Turkey; (v) the receipt of
clearance from the Committee on Foreign Investment in the United States of America (CFIUS) without any required condition to mitigate any threat to the national security of the United States that is unacceptable to Purchaser and, if the
Merger Condition is not satisfied, the Company, unless Purchaser and the Company reasonably determine that CFIUS clearance is unnecessary because CFIUS clearance was obtained in connection with the Investment Agreement; (vi) the satisfaction of
other customary conditions as described in this Offer to Purchase; and (vii) if the number of Shares validly tendered in the Offer and not withdrawn is greater than the Minimum Condition but less than the Merger Condition, the execution by the
Company and Purchaser of the Amended and Restated Stockholders Rights Agreement in substantially the form attached to the Merger Agreement.
The Offer is also subject to other conditions set forth in this Offer to Purchase. See Tender Offer Section 11 Conditions
of the Offer.
This Offer to Purchase and the related Letter of Transmittal contain important information that should be read carefully in
its entirety before any decision is made with respect to the Offer.
2
SPECIAL FACTORS
1. |
Background of the Offer; Past Contacts or Negotiations with the Company. |
The following
is a description of contacts between representatives of Brookfield Capital Partners Ltd. (Brookfield), an affiliate of Purchaser and Acquisition Sub, and representatives of the Company, that resulted in the execution of the Merger
Agreement and the other agreements related to the Offer. The chronology below covers only the key events leading up to the execution of the Merger Agreement and the other agreements related to the Offer, and does not purport to catalogue every
conversation between representatives of Brookfield and representatives of the Company. For a review of the Companys activities relating to these contacts, please refer to the Schedule 14D-9, including the information set forth in Item 4
under the sub-heading Background and Reasons for the Boards Recommendation.
Brookfield is part of the private equity
platform of Brookfield Asset Management Inc. (BAM), a global alternative asset manager engaged in (among other activities) managing and making investments in property, renewable energy, infrastructure and private equity. Brookfield has
previously invested in the steel industry and over the past several years, Brookfield has routinely evaluated potential investment opportunities in the steel industry.
As a key supplier in the steel industry, the Company had come to the attention of Brookfield and Brookfield had resolved to approach the
Company to determine whether Brookfield could be helpful in connection with the Companys refinancing of its Senior Subordinated Notes and/or resolving a potential proxy contest with one of its key stockholders.
In February 2015, a representative of a consulting firm engaged by Brookfield provided representatives of Brookfield with the contact
information of Thomas A. Danjczek, a member of the Companys Board of Directors. Brookfield was interested in an introduction to the Company because of its position in the steel industry and had asked the consulting firm for the introduction.
On February 11, 2015, representatives of Brookfield telephoned Mr. Danjczek to introduce Brookfield and to discuss
Brookfields interest in the Company. Mr. Danjczek directed the representatives of Brookfield to contact Joel Hawthorne, Chief Executive Officer and President of the Company, and provided them with Mr. Hawthornes contact
information.
On February 12, 2015, representatives of Brookfield telephoned Mr. Hawthorne and expressed Brookfields
interest in working with the Company. Erick R. Asmussen, the Companys then Chief Financial Officer and Vice President, joined the teleconference. During the conversation, the representatives of Brookfield informed Mr. Hawthorne and
Mr. Asmussen of Brookfields interest in making an investment in the Company, possibly including a refinancing of the Companys Senior Subordinated Notes. Mr. Hawthorne agreed to further discussions with Brookfield at an
in-person meeting to be held after the Companys earnings release scheduled for March 2, 2015. On February 13, 2015, Brookfield sent an invitation to meet with representatives of the Company at the Companys headquarters on
March 6, 2015.
On March 6, 2015, representatives of Brookfield met with Mr. Hawthorne, Mr. Asmussen and Kelly Taylor,
the Companys Director, Investor Relations and Corporate Communications, at the Companys headquarters in Independence, Ohio, and discussed general matters relating to the Companys industry, in which Brookfield has significant
experience, as well as Brookfields investment philosophy and certain matters impacting the Companys business, including the proxy contest with Nathan Milikowsky, who previously commenced a proxy contest in connection with the
Companys 2014 annual meeting, and who had publicly disclosed his intention to nominate seven director candidates to the Companys Board of Directors at the Companys 2015 annual meeting. The representatives of Brookfield indicated
that Brookfield would be interested in a purchase of convertible debentures, the proceeds of which could be used by the Company to repay the Senior Subordinated Notes.
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Messrs. Hawthorne and Asmussen indicated that the Company was always open to opportunities, but that refinancing the Senior Subordinated Notes with convertible debentures would have a dilutive
effect. Brookfields representatives committed to considering alternative transaction structures that would provide a comprehensive solution for the Companys situation and provide maximum benefit to the Companys stockholders.
On March 9, 2015, Mr. Hawthorne advised representatives of Brookfield that he had consulted with counsel and had canvassed members
of the special committee of the Companys Board, which had been formed to consider matters relating to the Companys 2015 annual meeting (the Special Committee). In response, representatives of Brookfield committed to providing
the Company with a written proposal, a form of confidentiality agreement and a due diligence list.
On March 10, 2015, Brookfield
transmitted an initial list of due diligence requests and a form of confidentiality agreement to Mr. Hawthorne. On the same day, Mr. Hawthorne replied that, upon further consideration, the Company would prefer to use a Company-drafted
confidentiality agreement and delivered to representatives of Brookfield an initial draft of the Confidentiality Agreement.
During the
period from March 10, 2015 to March 19, 2015, representatives of Brookfield and the Company negotiated the terms of the Confidentiality Agreement, dated as of March 20, 2015, which was executed on March 22, 2015.
On March 12, 2015, representatives of Brookfield delivered to Mr. Hawthorne a written presentation addressed to the Special
Committee regarding Brookfields investment philosophy and experience in the Companys industry. The presentation also expressed Brookfields interest in acquiring the Company in an all-cash transaction for a premium to be determined
following approximately three weeks of commercial due diligence.
On March 13, 2015, a Mr. Hawthorne responded, requesting that
Brookfield submit a proposal to the Companys Board of Directors providing an overview of BAM and a letter stating Brookfields intentions with an indication of value by no later than March 18, 2015.
On March 18, 2015, representatives of Brookfield delivered a non-binding expression of interest to the Company (the Initial
Proposal). In the Initial Proposal, Brookfield indicated that it would be willing to make an offer to acquire all of the outstanding shares of common stock of the Company at a price ranging from $5.00 to $5.25 per share in cash, which
represented a 28% to 35% premium to the Companys closing price on March 17, 2015, subject to expedited due diligence and negotiation of definitive documentation to be completed by April 30, 2015. In addition, the Initial Proposal
indicated that Brookfield would be willing to enter into a transaction that would give the Companys existing stockholders the opportunity to choose between Brookfields premium cash offer or retaining their Shares in the Company under
Brookfield sponsorship. The Initial Proposal also stated that the transaction would not be subject to a financing condition and included other key terms. Together with the Initial Proposal, Brookfield also provided a presentation addressed to the
Companys Board of Directors, setting out additional information about Brookfield and the Initial Proposal.
Beginning on
March 22, 2015, pursuant to the Confidentiality Agreement, the Company provided Brookfield and its representatives with access to due diligence materials, including certain financial, operating, regulatory, intellectual property, employment,
legal and other information concerning the Company and its business. Representatives of Brookfield and its advisors and outside counsel commenced their business and legal due diligence review of the Company. Over the course of the following month,
representatives of the Company and Brookfield (including its advisors and outside counsel) met on numerous occasions to continue to facilitate the completion of Brookfields due diligence process.
4
On April 9, 2015, representatives of Brookfield, the Company and the Companys outside
counsel met to review the due diligence and potential transaction structures, including an investment by Brookfield in convertible preferred stock of the Company and a tender offer by Brookfield for up to all of the Companys outstanding Shares
(subject to a minimum condition).
On April 9, 2015, Brookfield indicated to a representative of JP Morgan Securities LLC (JP
Morgan) that Brookfield expected to submit a preliminary written proposal during the week of April 13, 2015.
On April 14,
2015, Brookfield submitted a proposal to purchase $150,000,000 of 7% convertible preferred shares of the Company (the Proposed Share Purchase) and, substantially concurrently with the Proposed Share Purchase, to make a tender offer for
up to 100% of the Companys common stock at a price of $5.00 per share, subject to a minimum condition that would result in Brookfield and its affiliates having an aggregate ownership equaling no less than 35% of the Companys common stock
on a fully diluted basis (after giving effect to shares convertible into common stock acquired by Brookfield and its affiliates in the Proposed Share Purchase) (the Proposed Tender Offer).
On April 20, 2015, a representative of JP Morgan informed Brookfield that the Companys Board of Directors was continuing to
consider the Proposed Share Purchase and Proposed Tender Offer and would not make a determination until after an additional meeting of the Companys Board of Directors to be held on April 22, 2015.
On April 22, 2015, a representative of JP Morgan informed Brookfield that the Companys Board of Directors had approved continuing
discussions with Brookfield and delivered to Brookfield a counterproposal to Brookfields April 14 proposal, which counterproposal had been approved by the Companys Board of Directors. In the counterproposal, the Company proposed,
among other things, a dividend rate of 6% for the convertible preferred shares and a $5.75 offer price in the tender offer with a minimum tender condition of 10% of the Companys outstanding common stock and a requirement that Brookfield
acquire all of the Companys common stock through a back-end merger in the event 80% of the Companys outstanding common stock is tendered in the Proposed Tender Offer.
During the period from April 22, 2015 to April 29, 2015, representatives of Brookfield and JP Morgan continued to negotiate terms
for the Proposed Share Purchase and Proposed Tender Offer.
During the course of negotiations from April 22, 2015 to April 24,
2015, representatives of Brookfield indicated to representatives of JP Morgan that Brookfield was not willing to increase its proposed purchase price above $5.00 per Share in the Proposed Tender Offer, but would reduce the minimum condition. After
further discussion, on April 25, 2015, representatives of Brookfield indicated to representatives of JP Morgan that Brookfield would increase its proposed purchase price to $5.05 per Share in the Proposed Tender Offer.
On April 27, 2015, representatives of Weil, Gotshal & Manges LLP (Weil), counsel to Brookfield, and representatives
of Withers LLP (Withers) and Willkie Farr & Gallagher LLP (Willkie), both counsel to the Company, discussed the timing and structure of the transaction in accordance with the Proposed Share Purchase and Proposed
Tender Offer. Later that day, Weil delivered a draft of the Investment Agreement and related documents for the Proposed Share Purchase to Withers and Willkie for their review.
On April 29, 2015, the Company and Brookfield entered into a letter of intent pursuant to which the Company and Brookfield agreed to use
their commercially reasonable best efforts to prepare and negotiate definitive documents, reasonably and in good faith, for the issuance and sale by the Company to Brookfield, for an aggregate purchase price of $150,000,000, of a total of 150,000
shares of the Companys 7% convertible preferred stock in accordance with the terms set forth in a term sheet (the Preferred Term Sheet). Also on that day, the Company and Brookfield entered into a letter of intent pursuant to which
the Company and Brookfield
5
agreed to use their commercially reasonable best efforts to prepare and negotiate definitive documents, reasonably and in good faith, for a tender offer by Brookfield to purchase all of the
outstanding shares of the Companys common stock at a purchase price of $5.05 per share, in accordance with the terms set forth in a term sheet (the TO Term Sheet).
On the evening of April 29, 2015, the Company issued a press release announcing the execution of the Preferred Term Sheet and the TO Term
Sheet.
During the period from April 27, 2015 to May 4, 2015, Weil, Withers and Willkie and representatives of Brookfield and JP
Morgan continued to negotiate and exchange revised drafts of the Investment Agreement and related documents.
On May 4, 2015, the
Company and Purchaser entered into the definitive Investment Agreement and related documents.
On May 5, 2015, Weil delivered a draft
of the Merger Agreement consistent with the TO Term Sheet to Withers and Willkie for their review.
During the period between May 5,
2015 and May 17, 2015, Weil, Withers and Willkie and representatives of Brookfield and JP Morgan continued to negotiate and exchange revised drafts of the Merger Agreement.
On May 5, 2015, a representative of Brookfield reached out to a representative of JP Morgan to ask if JP Morgan could facilitate a
discussion between Brookfield and Mr. Milikowsky regarding whether Mr. Milikowsky would be willing to enter into a tender and support agreement with respect to his Shares in connection with the Proposed Tender Offer. On May 6, 2015, a
representative of JP Morgan informed Brookfield that Mr. Milikowsky was willing to discuss entering into a tender and support agreement with Brookfield. On May 8, 2015, representatives of Brookfield met with Mr. Milikowsky in New
York. Mr. Milikowsky indicated that he was interested in tendering his Shares in the Proposed Tender Offer and requested that Brookfield have its counsel transmit a draft agreement to that effect to his counsel at Kirkland & Ellis LLP
(Kirkland). Later that day, Weil delivered a draft of the Tender and Support Agreement to Kirkland, and over the next several days, Weil and Kirkland exchanged drafts of the Tender and Support Agreement.
On May 17, 2015, the Company and Purchaser executed the definitive Merger Agreement and certain stockholders of the Company, including
Mr. Milikowsky, entered into the Tender and Support Agreement.
On the morning of May 18, 2015, the Company issued a press
release announcing the execution of the Merger Agreement and the Offer and the Merger contemplated by the Merger Agreement.
2. |
Purpose of the Offer; Plans for the Company. |
Purpose of the Offer.
The purpose of the Offer is for Purchaser to acquire an additional ownership interest (above that to be acquired through the Investment
Agreement) in the Company, and potentially the entire equity interest in and control of, the Company. The Offer is intended to facilitate the acquisition of outstanding Shares and is being made in connection with certain other transactions between
Purchaser and the Company, as described in Special Factors Section 6 The Merger Agreement; Other Agreements.
The
purpose of the Merger is to acquire all outstanding Shares not tendered and purchased pursuant to the Offer if a sufficient number of Shares are tendered to satisfy the Merger Condition. If the Offer is consummated and the Merger Condition is
satisfied, Purchaser intends to complete the Merger as promptly as practicable thereafter.
6
The Companys Board of Directors has approved the Merger Agreement and the transactions
contemplated thereby, including the Offer and, subject to the satisfaction of the Merger Condition, the Merger. If the Offer is consummated and the Merger Condition is satisfied, we do not anticipate seeking the approval of the Companys
remaining stockholders before effecting the Merger. Section 251(h) of the DGCL provides that following consummation of a successful tender offer for a public corporation, and subject to certain statutory provisions, if the acquirer holds at
least the amount of shares of each class of stock of the constituent corporation that would otherwise be required to approve a merger for the constituent corporation, and the other stockholders receive the same consideration for their stock in the
merger as was payable in the tender offer, the acquirer can effect a merger without the action of the other stockholders of the constituent corporation. Accordingly, if we consummate the Offer and the Merger Condition is satisfied, we intend to
complete the Merger without a vote of the Companys stockholders in accordance with Section 251(h) of the DGCL. If we are prohibited from effecting the Merger in accordance with Section 251(h) of the DGCL, we reserve the right to
effect the Merger in another manner that complies with the requirements of the DGCL.
Plans for the Company.
Purchaser has entered into an Investment Agreement with the Company pursuant to which the Company agreed to issue and sell and Purchaser agreed
to purchase and pay for (i) shares of Series A Preferred Stock in an amount equal to 19.9% of the Companys outstanding Shares (the Series A Preferred Shares) and (ii) shares of Series B Preferred Stock in an amount
equal to 150,000 less the number of Series A Preferred Shares, for an aggregate purchase price of $150,000,000 in cash. This purchase and sale is expected to be consummated prior to the final expiration of the Offer. If the Offer is consummated, but
the Merger Condition is not satisfied, we will have acquired a significant ownership interest in the Company. Pursuant to the Certificate of Designations for the Series A Preferred Stock and the Stockholder Rights Agreement, upon issuance of the
Preferred Stock, Purchaser will have the right to designate two members for election to the Companys Board of Directors for so long as Purchaser and its permitted transferees own at least 75% of the Preferred Stock originally issued (including
Shares received upon conversion of the Series A Preferred Stock), and Purchaser will have the right to designate one member for election to the Companys Board of Directors for so long as Purchaser and its permitted transferees own at least
25%, but less than 75%, of the Preferred Stock originally issued (including Shares received upon conversion of the Series A Preferred Stock). If the Offer is consummated, but the Merger Condition is not satisfied, Purchaser and the Company will
enter into the Amended and Restated Stockholders Agreement, which provides that in addition to the designation rights described in the immediately preceding sentence, if and for so long as we and our affiliates in the aggregate own at least
35% of the outstanding Shares on a fully-diluted basis, then we shall have the right to designate for nomination to the Companys Board of Directors the number of directors (rounded down to the nearest whole number) that is proportionate to the
percentage interest of the outstanding Shares on a fully-diluted basis owned by Purchaser and its affiliates, less the number of directors that the holders of the outstanding Preferred Stock have the right to designate. We intend to exercise all our
rights to designate nominees for election or appointment to the Companys Board of Directors promptly after consummation of the Offer. See Special Factors Section 6 The Merger Agreement; Other Agreements. In addition, we have
agreed to certain standstill, voting and transfer restrictions as described in Special Factors Section 6 The Merger Agreement; Other Agreements. Subject to the foregoing restrictions, we intend to review our investment in the
Shares, Preferred Stock or other securities of the Company on a continuing basis and may take such actions with respect to our investment in the Company as we deem appropriate. We may consider the following factors, as well as other factors, when
reviewing our investment in the Shares, Preferred Stock or other securities of the Company: the Companys financial position, results and strategic direction, price levels of the common stock of the Company, conditions in the securities and
credit markets and general economic and industry conditions. Our future acquisitions or disposition of Shares or other securities of the Company will depend, among other things, on the foregoing standstill restrictions, market and economic
conditions, our overall investment strategies and capital availability and applicable regulatory and legal constraints, and there can be no assurance that we will acquire additional Shares, Preferred Stock or other securities of the Company.
Further, we may, from time to time, subject to applicable restrictions, propose business strategies to the Company. Subject to applicable restrictions, we reserve the right to acquire additional
7
Shares, Preferred Stock or other securities of the Company through private purchases, market transactions, tender or exchange offers or otherwise on terms and at prices that may be more or less
favorable than those of the Offer, or, subject to applicable legal restrictions, to dispose of any or all Shares, Preferred Stock or other securities of the Company acquired by us.
If the Offer is consummated and the Merger Condition is satisfied, we intend to complete the Merger as promptly as practicable and will be
entitled to appoint our representatives to the Companys Board of Directors in proportion to our ownership of the outstanding Shares between the consummation of the Offer and the closing of the Merger. Except as set forth in this Offer to
Purchase and the Merger Agreement, we have no present plans or proposals that would relate to or result in (i) any extraordinary corporate transaction involving the Company or any of its subsidiaries (such as a merger, reorganization,
liquidation, relocation of any operations or sale or other transfer of a material amount of assets), (ii) any sale or transfer of a material amount of assets of the Company or any of its subsidiaries, (iii) any material change in the
Companys capitalization or dividend policy or (iv) any other material change in the Companys corporate structure or business. We will continue to evaluate the business and operations of the Company during the pendency of the Offer
and after the consummation of the Offer and, if the Merger Condition is satisfied, the Merger, and will take such actions as we deem appropriate under the circumstances then existing. Thereafter, we intend to review such information as part of a
comprehensive review of the Companys business, operations, capitalization and management with a view to optimizing development of the Companys potential.
3. |
Position of the Company Regarding Fairness of the Offer and the Merger. |
The full text
of the recommendations, and reasons therefor, of the Companys Board of Directors, and the full text of the written opinion of JP Morgan, which describes the assumptions made and qualifications and limitations on the review undertaken, will be
included in or as an annex to the Companys Schedule 14D-9. Holders of Shares are urged to read the Schedule 14D-9, including the full text of the recommendation of the Companys Board of Directors and reasons therefor and the written
opinion of JP Morgan carefully.
The Companys Board of Directors has determined that the Offer and the Merger are advisable and that
the terms of the Offer and the Merger are fair to and in the best interests of the Company and its stockholders (other than Purchaser and its affiliates), approved the Offer, the Merger, the Merger Agreement and the transactions contemplated
thereby, and recommended that the Companys stockholders accept the Offer and tender their Shares to Purchaser or, if the Merger Condition is satisfied, Acquisition Sub, pursuant to the Offer.
4. |
Position of the Purchaser and Acquisition Sub Regarding Fairness of the Offer and the Merger. |
Position of Purchaser and Acquisition Sub. The rules of the SEC require Purchaser and Acquisition Sub
to express their belief as to the fairness of the Offer and the Merger to the unaffiliated stockholders of the Company. Purchaser and Acquisition Sub are making the statements included in this section solely for the purpose of complying with the
requirements of Rule 13e-3 and related rules under the Exchange Act. The views of Purchaser and Acquisition Sub should not be construed as a recommendation to any Company stockholder regarding whether to tender Shares into the Offer.
Purchaser and Acquisition Sub attempted to negotiate the terms of a transaction that would be most favorable to Purchaser and Acquisition Sub
and, accordingly, did not negotiate the Merger Agreement with the goal of obtaining terms that were fair to the stockholders of the Company. Neither Purchaser nor Acquisition Sub believes that it has or had any fiduciary duty to the Company or its
stockholders, including with respect to the Offer and the Merger and their terms. Neither Purchaser nor Acquisition Sub participated in the deliberation process of the Companys Board of Directors and neither Purchaser nor Acquisition Sub
participated in the conclusions of the Companys Board of Directors that the Offer and the Merger were fair to the Companys stockholders, nor did Purchaser or Acquisition Sub undertake any independent evaluation of the fairness of the
Offer or the Merger or engage a financial advisor for these purposes. Neither Purchaser nor Acquisition Sub received advice from the Companys Board of Directors or its legal or financial advisors as to the substantive or procedural fairness of
the proposed Offer or the proposed Merger.
8
Purchaser and Acquisition Sub believe that the Offer Price to be received by the Companys
unaffiliated stockholders pursuant to the Offer and the Merger is fair to such stockholders. Purchaser and Acquisition Sub base their belief on, among other things, the following material factors, each of which, in their judgment, supports their
views:
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The Offer Price represents a premium of approximately 17% over the closing price of the Shares on April 29, 2015 (the last trading day before the letter of intent related to the Offer (Tender Offer
LOI) was executed and publicly announced), and a premium of approximately 26% over the 60 day volume-weighted average closing price of the Shares ending April 29, 2015. |
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The Offer will provide holders with the option to choose immediate liquidity at a premium, without the brokerage and other costs typically associated with market sales, by selling some or all of their Shares in the
Offer for the Offer Price and, unless the Merger Condition is met, will have the opportunity to participate in the Company as a stockholder with the benefit of Brookfields sponsorship and certain stockholder protections. |
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The Offer Price to be paid in the Offer and the Merger will be paid in cash, which provides certainty of value and immediate liquidity to the Companys stockholders while avoiding long-term business risk.
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The Companys stockholders will not be obligated to tender Shares in the Offer, and if they so desire, will be able to exercise appraisal rights with respect to the Merger. |
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The Offer is not subject to any financing condition and Brookfield provided an appropriate guarantee of the payment obligations under the Merger Agreement. |
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The other factors considered by, and the findings of, the Companys Board of Directors with respect to the substantive fairness of the Offer and the Merger to the Companys unaffiliated stockholders, as
described in the Schedule 14D-9 under the caption Item 4. The Solicitation Or Recommendation Background and Reasons for the Boards Recommendation Reasons for the Offer and the Merger; Fairness of the Offer and the
Merger which are expressly adopted by Purchaser and Acquisition Sub. |
In addition, Purchaser and Acquisition Sub
believe that the Offer is procedurally fair to the Companys unaffiliated stockholders, based on the following factors:
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The Companys Board of Directors unanimously (i) determined that the Offer and the Merger are advisable, fair to and in the best interests of the Company and its stockholders (other than Purchaser and its
affiliates), (ii) approved and adopted the Merger Agreement and the approved transactions contemplated thereby and (iii) resolved to recommend that the stockholders of the company accept the Offer and tender their Shares pursuant to the Offer.
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The Companys Board of Directors was advised by J.P. Morgan, as financial advisor, and by Withers LLP and Willkie Farr & Gallagher LLP, as legal advisors, each of which are qualified, independent advisors.
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The Merger Agreement allows the Companys Board of Directors to solicit alternative acquisition proposals from third parties and to provide information and participate in negotiations with third parties with
respect to such acquisition proposals during the Go-Shop Period (and, under certain circumstances, continue negotiations with certain parties for an additional 15-day period) and the fact that the Tender Offer LOI was filed and announced publicly
more than two full weeks prior to signing the Merger Agreement, thereby putting third parties potentially interested in a business combination on notice; |
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The Companys Board of Directors received a fairness opinion of JPMorgan that, as of May 17, 2015, and subject to the factors, assumptions, qualifications and limitations set forth in its opinion, the $5.05 per
Share in cash to be received by the holders of Shares in the Offer and the Merger was fair from a financial point of view to the holders of such Shares. |
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The Merger Agreement permits the Companys Board of Directors, under certain circumstances, at any time after expiration of the Go-Shop Period, to consider an unsolicited alternative acquisition proposal received
from a third party if the Companys Board of Directors determines in good faith, after consultation with outside legal counsel, that failure to consider and respond to such acquisition proposal would be inconsistent with the directors
fiduciary duties and, after consultation with outside legal counsel and its financial advisor, that such acquisition proposal either constitutes or would reasonably be expected to result in a proposal superior to the Offer and Merger.
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The Merger Agreement permits the Companys Board of Directors to withdraw or modify, or publicly propose to withdraw or modify, its recommendation based on a material development or change in circumstances that was
not known or reasonably foreseeable to the Company as of the date of the Merger Agreement if it determines in good faith, after consultation with its financial and legal advisors, that the failure to do so would be inconsistent with its fiduciary
duties and after giving Purchaser and Purchaser a right to renegotiate the terms of the Merger Agreement, in which case Purchaser may terminate the Merger Agreement and the Company will be required to pay Purchaser a termination fee.
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The Offer is conditioned upon there being validly tendered and not withdrawn a number of Shares that satisfies the Minimum Condition. |
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The tender offer structure allows each of the Companys stockholders to decide voluntarily whether to tender Shares in the Offer, and unaffiliated stockholders will have sufficient time to make a decision whether
to tender in the Offer, and the difference between the Minimum Condition and the Merger Conditions gives stockholders an opportunity to retain their Shares and continue to invest in the future of the Company. |
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If the Offer is completed, and the Merger Condition is satisfied, the Merger will be consummated in which all remaining public stockholders will receive the same price per Share as was paid in the Offer, without
interest and less any applicable withholding tax. |
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The other factors considered by, and the findings of, the board of directors of the Company with respect to the procedural fairness of the Offer and the Merger to the Companys unaffiliated stockholders, as
described in the Companys Schedule 14D-9 under the caption Item 4. The Solicitation Or Recommendation Background and Reasons for the Boards Recommendation Reasons for the Offer and the Merger; Fairness of the Offer
and the Merger which are expressly adopted by Purchaser and Acquisition Sub. |
Purchaser and Acquisition Sub also
considered the following factors, each of which it considered negative in their considerations concerning the fairness of the terms of the Transactions:
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Tendering of Shares in the Offer and, if the Merger Condition is satisfied, the consummation of the Merger, would eliminate the opportunity for stockholders to participate in any possible future growth and profits of
the Company. |
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As to the Offer Price, the financial interests of Purchaser and Acquisition Sub are different than the financial interests of the Companys unaffiliated stockholders. |
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The risks and costs to the Company if the Offer does not close, including the potential effect on business and customer relationships. |
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The all-cash consideration to be received by the Companys stockholders that are U.S. persons in the Offer and the Merger would be taxable to such stockholders that have a gain for U.S. federal income tax purposes.
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The other potentially negative factors considered by the Companys Board of Directors, and findings of the Companys Board of Directors with respect to potentially negative factors, as described in the
Schedule 14D-9 under the caption Item 4. The Solicitation Or Recommendation Background and Reasons for the Boards Recommendation Reasons for the Offer and the Merger; Fairness of the Offer and the Merger.
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Purchaser and Acquisition Sub did not find it practicable to assign, nor did they assign,
relative weights to the individual factors considered in reaching their conclusion as to fairness.
Purchaser and Acquisition Subs
consideration of the factors described above reflects their assessment of the fairness of the Offer Price to the Companys unaffiliated stockholders in relation to the going-concern value of the Company on a stand-alone basis. In reaching the
conclusion as to fairness, Purchaser and Acquisition Sub did not consider the liquidation value or net book value of the Company. The liquidation value was not considered because the Company is a viable going concern and Purchaser and the Company
has no plans to liquidate the Company. Therefore, Purchaser and Acquisition Sub believe that the liquidation value of the Company is irrelevant to a determination as to whether the Offer or the Merger is fair to unaffiliated stockholders. Purchaser
and Acquisition Sub did not consider net book value, which is an accounting concept, as a factor because the Companys business is not of a nature whose value is traditionally measured as a multiple of book value, as the Companys value is
derived from cash flows generated by continuing operations, and Purchaser and Acquisition Sub believe that net book value is not a material indicator of the value of the Company as a going concern but rather is indicative of historical costs.
The foregoing discussion of the information and factors considered and given weight by Purchaser and Acquisition Sub is not intended to be
exhaustive, but is believed to include the material factors considered by Purchaser and Acquisition Sub. Purchaser and Acquisition Subs views as to the fairness of the Offer and the Merger to stockholders of the Company should not be construed
as a recommendation to any stockholder regarding whether to tender Shares into the Offer.
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Certain Effects of the Offer. |
It is expected that Purchaser will acquire a
significant number of Shares upon the consummation of the Offer and, if the Merger Condition is satisfied, the Merger will be consummated pursuant to Section 251(h) of the DGCL promptly after the consummation of the Offer. Immediately following
the Merger, all of the outstanding shares of the Companys common stock will be held by Purchaser.
Market for the Shares.
The purchase of Shares pursuant to the Offer will reduce the number of holders of Shares and the number of Shares that might otherwise trade publicly, which could adversely affect the liquidity and market value of the remaining Shares. We cannot
predict whether the reduction in the number of Shares that might otherwise trade publicly would have an adverse or beneficial effect on the market price for, or marketability of, the Shares or whether such reduction would cause future market prices
to be greater or less than the Offer Price.
Stock Quotation. Depending upon the number of Shares purchased pursuant to the
Offer, the Shares may no longer meet the requirements for continued listing on the New York Stock Exchange (NYSE) if, among other things, the Company does not meet the requirements for the number of publicly held Shares, the aggregate
market value of the publicly held Shares or the number of market makers for the Shares. If the Merger Condition is met, Purchaser will seek to cause the listing of Shares on the NYSE to be discontinued as soon after the consummation of the Offer as
the requirements for termination of the listing are satisfied.
If the NYSE were to delist the Shares, it is possible that the
Shares would continue to trade on other securities exchanges or in the over-the-counter market and that price or other quotations of the Shares would be reported by other sources. The extent of the public market for such Shares and the availability
of such quotations would depend, however, upon such factors as the number of stockholders and the aggregate market value of such securities remaining at such time, the interest in maintaining a market in the Shares on the part of securities firms,
the possible termination of registration under the Exchange Act, and other factors.
Margin Regulations. The Shares are currently
margin securities under the Regulations of the Board of Governors of the Federal Reserve System (the Federal Reserve Board), which has the effect, among other
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things, of allowing brokers to extend credit based on the use of Shares as collateral. Depending upon factors similar to those described above regarding the market for the Shares and stock
quotations, it is possible that, following the Offer, the Shares would no longer constitute margin securities for the purposes of the margin regulations of the Federal Reserve Board and, therefore, could no longer be used as collateral
for loans made by brokers.
Exchange Act Registration. The Shares are currently registered under the Exchange Act. Such
registration may be terminated upon application of the Company to the SEC if the Shares are neither listed on a national securities exchange nor held by 300 or more holders of record. Termination of registration of the Shares under the Exchange Act
would substantially reduce the information required to be furnished by the Company to its stockholders and to the SEC and would make certain provisions of the Exchange Act no longer applicable to the Company, such as the short-swing profit recovery
provisions of Section 16(b) of the Exchange Act, the requirement of furnishing a proxy statement pursuant to Section 14(a) of the Exchange Act in connection with stockholders meetings and the related requirement of furnishing an
annual report to stockholders and the requirements of Rule 13e-3 under the Exchange Act with respect to going private transactions. Furthermore, the ability of affiliates of the Company and persons holding restricted
securities of the Company to dispose of such securities pursuant to Rule 144 under the Securities Act of 1933, as amended, may be impaired or eliminated. If registration of the Shares under the Exchange Act were terminated, the Shares would no
longer be margin securities or be eligible for quotation on the NYSE. We intend to cause the delisting of the Shares from the NYSE and the termination of the registration of the Shares under the Exchange Act as soon after completion of
the Merger as the requirements for such delisting and termination of registration are satisfied.
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The Merger Agreement; Other Agreements. |
Merger Agreement
The Merger Agreement
The following
is a summary of the material provisions of the Merger Agreement. The following description of the Merger Agreement does not purport to be complete and is qualified in its entirety by reference to the Merger Agreement, a copy of which is filed as an
exhibit to the Schedule TO and is incorporated herein by reference. For a complete understanding of the Merger Agreement, you are encouraged to read the full text of the Merger Agreement. The Merger Agreement is not intended to provide you with any
factual information about Purchaser, Acquisition Sub or the Company. Such information can be found elsewhere in this Offer to Purchase. References to business day in relation to provisions of the Merger Agreement shall mean any day,
other than a Saturday, Sunday and any day which is a legal holiday under the laws of the State of New York or is a day on which banking institutions located in the State of New York or the State of Ohio are authorized or required by law or other
governmental action to close.
The Merger Agreement has been filed herewith as required by applicable SEC regulations and solely to inform
investors of its terms. The Merger Agreement contains representations, warranties and covenants, which were made only for the purposes of such agreement and as of specific dates, were made solely for the benefit of the parties to the Merger
Agreement (and, in the case of certain covenants relating to indemnification of directors and officers, for the benefit of directors and officers of the Company designated as third-party beneficiaries), and are intended not as statements of fact,
but rather as a way of allocating risk to one of the parties if those statements prove to be inaccurate. In addition, such representations, warranties and covenants may have been qualified by certain disclosures not reflected in the text of the
Merger Agreement and may apply standards of materiality in a way that is different from what may be viewed as material by stockholders of, or other investors in, the Company. The holders of Shares and other investors are not third-party
beneficiaries under the Merger Agreement and should not rely on the representations, warranties and covenants or any descriptions thereof as characterizations of the actual state of facts or conditions of the Company, Purchaser or Acquisition Sub or
any of their respective subsidiaries or affiliates.
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The Offer
Principal Terms of the Offer
The
Merger Agreement provides that, subject to the terms and conditions of the Offer and the Merger Agreement, Purchaser or, if the Merger Condition is satisfied, Acquisition Sub, will accept for payment all Shares validly tendered and not withdrawn
pursuant to the Offer (excluding Shares tendered pursuant to guaranteed delivery procedures that have not yet been delivered in settlement or satisfaction of such guarantee) as soon as practicable after Purchaser or, if the Merger Condition is
satisfied, Acquisition Sub, is permitted to do so under applicable law or regulations, and will pay the Offer Price in exchange for such Shares accepted for payment. The Merger Agreement provides that the obligation of Purchaser or, if the Merger
Condition is satisfied, Acquisition Sub, to accept for payment, and pay for, the Shares validly tendered (and not withdrawn) is subject to the satisfaction or (if permitted) waiver of the conditions of the Offer.
The Merger Agreement provides that Purchaser expressly reserves the right to waive any of the conditions of the Offer and to make any change
in the terms of or conditions of the Offer, but that notwithstanding the foregoing, without the prior written consent of the Company in its sole discretion, Purchaser may not:
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waive (A) the Minimum Condition, (B) the condition that any waiting period (and extension thereof) applicable to the transactions contemplated by the Agreement under the HSR Act shall have expired or been
terminated, (C) the condition that any governmental authority of competent jurisdiction in the United States shall not have (i) enacted, issued or promulgated any law that is in effect as of immediately prior to the expiration of the Offer
and has the effect of making the Offer or the Merger illegal in the United States or which has the effect of prohibiting or otherwise preventing the consummation of the Offer or the Merger in the United States, or (ii) issued or granted any
Order that is in effect as of immediately prior to the expiration of the Offer and has the effect of making the Offer or the Merger illegal in the United States or which has the effect of prohibiting or otherwise preventing the consummation of the
Merger in the United States, or (D) only if the number of Shares tendered and accepted for payment pursuant to the Offer is equal to or greater than the Minimum Condition but less than the Merger Condition, the delivery and execution of the
Amended and Restated Stockholder Rights Agreement; or |
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make any change in the terms of or conditions of the Offer that (A) changes the form of consideration to be paid in the Offer, (B) decreases the Offer Price or the number of Shares sought in the Offer,
(C) extends the Offer, other than in a manner required by the Merger Agreement, (D) imposes conditions of the Offer other than those set forth in The Tender Offer Section 11 Conditions of the Offer, (E) modifies the
conditions set forth in The Tender Offer Section 11 Conditions of the Offer, or (F) amends any other term or condition of the Offer in any manner that is material and adverse to the holders of Shares. |
Extensions of the Offer/Subsequent Offering Period
The Merger Agreement provides that:
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Purchaser shall extend the Offer for any period required by any law or order, or any rule, regulation, interpretation or position of the SEC or its staff or the NYSE, in any such case which is applicable to the Offer;
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in the event that (i) the Minimum Condition is satisfied and any or all of the other conditions of the Offer are not satisfied or waived (if
permitted) as of July 7, 2015 (the Initial Expiration Date) or the Go-Shop Extension Expiration Date (as defined below), Purchaser shall extend the Offer for successive extension periods of ten business days each (or any longer or
shorter period as may be approved in advance by the Company) in order to permit the satisfaction of all of the conditions of the Offer; provided, that Purchaser shall not be required to extend the Offer past the Termination Date (as defined below),
or (ii) the Minimum Condition is not satisfied as of the Initial Expiration Date or the Go-Shop |
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Extension Expiration Date, Purchaser may (in its sole discretion) extend the Offer for successive extension periods of up to ten 10 business days each (or any longer period as may be approved in
advance by the Company) in order to permit the satisfaction of the Minimum Condition and any other conditions that have not then been satisfied or waived (if permitted); and |
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in the event the Company has extended the Go-Shop Period by the Go-Shop Extension, then Purchaser shall (and without the consent of the Company or any other person), extend the Offer until ten business days after the
expiration of the Go-Shop Extension (or for such longer period as Purchaser may deem reasonably necessary as may be approved in advance by the Company) (the Go-Shop Extension Expiration Date). |
Purchaser may (but shall not be required to), and the Offer to Purchase shall reserve the right to, provide for a subsequent offering
period (within the meaning of Rule 14d-11 under the Exchange Act) of not less than three nor more than twenty business days immediately following the expiration of the Offer.
Schedule 14D-9 and Board Recommendation
The Merger Agreement provides that the Company will file the Schedule 14D-9 with the SEC contemporaneously with the filing by Purchaser of the
Schedule TO. The Merger Agreement provides that the Schedule 14D-9 will, unless the Companys Board of Directors has effected Board Recommendation Change (as defined below under Board Recommendation) in accordance with the Merger
Agreement, include the Companys Board of Directors recommendation that the stockholders of the Company accept the Offer and tender their Shares to Purchaser or, if the Merger Condition is satisfied, Acquisition Sub (the Board
Recommendation).
Schedule 13E-3
The Merger Agreement provides that the Company, Purchaser, and Acquisition Sub shall use their commercially reasonable efforts to file the
Schedule 13E-3 with the SEC contemporaneously with the commencement of the Offer (and, in any case, as soon as practicable following commencement of the Offer) with respect to the transactions contemplated by the Merger Agreement; provided, that at
Purchasers option, subject to applicable law, Purchaser may include the Schedule 13E-3 in this Schedule TO in satisfaction of its and Acquisition Subs obligation under Rule 13e-3, in which case the Company shall separately file a
Schedule 13E-3 on such date with respect to the transactions contemplated by the Merger Agreement.
The
Merger
Principal Terms of the Merger
The Merger Agreement provides that the Merger and the transactions contemplated thereby, including the Offer and the Merger, are to be governed
by Section 251(h) of the DGCL, and that, if the Merger Condition is satisfied, the Merger will be effected without a vote of the Companys stockholders. The Merger Agreement provides that if the Merger Condition is satisfied, the
consummation of the Merger will close as promptly as practicable following the Acceptance Time, and in any case no later than the second business day after the satisfaction of the last to be satisfied of the conditions to the Merger (other than
those conditions that, by their nature, are to be satisfied at the closing of the Merger, but subject to the satisfaction (or waiver, if permitted by applicable law) of those conditions), or at such other location, date and time as Purchaser,
Acquisition Sub and the Company shall mutually agree upon in writing.
The Merger Agreement provides that on the date of the closing of
the Merger, Purchaser, Acquisition Sub and the Company will cause the Merger to be consummated under the DGCL by filing a certificate of merger in such form as required by, and executed in accordance with, the DGCL (the Certificate of
Merger) with the
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Secretary of State of the State of Delaware. The Merger Agreement provides that the time of such filing and acceptance by the Secretary of State of the State of Delaware, or such later time as
may be agreed in writing by Purchaser, Acquisition Sub and the Company and specified in the Certificate of Merger, will be the effective time of the Merger (the Effective Time). The Merger Agreement provides that, at the Effective Time,
Acquisition Sub will be merged with and into the Company, the separate corporate existence of Acquisition Sub will cease, and the Company will continue as the surviving corporation of the Merger (the Surviving Corporation).
The Merger Agreement provides that, at the Effective Time, each Share issued and outstanding immediately prior to the Effective Time will be
cancelled and extinguished and automatically converted into the right to receive cash in an amount equal to the Offer Price (the Merger Consideration), without interest thereon and subject to any required tax withholding, payable to the
holder thereof in accordance with the terms and conditions of the Merger Agreement, unless:
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such Share is owned by Purchaser, Acquisition Sub or the Company, in which case such Share will be automatically cancelled and extinguished without any conversion thereof or consideration paid therefor;
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such Share is held by any subsidiary of the Company or Purchaser (other than Acquisition Sub), in which case such Share will remain outstanding with appropriate adjustment to the number thereof to preserve the relative
percentage interest in the Company represented by such Share; or |
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such Share is a Dissenting Share (as defined below in the following paragraph). |
The Merger
Agreement provides that Shares that are issued and outstanding immediately prior to the Effective Time and held by a stockholder who has properly and validly perfected such stockholders statutory rights of appraisal in connection with the
Merger in respect of such Shares in accordance with Section 262 of the DGCL (such Section, Section 262, and such Shares, until such time as such stockholder fails to perfect, withdraws or otherwise loses such stockholders
appraisal rights under the DGCL with respect to such Shares, Dissenting Shares) will not be converted into, or represent the right to receive, the Merger Consideration, but instead such stockholder will be entitled to receive payment of
the appraised value of such Dissenting Shares in accordance with the provisions of Section 262. At the Effective Time, such Dissenting Shares will no longer be outstanding and will automatically be cancelled and will cease to exist, and such
stockholder will cease to have any rights with respect thereto, except the right to receive the fair value of such Dissenting Shares in accordance with the provisions of Section 262. The Merger Agreement provides that all Dissenting Shares held
by Company stockholders who have failed to perfect or who have effectively withdrawn or lost their rights to appraisal of such Dissenting Shares under Section 262 will no longer be considered to be Dissenting Shares and will thereupon be deemed
to have been converted into, and to have become exchangeable for, as of the Effective Time, the right to receive the Merger Consideration, without interest thereon, upon surrender of the certificate or certificates that formerly evidenced such
Shares.
Treatment of Preferred Stock in the Merger
The Merger Agreement provides that, at the Effective Time, Preferred Stock issued and outstanding immediately prior to the Effective Time, if
any, shall remain issued and outstanding unless converted prior to the Effective Time; provided, however, that the Preferred Stock owned by Purchaser and its subsidiaries immediately prior to the Effective Time shall be cancelled and cease to exist
at the Effective Time, and any accrued but unpaid dividends payable in respect of the Preferred Stock owned by Purchaser and its subsidiaries immediately prior to the Effective Time shall be paid to Purchaser.
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Treatment of Stock Options and Restricted Stock Units in the Merger
The Merger Agreement provides that Purchaser shall not assume any stock options or restricted stock units (including restricted stock units
subject to performance- and time-based vesting criteria) in connection with the Merger or any other transactions contemplated by the Merger Agreement, and that at the Effective Time:
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(i) the vesting of each option that remains outstanding as of immediately prior to the Effective Time shall be accelerated in full; (ii) each option that remains outstanding as of immediately prior to the Effective
Time shall be cancelled and terminated as of the Effective Time; and (iii) each holder of each such option shall cease to have any rights with respect thereto, except the right to be paid at or promptly after the Effective Time an amount in
cash (without interest), if any, equal to the product obtained by multiplying (x) the aggregate number of Shares that were issuable upon exercise of such option immediately prior to the Effective Time, by (y) the Offer Price, less the per
share exercise price of such option (less applicable withholding). If the aggregate exercise price payable upon exercise of an option equals or exceeds the product of the Offer Price multiplied by the number of Shares underlying such option, such
option shall be cancelled for no consideration; and |
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(i) the vesting of each restricted stock unit that remains outstanding as of immediately prior to the Effective Time shall be accelerated in full, provided that each such restricted stock unit subject to
performance-based vesting criteria shall vest in an amount assuming achievement of applicable performance goals at the target level, (ii) each restricted stock unit that remains outstanding immediately prior to the Effective Time shall be
cancelled and terminated as of the Effective Time, and (iii) each holder of a restricted stock unit shall be paid at or promptly after the Effective Time, an amount in cash (without interest) equal to the number of Shares subject to such
cancelled restricted stock unit multiplied by the Offer Price (less applicable withholding). |
Adjustments to the Offer Price and
Merger Consideration
The Merger Agreement provides that each of the Offer Price and the Merger Consideration shall be adjusted
appropriately to reflect the effect of any stock split, reverse stock split, stock dividend (including any dividend or distribution of securities convertible into Shares), reclassification, recapitalization, combination, exchange of shares or other
like change with respect to Shares occurring (i) on or after the date of the Merger Agreement and prior to Purchasers or, if the Merger Condition is satisfied, Acquisition Subs, acceptance for payment of, and payment for, Shares
that are tendered pursuant to the Offer, in the case of the Offer Price, and (ii) on or after the consummation of the Offer and prior to the Effective Time, in the case of the Merger Consideration.
Changes of Directors and Officers in Connection with the Offer and the Merger
The Merger Agreement provides that at the Effective Time, if any, (i) the directors of Acquisition Sub immediately prior to the Effective
Time shall become the initial directors of the Surviving Corporation, each to hold office in accordance with the certificate of incorporation and bylaws of the Surviving Corporation until their respective successors are duly elected or appointed and
qualified; and (ii) the officers of the Company immediately prior to the Effective Time shall become the initial officers of the Surviving Corporation, each to hold office in accordance with the certificate of incorporation and bylaws of the
Surviving Corporation until their respective successors are duly appointed. As of the date of this Offer to Purchase, the directors of Acquisition Sub are Barry Blattman, Jaspreet Dehl, and David Neiman. As of the date of this Offer to Purchase, the
officers of the Company are Joel L. Hawthorne, Darrell A. Blair, Quinn J. Coburn, Lionel D. Batty, and John D. Moran.
Representation on the
Companys Board of Directors
If the Merger Condition is satisfied, effective upon the Acceptance Time and from time to time
thereafter (as long as Purchaser and its affiliates beneficially own 80% of the then outstanding Shares plus all Underlying Shares), Purchaser will be entitled to designate up to such number of directors on the Companys Board of
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Directors equal to the product (rounded up to the next whole number) obtained by multiplying (x) the number of directors on the Companys Board of Directors (giving effect to any
increase in the number of directors pursuant to the applicable section of the Merger Agreement) and (y) a fraction, the numerator of which is the number of Shares beneficially owned by Purchaser and Acquisition Sub, including the Underlying
Shares (giving effect to the Shares accepted for payment pursuant to the Offer), and the denominator of which is the total number of outstanding Shares including the Underlying Shares. Following a request by Purchaser, the Company will, to the
extent permitted by applicable laws and the certificate of incorporation and bylaws of the Company, take all action necessary to cause the individuals so designated by Purchaser to be elected or appointed to the Companys Board of Directors,
subject to compliance with applicable law and NYSE rules regarding qualification, the Companys director qualifications and completion by such individuals of a D&O questionnaire, including (at the election of Purchaser) either by increasing
the size of the Companys Board of Directors or by seeking and accepting or otherwise securing the resignations of such number of then incumbent directors as is necessary to enable the individuals so designated by Purchaser to be elected or
appointed to the Companys Board of Directors. From time to time after the Acceptance Time (as long as Purchaser and its affiliates beneficially own 80% of the outstanding Shares on a fully diluted basis, including the Underlying Shares) at the
request of Purchaser, the Company will, to the extent permitted by applicable laws and the certificate of incorporation and bylaws of the Company, take all action necessary to cause the individuals so designated by Purchaser to constitute
substantially the same percentage (rounding down where appropriate) as is on the Companys Board of Directors on (i) each committee of the Companys Board of Directors, (ii) each board of directors (or equivalent governance body)
of each subsidiary of the Company and (iii) each committee of each such board of directors (or equivalent governance body) of each subsidiary of the Company, in each case to the fullest extent permitted by all applicable laws.
Notwithstanding the foregoing, from the Acceptance Time until the Effective Time, the Company will use its reasonable best efforts to cause
the Companys Board of Directors to always have at least three directors who were directors on the date of the Merger Agreement, who are not employed by the Company and who are not affiliates or employees of Purchaser or any of its
subsidiaries, and who are independent directors for purposes of the continued listing requirements of the NYSE (the Continuing Directors); provided, that if the number of Continuing Directors is reduced below three for any reason
whatsoever, the remaining Continuing Director will be entitled to designate any other person(s) who is not an affiliate or employee of Purchaser or any of its subsidiaries to fill such vacancies and such person(s) will be deemed to be a Continuing
Director(s); and provided further, that the remaining Continuing Director will fill such vacancies as soon as practicable, but in any event within ten business days; and further provided, that if no such Continuing Director is appointed in such time
period, Purchaser will designate such Continuing Director; provided further, that if no Continuing Director then remains, the other directors will designate three persons who will not be affiliates, consultants, representatives or employees of
Purchaser or any of its subsidiaries to fill such vacancies and such persons will be deemed to be Continuing Directors.
Representations and
Warranties
In the Merger Agreement, the Company has made customary representations and warranties to Purchaser and Acquisition
Sub, including representations relating to, among other things: corporate existence and power; corporate authorization; qualification to do business; good standing; enforceability; non-contravention; required governmental approvals; capitalization;
subsidiaries; SEC reports and listing requirements; financial statements and internal controls; the Company not having certain undisclosed liabilities or off-balance sheet arrangements; absence of certain changes; material contracts; real property;
personal property and assets; intellectual property; tax matters; employee benefit plans; labor matters; permits; compliance with applicable law and orders; environmental matters; litigation; insurance; related party transactions; brokers; opinion
of financial advisor; state anti-takeover statutes; and Schedule TO, Schedule 14D-9, and Schedule 13E-3.
In the Merger Agreement,
Purchaser and Acquisition Sub have made customary representations and warranties to the Company, including representations relating to, among other things: existence and power;
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authorization; good standing; enforceability; non-contravention; required governmental approvals; litigation; Schedule TO, Schedule 14D-9, and Schedule 13E-3; brokers; operations of Purchaser and
Acquisition Sub; funds; and Section 203 matters.
Material Adverse Effect
Certain of the representations and warranties contained in the Merger Agreement and certain of the conditions of the Offer contained in the
Merger Agreement and this Offer to Purchase refer to the concept of a Company Material Adverse Effect.
The Merger Agreement
defines a Company Material Adverse Effect as any change, effect, event, circumstance, occurrence or development (Effect), individually or taken together with all other Effects that have occurred prior to the date of
determination of the occurrence of the Company Material Adverse Effect, that is or is reasonably likely to be materially adverse to the business, results of operations or financial condition of the Company and its subsidiaries, taken as a whole;
provided, that none of the following and no Effect resulting from, attributable to or arising out of any of the following individually or taken together, shall be deemed to be, cause or constitute, or taken into account in determining whether a
Company Material Adverse Effect has occurred:
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any change in the Companys stock price or trading volume on the NYSE; |
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any failure by the Company to meet internal or analyst revenue, earnings or other financial projections or expectations for any period; |
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any default of or acceleration or repurchase obligation under the Companys (i) Second Amended and Restated Credit Agreement, dated as of February 27, 2015, among the Company, GrafTech Finance Inc.,
GrafTech Luxembourg I S.a.r.l., GrafTech Luxembourg II S.a.r.l., GrafTech Switzerland S.A., the LC Subsidiaries (as defined therein) from time to time party thereto, the lenders from time to time party thereto and JPMorgan Chase Bank, N.A. as
administrative agent (as amended, restated, supplemented or otherwise modified from time to time) (Credit Agreement) or the Merger Agreement (including any event of default as a result of a cross default), (ii) 6.375% senior
promissory notes of the Company, issued on November 20, 2012, due 2020 (Senior Notes) or (iii) senior subordinated promissory notes of the Company, issued on November 30, 2010, for an aggregate total face amount of $200
million, due November 2015 as a direct result of the transactions contemplated by the Merger Agreement or the Investment Agreement (Senior Subordinated Notes); |
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any Effect that results from changes affecting the industry in which the Company operates, or the United States economy generally, or any Effect that results from changes affecting general worldwide economic or United
States or global capital market conditions; |
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any Effect caused by the announcement or pendency of the transactions contemplated by the Merger Agreement or the other documents contemplated thereby, or the identity of Purchaser or any of its affiliates as the
purchase in connection with the transactions contemplated thereby, |
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acts of war or terrorism or natural disasters; |
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the performance of the Merger Agreement and the transactions contemplated thereby, including compliance with the covenants set forth therein, or any action taken or omitted to be taken by the Company at the written
request or with the prior written consent of Purchaser; |
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changes in GAAP or other accounting standards (or any interpretation thereof); |
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changes in any laws or other binding directives issued by any governmental authority or interpretations or enforcement thereof; |
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a ratings downgrade; and |
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the sale of certain properties, the closing of certain operations and the Companys operating results for the first quarter of 2015. |
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The exceptions in items 1, 2 and 10 shall not prevent or otherwise affect a determination that
any Effect underlying such change or failure has resulted in, or contributed to, a Company Material Adverse Effect, and with respect to items 4, 6, and 9 above, such Effects, alone or in combination, may be deemed to constitute, or be taken into
account in determining whether a Company Material Adverse Effect has occurred, but only to the extent such Effects disproportionately affect the Company and its subsidiaries, taken as a whole, relative to other companies operating in the same
industry as the Company and its subsidiaries.
Covenants
Operating Covenants
The Merger
Agreement provides that, except as contemplated or permitted by the Merger Agreement, including the disclosure letter thereto, or as approved by Purchaser (which approval will not be unreasonably withheld, conditioned or delayed), at all times
during the period commencing with the execution and delivery of the Merger Agreement and continuing until the earlier to occur of the termination of the Merger Agreement and the Acceptance Time, each of the Company and each of its subsidiaries will
use its commercially reasonable efforts to:
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carry on its business in the ordinary course consistent with past practice; and |
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to keep available the services of the current officers, key employees and consultants of the Company and each of its subsidiaries, and preserve the current relationships of the Company and each of its subsidiaries with
customers, suppliers, distributors, licensors, licensees, and other persons with whom the Company or any of its subsidiaries has significant business relations as is reasonably necessary to preserve substantially intact its business organization.
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The Merger Agreement also provides that, except as contemplated or permitted by the Merger Agreement (including the
redemption of any of the Senior Subordinated Notes), as set forth in the disclosure letter thereto, or as approved by Purchaser (which approval will not be unreasonably withheld, conditioned or delayed), or as contemplated by the Investment
Agreement (including the issuance of the Preferred Stock, the declaration and payment of dividends thereon and the conversion thereof) at all times during the period commencing with the execution and delivery of the Merger Agreement and continuing
until the earlier to occur of the termination of the Merger Agreement and the Acceptance Time, the Company will not do any of the following and will not permit any of its subsidiaries to do any of the following:
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amend, or propose to adopt any amendments to, its certificate of incorporation or bylaws or comparable organizational documents; |
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issue, sell, deliver, grant, dispose of, pledge or otherwise encumber or agree or commit to issue, sell, deliver, grant, dispose of, pledge or otherwise encumber (whether through the issuance or granting of options,
warrants, commitments, subscriptions, rights to purchase or otherwise) any Company securities or any securities of a subsidiary of the Company, except for the issuance and sale of Shares upon the vesting of restricted stock units or the exercise of
options, in each case, outstanding as of the date of the Merger Agreement or issued after the date thereof in compliance with the terms of the Merger Agreement; |
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directly or indirectly repurchase or redeem any Company securities or any securities of a subsidiary of the Company, except: |
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repurchases of Company securities pursuant to the terms and conditions of options outstanding as of the date of the Merger Agreement or issued after the date thereof in compliance with the terms of the Merger Agreement;
and |
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in connection with tax withholdings and exercise price settlements upon the exercise of options or the vesting of restricted stock units; |
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(A) split, combine, subdivide or reclassify shares of capital stock or (B) declare, set aside or pay any dividend or other distribution (whether in cash, shares or property or any combination thereof) in respect of
any shares of capital stock, or make any other actual, constructive or deemed distribution in respect of any shares of capital stock, except for cash dividends made by any direct or indirect wholly owned subsidiary of the Company to the Company or
one of its wholly owned subsidiaries; |
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propose or adopt a plan or agreement of complete or partial liquidation, dissolution, merger, consolidation, restructuring, recapitalization or other reorganization of the Company or any of its subsidiaries;
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(A) incur or assume any long-term or short-term debt for borrowed monies or issue any debt securities or options, warrants, calls or other rights to acquire any debt securities of the Company or any of its subsidiaries
in excess of $10,000,000, except for loans or advances between the Company and any direct or indirect subsidiaries, or between any direct or indirect subsidiaries, (B) assume, guarantee, endorse or otherwise become liable or responsible
(whether directly, contingently or otherwise) for the obligations of any other person, except with respect to obligations of direct or indirect subsidiaries of the Company, (C) make any loans, advances or capital contributions to or investments
in any other person (other than the Company or any direct or indirect subsidiaries), except for business expense advances in the ordinary course of business consistent with past practice to employees of the Company or any of its subsidiaries, or
(D) mortgage or pledge any of its or its subsidiaries assets, tangible or intangible, or create or suffer to exist any lien thereupon (other than permitted liens); |
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except as may be required by applicable law or the terms of any employee benefit plan, including any severance agreement in effect as of the date of the Merger Agreement: |
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enter into, adopt, amend (including acceleration of vesting), modify or terminate any bonus, profit sharing, incentive, compensation, severance, retention, termination, option, appreciation right, performance unit,
stock equivalent, share purchase agreement, pension, retirement, deferred compensation, employment, severance or other employee benefit agreement, trust, plan, fund or other arrangement for the compensation, benefit or welfare of any director,
officer or employee in any manner, except in any such case (1) in connection with the hiring of new employees in the ordinary course of business consistent with past practice, and (2) in connection with the promotion of employees in the
ordinary course of business consistent with past practice; or |
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increase the salary or other compensation payable or to become payable of any director, officer or employee, pay or agree to pay any special bonus or special remuneration to any director, officer or employee, or pay or
agree to pay any benefit not required by any plan or arrangement as in effect as of the date of the Merger Agreement, except in the ordinary course of business consistent with past practice; provided, that the Company and its subsidiaries may
provide for annual, promotion related or merit-based salary increases and may pay bonuses, commissions and other incentive compensation in the ordinary course of business consistent with past practice; |
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settle or compromise any pending or threatened legal proceeding for an amount (not covered by insurance) in excess of $5,000,000, except for the settlement of any legal proceeding that (A) is reflected or reserved
against in the Companys balance sheet, or (B) does not include any obligation (other than the payment of money) to be performed by the Company or its subsidiaries following the Effective Time that is, individually or in the aggregate,
material to the Company and its subsidiaries, taken as whole; |
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except as may be required as a result of a change in applicable law or in GAAP, make any change in any of the material financial accounting methods, principles or practices used by it (or change an annual financial
accounting period); |
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(A) make or change any material tax election, take any position on any tax return filed on or after the date of the Merger Agreement or adopt any tax
accounting method that is inconsistent with elections made, positions taken or methods used in preparing or filing similar tax returns in prior periods, |
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(B) change any method of tax accounting or accounting period, (C) amend any material tax return, including surrender any claim for a refund of taxes, (D) settle or compromise any
material tax controversy, or (E) consent to any extension or waiver of any limitations period with respect to any claim or assessment for a material amount of taxes; |
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other than in the ordinary course of business consistent with past practice, (A) directly or indirectly acquire (by merger, consolidation or acquisition of stock or assets) any other person or any material equity
interest therein or (B) dispose of any properties or assets of the Company or its subsidiaries, which are material to the Company and its subsidiaries, taken as a whole; |
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(A) enter into, terminate or amend in any material respect any material contract, other than in the ordinary course of business consistent with past practice, (B) enter into or extend the term or scope of any
contract that purports to restrict the Company, or any existing or future subsidiary or affiliate of the Company, from engaging in any line of business or in any geographic area, except distribution and sales agency agreements entered into in the
ordinary course of business, or (C) enter into any contract that would be breached by, or require the consent of any third party in order to continue in full force following, consummation of the transactions contemplated hereby;
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make any investment (by contribution to capital, property transfers, purchase of securities or otherwise) in, or loan or advance (other than (A) travel and similar advances to its employees and (B) customer
credits in the ordinary course of business consistent with past practice) to, any person other than a direct or indirect wholly-owned subsidiary of the Company in the ordinary course of business; |
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make any capital expenditure or expenditures which (A) involves the purchase of real property, (B) is in excess of $10,000,000 individually or (C) is inconsistent with the budget approved by the
Companys Board of Directors prior to the date of the Merger Agreement, a copy of which has been provided to Purchaser; |
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grant to any third person any license (other than licenses granted to end-users pursuant to the Companys terms of use as posted on its website), sublicense, covenant not to sue, immunity, authorization, release or
other right with respect to any material intellectual property rights; assign or transfer to any third person any material Company intellectual property rights; or abandon any material Company registered intellectual property rights, in each case
except as in the ordinary course of business; and |
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enter into a contract, or otherwise resolve or agree in any legally binding manner, to take any of the actions prohibited by the foregoing items. |
The Merger Agreement provides that notwithstanding the foregoing, nothing in the Merger Agreement is intended to give Purchaser, directly or
indirectly, the right to control or direct the business or operations of the Company or its subsidiaries at any time prior to the Acceptance Time. Prior to the Acceptance Time, the Company and its subsidiaries will exercise, consistent with the
terms and conditions of the Merger Agreement, complete control and supervision over their own business and operations.
Acquisition Proposals
Provision; Go-Shop Period; No Solicitation Provision
The Merger Agreement provides that during the period (the Go-Shop
Period) commencing on May 17, 2015 and continuing until 11:59 p.m. (New York Time) on June 21, 2015, unless extended by the Go-Shop Extension (the day on which the Go-Shop Period (including the Go-Shop Extension, if any) ends, the
No-Shop Period Start Date), the Company and its subsidiaries and their respective directors, officers, employees, investment bankers, attorneys, accountants and other advisors or representatives (collectively,
Representatives) shall have the right to:
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initiate, solicit and encourage any inquiry or the making of any proposal or offer that constitutes an Acquisition Proposal, including by providing
information (including non-public information and data) |
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regarding, and affording access to the business, properties, assets, books, records and personnel of, the Company and its subsidiaries to any person pursuant to (x) a confidentiality
agreement entered into by such person containing confidentiality terms that are no more favorable in the aggregate to such person than those contained in the Confidentiality Agreement, dated as of March 20, 2015, by and between the Company and
an affiliate of the Purchaser ( the Confidentiality Agreement) (unless the Company offers to amend the Confidentiality Agreement to reflect such more favorable terms), or (y) to the extent applicable, the confidentiality agreement
entered into with such person prior to the date of this Agreement (any such confidentiality agreement, an Acceptable Confidentiality Agreement); provided that the Company shall promptly (and in any event within 24 hours) make available
to the Purchaser any non-public information concerning the Company or its subsidiaries that is provided to any person given such access that was not previously made available to the Purchaser; and |
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engage in, enter into, continue or otherwise participate in any discussions or negotiations with any persons or group of persons with respect to any Acquisition Proposals and cooperate with or assist or participate in
or facilitate any such inquiries, proposals, discussions or negotiations or any effort or attempt to make any Acquisition Proposals. |
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later than one business day after the No-Shop Period Start Date, the Company shall notify Purchaser in writing of the identity of each person or group of persons from whom the Company received a written Acquisition Proposal after the execution of
this Agreement and prior to the No-Shop Period Start Date and provide to Purchaser (x) a copy of any Acquisition Proposal made in writing and any other written material terms or proposals provided (including financing commitments) to the
Company or any of its Subsidiaries, (y) the identity of the person or persons making such Acquisition Proposal and (z) a written summary of the material terms of any Acquisition Proposal not made in writing (including any terms proposed
orally or supplementally). If the Company receives an Acquisition Proposal during the Go-Shop Period, the Company may extend the Go-Shop Period for the Go-Shop Extension.
As defined in the Merger Agreement, Acquisition Proposal means any offer or proposal (other than an offer or proposal by Purchaser
or Acquisition Sub) to engage in an Acquisition Transaction.
As defined in the Merger Agreement, Acquisition Transaction
means any transaction or series of related transactions (other than the transactions contemplated by this Agreement and the transactions contemplated by the Investment Agreement) involving:
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any direct or indirect purchase or other acquisition by any person or group (as defined in or under Section 13(d) of the Exchange Act), whether from the Company and/or any other person(s), of Shares
representing more than twenty percent of the Shares outstanding after giving effect to the consummation of such purchase or other acquisition, including pursuant to a tender offer or exchange offer by any person or group (as defined in
or under Section 13(d) of the Exchange Act) that, if consummated in accordance with its terms, would result in such person or group beneficially owning more than twenty percent of the Shares outstanding after giving effect to the
consummation of such tender or exchange offer; |
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any direct or indirect purchase or other acquisition by any person or group (as defined in or under Section 13(d) of the Exchange Act) of more than twenty percent of the consolidated assets of the
Company and its Subsidiaries taken as a whole (measured by the fair market value thereof as of the date of such sale, transfer, acquisition or disposition); |
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any merger, consolidation, business combination, share exchange or other similar transaction involving the Company pursuant to which any person or group (as defined in or under Section 13(d) of the
Exchange Act), other than the Companys stockholders (as a group) immediately prior to the consummation of such transaction, would hold Shares representing more than twenty percent of the Shares outstanding after giving effect to the
consummation of such transaction; |
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a liquidation, dissolution or other winding up of the Company; |
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any transaction in which any person (or the stockholders of any person) shall acquire, directly or indirectly, beneficial ownership, or the right to acquire beneficial ownership, or formation of any group which
beneficially owns or has the right to acquire beneficial ownership of, more than twenty percent of the Shares or securities (or options, rights or warrants to purchase, or securities convertible into or exchangeable for, such securities)
representing more than twenty percent of the voting power of the Company; or |
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any combination of the foregoing. |
The Merger Agreement provides that, except as may relate to
any Excluded Party (but only for as long as such person or group is an Excluded Party), after the No-Shop Period Start Date, the Company and its subsidiaries shall, and the Company shall cause its and its subsidiaries Representatives to
immediately cease any activities permitted during the Go-Shop Period and any discussions or negotiations with any person or group that may be ongoing with respect to any Acquisition Proposal. With respect to any person or group with whom such
discussions or negotiations have been terminated, the Company shall terminate such persons access to any data room containing the Companys confidential information and use its reasonable best efforts to promptly require such person or
group to promptly return or destroy in accordance with the terms of the applicable confidentiality agreement any information furnished by or on behalf of the Company.
As defined in the Merger Agreement, Excluded Party means any person, group of persons or group of persons that includes any person
or group of persons, from whom the Company or any of its Representatives has received prior to the No-Shop Period Start Date, a written Acquisition Proposal that the Companys Board of Directors determines in good faith (such determination to
be made no later than one business days after the No-Shop Period Start Date), after consultation with outside counsel and its financial advisors, is or could reasonably be expected to result in a Superior Proposal.
The Merger Agreement provides that, except as it may relate to an Excluded Party, from the No-Shop Period Start Date continuing until the
earlier to occur of the termination of the Merger Agreement and the Acceptance Time, the Company and its subsidiaries will not, and the Company shall instruct and use its reasonable best efforts to cause its and its subsidiaries
Representatives not to, directly or indirectly:
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solicit, initiate, cause or induce the making, submission or announcement of, or knowingly encourage, facilitate or assist, an Acquisition Proposal; |
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furnish to any person (other than Purchaser, Acquisition Sub or any designees of Purchaser or Acquisition Sub) any non-public information relating to the Company or any of its subsidiaries, or afford to any person
(other than Purchaser, Acquisition Sub or any designees of Purchaser or Acquisition Sub) access to the business, properties, assets, books, records or other non-public information, or to any personnel, of the Company or any of its subsidiaries, in
any such case with the intent to induce the making, submission or announcement of, or the intent to encourage, facilitate or assist, an Acquisition Proposal or any inquiries or the making of any proposal that would reasonably be expected to lead to
an Acquisition Proposal; |
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participate or engage in discussions or negotiations with any person with respect to an Acquisition Proposal; or |
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enter into any contract contemplating or otherwise relating to an Acquisition Transaction (other than Acceptable Confidentiality Agreement). |
The Merger Agreement provides that at any time prior to the Acceptance Time and after providing Purchaser not less than 24 hours written
notice of its intention to take such actions, if the Company receives from any person a bona fide, written and unsolicited Acquisition Proposal not involving a breach of the Merger Agreement that the Companys Board of Directors determines in
good faith (after consultation with the
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Companys financial advisor and outside legal counsel) either constitutes or is reasonably expected to lead to a Superior Proposal (as defined below), the Companys Board of Directors
may, directly or indirectly through the Companys Representatives:
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participate or engage in discussions or negotiations with such person; and/or |
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furnish to such person any non-public information relating to the Company or any of its subsidiaries and/or afford such person access to the business, properties, assets, books, records or other non-public information,
or the personnel, of the Company or any of its subsidiaries, in each case, pursuant to an Acceptable Confidentiality Agreement, provided, that contemporaneously with furnishing any non-public information to such person, the Company furnishes such
non-public information to Purchaser to the extent such information has not been previously furnished by the Company to Purchaser. |
The Merger Agreement provides that the Company is prohibited from taking any of the actions in the forgoing paragraph unless the
Companys Board of Directors determines in good faith (after consultation with outside legal counsel) that the failure to take such action would be inconsistent with its fiduciary duties, and the Company gives Purchaser written notice of the
identity of such person, a copy of the Acceptable Confidentiality Agreement entered into with such person, the material terms of such Acquisition Proposal and of the Companys intention to participate or engage in discussions or negotiations
with, or furnish non-public information to, such person (and shall include with such notice copies of any written materials received from or on behalf of such person relating to such Acquisition Proposal). Any violation of the foregoing restrictions
by the Companys subsidiaries or Representatives will be deemed to be a breach of the Merger Agreement by the Company.
The Merger
Agreement provides that from the No-Shop Period Start Date until the earlier to occur of the termination of the Merger Agreement and the Acceptance Time, neither the Company nor any of its subsidiaries will terminate, amend, modify or waive any
rights under, or release any person (other than Purchaser and Acquisition Sub) from, any standstill or other similar agreement between the Company or any of its subsidiaries, on the one hand, and such person, on the other, unless the
Companys Board of Directors determines in good faith (after consultation with outside legal counsel) that the failure to take such action would be inconsistent with its fiduciary duties.
The Merger Agreement also provides that the Company will promptly notify Purchaser if any director or executive officer of the Company becomes
aware of any receipt by the Company of any Acquisition Proposal, any request for information that would reasonably be expected to lead to an Acquisition Proposal, or any inquiry with respect to, or which would reasonably be expected to lead to, any
Acquisition Proposal, the terms and conditions of such Acquisition Proposal, request or inquiry, and the identity of the person or group making any such Acquisition Proposal, request or inquiry (and shall include with such notice copies of any
written materials received from or on behalf of such person relating to such Acquisition Proposal). The Company will keep Purchaser reasonably informed of the status and terms of any such Acquisition Proposal, request or inquiry (and the Company
will provide Purchaser with copies of any additional written materials received that relate to such Acquisition Proposal, inquiry or request).
As defined in the Merger Agreement, Superior Proposal means any bona fide written Acquisition Proposal for an Acquisition
Transaction on terms that the Companys Board of Directors shall have determined in good faith (after consultation with its financial advisor and outside legal counsel), taking into account reasonably available information (including relevant
legal, financial and regulatory aspects of such Acquisition Proposal) and the likelihood of consummation of such Acquisition Transaction, would be more favorable from a financial point of view to the holders of the Companys Shares (in their
capacity as such) than the Offer and the Merger, after taking into account any changes to the terms of the Merger Agreement offered by Purchaser in response to such Acquisition Proposal; provided, that for purposes of the reference to an
Acquisition Proposal in this definition of a Superior Proposal, (i) all references to more than twenty percent (20%) of the Shares in the definition of Acquisition Transaction shall be deemed
to be references to more than thirty-five percent (35%) of the Shares (including Underlying Shares); (ii) all references to more than twenty percent (20%) of the
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consolidated assets shall be deemed references to more than thirty-five percent (35%) of the consolidated assets and (iii) all references to more than twenty
percent (20%) of the voting power shall be deemed references to more than thirty-five percent (35%) of the voting power (including Underlying Shares).
Board Recommendation
The Merger
Agreement provides that, unless there has been a Board Recommendation Change, the Companys Board of Directors will recommend that the holders of Shares accept the Offer, tender their Shares to Purchaser or, if the Merger Condition is
satisfied, Acquisition Sub, pursuant to the Offer and, if required by the applicable provisions of Delaware law, adopt the Merger Agreement (the Board Recommendation).
Board Recommendation Change
The
Merger Agreement provides that, subject to the terms of the Merger Agreement, neither the Companys Board of Directors nor any committee thereof will: (A) withhold, withdraw, amend or modify in a manner adverse to Purchaser, or publicly
propose to withhold, withdraw, amend or modify in a manner adverse to Purchaser, the Board Recommendation; or (B) approve, endorse or recommend an Acquisition Proposal; (each of (A) and (B), a Board Recommendation Change), but
that a stop, look and listen communication by the Companys Board of Directors to the holders of Shares pursuant to Rule 14d-9(f) of the Exchange Act, shall not be deemed to be a Board Recommendation Change. At any time following
the making by any person of a public Acquisition Proposal, Purchaser may submit a written request to the Companys Board of Directors that the Companys Board of Directors publicly reconfirm the Board Recommendation within five business
days after receipt of such a request.
Notwithstanding the foregoing or anything to the contrary set forth in the Merger Agreement, at any
time prior to the Acceptance Time, the Companys Board of Directors may: (A) make a Board Recommendation Change only in response to (x) the Company receiving an unsolicited, bona fide written Acquisition Proposal that constitutes a
Superior Proposal and not involving a breach of the Merger Agreement or (y) an Intervening Event (as defined below); or (B) if the Company has complied in all material respects with the no solicitation provisions of the Merger Agreement,
cause the Company to terminate the Merger Agreement and, concurrently with or immediately after such termination, cause the Company to enter into a definitive written agreement providing for such Superior Proposal, which proposal did not result from
any material breach of the no solicitation provisions of the Merger Agreement, if and only if, in all cases (x) the Companys Board of Directors determines in good faith, after consulting with and receiving advice from outside counsel,
that the failure to effect a Board Recommendation Change would be inconsistent with its fiduciary duties and (y) the provisions of this Board Recommendation Change section are complied with in all material respects. As defined in
the Merger Agreement, Intervening Event means any material event or circumstance arising after the date of the Merger Agreement that (i) was neither known to the Companys Board of Directors nor reasonably foreseeable as of or
prior to the date of the Merger Agreement and (ii) does not relate to the filing of any required notices under applicable antitrust laws or other regulations, including the Committee on Foreign Investment in the United States of America and
International Traffic in Arms Regulations, as set forth in 22 C.F.R. Parts 120 to 130.
Nothing in the Merger Agreement will prohibit the
Companys Board of Directors from (A) taking and disclosing to the holders of Shares a position contemplated by Rule 14e-2(a) under the Exchange Act or complying with the provisions of Rule 14d-9 promulgated under the Exchange Act; and
(B) making any disclosure to the holders of Shares that the Companys Board of Directors determines in good faith (after consultation with its outside legal counsel) that the failure to make such disclosure would be inconsistent with its
fiduciary duties under Delaware law or a violation of applicable securities laws; provided that, (x) clause (B) will not in and of itself be deemed to permit the Companys Board of Directors to make a Board Recommendation Change that
would not otherwise be permitted by this Board Recommendation Change section, and (y) in either such case, any such statement(s) or disclosures made by the Companys Board of Directors will be subject to the terms and
conditions of the Merger Agreement.
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The Merger Agreement provides that (A) no Board Recommendation Change may be made in
response to a Superior Proposal or an Intervening Event and (B) no termination of the Merger Agreement as provided in this Board Recommendation Change section may be made:
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until the fourth business day following Purchasers receipt of written notice from the Company advising Purchaser that the Companys Board of Directors intends to, in the case of clause (A), make such Board
Recommendation Change (a Board Recommendation Notice), or in the case of clause (B), terminate the Merger Agreement in accordance with this Board Recommendation Change section (a Notice of Superior Proposal),
which notice shall specify: |
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in the case of such an action taken in connection with a Superior Proposal, the terms and conditions of such Superior Proposal (including the identity of the person making such Superior Proposal and a copy of the
then-current forms of all of the relevant proposed transaction documents related thereto, including definitive agreements with respect to such Superior Proposal); or |
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if the basis of the proposed action by the Companys Board of Directors is an Intervening Event, a description of the Intervening Event; |
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and unless the Company shall have (A) during the four business day period specified above (and any additional period related to a revision to the Superior Proposal, as provided below), negotiated, and caused its
financial and legal advisors to negotiate, with Purchaser in good faith (to the extent Purchaser desires to negotiate) with respect to proposed adjustments to the terms and conditions of the Merger Agreement so that such Superior Proposal ceases to
constitute a Superior Proposal (or, in the case of a Board Recommendation Notice that is not related to a Superior Proposal, so that the failure to make such Board Recommendation Change is no longer inconsistent with the Companys Board of
Directors fiduciary duties under Delaware law); and (B) prior to or concurrently with a termination of the Merger Agreement pursuant to this Board Recommendation Change section, paid the Termination Fee (as defined below)
required under the Merger Agreement. |
The Merger Agreement provides that, in the case of such actions taken in connection
with a Superior Proposal or an Intervening Event, any material amendment to the financial terms or other material terms of such Superior Proposal, or any new material information regarding the Intervening Event, will, in each case require a new
Board Recommendation Notice or Notice of Superior Proposal and an additional two business day period (the period inclusive of all such days, the Notice Period). The Merger Agreement also provides that: (A) during the Notice Period
the Company will, and will cause its financial advisors and outside legal counsel to, negotiate with Purchaser in good faith if Purchaser indicates to the Company that it desires to negotiate the terms of the Merger Agreement; and (B) the
Company will take into account all changes to the terms of the Merger Agreement proposed by Purchaser in determining whether such Acquisition Proposal continues to constitute a Superior Proposal. The Company will promptly keep Purchaser reasonably
informed of all material developments affecting the material terms of any such Superior Proposal (and the Company will provide Purchaser with copies of any additional material written materials received that relate to such Superior Proposal).
Access to Information; Confidentiality
The Merger Agreement provides that at all times during the period commencing with the execution and delivery of the Merger Agreement and
continuing until the earlier to occur of the termination of the Merger Agreement and the Acceptance Time, the Company will afford Purchaser and its financial advisors, business consultants, legal counsel, accountants and other agents and
representatives reasonable access during normal business hours, upon reasonable notice, to the properties, books and records and personnel of the Company; provided, that the Company may restrict or otherwise prohibit access to any documents or
information to the extent that (i) any applicable law requires the Company to restrict or otherwise prohibit access to such documents or information or (ii) access to such documents or information would give rise to a material risk of
waiving any
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attorney-client privilege, work product doctrine or other applicable privilege applicable to such documents or information; and provided, that no information or knowledge obtained by Purchaser in
any investigation conducted pursuant to the access contemplated by the Merger Agreement will affect or be deemed to modify any representation or warranty of the Company set forth in the Merger Agreement or otherwise impair the rights and remedies
available to Purchaser and Acquisition Sub thereunder.
The Merger Agreement provides that in the event that the Company does not provide
access or information in reliance on the preceding paragraph, it will use its reasonable best efforts to communicate the applicable information to Purchaser in a way that would not violate the applicable law, contract or obligation or to waive such
a privilege including by providing such information in redacted form as necessary to preserve such a privilege or comply with such law or otherwise make appropriate substitute disclosure arrangements, to the extent possible. Any investigation
conducted pursuant to the access contemplated by the Merger Agreement will be conducted in a manner that does not unreasonably interfere with the conduct of the business of the Company and its subsidiaries or create a risk of damage or destruction
to any property or assets of the Company or any of its subsidiaries. Any access to the properties of the Company or any of its subsidiaries will be subject to the Companys reasonable security measures and insurance requirements and will not
include the right to perform invasive testing. None of the Company, any of its subsidiaries or any Representatives of any of the foregoing are required by the Merger Agreement to prepare any reports, analyses, appraisals, opinions or other
information.
The terms and conditions of the Confidentiality Agreement will apply to any information obtained by Purchaser or any of its
financial advisors, business consultants, legal counsel, accountants and other agents and representatives in connection with any investigation conducted pursuant to the access contemplated by the Merger Agreement. Except for disclosures expressly
permitted by the terms of the Confidentiality Agreement, each of the Company and Purchaser will hold, and will cause their respective Representatives to hold, all information received from the other party or its Representatives, directly or
indirectly, in confidence in accordance with the Confidentiality Agreement.
Notification of Certain Matters
The Merger Agreement provides that at all times during the period commencing with the execution and delivery of the Merger Agreement and
continuing until the earlier to occur of the termination of the Merger Agreement and the Acceptance Time, the Company will give prompt notice to Purchaser and Acquisition Sub upon becoming aware that any representation or warranty made by it in the
Merger Agreement has become untrue or inaccurate, or of any failure of the Company to comply with or satisfy in any material respect any covenant, condition or agreement to be complied with or satisfied by it under the Merger Agreement, in any such
case if and only to the extent that such untruth or inaccuracy, or such failure, would reasonably be expected to cause any of the conditions to the obligations of Purchaser and Acquisition Sub to consummate the transactions contemplated by the
Merger Agreement relating to the accuracy of the Companys representations and warranties and the performance of its covenants to fail to be satisfied at the then scheduled expiration of the Offer. No such notification will affect or be deemed
to modify any representation or warranty of the Company set forth in the Merger Agreement or the conditions to the obligations of Purchaser and Acquisition Sub to consummate the transactions contemplated by the Merger Agreement or the remedies
available to the parties thereunder. The terms and conditions of the Confidentiality Agreement will apply to any information provided to Purchaser pursuant to the Merger Agreement.
The Merger Agreement also provides that at all times during the period commencing with the execution and delivery of the Merger Agreement
and continuing until the earlier to occur of the termination of the Merger Agreement and the Acceptance Time, Purchaser will give prompt notice to the Company upon becoming aware that any representation or warranty made by Purchaser or Acquisition
Sub in the Merger Agreement has become untrue or inaccurate in any material respect, or of any failure of Purchaser or Acquisition Sub to comply with or satisfy in any material respect any covenant, condition or agreement to be complied with or
satisfied by it under the Merger Agreement, in any such case if and only to the extent that such untruth or inaccuracy, or such failure, would reasonably
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be expected to prevent or materially delay the consummation of the transactions contemplated by the Merger Agreement (including the Offer and the Merger) or the ability of Purchaser and
Acquisition Sub to fully perform their respective covenants and obligations under the Merger Agreement. No such notification shall affect or be deemed to modify any representation or warranty of Purchaser or Acquisition Sub set forth in the Merger
Agreement or the conditions to the obligations of the Company to consummate the transactions contemplated by the Merger Agreement or the remedies available to the parties thereunder. The terms and conditions of the Confidentiality Agreement will
apply to any information provided to the Company pursuant to the Merger Agreement.
Director and Officer Indemnification
The Merger Agreement provides, to the extent that the Merger is consummated, that the Surviving Corporation and its subsidiaries will (and
Purchaser will cause the Surviving Corporation and its subsidiaries to) honor and fulfill in all respects the obligations of the Company and its subsidiaries under any and all: (i) indemnification agreements between the Company or any of its
subsidiaries and any of their respective current or former directors and officers as of the date of the Merger Agreement and any person who becomes a director or officer of the Company or any of its subsidiaries prior to the Acceptance Time (the
Indemnified Persons) and (ii) indemnification, expense advancement and exculpation provisions in any certificate of incorporation or bylaws or comparable organizational document of the Company or any of its subsidiaries in effect on
the date of the Merger Agreement. In addition, during the period commencing at the Acceptance Time and ending on the sixth anniversary of the Effective Time, the Surviving Corporation and its subsidiaries will (and Purchaser will cause the Surviving
Corporation and its subsidiaries to) cause the certificates of incorporation and bylaws (and other similar organizational documents) of the Surviving Corporation and its subsidiaries to contain provisions with respect to indemnification, exculpation
and the advancement of expenses that are at least as favorable as the indemnification, exculpation and advancement of expenses provisions contained in the certificates of incorporation and bylaws (or other similar organizational documents) of the
Company and its subsidiaries as of the date of the Merger Agreement, and during such six-year period, such provisions will not be repealed, amended or otherwise modified in a manner adverse to the Indemnified Persons except as required by applicable
law.
During the period commencing at the Acceptance Time and ending on the sixth anniversary of the Effective Time, to the fullest extent
permitted by applicable law, the Surviving Corporation and its subsidiaries will (and Purchaser will cause the Surviving Corporation and its subsidiaries to) indemnify and hold harmless each Indemnified Person from and against any costs, fees and
expenses (including reasonable attorneys fees and investigation expenses), judgments, fines, losses, claims, damages, liabilities and amounts paid in settlement in connection with any claim, proceeding, investigation or inquiry, whether civil,
criminal, administrative or investigative, to the extent such claim, proceeding, investigation or inquiry arises directly or indirectly out of or pertains directly or indirectly to (i) any action or omission or alleged action or omission in
such Indemnified Persons capacity as a director, officer, employee or agent of the Company or any of its subsidiaries or other affiliates (regardless of whether such action or omission, or alleged action or omission, occurred prior to, at or
after the Effective Time), or (ii) any of the transactions contemplated by the Merger Agreement; provided, that if, at any time prior to the sixth anniversary of the Effective Time, any Indemnified Person delivers to Purchaser a written notice
asserting a claim for indemnification under the Merger Agreement, then the claim asserted in such notice will survive the sixth anniversary of the Effective Time until such time as such claim is fully and finally resolved.
In addition, during the period commencing at the Effective Time and ending on the sixth anniversary of the Effective Time, to the fullest
extent permitted by applicable law, the Surviving Corporation and its subsidiaries will (and Purchaser will cause the Surviving Corporation and its subsidiaries to) advance, prior to the final disposition of any claim, proceeding, investigation or
inquiry for which indemnification may be sought under the Merger Agreement, promptly following request by an Indemnified Person therefor, all costs, fees and expenses (including reasonable attorneys fees and investigation expenses) incurred by
such Indemnified Person in connection with any such claim, proceeding, investigation or inquiry upon receipt of an undertaking by such Indemnified Person to repay such advances if it is ultimately decided in a final, non-appealable judgment by a
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court of competent jurisdiction that such Indemnified Person is not entitled to indemnification. In the event of any such claim, proceeding, investigation or inquiry:
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the Surviving Corporation will have the right to control the defense thereof after the Effective Time (and by electing to control the defense thereof, the Surviving Corporation will be deemed to have waived any right to
object to the Indemnified Persons entitlement to indemnification hereunder with respect thereto); |
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each Indemnified Person will be entitled to retain his or her own counsel, whether or not the Surviving Corporation will elect to control the defense of any such claim, proceeding, investigation or inquiry;
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the Surviving Corporation will pay all reasonable fees and expenses of any counsel retained by an Indemnified Person, promptly after statements therefor are received, whether or not the Surviving Corporation will elect
to control the defense of any such claim, proceeding, investigation or inquiry; and |
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no Indemnified Person will be liable for any settlement effected without his or her prior express written consent. |
Notwithstanding anything to the contrary in the Merger Agreement, neither the Surviving Corporation nor any of its affiliates (including
Purchaser) will settle or otherwise compromise or consent to the entry of any judgment or otherwise seek termination with respect to any claim, proceeding, investigation or inquiry for which indemnification may be sought by an Indemnified Person
under the Merger Agreement unless such settlement, compromise, consent or termination includes an unconditional release of all Indemnified Persons from all liability arising out of such claim, proceeding, investigation or inquiry.
Director and Officer Insurance
The Merger Agreement provides, to the extent that the Merger is consummated, that during the period commencing at the Effective Time and ending
on the sixth anniversary of the Effective Time, the Surviving Corporation will (and Purchaser will cause the Surviving Corporation to) maintain in effect the Companys current directors and officers liability insurance
(D&O Insurance) in respect of acts or omissions occurring at or prior to the Effective Time, covering each person covered by the D&O Insurance, on terms with respect to the coverage and amounts that are equivalent to those of the
D&O Insurance; provided, that Purchaser and the Surviving Corporation will not be obligated to pay annual premiums in excess of three hundred percent of the amount paid by the Company for coverage for its last full fiscal year (such three
hundred percent amount, the Maximum Annual Premium) as provided in the disclosure letter to the Merger Agreement; provided, that if the annual premiums of such insurance coverage exceed such amount, Purchaser and the Surviving
Corporation will be obligated to obtain a policy with the greatest coverage available for a cost not exceeding the Maximum Annual Premium.
Prior to the Effective Time, notwithstanding anything to the contrary set forth in the Merger Agreement, the Company may purchase a six-year
tail prepaid policy on the D&O Insurance. In the event that the Company elects to purchase such a tail policy prior to the Effective Time, the Surviving Corporation will (and Purchaser will cause the Surviving Corporation
to) maintain such tail policy in full force and effect and continue to honor their respective obligations thereunder, in lieu of all other obligations of Purchaser and the Surviving Corporation under the preceding paragraph for so long
as such tail policy is maintained in full force and effect.
If Purchaser or the Surviving Corporation or any of its
successors or assigns consolidates with or merges into any other person and is not the continuing or surviving corporation or entity of such consolidation or merger, or transfers all or substantially all of its properties and assets to any person,
then, and in each such case, proper provisions will be made so that the successors and assigns of the Surviving Corporation will assume all of the obligations of Purchaser and the Surviving Corporation set forth in the Merger Agreement.
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These obligations cannot be terminated, amended or otherwise modified in any manner that
adversely affects any Indemnified Person (or any other person who is a beneficiary under the D&O Insurance or the tail policy (and their heirs and representatives)) without the prior written consent of such affected Indemnified
Person or other person who is a beneficiary under the D&O Insurance or the tail policy (and their heirs and representatives). Each of the Indemnified Persons or other persons who are beneficiaries under the D&O Insurance or the
tail policy (and their heirs and representatives) are intended to be third party beneficiaries of this section of the Merger Agreement, with full rights of enforcement as if a party thereto. The rights of the Indemnified Persons (and
other persons who are beneficiaries under the D&O Insurance or the tail policy (and their heirs and representatives)) will be in addition to, and not in substitution for, any other rights that such persons may have under the
certificates of incorporation, bylaws or other equivalent organizational documents, any and all indemnification agreements of or entered into by the Company or any of its subsidiaries, or applicable law (whether at law or in equity). The obligations
and liability of Purchaser, the Surviving Corporation and their respective subsidiaries in the Merger Agreement will be joint and several.
The Merger Agreement provides that nothing therein is intended to, will be construed to or will release, waive or impair any rights to
directors and officers insurance claims under any policy that is or has been in existence with respect to the Company or any of its subsidiaries for any of their respective directors, officers or other employees, and that the
indemnification described above is not prior to or in substitution for any such claims under such policies.
Reasonable Best Efforts to Complete
The Merger Agreement provides that each of Purchaser, Acquisition Sub and the Company will use its reasonable best efforts to
take, or cause to be taken, all actions, and to do, or cause to be done, and to assist and cooperate with the other party or parties to the Merger Agreement in doing, all things reasonably necessary, proper or advisable under applicable law or
otherwise to consummate and make effective, in the most expeditious manner practicable, the transactions contemplated by the Merger Agreement, including using reasonable best efforts to:
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cause the conditions of the Offer to be satisfied and cause the conditions to the Merger to be satisfied; |
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obtain all necessary actions or non-actions, waivers, consents, approvals, orders and authorizations from governmental authorities and make all necessary registrations, declarations and filings with governmental
authorities, that are necessary to consummate the Offer and the Merger; and |
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obtain all necessary or appropriate consents, waivers and approvals under any material contracts (including, for the avoidance of doubt, the Credit Agreement), to which the Company or any of its subsidiaries is a party
in connection with the Merger Agreement and the consummation of the transactions contemplated thereby so as to maintain and preserve the benefits under such material contracts following the consummation of the transactions contemplated by the Merger
Agreement (other than the Senior Notes or Senior Subordinated Notes). |
In addition to the foregoing, neither Purchaser or
Acquisition Sub, on the one hand, nor the Company, on the other hand, will take any action, or fail to take any action, that is intended to, or has (or would reasonably be expected to have) the effect of, preventing, impairing, delaying or otherwise
adversely affecting the consummation of the Offer or the Merger or the ability of such party to fully perform its obligations under the Merger Agreement. Notwithstanding anything to the contrary in the Merger Agreement, the Company will not be
required prior to the Effective Time to pay any consent or other similar fee, profit sharing or other similar payment or other consideration (including increased rent or other similar payments or any amendments, supplements or other
modifications to (or waivers of) the existing terms of any contract), or the provision of additional security (including a guaranty) to obtain the consent, waiver or approval of any person under any contract.
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Antitrust Filings
Each of Purchaser and Acquisition Sub (and their respective affiliates, if applicable), on the one hand, and the Company, on the other hand,
will (i) file with the United States Federal Trade Commission or any successor thereto (the FTC) and the Antitrust Division of the United States Department of Justice or any successor thereto (the DOJ) a Notification and
Report Form relating to the Merger Agreement and the transactions contemplated thereby as required by the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the regulations thereunder (the HSR Act) as soon as
practicable after the date of the Merger Agreement but in no event later than fifteen business days following the execution and delivery of the Merger Agreement and (ii) as promptly as practicable, make the required filings under any applicable
competition laws in Mexico, Russia, South Africa and Turkey. Each of Purchaser and the Company will:
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cooperate and coordinate with the other in the making of such filings; |
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supply the other with any information that may be required in order to make such filings; |
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supply any additional information that reasonably may be required or requested by the FTC, the DOJ or other governmental authority; and |
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use reasonable best efforts to take all action necessary to cause the expiration or termination of the applicable waiting periods under the HSR Act as soon as practicable, and to avoid any impediment to the consummation
of the Offer or the Merger under any antitrust laws, including using reasonable best efforts to take all such action as reasonably may be necessary to resolve such objections, if any, as the FTC, the DOJ or any governmental authority, or any other
person may assert under any applicable antitrust laws with respect to the Offer and/or the Merger. |
Notwithstanding the
foregoing or any provision of the Merger Agreement, nothing in the Merger Agreement will require Purchaser, the Company or any of its subsidiaries to take any action that would result in a material adverse effect on Purchaser or the Company.
Each of Purchaser and Acquisition Sub (and their respective affiliates, if applicable), on the one hand, and the Company, on the other hand,
will promptly inform the other of any communication from any governmental authority regarding any of the transactions contemplated by the Merger Agreement in connection with any filings or investigations with, by or before any governmental authority
relating to the Merger Agreement or the transactions contemplated thereby, including any proceedings initiated by a private party. If any party to the Merger Agreement or affiliate thereof receives a request for additional information or documentary
material from any governmental authority with respect to the transactions contemplated by the Merger Agreement pursuant to the HSR Act with respect to which any such filings have been made or pursuant to any other antitrust laws, then such party
shall use its reasonable best efforts to make, or cause to be made, as soon as reasonably practicable and after consultation with the other party, an appropriate response to such request.
The Merger Agreement provides that to the extent reasonably practicable and unless prohibited by applicable law or by the applicable
governmental authority, the parties to the Merger Agreement will:
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give each other reasonable advance notice of all meetings with any governmental authority relating to the Offer or the Merger; |
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give each other an opportunity to participate in each of such meetings; |
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keep the other party reasonably apprised with respect to any oral communications with any governmental authority regarding the Offer or the Merger; |
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cooperate in the filing of any analyses, presentations, memoranda, briefs, arguments, opinions or other written communications explaining or defending the Offer and the Merger, articulating any regulatory or competitive
argument and/or responding to requests or objections made by any governmental authority; |
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provide each other with a reasonable advance opportunity to review and comment upon, and consider in good faith the views of the other with respect to, all written communications (including any analyses, presentations,
memoranda, briefs, arguments and opinions) with a governmental authority regarding the Offer and the Merger; |
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provide each other (or counsel of each party, as appropriate) with copies of all written communications to or from any governmental authority relating to the Offer or the Merger; and |
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cooperate and provide each other with a reasonable opportunity to participate in, and consider in good faith the views of the other with respect to, all material deliberations with respect to all efforts to satisfy the
following conditions of the Offer and/or Merger: |
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any waiting period (and extensions thereof) applicable to the transactions contemplated by the Merger Agreement under the HSR Act shall have expired or been terminated and the receipt of any applicable clearances under
the competition laws of Mexico, Russia, South Africa, or Turkey; and |
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no governmental authority of competent jurisdiction in the United States shall have (A) enacted, issued or promulgated any law that is in effect as of immediately prior to the expiration of the Offer and has the
effect of making the Offer or the Merger illegal in the United States or which has the effect of prohibiting or otherwise preventing the consummation of the Offer or the Merger in the United States, or (B) issued or granted any order that is in
effect as of immediately prior to the expiration of the Offer and has the effect of making the Offer or the Merger illegal in the United States or which has the effect of prohibiting or otherwise preventing the consummation of the Merger in the
United States. |
Any such disclosures, rights to participate or provisions of information by one party to the other may be
made on a counsel-only basis to the extent required under applicable law or as appropriate to protect confidential business information.
Each of Purchaser, Acquisition Sub and the Company will cooperate with one another in good faith to:
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promptly determine whether any filings not contemplated by the Merger Agreement are required to be or should be made, and whether any other consents, approvals, permits or authorizations not contemplated by the Merger
Agreement are required to be or should be obtained, from any governmental authority under any other applicable law in connection with the transactions contemplated by the Merger Agreement; and |
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promptly make any filings, furnish information required in connection therewith and use reasonable best efforts to take all action necessary to obtain timely any such consents, permits, authorizations, approvals or
waivers that the parties determine are required to be or should be made or obtained in connection with the transactions contemplated thereby. |
To the extent that such additional filings are required, each of Purchaser, Acquisition Sub and the Company agree to cooperate with one
another and keep one another informed with respect to all communications with any such governmental authorities to the same extent as provided above.
Public Announcements
The Merger
Agreement provides that none of the Company, on the one hand, or Purchaser and Acquisition Sub, on the other hand, will issue any public release or make any public announcement concerning the Merger Agreement or the transactions contemplated thereby
without the prior written consent of the other (which consent will not be unreasonably withheld, conditioned or delayed), except as such release or announcement may be required by applicable law or the rules or regulations of any applicable U.S.
securities exchange or regulatory or governmental authority to which the relevant party is subject or submits, wherever situated, in which case the
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party required to make the release or announcement will use its reasonable best efforts to allow the other party or parties to the Merger Agreement reasonable time to comment on such release or
announcement in advance of such issuance. The final form and content of any such release or announcement, as well as the timing of any such release or announcement, will be at the final discretion of the disclosing party; provided, that the
restrictions set forth in the Merger Agreement will not apply to any release or announcement made or proposed to be made by the Company following a Board Recommendation Change.
Anti-Takeover Laws
In the event
that any state anti-takeover or other similar law is or becomes applicable to the Merger Agreement or any of the transactions contemplated by the Merger Agreement, the Company, Purchaser and Acquisition Sub shall use their respective reasonable best
efforts to ensure that the transactions contemplated by the Merger Agreement may be consummated as promptly as practicable on the terms and subject to the conditions set forth in the Merger Agreement and otherwise to minimize the effect of such law
on the Merger Agreement and the transactions contemplated hereby.
Section 16(b) Exemption
The Company will take all actions reasonably necessary to cause the transactions contemplated by the Merger Agreement and any other
dispositions of equity securities of the Company (including derivative securities) in connection with the transactions contemplated by the Merger Agreement by each individual who is a director or executive officer of the Company to be exempt under
Rule 16b-3 promulgated under the Exchange Act.
Cooperation Regarding CFIUS Clearance and ITAR Pre-Notification Requirement
The Merger Agreement provides that Purchaser, Acquisition Sub and the Company shall, at their own expense, make all filings and contacts with
the U.S. Department of State Directorate of Defense Trade Controls and the Committee on Foreign Investment in the United States of America (the Regulatory Authorities) necessary to satisfy the conditions to the Merger and additional
information and documentary material that may be requested by the Regulatory Authorities. Purchaser, Acquisition Sub and the Company have agreed to keep each other regularly informed of the processing of any filings to be made and shall provide the
other party promptly with all requested non-privileged or non-commercially sensitive documents and material information concerning such filings and any communication exchanged with the Regulatory Authorities.
The Company, Purchaser and Acquisition Sub have agreed to fully cooperate and to furnish to each other such necessary and available
information and assistance reasonably requested in connection with the preparation of the required filings and to consult with each other with respect to requests and enquiries from the Regulatory Authorities. In addition, Purchaser, Acquisition Sub
and the Company shall use reasonable best efforts to:
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as promptly as practicable after the date of the Merger Agreement, submit to CFIUS a draft filing as contemplated under 31 C.F.R. § 800.401(f) and engage in pre-notice consultation with CFIUS; |
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promptly after submitting such draft notice to CFIUS and engaging in any pre-notice consultation with CFIUS, file a voluntary notice as provided for in 31 C.F.R. § 800.401(a); and |
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promptly and, in all events, consistent with any deadline imposed by CFIUS under Exon-Florio, comply with any request received by the Company, Purchaser or Acquisition Sub, or any of their respective subsidiaries, from
any governmental authority for any certification, additional information, documents or other materials in respect of such notice or the Merger. |
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Employee Matters
The Merger Agreement provides that, from and after the Effective Time, the Surviving Corporation will honor all employee benefit or
compensation plans maintained or contributed to for the benefit of any current or former employee or director of the Company (Employee Plans) and compensation arrangements and agreements in accordance with their terms as in effect
immediately before the Effective Time. For a period of one (1) year following the Effective Time, the Surviving Corporation will provide to each Continuing Employee (as defined below) (i) employee benefits that, in the aggregate, are no
less favorable than were provided to the Continuing Employee immediately prior to the Effective Time and (ii) base salary or regular wages and incentive compensation opportunities that, in each case, are no less favorable than those as were
provided to the Continuing Employee as of the Acceptance Time. The Surviving Corporation will provide, to each Continuing Employee whose employment terminates during the one-year period following the Effective Time severance benefits that would have
been no less favorable than the severance benefits provided to the Continuing Employee under the Companys severance arrangements and/or policies in effect immediately prior to the Effective Time.
With respect to each employee benefit or compensation plan, program, agreement or arrangement that is made available to any Continuing
Employees on or following the Effective Time (the New Plans), only to the extent the Merger is consummated, the Surviving Corporation will cause to be granted to each such Continuing Employee credit for all service with the Company and
its subsidiaries prior to the Effective Time for purposes of eligibility to participate, vesting, entitlement to benefits and level of benefits (other than with respect to determining the accrual and level of benefits under a defined benefit pension
plan) where length of service is relevant (including for purposes of vacation accrual and severance pay entitlement); provided, that such service need not be credited to the extent that it would result in duplication of coverage or benefits. In
addition:
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each Continuing Employee will be immediately eligible to participate, without any waiting time, in any and all New Plans to the extent coverage under any such New Plan replaces coverage under a comparable Employee Plan
or under any other employee benefit or compensation plan, program, agreement or arrangements in which such Continuing Employee participates immediately before the Acceptance Time (such plans, collectively, the Old Plans); and
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for purposes of each New Plan providing medical, dental, pharmaceutical, vision and/or disability benefits to any Continuing Employee, the Surviving Corporation will cause all waiting periods, pre-existing condition
exclusions, evidence of insurability requirements and actively-at-work or similar requirements of such New Plan to be waived for such Continuing Employee and his or her covered dependents, and the Surviving Corporation will take commercially
reasonable efforts to cause any eligible expenses incurred by such Continuing Employee and his or her covered dependents during any unfinished portion of the plan year of the Old Plan ending on the date such employees participation in the
corresponding New Plan begins to be given full credit under such New Plan for purposes of satisfying all deductible, coinsurance and maximum out-of-pocket requirements applicable to such Continuing Employee and his or her covered dependents for the
applicable plan year as if such amounts had been paid in accordance with such New Plan. |
Only to the extent the Merger is
consummated, any vacation or paid time off accrued but unused by a Continuing Employee as of immediately prior to the Effective Time will be credited to such Continuing Employee following the Effective Time, and will not be subject to accrual limits
or other forfeiture and will not limit future accruals.
Immediately prior to the Effective Time, and only to the extent the Merger is
consummated, the Company will have the right to pay the annual bonus awards in respect of the fiscal year in which the Effective Time occurs, with such payments to be based upon the actual performance (which will be determined by linearly
extrapolating, in good faith, the Companys performance as of the Effective Time through the end of the Companys fiscal year in which the Effective Time has occurred) pro-rated based on days from the beginning of the applicable
performance period until the Effective Time divided by 365.
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Notwithstanding anything to the contrary in the Merger Agreement, no provision of the Merger
Agreement will be deemed to (A) guarantee employment for any period of time for, or preclude the ability of Purchaser or the Surviving Corporation to terminate, any Continuing Employee for any reason, or (B) subject to the limitations and
requirements specifically set forth in the Merger Agreement, require Purchaser or the Surviving Corporation to continue any New Plan or Employee Plan or prevent the amendment, modification or termination thereof after the Effective Time.
Continuing Employees are defined in the Merger Agreement as all employees of the Company who, as of the closing of the Merger
continue their employment with the Company or any of its subsidiaries or, outside the U.S., who remain or become employees of the Company or any of its subsidiaries, Purchaser or any subsidiary of Purchaser as required by applicable law.
Compensation, Severance and Other Agreements
The Merger Agreement provides that that certain payments and benefits will be granted pursuant to employment compensation, severance and other
employee benefit plans of the Company and its subsidiaries for the benefit of employees and directors, including the Employee Plans (collectively, the Arrangements), to certain holders of the Companys Shares and other Company
securities. The Compensation Committee of the Companys Board of Directors (the Company Compensation Committee) (A) at a meeting to be held prior to the Acceptance Time, will duly adopt resolutions approving as an
employment compensation, severance or other employee benefit arrangement within the meaning of Rule 14d-10(d)(1) under the Exchange Act with respect to (1) each Arrangement presented to the Company Compensation Committee on or prior
to the date of the Merger Agreement, (2) the treatment of the Companys options and restricted stock units in accordance with the terms set forth in the Merger Agreement and (B) will take all other actions necessary to satisfy the
requirements of the non-exclusive safe harbor under Rule 14d-10(d)(2) under the Exchange Act with respect to the Arrangements. Each member of the Company Compensation Committee is an independent director within the meaning of Rule
14d-10(d)(2) under the Exchange Act.
Standby Financing Commitment
The Merger Agreement provides that the Company and Purchaser shall cooperate and use their respective commercially reasonable efforts to
prevent the occurrence of a Ratings Event (as defined in the indenture governing the Senior Notes) and to prevent the occurrence of a change of control event of default (a COC EOD) by reason of the transactions contemplated the Merger
Agreement under the Credit Agreement or the Senior Subordinated Notes.
If the Companys Board of Directors determines in good faith
(with the advice of its financial and legal advisors) that (a) a repurchase obligation under the Senior Notes is reasonably likely to arise or has arisen, (b) a COC EOD is likely to occur or has occurred under the Credit Agreement or the
Senior Subordinated Notes, or (c) an event of default under the Credit Agreement, the Senior Notes or the Senior Subordinated Notes is likely to occur or has occurred due to the occurrence or likely occurrence of an event of cross default or
cross acceleration under the Credit Agreement, the Senior Notes or the Senior Subordinated Notes which default or acceleration is likely or has occurred by reason of the Transactions, then the Company shall give written notice to that effect to
Purchaser (the Financing Notice). If a Financing Notice is given, the parties shall use their commercially reasonable best efforts to obtain a waiver of any such event of default or repurchase obligation in compliance with the indenture
governing the Senior Notes, the Credit Agreement or refinance, repay or redeem the Senior Subordinated Notes, as the case may be. If the parties are unable to obtain any such waiver, then in order to refinance the Senior Notes, the Credit Agreement
and/or repay the Senior Subordinated Notes, as required and/or determined by Purchaser in consultation with the Company:
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Purchaser will use its commercially reasonable efforts to assist the Company in raising the required financing through a registered debt offering with terms usual and customary for issuances of similar investment grade
debt securities giving consideration to the size, structure, industry and practices of the Company at the time of such financing; or |
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if such financing is not available or would be available only on terms which are less favorable (in the reasonable discretion of the Purchaser in consultation with the Company), Purchaser will use commercially
reasonable efforts to assist the Company in raising the required financing through a debt securities offering under Rule 144A or other private placement of debt securities with terms usual and customary for issuances of similar investment grade debt
securities giving consideration to the size, structure, industry and practices of the Company, or bank financing with terms usual and customary for comparable borrowers, giving consideration to the size, structure and industry of the Company, in
each case, at the time of such financing; or |
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if the financing described above is not available to redeem all or a portion of the Senior Notes, as required, refinance the Credit Agreement and/or refinance, repay or redeem the Senior Subordinated Notes, Purchaser
commits (until 60 days after the consummation of the Transactions) to provide, or cause to be provided (subject only to the (i) presentation of a borrowing request for the amount of requested funding, which borrowing request shall set forth in
reasonable detail the amount required by the Company to meet its obligations to redeem all or a portion of the Senior Notes and pay all associated fees, expenses and premiums, and (ii) the prior or substantially contemporaneous consummation of
the Transactions), bridge financing on terms which reasonably approximate current market terms for financings of a similar type for comparable companies, giving consideration to the size, structure, industry and practices of the Company, as such
terms are reasonably agreed by the Company and Purchaser (any such refinancing, a Refinancing, and the underwriters or lenders of any such Refinancing including Purchaser, to the extent applicable, the Banks).
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If Refinancing is not available or the Company and Purchaser are unable to come to agreement as to the terms of a
Refinancing within thirty (30) days of delivery of the Financing Notice, each of the Company and Purchaser shall engage outside financial advisors in accordance with the Merger Agreement in order to negotiate the terms of the Refinancing.
The Merger Agreement provides that the Company will cooperate and assist Purchaser in completing a Refinancing, except that the Company is not
required to cooperate to the extent it would, in the Companys reasonable judgment, (i) interfere unreasonably with the business or operations of the Company or any of its subsidiaries, (ii) violate or result in a breach of
(A) the organizational documents of the Company or any of its Subsidiaries, (B) applicable law or (C) any material contract to which the Company or any of its subsidiaries is a party, or (iii) obligate the Company or any of its
Subsidiaries to provide any information, the disclosure of which is prohibited or restricted under applicable law or which disclosure would forfeit or compromise any rights of the Company to assert an attorney-client privilege with respect to such
information.
Conditions to the Merger
The Merger Agreement provides that the respective obligations of Purchaser, Acquisition Sub and the Company to consummate the Merger shall be
subject to the satisfaction or waiver (where permissible under applicable law) prior to the Effective Time, of each of the following conditions:
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Purchaser or Acquisition Sub, as applicable, shall have accepted for payment and paid for all of the Company Shares validly tendered and not withdrawn pursuant to the Offer; |
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the termination or expiration of any waiting period (and extension thereof) applicable to the transactions contemplated by the Merger Agreement under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended,
and the regulations thereunder (the HSR Act); |
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any waiting periods, clearances, approvals and/or consents applicable to the consummation of the Merger under the antitrust laws of Mexico, Russia, Turkey and South Africa shall have expired, been terminated or been
obtained; |
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no governmental authority of competent jurisdiction in the United States shall have (A) enacted, issued or promulgated any law that is in effect as of immediately prior to the Effective Time and has the effect of
making the Merger illegal in the United States or which has the effect of prohibiting or otherwise preventing the consummation of the Merger in the United States, or (B) issued or granted any order that is in effect as of immediately prior to
the Effective Time and has the effect of making the Merger illegal in the United States or which has the effect of prohibiting or otherwise preventing the consummation of the Merger in the United States; |
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the receipt of clearance from the Committee on Foreign Investment in the United States of America (CFIUS) without any required condition to mitigate any threat to the national security of the United States
that is unacceptable to Purchaser (CFIUS Clearance Condition), unless Purchaser and the Company determine that CFIUS Clearance Condition is unnecessary because it was obtained for a transaction covered by the Investment Agreement that
CFIUS determine to be subject to Exon-Florio; and |
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the submission by the Company of a notice (including all required accompanying materials) to the U.S. Department of State Directorate of Defense Trade Controls (DDTC) via registered, overnight mail and email
at least sixty (60) days in advance of the initial acceptance for payment by Purchaser of Shares pursuant to the Offer (the Acceptance Time), as provided for in 22 C.F.R. § 122.4(b) and DDTCs 60-Day Notice Guidance
(ITAR Pre-Notification Condition). |
Termination of the Merger Agreement
Termination If the Merger Condition Has Not Been Satisfied
The Merger Agreement will automatically terminate upon the consummation of the Offer if the Merger Condition has not been satisfied.
Termination Prior to the Acceptance Time
The Merger Agreement may be terminated and the Offer may be abandoned at any time prior to the Acceptance Time:
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by mutual written agreement of Purchaser and the Company; |
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by either Purchaser or the Company, if: |
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the Offer shall have expired or been terminated in accordance with the terms of the Merger Agreement and the Offer without Purchaser or Acquisition Sub having accepted for payment any Shares tendered pursuant to the
Offer on or before October 14, 2015 (the Termination Date); provided, that if on the Termination Date, all of the conditions of the Offer (set forth in The Tender Offer Section 11 Conditions of the Offer) have
been satisfied (or are capable of being satisfied) on such date other than the condition that any waiting periods, clearances, approvals and/or consents applicable to the transactions contemplated by the Merger Agreement under the antitrust laws of
Mexico, Russia, Turkey and South Africa shall have expired, been terminated or been obtained shall not have expired, been terminated or been obtained, then the Termination Date shall be deemed to be the sixtieth day thereafter, provided, that such
termination right will not be available to any party whose action or failure to fulfill any obligation under the Merger Agreement has been the principal cause of or principally resulted in (A) any of the conditions of the Offer having failed to
be satisfied and such action or failure to act constitutes a material breach of the Merger Agreement, or (B) the expiration or termination of the Offer in accordance with the terms of the Merger Agreement and the Offer without Purchaser or
Acquisition Sub having accepted for payment any Shares tendered pursuant to the Offer and such action or failure to act constitutes a material breach of the Merger Agreement; or |
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any governmental authority of competent jurisdiction shall have (A) enacted, issued or promulgated any law that is in effect and has the effect of prohibiting or otherwise preventing the consummation of the Offer
and the Merger, or (B) issued or granted any order that is in effect and has the effect of making the Offer and the Merger illegal or which has the effect of prohibiting or otherwise preventing the consummation of the Offer and the Merger, and
such order has become final and non-appealable; |
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in the event that (A) the Company is not then in material breach of the Merger Agreement; and (B) Purchaser and/or Acquisition Sub shall have breached or otherwise violated any of their respective material
covenants, agreements or other obligations under the Merger Agreement, or any of the representations and warranties of Purchaser and Acquisition Sub set forth in the Merger Agreement shall have become inaccurate, which breach, violation or
inaccuracy is incapable of being cured, or is not cured, by Purchaser and/or Acquisition Sub within twenty calendar days following receipt of written notice from the Company of such breach, violation or inaccuracy and would reasonably be expected to
prevent the consummation of the Offer prior to the Termination Date; or |
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to enter into a definitive written agreement providing for a Superior Proposal as described above under Merger Agreement Board Recommendation Change; |
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by Purchaser in the event that (A) Purchaser and Acquisition Sub are not then in material breach of the Merger Agreement, and (B) the Company shall have breached or otherwise violated any of its material
covenants, agreements or other obligations under the Merger Agreement, or any of the representations and warranties of the Company set forth in the Merger Agreement shall have become inaccurate, in either case, such that (x) the conditions of
the Offer are not capable of being satisfied by the Termination Date and (y) such breach, violation or inaccuracy is incapable of being cured, or is not cured, by the Company within twenty calendar days following receipt of written notice from
Purchaser of such breach, violation or inaccuracy; or |
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by Purchaser, in the event that (A) the Companys Board of Directors or any committee thereof shall have effected a Board Recommendation Change; or (B) the Companys Board of Directors shall have
failed to publicly reconfirm the Board Recommendation within five business days after receipt of a written request from Purchaser that it do so if such request is made following the making by any person of a public Acquisition Proposal.
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Notice of Termination; Effect of Termination
The Merger Agreement provides that any proper and valid termination of the Merger Agreement as described above will be effective immediately
upon the delivery of written notice of the terminating party to the other party or parties, as applicable. In the event of the termination of the Merger Agreement as described above, the Merger Agreement will be of no further force or effect without
liability of any party or parties thereto, as applicable (or any director, officer, employee, affiliate, agent or other representative of such party or parties) to the other party or parties thereto, as applicable, except:
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for the provisions relating to public statements and disclosure, confidentiality, notice of termination and effect of termination, fees and expenses and the general provisions of the Merger Agreement, each of which will
survive the termination of the Merger Agreement; |
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that nothing in the Merger Agreement will relieve any party or parties thereto, as applicable, from any liability or damages, which will not be limited to reimbursement of out-of-pocket fees, costs or expenses incurred
in connection with the transactions contemplated thereby resulting from any breach of the Merger Agreement prior to such termination, in which case the aggrieved party will be entitled to all remedies available at law or in equity; and
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no termination of the Merger Agreement will affect the obligations of the parties thereto set forth in the Confidentiality Agreement or the Limited Guarantee, dated as of May 17, 2015, made by Brookfield Capital
Partners IV L.P. in favor of the Company, all of which obligations will survive termination of the Merger Agreement in accordance with their terms. |
Termination Fee and Expenses
The
Merger Agreement provides that except as otherwise provided, all expenses incurred in connection with the Merger Agreement and the transactions contemplated thereby will be paid by the party or parties, as applicable, incurring such expenses whether
or not the Offer and the Merger are consummated.
The Merger Agreement provides that the Company shall pay to Brookfield Asset Management
Private Institutional Capital Adviser (Private Equity), L.P. $20,000,000 (the Termination Fee) by wire transfer of immediately available funds to an account designated by Purchaser if:
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the Merger Agreement is terminated by Purchaser in the event that the Companys Board of Directors or any committee thereof shall have effected a Board Recommendation Change, or the Companys Board of
Directors shall have failed to publicly reconfirm the Board Recommendation within five business days after receipt of a written request from Purchaser that it do so if such request is made following the making by any person of a public Acquisition
Proposal; |
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the Merger Agreement is terminated by the Company prior to the Acceptance Time to (i) make a Companys Board of Directors Recommendation Change in response to (A) the Company receiving an unsolicited,
bona fide written Acquisition Proposal that constitutes a Superior Proposal not involving a breach of the Merger Agreement or (B) an Intervening Event or (ii), if the Company has complied in all material respects with its non-solicitation
obligations, concurrently with or immediately after such termination enter into a definitive written agreement providing for such Superior Proposal, which proposal did not result from any material breach of the Companys non-solicitation
obligations, if and only if, in all cases (x) the Companys Board of Directors determined in good faith, after consulting with and receiving advice from outside counsel, that the failure to effect a Board Recommendation Change would be
inconsistent with its fiduciary duties and (y) the communication provisions of the Merger Agreement; provided, that if the Company terminated the Merger Agreement in order to accept a Superior Proposal from an Excluded Party prior to the
No-Shop Period Start Date, the Termination Fee shall be equal to $7,500,000 (the Go-Shop Termination Fee); or |
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the Merger Agreement is terminated by: |
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the Company or Purchaser (unless the Company could have otherwise terminated for a material uncured breach by the Purchaser) in the event that the Offer shall have expired or been terminated in accordance with the terms
of the Offer and Merger Agreement without Purchaser or Acquisition Sub having accepted for payment any Shares tendered pursuant to the Offer on or before Termination Date; provided, however, that such termination right is not be available to any
party whose action or failure to fulfill any obligation under the Merger Agreement has been the principal cause of or resulted in (i) any of the conditions of the Offer (set forth in The Tender Offer Section 11 Conditions of
the Offer) having failed to be satisfied or (ii) the expiration or termination of the Offer without Purchaser or Acquisition Sub having accepted for payment any and such action or failure to act constitutes a material breach of the Merger
Agreement; or |
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terminated by Purchaser in the event that (i) Purchaser and Acquisition Sub are not in material breach of the terms of the Merger Agreement and (ii) the Company breached or otherwise violated any of its
material covenants, agreements or other obligations under the Merger Agreement such that the conditions of the Offer are not capable of being satisfied by the Termination Date and such breach is incapable or being cured, or is not cured, by the
Company within twenty days following receipt of written notice from Purchaser of such breach, violation or inaccuracy; |
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within twelve months following the date of such termination, the Company consummates any transaction in respect of an Acquisition Proposal or enters into an agreement in respect of an Acquisition
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Proposal which is later consummated, in which case payment shall be made promptly, and in any event within two business days, after the date on which the Company consummates such transaction in
respect of such Acquisition Proposal.
The Merger Agreement provides that the Company is not required to pay the Termination Fee on more
than one occasion or pay the Termination fee if the Go-Shop Termination Fee has become payable. In addition, in the event that Purchaser receives the Termination Fee as a result of a termination of the Merger Agreement, the receipt of such fee will
be deemed to be liquidated damages for any and all losses or damages suffered or incurred by Purchaser, Acquisition Sub, any of their respective affiliates or any other person in connection with the Merger Agreement (including any and all of the
transactions contemplated therein and the termination thereof).
Amendment of the Merger Agreement
The Merger Agreement provides that subject to applicable law and subject to the other provisions of the Merger Agreement, including without
limitation the required approval of Continuing Directors, the Merger Agreement may be amended by the parties thereto at any time by execution of an instrument in writing signed on behalf of each of Purchaser, Acquisition Sub and the Company.
Survival of Representations, Warranties and Covenants
The representations, warranties and covenants of the Company, Purchaser and Acquisition Sub contained in the Merger Agreement will terminate at
the Effective Time, and only the covenants that by their terms survive the Acceptance Time will so survive the Acceptance Time in accordance with their respective terms. After the Acceptance Time, neither Purchaser nor Acquisition Sub will be
permitted to claim that any breach by the Company of any of its covenants or obligations under the Merger Agreement results in a failure of a condition to consummate the Merger or excuses performance by Purchaser or Acquisition Sub of any of its
obligations under the Merger Agreement.
Specific Performance of the Merger Agreement
The Merger Agreement provides that irreparable damage would occur in the event that any provision of the Merger Agreement were not performed in
accordance with its specific terms or were otherwise breached, and that since money damages or other legal remedies would not be an adequate remedy for any such damages, in the event of any breach or threatened breach by the Company, on the one
hand, or Purchaser and/or Purchaser, on the other hand, of any of their respective covenants or obligations set forth in the Merger Agreement, the Company, on the one hand, and Purchaser and Acquisition Sub, on the other hand, will be entitled to an
injunction or injunctions to prevent or restrain breaches or threatened breaches of the Merger Agreement, by the other (as applicable), and to specifically enforce the terms and provisions of the Merger Agreement to prevent breaches or threatened
breaches of, or to enforce compliance with, the covenants and obligations of the other under the Merger Agreement.
The Merger Agreement
also provides that the Company, on the one hand, and Purchaser and Acquisition Sub, on the other hand, will not raise any objections to the availability of the equitable remedy of specific performance to prevent or restrain breaches or threatened
breaches of the Merger Agreement by such party (or parties), and to specifically enforce the terms and provisions of the Merger Agreement to prevent breaches or threatened breaches of, or to enforce compliance with, the covenants and obligations of
such party (or parties) under the Merger Agreement.
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Other Agreements
Confidentiality Agreement
Brookfield Capital Partners LLC and the Company entered into the Confidentiality Agreement. Under the terms of the Confidentiality Agreement,
Brookfield Capital Partners LLC agreed, subject to certain exceptions, to keep confidential certain non-public information relating to the Company in connection with a possible transaction with the Company and to use such information solely for the
purpose of reviewing, evaluating and pursuing the possible transaction. The Confidentiality Agreement also includes a standstill provision that remains in effect for a period of eighteen months from the date of the Confidentiality Agreement.
Investment Agreement
On
May 4, 2015, the Company and Purchaser entered into an Investment Agreement (the Investment Agreement) pursuant to which the Company agreed to issue and sell and Purchaser agreed to purchase and pay for: (i) the Series A
Preferred Shares and (ii) shares of Series B Preferred Stock in an amount equal to 150,000 less the number of Series A Preferred Shares, for an aggregate purchase price of $150,000,000 in cash.
The closing of the purchase and sale of the Preferred Stock (the Preferred Stock Closing) is expected to occur upon the
satisfaction of customary closing conditions set forth in the Investment Agreement, including the expiration or early termination of any applicable waiting period under the HSR Act and the receipt of clearance from the Committee on Foreign
Investment in the United States of America without any required condition to mitigate any threat to the national security of the United States that is unacceptable to Purchaser. The Investment Agreement also contains representations, warranties,
indemnification and other provisions customary for transactions of this nature.
Pursuant to the Investment Agreement, the Company is
required to reimburse Purchaser for its reasonable, out-of-pocket fees and expenses (including the reasonable fees and expenses of legal counsel, accountants, investment bankers, brokers, or other representatives or consultants) up to $500,000
incurred in connection with that transaction.
Upon issuance, the holders of the Preferred Stock have the right, if a change of control
shall have occurred prior to the Preferred Stock Closing, to require the Company to repurchase all or any portion of such holders shares of Preferred Stock at an amount equal to the amount that the holders of the Preferred Stock would have
received had they converted the Preferred Stock into Shares immediately prior to such change of control.
The proceeds from the sale of
the Preferred Stock will be used by the Company, along with its other cash and borrowing resources, to repay the Companys Senior Subordinated Notes due to mature in November 2015.
Purchaser, Acquisition Sub and the Company expect that the transactions contemplated by the Investment Agreement will be consummated prior to
consummation of the Offer. Consummation of the transactions contemplated by the Investment Agreement are independent of consummation of the Offer.
Series A Preferred Stock Certificate of Designation; Series B Preferred Stock Certificate of Designation
The Investment Agreement contains a form of the Series A Preferred Stock Certificate of Designation and Series B Preferred Stock Certificate of
Designation (collectively, the Certificates of Designation) which will be adopted by the Companys Board of Directors immediately prior to the Preferred Stock Closing. Upon issuance of the Preferred Stock at the Preferred Stock
Closing, Series A Preferred Stock will be immediately convertible, at Purchasers option, into Shares, at a conversion price of $5.00 per Share, subject to customary anti-dilution adjustments. Each share of the Series B Preferred Stock will
automatically convert into one share of Series A Preferred Stock upon approval by the Companys stockholders of such conversion in accordance with NYSE requirements (the Stockholder Approval). The Company has agreed to seek the
Stockholder Approval at the Companys 2015 annual stockholders meeting.
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The Preferred Stock will be entitled to quarterly cash dividends at the rate of 7.0% per
annum, as and when declared by the Companys Board of Directors, prior to any dividend or distribution with respect to any of the Companys capital stock junior to the Preferred Stock. Dividends will accrue until paid and, if not declared,
will be cumulative. If the Company fails to pay a dividend, the dividend rate will increase to 8% per annum until such time as all accrued but unpaid dividends have been paid in full. The Preferred Stock will have a liquidation preference equal
to the greater of (x) $1,000 per share, plus all accrued and unpaid dividends thereon, whether or not declared and (y) the amount that the holders of the Preferred Stock would have received had they converted the Preferred Stock into
Shares (or Series A Preferred Stock in the case of Series B Preferred Stock) immediately prior to the time of liquidation. The Preferred Stock will rank junior to the Companys existing and future indebtedness. The Preferred Stock will have
certain mandatory redemption rights at the holders option following the seventh anniversary of the issue date and certain redemption rights at the option of the Company following the seventh anniversary of the issue date and following the
fourth anniversary of the issue date if the daily volume weighted average price of the Shares equals or exceeds 175.0% of the conversion price for at least 40 trading days during a period of 60 consecutive trading days, in each instance at a
redemption price per share equal to $1,000 per share plus all accrued and unpaid dividends thereon, whether or not declared. The Series B Preferred Stock has a mandatory redemption right at the holders option if the Stockholder Approval is not
obtained by a specified date. The holders of Preferred Stock also have the right to require the Company to repurchase all or any portion of each such holders shares of Preferred Stock upon a change of control (as defined in the Certificates of
Designation). If a change of control occurs prior to the Preferred Stock Closing, the redemption price will be equal to the amount the holders of Preferred Stock would have received in such change of control transaction had they converted the
Preferred Stock into Shares immediately prior to such change of control transaction. If the change of control transaction occurs after the Preferred Stock Closing, the redemption price will be equal to fair value calculated in accordance with the
formula set forth in the Certificates of Designation (or, if the change of control occurs within the first two years after issuance of the Preferred Stock, 25% of such fair value).
The holders of the Preferred Stock will be entitled to vote as a class on matters adversely affecting the Preferred Stock and, so long as
Purchaser and its permitted transferees satisfy certain ownership thresholds, on the election of designated board nominees, and the holders of the Series A Preferred Stock will be entitled to vote together with the holders of Shares, as a single
class, on an as converted basis, on other matters. So long as 25% of the originally issued shares of Series A Preferred Stock is outstanding, holders of a majority of the Preferred Stock are entitled to veto rights over issuances of senior or parity
securities and changes to the certificate of incorporation of the Company that are adverse to the Preferred Stock.
Stockholder Rights Agreement
The Investment Agreement contains a form of Stockholder Rights Agreement (Stockholder Rights Agreement), which will be
executed by the Company and Purchaser at the Preferred Stock Closing. Pursuant to the Stockholder Rights Agreement, upon issuance of the Preferred Stock, Purchaser and permitted transferees will have the right to designate two members for election
to the Companys Board of Directors for so long as Purchaser and permitted transferees own at least 75% of the Underlying Shares, excluding all shares of Series A Preferred Stock issued upon conversion of the Series B Preferred Stock (the
Original Preferred Shares). Purchaser will have the right to designate one such member of the Companys Board of Directors for so long as Purchaser and permitted transferees own at least 25%, but less than 75%, of the Original
Preferred Shares. In addition, for so long as at least 25% of the Original Preferred Shares remain outstanding, the Company will not increase the size of the board to more than 11 members without the prior written consent of the holders of a
majority of the outstanding shares of Series A Preferred Stock.
For so long as Purchaser owns 25% or more of the Preferred Stock,
Purchaser will have preemptive rights with respect to equity offerings, to enable Purchaser to maintain its proportionate equity ownership interest, subject to certain exceptions. The Stockholder Rights Agreement also prohibits Purchaser from
selling or transferring any of the Preferred Stock to any competitor, key supplier or vendor of the Company as listed on a schedule to the Stockholder Rights Agreement.
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Registration Rights Agreement
The Investment Agreement also contains a form of Registration Rights Agreement (the Registration Rights Agreement), which will be
executed by the Company and Purchaser at the Preferred Stock Closing. The Registration Rights Agreement entitles Purchaser to customary demand, piggyback and shelf registration rights with respect to the shares of common stock underlying the Series
A Preferred Stock and any other Shares that Purchaser may acquire.
Investment Limited Guarantee
In connection with the Investment Agreement, Brookfield Capital Partners IV L.P. (Capital Partners) delivered a limited guarantee
(the Investment Limited Guarantee) in favor of the Company, pursuant to which Capital Partners guaranteed performance of the obligations of Purchaser under the Investment Agreement through the Preferred Stock Closing.
Tender and Support Agreement
Concurrently with the execution of the Merger Agreement, Nathan Milikowsky, a member of the Companys Board of Directors and a stockholder
of the Company, and certain of his affiliates entered into a Tender and Support Agreement (the Support Agreement) with Purchaser and Acquisition Sub, pursuant to which, among other things, they agreed to tender all of their Shares in the
Offer and take certain other actions in furtherance of the Merger. The Support Agreement will terminate automatically upon (i) the effective time of the Merger, (ii) the termination of the Merger Agreement in accordance with its terms,
(iii) the acquisition by Purchaser of all of the Shares owned by Mr. Milikowsky and his affiliates, (iv) any modification or amendment to the Merger Agreement that adversely effects the consideration payable to the Companys
stockholders or (v) the Companys Board of Directors approval, endorsement or recommendation of a Superior Proposal.
Amended and
Restated Stockholder Rights Agreement
The Merger Agreement contains a form of Amended and Restated Stockholder Rights Agreement
(the Amended and Restated Stockholder Rights Agreement), which will be executed by the Company and Purchaser upon consummation of the Offer if the number of Shares tendered and accepted for payment pursuant to the Offer is equal to or
greater than the Minimum Condition but less than the Merger Condition. The Amended and Restated Stockholder Rights Agreement will amend and restate the Stockholder Rights Agreement that the Company and Purchaser agreed to enter into upon the closing
of the Investment Agreement. The Amended and Restated Stockholder Rights Agreement generally provides for the same rights and obligations as the Stockholder Rights Agreement, except as described below.
In addition to the directors designated pursuant to the rights described under Stockholder Rights Agreement (such directors,
Preferred Stock Directors), if and for so long as Purchaser and its affiliates own at least 35% of the outstanding Shares, on a fully diluted, as-converted basis, Purchaser shall have the right to designate for nomination to the
Companys Board of Directors the number of directors (Purchaser Directors) (rounded down to the nearest whole number) that is (i) proportionate to the aggregate percentage ownership of Purchaser and its affiliates less
(ii) the number of Preferred Stock Directors.
Pursuant to the Amended and Restated Stockholder Rights Agreement, for so long as
(i) a Purchaser Director is on the Companys Board of Directors, (ii) a Preferred Stock Director is on the Companys Board of Directors and Purchaser and its affiliates hold a majority of the Original Preferred Shares or
(iii) the aggregate percentage ownership of Purchaser and its affiliates of outstanding Shares is equal to or greater than 35% on a fully-diluted, as converted basis, and in each case for a six (6) month period thereafter (the
Standstill Period), Purchaser and its affiliates shall be subject to a standstill provision which would prohibit Purchaser and its affiliates from, among other things, acquiring any additional Shares for 90 days following the closing of
the Tender Offer, thereafter acquiring additional Shares that would increase the beneficial ownership of Purchaser
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and its affiliates in the Company to more than forty-five (45%) of the outstanding Shares (any such shares, Additional Shares), the making of or participating in the solicitation
of proxies (other than in accordance with the Companys Board of Directors recommendation), the initiation of stockholder proposals and the acquisition of, or public offer to acquire, any of the assets of the Company or its affiliates, in
each case, without the Companys Board of Directors prior approval.
Pursuant to the Amended and Restated Stockholder Rights
Agreement, for so long as Purchaser has designation rights to the Companys Board of Directors, it will, and will cause its affiliates to, vote all Shares and the Preferred Stock in favor of election of each of the Companys Board of
Directors nominees for election at any special or annual stockholder meeting. If Purchaser or its affiliates acquire Additional Shares, Purchaser will, and will cause its affiliates, to vote such Additional Shares, either in proportion to the
votes of all stockholders entitled to vote (other than Purchaser and its Affiliates) or in accordance with the recommendation of a majority of the directors not designated by Purchaser.
Pursuant to the Amended and Restated Stockholder Rights Agreement, other than arms-length transactions approved by the Companys
Board of Directors Audit and Finance Committee, transactions between the Company and Purchaser and/or its affiliates would require approval of either (i) a majority of the Companys directors not designated by Purchaser or
(ii) holders of a majority of the outstanding Shares (excluding Shares held by Purchaser and/or its affiliates).
Limited Guarantee
Concurrently with the execution of the Merger Agreement, Capital Partners delivered a limited guarantee (the Limited
Guarantee) in favor of the Company, pursuant to which Capital Partners guaranteed the payment, performance and discharge of the obligations of Purchaser and Acquisition Sub under the Merger Agreement until the Limited Guarantee is terminated
pursuant to its terms.
The foregoing descriptions of the Confidentiality Agreement, Investment Agreement, Investment Limited Guarantee,
Series A Preferred Stock Certificate of Designation, Series B Preferred Stock Certificate of Designation, Stockholder Rights Agreement, Registration Rights Agreement, Investment Limited Guarantee, Tender and Support Agreement, Amended and Restated
Stockholder Rights Agreement and Limited Guarantee do not purport to be complete and are qualified in their entirety by reference to the applicable documents, copies of which are filed as exhibits to this Schedule TO.
No appraisal rights are available to the holders of Shares in
connection with the Offer. If the Merger is completed, appraisal rights will be available in connection with the Merger as further described below, but, although the availability of appraisal rights depends on the Merger being completed,
stockholders who wish to exercise such appraisal rights must do so no later than the time of the consummation of the Offer, even though the Merger will not have been completed as of such time.
If the Merger is completed, the holders of Shares who (i) did not tender their Shares in the Offer; (ii) follow the procedures set forth in
Section 262 of the DGCL; and (iii) do not thereafter lose their appraisal rights (by withdrawal, failure to perfect or otherwise), in each case in accordance with the DGCL, will be entitled to have their Shares appraised by the Delaware Court of
Chancery and receive payment of the fair value of such Shares, exclusive of any element of value arising from the accomplishment or expectation of the Merger, together with a fair rate of interest, as determined by such court.
The fair value of any Shares could be based upon considerations other than, or in addition to, the price paid in the Offer and the
market value of such Shares. Moreover, the fair value so determined could be higher or lower than, or the same as, the Offer Price. Moreover, we may argue in an appraisal proceeding that, for purposes of such proceeding, the fair value
of such Shares is less than the Offer Price.
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Section 262 of the DGCL provides that, if a merger was approved pursuant to Section 251(h),
either a constituent corporation before the effective date of the merger, or the surviving corporation within ten days thereafter, shall notify each of the holders of any class or series of stock of such constituent corporation who are entitled to
appraisal rights of the approval of the merger and that appraisal rights are available for any or all shares of such class or series of stock of such constituent corporation, and shall include in such notice a copy of Section 262 of the DGCL.
As described more fully in the Schedule 14D-9, if a stockholder wishes to elect to exercise appraisal rights under Section 262 of the DGCL,
such stockholder must do all of the following:
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no later than the consummation of the Offer, deliver to the Company a written demand for appraisal of Shares held, which demand must reasonably inform the Company of the identity of the stockholder and that the
stockholder is demanding appraisal; |
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not tender such stockholders Shares in the Offer; and |
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continuously hold of record the Shares from the date on which the written demand for appraisal is made through the Effective Time. |
The foregoing summary of the appraisal rights of stockholders under the DGCL does not purport to be a complete statement of the procedures
to be followed by stockholders desiring to exercise any appraisal rights available thereunder and is qualified in its entirety by reference to Section 262 of the DGCL. The proper exercise of appraisal rights requires strict and timely adherence to
the applicable provisions of the DGCL. A copy of Section 262 of the DGCL will be provided to each stockholder of record on the effective date of the Merger in the event that the Merger is consummated without any meeting of the Companys
stockholders pursuant to Section 251(h) or Section 253 of the DGCL.
The information provided above is for informational purposes
only with respect to your alternatives if the Merger is completed. If you tender your Shares into the Offer, you will not be entitled to exercise appraisal rights with respect to your Shares, but, instead, upon the terms and subject to the
conditions of the Offer, you will receive the Offer Price for your Shares.
8. |
Transactions and Arrangements Concerning the Shares. |
Except pursuant to the Investment
Agreement and Tender and Support Agreement, or as set forth elsewhere in this Offer to Purchase or Schedule I to this Offer to Purchase: (i) none of the members of the Purchaser Group nor, to the best knowledge of any member of the Purchaser
Group, any of the persons listed in Schedule I to this Offer to Purchase, beneficially owns or has a right to acquire any Shares or any other equity securities of the Company; (ii) none of the members of the Purchaser Group nor, to the best
knowledge of the persons referred to in clause (i) above has effected any transaction with respect to the Shares or any other equity securities of the Company during the past 60 days; (iii) none of the members of the Purchaser Group nor,
to the best knowledge of any member of the Purchaser Group, any of the persons listed in Schedule I to this Offer to Purchase, has any contract, arrangement, understanding or relationship with any other person with respect to any securities of the
Company (including any contract, arrangement, understanding or relationship concerning the transfer or the voting of any such securities, joint ventures, loan or option arrangements, puts or calls, guaranties of loans, guaranties against loss or the
giving or withholding of proxies, consents or authorizations); (iv) during the two years before the date of this Offer to Purchase, there have been no transactions between any the members of the Purchaser Group, their subsidiaries or, to the
knowledge of the members of the Purchaser Group, any of the persons listed in Schedule I to this Offer to Purchase, on the one hand, and the Company or any of its executive officers, directors or affiliates, on the other hand, that would require
reporting under SEC rules and regulations; and (v) during the two years before the date of this Offer to Purchase, there have been no contracts, negotiations or transactions between the members of the Purchaser Group, their subsidiaries or, to
the knowledge of the members of the Purchaser Group, any of the persons listed in Schedule I to this Offer to Purchase, on the one
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hand, and the Company or any of its subsidiaries or affiliates, on the other hand, concerning a merger, consolidation or acquisition, a tender offer or other acquisition of securities, an
election of directors or a sale or other transfer of a material amount of assets.
9. |
Certain Relationships between Purchaser or Acquisition Sub and the Company. |
There are
no relationships between Purchaser or Acquisition Sub or any of their respective affiliates, on the one hand, and the Company, on the other hand, that would require disclosure under the rules and regulations of the SEC applicable to this Offer to
Purchase other than in respect of the Merger Agreement and those arrangements described in Special Factors Section 1 Background of the Offer; Past Contacts or Negotiations with the Company, Special Factors Section
6 The Merger Agreement; Other Agreements, and Special Factors Section 8 Transactions and Arrangements Concerning the Shares.
10. |
Interests of Directors and Executive Officers in the Offer and the Merger. |
In
considering the fairness of the consideration to be received in the Offer and the Merger, the stockholders of the Company should be aware that certain directors and executive officers of the Company have interests in the Offer and the Merger that
may present them with certain actual or potential conflicts of interest. A description of these interests, including the information required to be disclosed pursuant to Item 402(t) of Regulation S-K, is included in the Companys Schedule 14D-9
under the captions Item 3. Past Contacts, Transactions, Negotiations And Agreements, Item 4. The Solicitation Or Recommendation and Item 8. Additional Information which description and information is incorporated
herein by reference.
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THE TENDER OFFER
Purchaser is offering to purchase all of the issued and outstanding
Shares at the Offer Price. Upon the terms and subject to the conditions of the Offer (including, if the Offer is extended or amended, the terms and conditions of such extension or amendment), we will accept for payment and, as promptly as
practicable after the Expiration Date (as defined below), pay for all Shares (excluding Shares tendered pursuant to guaranteed delivery procedures that have not yet been delivered in settlement or satisfaction of such guarantee) validly tendered
prior to midnight, New York City time, on the Expiration Date and not validly withdrawn as described in The Tender Offer Section 4 Withdrawal Rights.
The Offer is conditioned upon, among other things, the satisfaction of the Minimum Condition and the other conditions described in The Tender
Offer Section 11 Conditions of the Offer.
The Merger Agreement provides that: (i) Purchaser shall extend the
Offer for any period required by any law or order, or any rule, regulation, interpretation or position of the SEC or its staff or the NYSE, in any such case which is applicable to the Offer; (ii) in the event that (A) the Minimum Condition
is satisfied and any or all of the other conditions of the Offer are not satisfied or waived (if permitted) as of the Initial Expiration Date or the Go-Shop Extension Date (as defined below), Purchaser shall extend the Offer for successive extension
periods of ten business days (or any longer or shorter period as may be approved in advance by the Company) in order to permit the satisfaction of all of the conditions of the Offer; provided, that Purchaser shall not be required to extend the Offer
past the Termination Date or (B) the Minimum Condition is not satisfied as of the Initial Expiration Date or the Go-Shop Extension Expiration Date, Purchaser may (in its sole discretion) extend the Offer for successive extension periods of up
to ten business days each (or any longer period as may be approved in advance by the Company) in order to permit the satisfaction of the Minimum Condition and certain other conditions set forth in the Merger Agreement that have not then been
satisfied or waived (if permitted); and (iii) in the event the Company receives an acquisition proposal during the period (the Go-Shop Period) commencing on May 17, 2015 and continuing until 11:59 p.m. (New York City time) on
June 21, 2015 which is, or could reasonably be expected to result in a Superior Proposal (as defined below) during the Go-Shop Period, the Company may extend the Go-Shop Period by up to fifteen (15) days (the Go-Shop Extension)
in order to continue discussions and negotiations with, and permit due diligence by, the Excluded Parties (as defined below), then Purchaser shall extend the Offer until ten business days after the expiration of the Go-Shop Extension (or for such
longer period as Purchaser may deem reasonably necessary as may be approved in advance by the Company).
The Merger Agreement provides
that Purchaser expressly reserves the right to waive any of the conditions of the Offer and to make any change in the terms of or conditions of the Offer, but that notwithstanding the foregoing, without the prior written consent of the Company in
its sole discretion, Purchaser may not (i) waive (A) the Minimum Condition, (B) the condition that any waiting period (and extension thereof) applicable to the transactions contemplated by the Merger Agreement under the HSR Act shall
have expired or been terminated, (C) the condition that any governmental authority of competent jurisdiction in the United States shall not have enacted, issued, granted or promulgated any law or order that is in effect as of immediately prior
to the expiration of the Offer and has the effect of making the Offer or the Merger illegal in the United States or which has the effect of prohibiting or otherwise preventing the consummation of the Offer or the Merger in the United States or
(D) the condition that if the Merger Condition is not satisfied, the Company and Purchaser must execute the Amended and Restated Stockholders Rights Agreement in substantially the form attached to the Merger Agreement or (ii) make any
change in the terms of or conditions of the Offer that (A) changes the form of consideration to be paid in the Offer, (B) decreases the Offer Price or the number of Shares sought in the Offer, (C) extends the Offer, other than in a
manner required by the Merger Agreement, (D) imposes conditions of the Offer other than those set forth in The Tender Offer Section 11 Conditions of the Offer, (E) modifies the conditions of the Offer (set forth in The
Tender Offer Section 11 Conditions of the Offer), or (F) amends any other term or condition of the Offer in any manner that is material and adverse to the holders of Shares.
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If we extend the Offer, are delayed in our acceptance for payment of or payment for Shares or are
unable to accept Shares for payment pursuant to the Offer for any reason, then, without prejudice to our rights under the Offer, the Depositary may retain tendered Shares on our behalf, and such Shares may not be withdrawn except to the extent that
tendering stockholders are entitled to withdrawal rights as described in The Tender Offer Section 4 Withdrawal Rights. However, our ability to delay the payment for Shares that we have accepted for payment is limited by Rule 14e-1(c)
under the Exchange Act, which requires us to pay the consideration offered or return the securities deposited by or on behalf of stockholders promptly after the termination or withdrawal of the Offer.
Subject to the terms of the Merger Agreement and the applicable rules and regulations of the SEC and other applicable laws and regulations, we
expressly reserve the right to waive any condition to the Offer at any time and from time to time, to increase the Offer Price or to make any other changes in the terms and conditions of the Offer. Any extension, delay, termination or amendment of
the Offer will be followed as promptly as practicable by a public announcement thereof, and such announcement in the case of an extension will be made no later than 9:00 a.m., New York City time, on the next business day after the previously
scheduled Expiration Date. Without limiting the manner in which we may choose to make any public announcement, we intend to make announcements regarding the Offer by issuing a press release and making any appropriate filing with the SEC.
If we make a material change in the terms of the Offer or the information concerning the Offer or if we waive a material condition of the
Offer, we will disseminate additional tender offer materials and extend the Offer, in each case, if and to the extent required by Rules 14d-4(d)(1), 14d-6(c) and 14e-1 under the Exchange Act. The minimum period during which the Offer must remain
open following material changes in the terms of the Offer or information concerning the Offer, other than a change in price or a change in percentage of securities sought, will depend upon the facts and circumstances, including the relative
materiality of the terms or information changes and the appropriate manner of dissemination. In a published release, the SEC has stated that, in its view, an offer should remain open for a minimum of five business days from the date the material
change is first published, sent or given to holders of Shares, and with respect to a change in price or a change in the percentage of securities sought, a minimum 10 business day period may be required to allow for adequate dissemination to holders
of Shares and investor response.
If, on or before the Expiration Date, we increase the consideration being paid for Shares accepted
for payment in the Offer, such increased consideration will be paid to all holders whose Shares are purchased in the Offer, whether or not such Shares were tendered before the announcement of the increase in consideration.
The obligation of Purchaser or, if the Merger Condition is satisfied, Acquisition Sub, to accept for payment and pay for Shares validly
tendered (and not withdrawn) pursuant to the Offer is subject to the satisfaction of the conditions of the Offer. Notwithstanding any other provision of the Offer or the Merger Agreement, neither Purchaser nor, if the Merger Condition is satisfied,
Acquisition Sub, shall be required to accept for payment or (subject to any applicable rules and regulations of the SEC, including Rule 14e-1(c) under the Exchange Act) pay for, and may delay the acceptance for payment or (subject to any such rules
and regulations) the payment for, any tendered Shares, and may terminate the Offer at any scheduled Expiration Date or amend or terminate the Offer as otherwise permitted by the Merger Agreement, if any of the conditions of the Offer have not been
satisfied. Under certain circumstances described in the Merger Agreement, we may terminate the Merger Agreement.
The Merger Agreement
also provides that Purchaser may (but shall not be required to), and in the Offer to Purchase shall reserve the right to, provide for a subsequent offering period (within the meaning of Rule 14d-11 under the Exchange Act) of not less
than three nor more than twenty business days immediately following the expiration of the Offer. Subject to the terms and conditions of the Merger Agreement and the Offer, Purchaser or, if the Merger Condition is satisfied, Acquisition Sub, shall
accept for payment, and pay for, all Shares that are validly tendered during the subsequent offering period promptly (within the meaning of Section 14e-1(c) under the Exchange Act) after any such Shares are validly tendered during
the subsequent offering period.
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During a subsequent offering period, any remaining holders of Shares may tender, but not
withdraw, their Shares and receive the Offer Price. If we include a subsequent offering period, we will immediately accept and promptly pay for all Shares that were validly tendered during the initial offering period. During a subsequent offering
period, tendering holders will not have withdrawal rights, and we will immediately accept and promptly pay for any Shares tendered during the subsequent offering period.
We do not intend to provide a subsequent offering period for the Offer, although we reserve the right to do so. If we elect to provide or
extend any subsequent offering period, a public announcement of such determination will be made no later than 9:00 a.m., New York City time, on the next business day following the Expiration Date or date of termination of any prior subsequent
offering period.
The Company has provided us with its stockholders list and security position listings for the purpose of disseminating
the Offer to holders of Shares. This Offer to Purchase and the related Letter of Transmittal, as well as the Schedule 14D-9, will be mailed to record holders of Shares whose names appear on the stockholder list and will be furnished for subsequent
transmittal to beneficial owners of Shares to brokers, dealers, commercial banks, trust companies and similar persons whose names, or the names of whose nominees, appear on the stockholder list or, if applicable, who are listed as participants in a
clearing agencys security position listing.
2. |
Acceptance for Payment and Payment for Shares. |
Subject to the terms of the Offer and
the Merger Agreement and the satisfaction or waiver of the conditions of the Offer set forth in The Tender Offer Section 11 Conditions of the Offer, we will accept for payment and promptly pay for all Shares validly tendered and
not validly withdrawn pursuant to the Offer. If we commence a subsequent offering period in connection with the Offer, we will immediately accept for payment and promptly pay for all additional Shares as they are tendered during such subsequent
offering period, subject to and in compliance with the requirements of Rule 14d-11(e) under the Exchange Act. Subject to compliance with Rule 14e-1(c) and Rule 14d-11(e) under the Exchange Act, as applicable, we expressly reserve the right to delay
payment for Shares in order to comply in whole or in part with any applicable law or regulation. See Special Factors Section 16 Certain Legal Matters; Regulatory Approvals.
In all cases, we will pay for Shares accepted for payment pursuant to the Offer only after timely receipt by the Depositary of (i) the
certificates evidencing such Shares (the Share Certificates) or confirmation of a book-entry transfer of such Shares into the Depositarys account at The Depository Trust Company (DTC) (such a confirmation, a
Book-Entry Confirmation) pursuant to the procedures set forth in The Tender Offer Section 3 Procedures for Accepting the Offer and Tendering Shares and (ii) the Letter of Transmittal (or a manually signed
facsimile thereof), properly completed and duly executed, with any required signature guarantees and any other documents required by the Letter of Transmittal or, in the case of a book-entry transfer, an Agents Message (as defined below) in
lieu of the Letter of Transmittal and such other documents. Accordingly, tendering stockholders may be paid at different times depending upon when Share Certificates or Book-Entry Confirmations with respect to Shares are actually received by the
Depositary.
The term Agents Message means a message, transmitted through electronic means by DTC to, and received by,
the Depositary and forming part of a Book-Entry Confirmation, that states that DTC has received an express acknowledgment from the participant in DTC tendering the Shares that are the subject of such Book-Entry Confirmation that such participant has
received and agrees to be bound by the terms of, the Letter of Transmittal, and that Purchaser or, if the Merger Condition is satisfied, Acquisition Sub, may enforce such agreement against such participant. The term Agents Message
also includes any hard copy printout evidencing such message generated by a computer terminal maintained at the Depositarys office.
For purposes of the Offer, we will be deemed to have accepted for payment, and thereby purchased, Shares validly tendered and not validly
withdrawn as, if and when we give oral or written notice to the Depositary of our acceptance for payment of such Shares pursuant to the Offer. Upon the terms and subject to the conditions of the
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Offer, payment for Shares accepted for payment pursuant to the Offer will be made by deposit of the Offer Price for such Shares with the Depositary, which will act as agent for tendering
stockholders for the purpose of receiving payments from us and transmitting such payments to tendering stockholders whose Shares have been accepted for payment. If we extend the Offer, are delayed in our acceptance for payment of Shares or are
unable to accept Shares for payment pursuant to the Offer for any reason, then, without prejudice to our rights under the Offer, the Depositary may retain tendered Shares on our behalf, and such Shares may not be withdrawn except to the extent that
tendering stockholders are entitled to withdrawal rights as described in The Tender Offer Section 4 Withdrawal Rights and as otherwise required by Rule 14e-1(c) under the Exchange Act. Under no circumstances will we pay
interest on the Offer Price for Shares, regardless of any extension of the Offer or any delay in making such payment.
If any tendered
Shares are not accepted for payment pursuant to the terms and conditions of the Offer for any reason, or if Share Certificates are submitted evidencing more Shares than are tendered, Share Certificates representing unpurchased shares will be
returned, without expense to the tendering stockholder (or, in the case of Shares tendered by book-entry transfer into the Depositarys account at DTC pursuant to the procedure set forth in The Tender Offer Section 3
Procedures for Accepting the Offer and Tendering Shares, such Shares will be credited to an account maintained at DTC), as promptly as practicable following the expiration or termination of the Offer.
3. |
Procedures for Accepting the Offer and Tendering Shares. |
Valid Tenders. In order
for a stockholder to validly tender Shares pursuant to the Offer, either (i) the Letter of Transmittal (or a manually signed facsimile thereof), properly completed and duly executed, together with any required signature guarantees (or, in the
case of a book-entry transfer, an Agents Message in lieu of the Letter of Transmittal) and any other documents required by the Letter of Transmittal, must be received by the Depositary at one of its addresses set forth on the back cover of
this Offer to Purchase and either (A) the Share Certificates evidencing tendered Shares must be received by the Depositary at such address or (B) such Shares must be tendered pursuant to the procedure for book-entry transfer described
below under Book-Entry Transfer and a Book-Entry Confirmation must be received by the Depositary, in each case prior to the Expiration Date, or (ii) the tendering stockholder must comply with the guaranteed delivery procedures
described below under Guaranteed Delivery.
Book-Entry Transfer. The Depositary will establish an account with
respect to the Shares at DTC for purposes of the Offer within two business days after the date of this Offer to Purchase. Any financial institution that is a participant in the system of DTC may make a book-entry delivery of Shares by causing DTC to
transfer such Shares into the Depositarys account at DTC in accordance with DTCs procedures for such transfer. However, although delivery of Shares may be effected through book-entry transfer at DTC, either the Letter of Transmittal (or
a manually signed facsimile thereof), properly completed and duly executed, together with any required signature guarantees, or an Agents Message in lieu of the Letter of Transmittal, and any other required documents, must, in any case, be
received by the Depositary at one of its addresses set forth on the back cover of this Offer to Purchase prior to the Expiration Date, or the tendering stockholder must comply with the guaranteed delivery procedures described below under
Guaranteed Delivery. Delivery of documents to DTC does not constitute delivery to the Depositary.
Signature Guarantees.
No signature guarantee is required on the Letter of Transmittal (i) if the Letter of Transmittal is signed by the registered holder(s) (which term, for purposes of this Section 3, includes any participant in DTCs systems whose
name appears on a security position listing as the owner of the Shares) of the Shares tendered therewith, unless such holder or holders have completed either the box entitled Special Delivery Instructions or the box entitled
Special Payment Instructions on the Letter of Transmittal or (ii) if the Shares are tendered for the account of a financial institution (including most commercial banks, savings and loan associations and brokerage houses) that is a
member in good standing of the Security Transfer Agents Medallion Program or any other eligible guarantor institution, as such term is defined in Rule 17Ad-15 of the Exchange Act (each an Eligible Institution and collectively
Eligible Institutions). In all other cases, all signatures on a
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Letter of Transmittal must be guaranteed by an Eligible Institution. See Instruction 1 of the Letter of Transmittal. If a Share Certificate is registered in the name of a person or persons other
than the signers of the Letter of Transmittal, or if payment is to be made or delivered to, or a Share Certificate not accepted for payment or not tendered is to be issued in, the name(s) of a person or persons other than the registered holder(s),
then the Share Certificate must be endorsed or accompanied by appropriate duly executed stock powers, in either case signed exactly as the name(s) of the registered holder(s) appear on the Share Certificate, with the signature(s) on such Share
Certificate or stock powers guaranteed by an Eligible Institution as provided in the Letter of Transmittal. See Instructions 1 and 5 of the Letter of Transmittal.
Guaranteed Delivery. If a stockholder desires to tender Shares pursuant to the Offer and the Share Certificates evidencing such
stockholders Shares are not immediately available or such stockholder cannot deliver the Share Certificates and all other required documents to the Depositary on or prior to the Expiration Date, or such stockholder cannot complete the
procedure for delivery by book-entry transfer on a timely basis, such Shares may nevertheless be tendered, provided that all of the following conditions are satisfied:
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such tender is made by or through an Eligible Institution; |
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a properly completed and duly executed Notice of Guaranteed Delivery, substantially in the form made available by us, is received on or prior to the Expiration Date by the Depositary as provided below; and
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the Share Certificates (or a Book-Entry Confirmation) evidencing all tendered Shares, in proper form for transfer, in each case together with the Letter of Transmittal (or a manually signed facsimile thereof), properly
completed and duly executed, with any required signature guarantees (or, in the case of a book-entry transfer, an Agents Message), and any other documents required by the Letter of Transmittal are received by the Depositary within three NYSE
trading days after the date of execution of such Notice of Guaranteed Delivery. |
The Notice of Guaranteed Delivery may be
transmitted by manually signed facsimile transmission or mailed to the Depositary and must include a guarantee by an Eligible Institution in the form set forth in the form of Notice of Guaranteed Delivery made available by Purchaser or Acquisition
Sub, as applicable.
Notwithstanding any other provision of this Offer, payment for Shares accepted for payment pursuant to the Offer will
in all cases only be made after timely receipt by the Depositary of (i) certificates evidencing such Shares or a Book-Entry Confirmation of a book-entry transfer of such Shares into the Depositarys account at DTC pursuant to the
procedures set forth in this Section 3, (ii) the Letter of Transmittal (or a manually signed facsimile thereof), properly completed and duly executed, with any required signature guarantees or, in the case of a book-entry transfer, an
Agents Message in lieu of the Letter of Transmittal and (iii) any other documents required by the Letter of Transmittal. Accordingly, tendering stockholders may be paid at different times depending upon when Share Certificates or
Book-Entry Confirmations with respect to Shares are actually received by the Depositary.
THE METHOD OF DELIVERY OF THE SHARES (OR SHARE
CERTIFICATES), THE LETTER OF TRANSMITTAL AND ALL OTHER REQUIRED DOCUMENTS, INCLUDING DELIVERY THROUGH DTC, IS AT THE ELECTION AND RISK OF THE TENDERING STOCKHOLDER. DELIVERY OF THE SHARES (OR SHARE CERTIFICATES), THE LETTER OF TRANSMITTAL AND ALL
OTHER REQUIRED DOCUMENTS WILL BE DEEMED MADE, AND RISK OF LOSS THEREOF SHALL PASS, ONLY WHEN THEY ARE ACTUALLY RECEIVED BY THE DEPOSITARY (INCLUDING, IN THE CASE OF A BOOK-ENTRY TRANSFER OF SHARES, BY BOOK-ENTRY CONFIRMATION WITH RESPECT TO SUCH
SHARES). IF SUCH DELIVERY IS BY MAIL, IT IS RECOMMENDED THAT THE SHARES (OR SHARE CERTIFICATES), THE LETTER OF TRANSMITTAL AND ALL OTHER REQUIRED DOCUMENTS BE SENT BY PROPERLY INSURED REGISTERED MAIL WITH RETURN RECEIPT REQUESTED. IN ALL CASES,
SUFFICIENT TIME SHOULD BE ALLOWED TO ENSURE TIMELY DELIVERY.
The tender of Shares pursuant to any one of the procedures described above
will constitute the tendering stockholders acceptance of the Offer, as well as the tendering stockholders representation and warranty that
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such stockholder has the full power and authority to tender and assign the Shares tendered, as specified in the Letter of Transmittal. Our acceptance for payment of Shares tendered pursuant to
the Offer will constitute a binding agreement between the tendering stockholder and us upon the terms and subject to the conditions of the Offer.
Determination of Validity. All questions as to the validity, form, eligibility (including time of receipt) and acceptance for payment
of any tender of Shares will be determined by us, in our sole discretion, which determination shall be final and binding on all parties. We reserve the absolute right to reject any and all tenders determined by us not to be in proper form or the
acceptance for payment of which may, in our opinion, be unlawful. We also reserve the absolute right to waive any defect or irregularity in the tender of any Shares of any particular stockholder, whether or not similar defects or irregularities are
waived in the case of other stockholders. No tender of Shares will be deemed to have been validly made until all defects and irregularities have been cured or waived to our satisfaction. None of Purchaser, Acquisition Sub or any of their respective
affiliates or assigns, the Depositary, the Information Agent or any other person will be under any duty to give notification of any defects or irregularities in tenders or incur any liability for failure to give any such notification. Our
interpretation of the terms and conditions of the Offer (including the Letter of Transmittal and the instructions thereto) will be final and binding.
Appointment. By executing the Letter of Transmittal as set forth above, the tendering stockholder will irrevocably appoint designees of
Purchaser as such stockholders attorneys-in-fact and proxies in the manner set forth in the Letter of Transmittal, each with full power of substitution, to the full extent of such stockholders rights with respect to the Shares tendered
by such stockholder and accepted for payment by Purchaser or, if the Merger Condition is satisfied, Acquisition Sub, and with respect to any and all other Shares or other securities or rights issued or issuable in respect of such Shares. All such
powers of attorney and proxies will be considered irrevocable and coupled with an interest in the tendered Shares. Such appointment will be effective when, and only to the extent that, we accept for payment Shares tendered by such stockholder as
provided herein. Upon such appointment, all prior powers of attorney, proxies and consents given by such stockholder with respect to such Shares or other securities or rights will, without further action, be revoked and no subsequent powers of
attorney, proxies, consents or revocations may be given by such stockholder (and, if given, will not be deemed effective). The designees of Purchaser will thereby be empowered to exercise all voting and other rights with respect to such Shares and
other securities or rights, including, without limitation, in respect of any annual, special or adjourned meeting of the Companys stockholders, actions by written consent in lieu of any such meeting or otherwise, as they in their sole
discretion deem proper. We reserve the right to require that, in order for Shares to be deemed validly tendered, immediately upon our acceptance for payment of such Shares, Purchaser or, if the Merger Condition is satisfied, Acquisition Sub, must be
able to exercise full voting, consent and other rights with respect to such Shares and other related securities or rights, including voting at any meeting of stockholders.
Information Reporting and Backup Withholding. Payments made to stockholders of the Company in the Offer or the Merger generally will be
subject to information reporting and may be subject to backup withholding (currently at a rate of twenty-eight percent). To avoid backup withholding, any U.S. stockholder that does not otherwise establish an exemption should complete and return the
IRS Form W-9 included in the Letter of Transmittal, certifying that such stockholder is a U.S. person, the taxpayer identification number provided is correct, and that such stockholder is not subject to backup withholding. Any foreign stockholder
should submit an IRS Form W-8BEN or W-8BEN-E, as applicable (or other applicable IRS Form W-8), attesting to such stockholders exempt foreign status in order to qualify for an exemption from information reporting and backup withholding. Backup
withholding is not an additional tax. Any amounts withheld under the backup withholding rules will be allowed as a refund from the IRS or a credit against a stockholders U.S. federal income tax liability provided the required information is
timely furnished to the IRS.
Except as otherwise provided in this Section 4, tenders of
Shares made pursuant to the Offer are irrevocable.
52
Shares tendered pursuant to the Offer may be withdrawn at any time until midnight, New York City
time, on the Expiration Date. Thereafter, tenders are irrevocable, except that Shares tendered may also be withdrawn after July 25, 2015 if Purchaser or, if the Merger Condition has been satisfied, Acquisition Sub has not accepted them for
payment by the end of July 25, 2015. This right to withdraw will not, however, apply to Shares tendered in any subsequent offering period, if one is provided.
For a withdrawal of Shares to be effective, the Depositary must timely receive a written or facsimile transmission notice of withdrawal at the
address set forth on the back cover of this Offer to Purchase. Any notice of withdrawal must specify the name of the person who tendered the Shares to be withdrawn, the number of Shares to be withdrawn and the names in which the Share Certificates
are registered, if different from that of the person who tendered such Shares. The signature(s) on the notice of withdrawal must be guaranteed by an Eligible Institution, unless such Shares have been tendered for the account of an Eligible
Institution. If Shares have been tendered pursuant to the procedures for book-entry transfer as set forth in The Tender Offer Section 3 Procedures for Accepting the Offer and Tendering Shares, any notice of withdrawal must specify
the name and number of the account at DTC to be credited with the withdrawn Shares. If Share Certificates representing the Shares to be withdrawn have been delivered or otherwise identified to the Depositary, then, prior to the physical release of
such Share Certificates, the name of the registered owners and the serial numbers shown on such Share Certificates must also be furnished to the Depositary.
Withdrawals of tenders of Shares may not be rescinded and any Shares properly withdrawn will be deemed not validly tendered for purposes of
the Offer. Withdrawn Shares may, however, be retendered by following one of the procedures for tendering Shares described in The Tender Offer Section 3 Procedures for Accepting the Offer and Tendering Shares at any time prior to
the Expiration Date.
No withdrawal rights will apply to Shares tendered during a subsequent offering period, and no withdrawal rights
apply during any subsequent offering period with respect to Shares tendered in the Offer and accepted for payment. See The Tender Offer Section 1 Terms of the Offer.
Purchaser will determine, in its sole discretion, all questions as to the form and validity (including time of receipt) of any notice of
withdrawal, and such determination will be final and binding. No withdrawal of Shares shall be deemed to have been properly made until all defects and irregularities have been cured or waived. None of Purchaser, Acquisition Sub or any of their
respective affiliates or assigns, the Depositary, the Information Agent or any other person will be under any duty to give notification of any defects or irregularities in any notice of withdrawal or incur any liability for failure to give such
notification.
5. |
Certain U.S. Federal Income Tax Consequences of the Offer. |
The following is a summary
of the material U.S. federal income tax consequences of the Offer and, if applicable, the Merger, to stockholders of the Company whose Shares are tendered and accepted for payment pursuant to the Offer or, if applicable, whose Shares are converted
into the right to receive cash in the Merger. The summary is for general information only and does not purport to consider all aspects of U.S. federal income taxation that might be relevant to stockholders of the Company. The summary is based on
current provisions of the Internal Revenue Code of 1986, as amended (the Code), existing, proposed and temporary regulations thereunder and administrative and judicial interpretations thereof in effect as of the date of this Offer, all
of which are subject to change, possibly with retroactive effect. We have not sought, and do not intend to seek, any ruling from the IRS or any opinion of counsel with respect to the statements made and the conclusions reached in the following
summary, and no assurance can be given that the IRS will agree with the views expressed herein, or that a court will not sustain any challenge by the IRS in the event of litigation.
The summary applies only to stockholders of the Company in whose hands Shares are capital assets within the meaning of Section 1221 of
the Code. This summary does not address foreign, state or local tax consequences
53
of the Offer or, if applicable, the Merger, nor does it purport to address the U.S. federal income tax consequences of the transactions to holders of the Company compensatory or other
equity-based awards, or to special classes of taxpayers (e.g., foreign taxpayers, small business investment companies, regulated investment companies, real estate investment trusts, controlled foreign corporations, passive foreign investment
companies, cooperatives, banks and certain other financial institutions, insurance companies, tax-exempt organizations, retirement plans, stockholders that are, or hold Shares through, partnerships or other pass-through entities for U.S. federal
income tax purposes, U.S. persons whose functional currency is not the U.S. dollar, dealers in securities or foreign currency, traders that mark-to-market their securities, expatriates and former long-term residents of the United States, persons
subject to the alternative minimum tax, stockholders holding Shares that are part of a straddle, hedging, constructive sale or conversion transaction, stockholders who received Shares in compensatory transactions, pursuant to the exercise of
employee stock options, stock purchase rights or stock appreciation rights, as restricted stock or otherwise as compensation, stockholders who received Shares pursuant to the exercise of warrants, stockholders that beneficially own (actually or
constructively) more than 5% of the total fair market value of the Shares) and stockholders that exercise their appraisal right in connection with the Merger. In addition, this summary does not address U.S. federal taxes other than income taxes.
For purposes of this summary, the term U.S. Holder means a beneficial owner of Shares that, for U.S. federal income tax
purposes, is: (i) an individual citizen or resident of the United States; (ii) a corporation, or an entity treated as a corporation for U.S. federal income tax purposes, created or organized under the laws of the United States, any state
thereof or the District of Columbia; (iii) an estate, the income of which is subject to U.S. federal income tax regardless of its source; or (iv) a trust, if (A) a U.S. court is able to exercise primary supervision over the
trusts administration and one or more U.S. persons, within the meaning of Section 7701(a)(30) of the Code, have authority to control all of the trusts substantial decisions or (B) the trust has validly elected to be treated as
a U.S. person for U.S. federal income tax purposes. This discussion does not address the tax consequences to stockholders who are not U.S. Holders.
If a partnership, or another entity treated as a partnership for U.S. federal income tax purposes, holds Shares, the tax treatment of its
partners or members generally will depend upon the status of the partner or member and the partnerships activities. Accordingly, partnerships or other entities treated as partnerships for U.S. federal income tax purposes that hold Shares, and
partners or members in those entities, are urged to consult their tax advisors regarding the specific U.S. federal income tax consequences to them of the Offer and, if applicable, the Merger.
Because individual circumstances may differ, each stockholder should consult its, his or her own tax advisor to determine the applicability
of the rules discussed below and the particular tax effects of the Offer and, if applicable, the Merger on a beneficial holder of Shares, including the application and effect of the alternative minimum tax and any state, local and foreign tax laws
and of changes in such laws.
The exchange of Shares for cash pursuant to the Offer or, if applicable, the Merger will be a taxable
transaction to U.S. Holders for U.S. federal income tax purposes. In general, a U.S. Holder who sells Shares pursuant to the Offer or, if applicable, receives cash in exchange for Shares pursuant to the Merger will recognize gain or loss for U.S.
federal income tax purposes in an amount equal to the difference, if any, between (i) the amount of cash received (determined before the deduction of any withholding tax) and (ii) the U.S. Holders adjusted tax basis in the Shares
sold pursuant to the Offer or, if applicable, exchanged for cash pursuant to the Merger. Gain or loss will be determined separately for each block of Shares (that is, Shares acquired at the same cost in a single transaction) tendered pursuant to the
Offer or, if applicable, exchanged for cash pursuant to the Merger. Such gain or loss will be long-term capital gain or loss, provided that a U.S. Holders holding period for such block of Shares is more than one year at the time of
consummation of the Offer or, if applicable, the Merger, as the case may be. Capital gains recognized by an individual upon a disposition of a Share that has been held for more than one year generally will be subject to a maximum U.S. federal income
tax rate of 20%. In addition, certain non-corporate stockholders may be subject to an additional 3.8% tax on all or a portion of their net investment income, which may include all or a portion of the gain recognized in connection with
the Offer
54
or, if applicable, the Merger. In the case of a Share that has been held for one year or less, such capital gains generally will be subject to tax at ordinary income tax rates. Certain
limitations apply to the use of a U.S. Holders capital losses.
A U.S. Holder whose Shares are purchased pursuant to the Offer or,
if applicable, exchanged for cash pursuant to the Merger is subject to information reporting and may be subject to backup withholding unless certain information is provided to the Depositary or an exemption applies. See The Tender Offer
Section 3 Procedures for Accepting the Offer and Tendering Shares.
6. |
Price Range of Shares; Dividends. |
The Shares currently trade on the NYSE under the
symbol GTI. The following table sets forth the high and low sale prices per Share for each quarterly period within the two preceding fiscal years and during the two preceding quarters of the current fiscal year, as reported by Bloomberg
Finance based on published financial sources:
|
|
|
|
|
|
|
|
|
|
|
High |
|
|
Low |
|
Fiscal Year Ended December 31, 2013 |
|
|
|
|
|
|
|
|
First Quarter |
|
$ |
10.22 |
|
|
$ |
6.41 |
|
Second Quarter |
|
$ |
8.69 |
|
|
$ |
6.64 |
|
Third Quarter |
|
$ |
8.905 |
|
|
$ |
6.92 |
|
Fourth Quarter |
|
$ |
11.738 |
|
|
$ |
7.99 |
|
Fiscal Year Ended December 31, 2014 |
|
|
|
|
|
|
|
|
First Quarter |
|
$ |
13.01 |
|
|
$ |
9.16 |
|
Second Quarter |
|
$ |
11.92 |
|
|
$ |
10.02 |
|
Third Quarter |
|
$ |
10.72 |
|
|
$ |
4.24 |
|
Fourth Quarter |
|
$ |
5.19 |
|
|
$ |
3.31 |
|
Fiscal Year 2015 |
|
|
|
|
|
|
|
|
First Quarter |
|
$ |
5.187 |
|
|
$ |
3.47 |
|
Second Quarter (through May 22, 2015) |
|
$ |
5.08 |
|
|
$ |
3.87 |
|
On May 15, 2015, the last full day of trading before the public announcement of the execution of the
Merger Agreement, the reported closing price of the Shares on the NYSE was $4.95 per Share. On April 29, 2015, the last full day of trading before we announced that certain letter of intent, dated as of April 29, 2015, by and between
Brookfield and the Company, relating to the transactions contemplated by the Merger Agreement (the Letter of Intent), the reported closing price of the Shares on the NYSE was $4.33 per Share. On May 22, 2015, the last full day of
trading before the commencement of the Offer, the reported closing price of the Shares on the NYSE was $5.04 per Share. Stockholders are urged to obtain current market quotations for the Shares.
The Company has not declared or paid dividends in 2013, 2014 or 2015 and does not anticipate doing so other than in respect of quarterly
dividends on the Preferred Stock.
7. |
Certain Information Concerning the Company. |
The summary information set forth below is
qualified in its entirety by reference to the Companys public filings with the SEC (which may be obtained and inspected as described below under Additional Information) and should be considered in conjunction with the financial and
other information in such filings and other publicly available information. Neither Purchaser nor Acquisition Sub has any knowledge that would indicate that any statements contained in this Offer to Purchase based on such filings and information are
untrue. However, neither Purchaser nor Acquisition Sub assumes any responsibility for the accuracy or completeness of the information concerning the Company, whether furnished by the Company or contained in such filings, or for any failure by the
Company to disclose events that may have occurred or that may affect the significance or accuracy of any such information but which are unknown to Purchaser or Acquisition Sub.
55
General. The Company is a Delaware corporation that manufactures a broad range of graphite
electrodes, products essential to the production of electric arc furnace steel, and various other ferrous and nonferrous metals. The Company manufactures carbon, graphite, and semi-graphite refractory products, which protect the walls of blast
furnaces and submerged arc furnaces. It also produces needle coke products, a primary raw material needed in the manufacture of graphite electrodes. The address of the Companys principal executive offices and the Companys phone number at
its principal executive offices are as set forth below:
Suite 300 Park Center I
6100 Oak Tree Boulevard
Independence, Ohio 44131
(216) 676-2000
Projected Financial Information. In connection with our due diligence review of the Company, the Company made available to us the
financial forecasts that are referred to as the Certain Forecasts in Item 4. Solicitation or Recommendation of the Schedule 14D-9 under the sub-heading entitled Certain Forecasts.
Additional Information. The Shares are registered under the Exchange Act. Accordingly, the Company is subject to the information
reporting requirements of the Exchange Act and, in accordance therewith, is required to file periodic reports, proxy statements and other information with the SEC relating to its business, financial condition and other matters. Information as of
particular dates concerning the Companys directors and officers, their remuneration, restricted stock units, stock options or warrants granted to them, the principal holders of the Companys securities, any material interests of such
persons in transactions with the Company and other matters is required to be disclosed in proxy statements, the last one having been filed with the SEC on April 14, 2014 and distributed to the Companys stockholders. Such information also
will be available in the Schedule 14D-9. Such reports, proxy statements and other information are available for inspection at the SECs Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330
for further information on the public reference room. Copies of such information may be obtainable by mail, upon payment of the SECs customary charges, by writing to the SEC at the address above. The SEC also maintains a web site on the
Internet at http://www.sec.gov that contains reports, proxy statements and other information regarding registrants, including the Company, that file electronically with the SEC.
8. |
Certain Information Concerning Purchaser and Acquisition Sub. |
Purchaser, a Delaware
limited partnership, was formed solely for the purpose of facilitating Purchasers investment in, and potential acquisition of, the Company. The general partner of Purchaser is BPE IV (Non-Cdn) GP LP, a limited partnership formed under the laws
of the Province of Manitoba (BPE IV). The general partner of BPE IV is Brookfield. Purchaser has not carried on any activities to date, except for activities incidental to its formation and activities undertaken in connection with the
transactions contemplated by the Investment Agreement and the Merger Agreement. We refer to Purchaser, Acquisition Sub, BPE IV and Brookfield, collectively, as the Purchaser Group. The business address and business telephone number of
Purchaser are as set forth below:
BCP IV GrafTech Holdings LP
Brookfield Place
181 Bay Street,
Suite 300
Toronto, Ontario M5J 2T3
(416) 363-9491
Acquisition Sub
is a Delaware corporation and a wholly-owned subsidiary of Purchaser and was formed solely for the purpose of facilitating Purchasers investment in, and potential acquisition of, the Company. Purchaser has not carried on any activities to
date, except for activities incidental to its formation and activities undertaken in connection with the transactions contemplated by the Investment Agreement and the Merger
56
Agreement. Upon consummation of the Merger, Acquisition Sub will merge with and into the Company and will cease to exist, with the Company surviving the Merger. The business address and business
telephone number of Acquisition Sub are as set forth below:
Athena Acquisition Subsidiary Inc.
250 Vesey Street, 15th Floor
New
York, New York 10281
(212) 417-7000
The business office address of each member of the Purchaser Group and each such members telephone number is set forth in the attached
Schedule I. The name, citizenship, business address, present principal occupation or employment and five-year employment history of each of the members, directors or executive officers of each member of the Purchaser Group are set forth in Schedule
I to this Offer to Purchase.
During the last five years, none of the persons listed in Schedule I to this Offer to Purchase (i) has
been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) or (ii) has been a party to any judicial or administrative proceeding (except for matters that were dismissed without sanction or settlement) that
resulted in a judgment, decree or final order enjoining the person from future violations of, or prohibiting activities subject to, federal or state securities laws, or a finding of any violation of federal or state securities laws.
9. |
Source and Amount of Funds. |
We estimate that we will need approximately $705 million to
purchase all of the Shares we are seeking to purchase pursuant to the Offer and, if the conditions to the merger, including the Merger Condition, are satisfied, to complete the Merger. Purchaser will have, at the expiration of the Offer, sufficient
funds for this purpose and, if the Merger Condition is satisfied, will provide sufficient funds to Acquisition Sub. Purchaser expects to obtain the necessary funds to pay for Shares validly tendered, and not withdrawn, pursuant to the Offer, and if
applicable, to consummate the Merger, from any or all of cash on hand and by means of equity capital contributions at or about the first time as of which Purchaser or Acquisition Sub, if the Merger Condition is satisfied, accepts any Shares for
payment pursuant to the Offer (such time, the Acceptance Time).
Concurrently with the execution of the Merger Agreement,
Capital Partners, which has committed capital in excess of $705 million, delivered a limited guarantee (the Limited Guarantee) in favor of the Company, pursuant to which Capital Partners guaranteed the payment, performance and discharge
of the obligations of Purchaser and Acquisition Sub under the Merger Agreement until the Limited Guarantee is terminated pursuant to its terms.
10. |
Dividends and Distributions. |
The Merger Agreement provides that from the date of the
Merger Agreement until the earlier to occur of the termination of the Merger Agreement and the Acceptance Time, except as approved by Purchaser (which approval will not be unreasonably withheld, conditioned or delayed), the Company will not declare,
set aside or pay any dividend or other distribution (whether in cash, shares or property or any combination thereof) in respect of any shares of capital stock, or make any other actual, constructive or deemed distribution in respect of the shares of
capital stock, except for cash dividends made on the Preferred Stock, if any, or dividends by any direct or indirect wholly-owned subsidiary of the Company to the Company or one of its wholly-owned subsidiaries.
11. |
Conditions of the Offer. |
For purposes of this Section 11, capitalized terms used
in this Section 11 and defined in the Merger Agreement have the meanings set forth in the Merger Agreement, a copy of which is filed as an exhibit to the Schedule TO and is incorporated herein by reference. Notwithstanding any other provisions
of the Offer, but subject to compliance with the terms and conditions of the Merger Agreement and in addition to (and not in
57
limitation of) the obligations of Purchaser to extend the Offer pursuant to the terms and conditions of the Merger Agreement, Purchaser or, if the Merger Condition is satisfied, Acquisition Sub,
shall not be required to accept for payment or, subject to any applicable rules and regulations of the SEC, pay for any Shares validly tendered and not withdrawn pursuant to the Offer in the event that at or prior to the expiration of the Offer:
|
|
|
the Minimum Condition shall not have been satisfied; |
|
|
|
the CFIUS Clearance Condition shall not have been satisfied, unless Purchaser and the Company determine that CFIUS Clearance Condition is unnecessary because it was obtained for a transaction covered by the Investment
Agreement; |
|
|
|
the ITAR Pre-Notification Condition shall not have been satisfied; |
|
|
|
any waiting period (and extensions thereof) applicable to the transactions contemplated by this Agreement under the HSR Act shall not have expired or been terminated; |
|
|
|
any waiting periods, clearances, approvals and/or consents applicable to the transactions contemplated by the Merger Agreement under the antitrust laws of Mexico, Russia, Turkey and South Africa shall not have expired,
been terminated or been obtained; |
|
|
|
if the number of Shares validly tendered in this Offer and not withdrawn is greater than the Minimum Condition but less than the Merger Condition, the execution by the Company and Purchaser of the Amended and Restated
Stockholders Rights Agreement in substantially the form attached to the Merger Agreement; or |
|
|
|
any of the following shall have occurred and continue to exist as of immediately prior to the expiration of the Offer: |
|
1. |
any Governmental Authority of competent jurisdiction in the United States shall have (i) enacted, issued or promulgated any Law that is in effect as of immediately prior to the expiration of the Offer and has the
effect of making the Offer or the Merger illegal in the United States or which has the effect of prohibiting or otherwise preventing the consummation of the Offer or the Merger in the United States, or (ii) issued or granted any Order that is
in effect as of immediately prior to the expiration of the Offer and has the effect of making the Offer or the Merger illegal in the United States or which has the effect of prohibiting or otherwise preventing the consummation of the Merger in the
United States; |
|
2. |
the representations and warranties of the Company contained in Section 4.6(a), (b), and (c) (Capitalization) of the Merger Agreement shall not be true and correct in all respects (other than de minimis
amounts) immediately prior to the expiration of the Offer (except to the extent expressly made as of an earlier date, in which case as of such earlier date), (ii) without giving effect to any limitation as to materiality or
Company Material Adverse Effect set forth therein, the representations and warranties of the Company contained in Section 4.1 (Organization; Good Standing), Section 4.2 (Corporate Power; Enforceability), Section 4.6(d)
(Capitalization), Section 4.25 (Brokers), and Section 4.27 (State Anti-Takeover Statutes) of the Merger Agreement shall not be true and correct in all material respects immediately prior to the expiration of the Offer (except to the extent
expressly made as of an earlier date, in which case as of such earlier date), and (iii) without giving effect to any limitation as to materiality or Company Material Adverse Effect set forth therein, all other
representations and warranties of the Company contained in the Merger Agreement shall not be true and correct immediately prior to the expiration of the Offer (except to the extent expressly made as of an earlier date, in which case as of such
earlier date), except where the failure of such representations and warranties to be so true and correct does not have, individually or in the aggregate, a Company Material Adverse Effect; |
|
3. |
the Company shall have failed to perform in all material respects the obligations that are to be performed by it under the Merger Agreement at or prior to the expiration of the Offer; |
58
|
4. |
since the date of the Merger Agreement, there shall have occurred a Company Material Adverse Effect; |
|
5. |
Purchaser shall not have received a certificate executed by a duly authorized officer of the Company dated as of the date of the Acceptance Time confirming on behalf of the Company that the conditions set forth in items
(2), (3), and (4) of this list are duly satisfied immediately prior to the Acceptance Time; |
|
6. |
the Company shall have taken any action or made any change in connection with the Shares, including a split, combination, redemption, sale, new issuance or declaration or payment of a dividend or any other action
adverse to the interests of Purchaser or any of its Affiliates; |
|
7. |
the Company shall have entered into any other tender offer or exchange offer; |
|
8. |
the Companys Board of Directors shall have withdrawn or modified (including by amendment of the Schedule 14D-9 or the Schedule 13E-3) in a manner adverse to Purchaser, the Board Recommendation or shall have made a
Board Recommendation Change; or |
|
9. |
the Merger Agreement shall have been properly and validly terminated in accordance with its terms. |
The foregoing conditions are for the sole benefit of Purchaser and Acquisition Sub (subject to certain exceptions described below) may be
waived by Purchaser and Acquisition Sub, in whole or in part at any time and from time to time, in the sole discretion of Purchaser and Acquisition Sub. The failure by Purchaser and Acquisition Sub at any time to exercise any of the foregoing rights
shall not be deemed a waiver of any such right, and each such right shall be deemed an ongoing right which may be asserted at any time and from time to time. Without the prior written consent of the Company in its sole discretion, Purchaser may not:
|
|
|
waive (A) the Minimum Condition, (B) the condition that any waiting period (and extension thereof) applicable to the transactions contemplated by the Merger Agreement under the HSR Act shall have expired or
been terminated, (C) the condition that any governmental authority of competent jurisdiction in the United States shall not have (i) enacted, issued or promulgated any law that is in effect as of immediately prior to the expiration of the
Offer and has the effect of making the Offer or the Merger illegal in the United States or which has the effect of prohibiting or otherwise preventing the consummation of the Offer or the Merger in the United States, or (ii) issued or granted
any Order that is in effect as of immediately prior to the expiration of the Offer and has the effect of making the Offer or the Merger illegal in the United States or which has the effect of prohibiting or otherwise preventing the consummation of
the Merger in the United States, or (D) if the number of Shares validly tendered in this Offer and not withdrawn is less than the Merger Condition, the delivery and execution of the Amended and Restated Stockholder Rights Agreement; or
|
|
|
|
make any change in the terms of or conditions of the Offer that (A) changes the form of consideration to be paid in the Offer, (B) decreases the Offer Price or the number of Shares sought in the Offer,
(C) extends the Offer, other than in a manner required by the Merger Agreement, (D) imposes conditions of the Offer other than those described herein, (E) modifies the conditions described herein, or (F) amends any other term or
condition of the Offer in any manner that is material and adverse to the holders of Shares. |
12. |
Certain Legal Matters; Regulatory Approvals. |
General
Except as described in this Section 12, based on our examination of publicly available information filed by the Company with the SEC and
other publicly available information concerning the Company, we are not aware of any governmental license or regulatory permit that appears to be material to the Companys business that would be adversely affected by our acquisition of Shares
pursuant to the Offer or, except as set forth below in
59
this Section 12, of any approval or other action by any government or governmental administrative or regulatory authority or agency, domestic or foreign, that would be required for our
purchase of Shares pursuant to the Offer. Should any such approval or other action be required or desirable, we currently contemplate that, except for takeover laws in jurisdictions other than Delaware as described below under State Takeover
Laws, such approval or other action will be sought. However, except for observance of the waiting periods summarized under Antitrust Compliance below in this Section 12, we do not anticipate delaying the purchase of Shares
tendered pursuant to the Offer pending the outcome of any such matter. There can be no assurance that any such approval or action, if needed, will be obtained or, if obtained, that it will be obtained without substantial conditions; and there can be
no assurance that, in the event that such approvals were not obtained or such other actions were not taken, adverse consequences might not result to the Companys business or that certain parts of the Companys business might not have to
be disposed of or held separate, any of which may give us the right to terminate the Offer at any Expiration Date without accepting for payment any Shares validly tendered (and not withdrawn) pursuant to the Offer. Our obligation under the Offer to
accept for payment and pay for Shares is subject to the conditions of the Offer, including, among other conditions, the Antitrust Condition. See The Tender Offer Section 11 Conditions of the Offer.
Antitrust Compliance
Under the
HSR Act (including the related rules and regulations that have been promulgated thereunder by the FTC), certain acquisition transactions, including Purchasers purchase of Shares pursuant to the Offer, may not be consummated until certain
information and documentary material has been furnished for review by the FTC and the Antitrust Division of the U.S. Department of Justice (the Antitrust Division) and certain waiting period requirements have been satisfied. Pursuant to
the HSR Act, on May 20, 2015, Purchaser and the Company filed their respective Premerger Notification and Report Forms with the FTC and the Antitrust Division.
Under the HSR Act, Purchasers purchase of the Shares pursuant to the Offer is subject to an initial waiting period of fifteen
(15) calendar days that will expire at 11:59 pm, EDT on June 4, 2015. However, the initial waiting period may be terminated prior to such date and time by the FTC and the Antitrust Division, or we may receive a request for additional
information or documentary material(a Second Request) from either the FTC or the Antitrust Division prior to such expiration. If the FTC or the Antitrust Division issues a Second Request, the waiting period with respect to the Offer will
be extended for an additional period of 10 calendar days, which will begin on the date on which we have substantially complied with the Second Request. Complying with a Second Request can take a significant period of time. If either the 15-day or
10-day waiting period expires on a Saturday, Sunday or federal holiday, then such waiting period will be extended until 11:59 p.m. of the next day that is not a Saturday, Sunday or federal holiday. Only one extension of the waiting period pursuant
to a Second Request is authorized by the HSR Act. After that time, the waiting period may be extended only by court order or with our consent. The FTC or the Antitrust Division may terminate the additional 10-day waiting period before its
expiration.
The FTC and the Antitrust Division frequently scrutinize the legality under the U.S. antitrust laws of transactions like the
Offer and the Merger. At any time, the FTC or the Antitrust Division could take any action under the antitrust laws that it considers necessary or desirable in the public interest, including seeking (i) to enjoin the purchase of Shares pursuant
to the Offer, (ii) to enjoin the Merger, (iii) to require Purchaser (or, after completion of the Merger, Purchaser) to divest the Shares, or (iv) to require us or the Company to divest substantial assets. Private parties, as well as
state attorneys general, also may bring legal actions under the antitrust laws under certain circumstances. See The Tender Offer Section 11 Conditions of the Offer.
Under the Mexican Federal Law on Economic Competition, depending on the number of Shares purchased pursuant to the Offer, the Offer may need
to be notified to the Mexican Federal Commission on Economic Competition (COFECE) and the parties may be required to observe the relevant waiting periods and obtain clearance from the COFECE. Upon submission of a completed notification
to the COFECE, the COFECE will have 15 days to review the notification and issue a second request for information and data. Once the second
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request for information and data is satisfied, the COFECE has 60 days to complete its review of the Offer and issue a ruling on whether the transaction raises competition concerns. In certain
circumstances, the COFECE can extend the waiting period to complete its review.
Under the Russian Law on Protection of Competition,
depending on the number of Shares purchased pursuant to the Offer, the Offer may need to be notified to the Federal Antimonopoly Service (FAS) and the parties may be required to observe the relevant waiting periods and obtain clearance
from the FAS. Upon submission of a completed notification, the FAS will have 30 days to review the Offer and decide whether the Offer raises competition concerns. If the FAS concludes that the Offer does not raise competition concerns, the Offer
will be cleared within the first 30-day period. If the FAS concludes that the Offer raises competition concerns, the FAS can initiate a second-stage investigation during which the FAS has two additional months to determine whether to clear the
transaction or impose conditions.
Under the Competition Act 89 of 1998, as amended, depending on the number of Shares purchased pursuant
to the Offer, the Offer may need to be notified to the South Africa Competition Commission (SACC) and the parties may be required to observe the relevant waiting periods and obtain clearance from the SACC. Upon certifying that a
submitted merger control filing is complete, the SACC has 20 business days to issue a decision, and the SACC may further extend the relevant waiting period by no more than 40 business days.
Under the Turkish Law on Protection of Competition, depending on the number of Shares purchased pursuant to the Offer, the Offer may need to
be notified to the Turkish Competition Authority and the parties may be required to observe the relevant waiting periods and obtain clearance from the Turkish Competition Authority. Upon submission of a completed notification, the Turkish
Competition Authority will have 30 days to review the Offer and decide whether the Offer raises competition concerns. The Turkish Competition Authority may extend the waiting period if it determines that an in-depth investigation is required.
Based upon an examination of publicly available information and other information relating to the businesses in which the Company is engaged,
we and the Company believe that neither the purchase of Shares by Purchaser pursuant to the Offer nor the consummation of the Merger, if applicable, should violate applicable antitrust laws. Nevertheless, neither we nor the Company can be certain
that a challenge to the Offer or the Merger on antitrust grounds will not be made, or, if such challenge is made, what the result will be. See The Tender Offer Section 11 Conditions of the Offer.
State Takeover Laws
The Company
is incorporated under the laws of the State of Delaware. In general, Section 203 of the DGCL prevents a Delaware corporation from engaging in a business combination (defined to include mergers and certain other actions) with an
interested stockholder (including a person who owns or has the right to acquire 15% or more of a corporations outstanding voting stock) for a period of three years following the date such person became an interested
stockholder unless, among other things, the business combination is approved by the board of directors of such corporation before such person became an interested stockholder. The Companys Board of Directors
approved the Merger Agreement on May 17, 2015 and, therefore, Section 203 of the DGCL is inapplicable to the Merger Agreement and the transactions contemplated therein.
A number of states have adopted laws and regulations applicable to attempts to acquire securities of corporations that are
incorporated, or have substantial assets, stockholders, principal executive offices or principal places of business, or whose business operations otherwise have substantial economic effects, in such states. In 1982, in Edgar v. MITE Corp.,
the Supreme Court of the United States invalidated on constitutional grounds the Illinois Business Takeover Statute which, as a matter of state securities law, made takeovers of corporations meeting certain requirements more difficult. However, in
1987, in CTS Corp. v. Dynamics Corp. of America, the Supreme Court held that the State of Indiana could, as a matter of corporate law, constitutionally disqualify a potential acquirer from voting shares of a target corporation without the
prior approval of the remaining stockholders where,
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among other things, the corporation is incorporated, and has a substantial number of stockholders, in the state. Subsequently, in TLX Acquisition Corp. v. Telex Corp., a U.S. federal
district court in Oklahoma ruled that the Oklahoma statutes were unconstitutional as applied to corporations incorporated outside Oklahoma in that they would subject such corporations to inconsistent regulations. Similarly, in Tyson Foods, Inc.
v. McReynolds, a U.S. federal district court in Tennessee ruled that four Tennessee takeover statutes were unconstitutional as applied to corporations incorporated outside Tennessee. This decision was affirmed by the United States Court of
Appeals for the Sixth Circuit. In December 1988, a U.S. federal district court in Florida held in Grand Metropolitan PLC v. Butterworth that the provisions of the Florida Affiliated Transactions Act and the Florida Control Share Acquisition
Act were unconstitutional as applied to corporations incorporated outside of Florida.
The Company, directly or through
subsidiaries, conducts business in a number of states throughout the United States, some of which have enacted takeover laws. We do not know whether any of these laws will, by their terms, apply to the Offer or the Merger and have not attempted to
comply with any such laws. Should any person seek to apply any state takeover law, we will take such action as then appears desirable, which may include challenging the validity or applicability of any such statute in appropriate court proceedings.
In the event any person asserts that the takeover laws of any state are applicable to the Offer or the Merger, and an appropriate court does not determine that it is inapplicable or invalid as applied to the Offer or the Merger, we may be required
to file certain information with, or receive approvals from, the relevant state authorities. In addition, if enjoined, we may be unable to accept for payment any Shares tendered pursuant to the Offer, or be delayed in continuing or consummating the
Offer and the Merger. In such case, we may not be obligated to accept for payment any Shares tendered in the Offer. See The Tender Offer Section 11 Conditions of the Offer.
Committee on Foreign Investment in the United States
The Exon-Florio Amendment empowers the President of the United States of America to review and, if necessary, prohibit or suspend an
acquisition of, or investment in, a U.S. company by a foreign person if the President, after investigation, determines that the foreign persons control threatens to impair the national security of the United States. Pursuant to the
Exon-Florio Amendment, CFIUS has been delegated the authority to receive notices of proposed transactions, determine when an investigation is warranted, conduct investigations, require mitigation measures and submit recommendations to the President
to suspend or prohibit the completion of transactions or to require divestitures of completed transactions. A party or parties to a transaction may, but are not required to, submit to CFIUS a voluntary notice of the transaction, except in limited
circumstances, which do not apply in this case. CFIUS also has the power to initiate reviews on its own in the absence of a voluntary notification. The parties filed a voluntary notice with CFIUS pursuant to the Exon-Florio Amendment and its
implementing regulations on May 18, 2015 in connection with the transactions contemplated by the Investment Agreement. If CFIUS determines that the transaction contemplated by the Investment Agreement is subject to Exon-Florio and grants
clearance in connection with the Investment Agreement, satisfaction of the CFIUS Clearance Condition will not be required for consummation of the Offer or the Merger. See The Tender Offer Section 11 Certain Conditions of the
Offer.
Legal Proceedings
None.
Purchaser has retained Georgeson Inc. to be the Information Agent
and Computershare Trust Company, N.A. to be the Depositary in connection with the Offer. The Information Agent may contact holders of Shares by mail, electronic mail, telephone, telecopy, personal interview and other methods of electronic
communication and may request banks, brokers, dealers and other nominees to forward materials relating to the Offer to beneficial owners of Shares.
62
The Information Agent and the Depositary each will receive reasonable and customary compensation
for their respective services in connection with the Offer, will be reimbursed for reasonable out-of-pocket expenses and will be indemnified against certain liabilities and expenses in connection therewith, including certain liabilities under
federal securities laws.
Neither Purchaser nor Acquisition Sub will pay any fees or commissions to any broker or dealer or to any other
person (other than to the Depositary and the Information Agent) in connection with the solicitation of tenders of Shares pursuant to the Offer. Brokers, dealers, commercial banks and trust companies will, upon request, be reimbursed by Purchaser for
customary mailing and handling expenses incurred by them in forwarding offering materials to their customers. In those jurisdictions where applicable laws or regulations require the Offer to be made by a licensed broker or dealer, the Offer shall be
deemed to be made on behalf of Purchaser by one or more registered brokers or dealers licensed under the laws of such jurisdiction to be designated by Purchaser.
The Offer is not being made to (nor will tenders be accepted from or on
behalf of) holders of Shares in any jurisdiction in which the making of the Offer or the acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In those jurisdictions where applicable laws or
regulations require the Offer to be made by a licensed broker or dealer, the Offer shall be deemed to be made on behalf of Purchaser by one or more registered brokers or dealers licensed under the laws of such jurisdiction to be designated by
Purchaser.
No person has been authorized to give any information or to make any representation on behalf of Purchaser or Acquisition Sub
not contained herein or in the Letter of Transmittal, and, if given or made, such information or representation must not be relied upon as having been authorized. No broker, dealer, bank, trust company, fiduciary or other person shall be deemed to
be the agent of Purchaser, Purchaser, the Depositary or the Information Agent for the purposes of the Offer.
Purchaser and Acquisition
Sub have filed with the SEC a Tender Offer Statement on Schedule TO pursuant to Rule 14d-3 under the Exchange Act, together with exhibits furnishing certain additional information with respect to the Offer, and may file amendments thereto. In
addition, the Company has filed or will file, pursuant to Rule 14d-9 under the Exchange Act, the Schedule 14D-9 with the SEC, together with exhibits, setting forth the recommendation of the Companys Board of Directors with respect to the Offer
and the reasons for such recommendation and furnishing certain additional related information. A copy of such documents, and any amendments thereto, may be examined at, and copies may be obtained from, the SEC in the manner set forth in The Tender
Offer Section 7 Certain Information Concerning the Company.
BCP IV GrafTech Holdings LP
Athena Acquisition Subsidiary Inc.
May 26, 2015
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SCHEDULE I:
DIRECTORS AND EXECUTIVE OFFICERS OF PURCHASER AND ACQUISITION SUB
The name, current principal occupation or employment and material occupations, positions, offices or employment for the past five years
of each director, executive officer, managers and general partners of the Purchaser Group and their affiliates are set forth below.
The general partner of Purchaser is BPE IV (Non-Cdn) GP LP, a limited
partnership formed under the laws of the Province of Manitoba (BPE IV). The general partner of BPE IV is Brookfield Capital Partners Ltd. (Brookfield). The principal office address of BPE IV and Brookfield is 181 Bay Street,
Suite 300, Toronto, Ontario M5J 2T3. The telephone number of BPE IV and Brookfield is (416) 363-9491. The name, citizenship, business address, present principal occupation or employment material occupations, positions, offices or employment for
the past five years of each of the directors and executive officers of Brookfield are set forth below. Except as otherwise noted below, the business address of each such director and executive officer is Brookfield Place, 181 Bay Street, Suite 300,
Toronto, Ontario M5J 2T3. The telephone number at such office is (416) 363-9491.
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Name and Position |
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Citizenship |
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Present Principal Occupation or Employment;
Material Positions Held During the Last Five Years |
Jaspreet Dehl (Director and Senior Vice President and Secretary) |
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Canada |
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See below. |
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Joseph Freedman (Director and Senior Managing Partner) |
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Canada |
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Mr. Freedman is a Senior Managing Partner at Brookfield in the private equity group. Since joining Brookfield in 2002, Mr. Freedman has held a number of positions including general counsel and partner responsible for M&A
transaction execution and fund formation and operations. |
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David Nowak (Director and Managing Partner) |
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Canada |
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See below. |
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Peter Gordon (Managing Partner) |
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Canada |
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Mr. Gordon is a Managing Partner at Brookfield in the private equity group. Mr. Gordon joined Brascan (the predecessor to Brookfield) in 1998. |
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David Gregory (Vice President) |
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Canada |
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See below. |
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Jon Haick (Senior Managing Partner) |
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Canada |
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Mr. Haick is a Senior Managing Partner at Brookfield and the Chief Executive Officer of Brookfield Europe. Mr. Haick joined Brookfields private equity group in 2005 and has worked in a number of investment and operating roles
within the group since that time. The business address for Mr. Haick is 99 Bishopsgate London, UK EC2M 3XD, and the telephone number at such address is +44 20 7408 8301. |
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Aaron Kline (Vice President) |
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Canada |
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Mr. Kline is Senior Vice President of taxation at Brookfield. Mr. Kline joined Brookfield in 2009 and was previously part of the M&A tax group at PricewaterhouseCoopers
LLP. |
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Name and Position |
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Citizenship |
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Present Principal Occupation or Employment;
Material Positions Held During the Last Five Years |
Cyrus Madon (Senior Managing Partner) |
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Canada |
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Mr. Madon is the Senior Managing Partner of Brookfield responsible for Brookfields private equity and lending activities. Mr. Madon joined Brookfield in 1998 when he was appointed Chief Financial Officer of Brookfields
real estate brokerage business. |
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Pierre McNeil (Senior Vice President) |
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Canada |
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Mr. McNeil is Senior Vice President and Chief Operating Officer of Brookfields private equity group. Mr. McNeil joined Brookfield in 1991. Previously, he was Senior Vice President, Human Resources and Wood Products of Fraser
Papers, a Brookfield affiliate. |
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Jim Reid (Managing Partner) |
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Canada |
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Mr. Reid is Managing Partner of Brookfield, based in Calgary, where he is responsible for Brookfields energy lending business and for originating, evaluating and structuring investments and financings in the energy sector and
overseeing operations in Brookfield Infrastructures energy segment. Mr. Reid joined Brookfield in 2003. The business address for Mr. Reid is 335 8th Avenue SW, Calgary, AB T2P 1C9 and
the telephone number at such address is (403) 770-7215. |
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Schultz (Vice President) |
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Canada |
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Mr. Schultz is a Vice President of Brookfield based in Calgary and has been with Brookfield since 2012. Prior to joining Brookfield, he was the CFO & VP of Finance at Waldron Energy Corp. The business address for Mr. Schultz is
335 8th Avenue SW, Calgary, AB T2P 1C9 and the telephone number at such address is (403) 770-7215. |
The name, citizenship, business address, present principal
occupation or employment material occupations, positions, offices or employment for the past five years of each of the directors and executive officers of Acquisition Sub are set forth below. The business address of Mssrs. Blattman and Neiman is 250
Vesey Street, 15th Floor, New York, New York 10281. The telephone number at such office is (212) 417-7000. The business address for Ms. Dehl and Mssrs. Nowak and Gregory is Brookfield Place,
181 Bay Street, Suite 300, Toronto, Ontario M5J 2T3 and the telephone number at such address is (416) 363-9491.
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Name and Position |
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Citizenship |
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Present Principal Occupation or Employment; Material Positions Held During the Last Five Years |
Barry Blattman (Director and Senior Managing Partner) |
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United States |
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Mr. Blattman is the Senior Managing Partner of Brookfield responsible for Brookfields global opportunistic real estate investment programs. Mr. Blattman joined Brookfield in
2002. |
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Name and Position |
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Citizenship |
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Present Principal Occupation or Employment; Material Positions Held During the Last Five Years |
Jaspreet Dehl (Director and Senior Vice President and Secretary) |
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Canada |
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Ms. Dehl is a Senior Vice President at Brookfield in the private equity group. Ms. Dehl has held a number of positions at Brookfield, including Senior Vice President, Finance and Operations for the private equity group and
Senior Vice President, Finance and Operations in the private funds group. Ms. Dehl joined Brookfield in 2011. Prior to joining Brookfield, Ms. Dehl was part of the Financial Advisory Practice at Deloitte and specialized in transaction execution
services to private equity clients and corporate restructuring services. |
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David Neiman (Director and Senior Vice President) |
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United States |
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Mr. Neiman is a Senior Vice President at Brookfield in the private equity group. Mr. Neiman joined Brookfield in 2006 and focuses on business development, due diligence, deal execution and general corporate finance
matters. |
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David Nowak (Managing Partner) |
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Canada |
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Mr. Nowak is a Managing Partner at Brookfield in the private equity group. Prior to joining Brookfield in 2011, Mr. Nowak was a Managing Director at Westerkirk. |
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David Gregory (Vice President) |
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Canada |
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Mr. Gregory is a Vice President at Brookfield in the private equity group. Prior to joining Brookfield in 2010, Mr. Gregory was an investment banking analyst at Genuity Capital Markets. |
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Manually signed facsimiles of the Letter of Transmittal, properly completed, will be accepted.
The Letter of Transmittal and certificates evidencing Shares and any other required documents should be sent by each holder or such holders broker, dealer, commercial bank, trust company or other nominee to the Depositary at one of its
addresses set forth below:
The Depositary for the Offer is:
Computershare Trust Company, N.A.
If delivering by mail:
By First Class, Registered or Certified Mail:
Computershare Trust Company, N.A.
c/o Voluntary Corporate Actions
PO
Box 43011
Providence, RI 02940-3011
By Express or Overnight Delivery:
Computershare Trust Company, N.A.
c/o Voluntary Corporate Actions
250 Royall Street, Suite V
Canton,
MA 02021
Questions or requests for assistance may be directed to the Information Agent at the address and telephone numbers listed below.
Additional copies of this Offer to Purchase, the Letter of Transmittal and the Notice of Guaranteed Delivery may also be obtained from the Information Agent. Stockholders may also contact brokers, dealers, commercial banks or trust companies for
assistance concerning the Offer.
The Information Agent for the Offer is:
480 Washington Boulevard, 26th Floor
Jersey City, NJ 07310
Shareholders, Banks and Brokers
Call Toll Free:
866-856-2826
Or email: graftech@georgeson.com
Exhibit (a)(1)(B)
Letter of Transmittal
To
Tender Shares of Common Stock
of
GRAFTECH INTERNATIONAL LTD.
$5.05 Per Share in Cash
Pursuant to the Offer to Purchase dated May 26, 2015 by
BCP IV GRAFTECH HOLDINGS LP
and
ATHENA ACQUISITION
SUBSIDIARY INC.,
its wholly-owned subsidiary
The undersigned represents that I (we) have full authority to surrender without restriction the certificate(s) listed below. You are hereby authorized and
instructed to deliver to the address indicated below (unless otherwise instructed in the boxes in the following page) a check representing a cash payment for shares of common stock, par value $0.01 per share, of GrafTech International Ltd.
(GrafTech) (collectively, the Shares) tendered pursuant to this Letter of Transmittal, at a price of $5.05 per share in cash, without interest and subject to any required tax withholding, upon the terms and subject to the
conditions set forth in the Offer to Purchase, dated May 26, 2015 (as it may be amended or supplemented from time to time, the Offer to Purchase and, together with this Letter of Transmittal, as it may be amended or supplemented from
time to time, the Offer).
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT MIDNIGHT, NEW YORK CITY TIME, ON JULY 7,
2015 UNLESS THE OFFER IS EXTENDED OR EARLIER TERMINATED.
Method of delivery of the certificate(s) is at the option and risk of
the owner thereof. See Instruction 2.
Mail or deliver this Letter of Transmittal, or a facsimile using the guaranteed delivery
procedures or a book-entry transfer, together with the certificate(s) representing your shares, to:
If delivering by mail:
By First Class, Registered or Certified Mail:
Computershare Trust Company, N.A.
c/o Voluntary Corporate Actions
PO
Box 43011
Providence, RI 02940-3011
By Express or Overnight Delivery:
Computershare Trust Company, N.A.
c/o Voluntary Corporate Actions
250 Royall Street, Suite V
Canton,
MA 02021
VOLUNTARY CORPORATE ACTIONS COY: GTI
Pursuant to the offer of BCP IV GrafTech Holdings LP (Purchaser) and Athena
Acquisition Subsidiary Inc. (Acquisition Sub) to purchase all outstanding Shares of GrafTech, the undersigned encloses herewith and surrenders the following certificate(s) representing Shares of GrafTech:
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DESCRIPTION OF SHARES TENDERED |
Name(s) and
Address(es) of Registered Owner(s) (If blank, please fill in exactly as name(s)
appear(s) on share certificate(s)) |
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Shares Tendered (attach
additional list if necessary) |
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Certificated Shares** |
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Certificate
Number(s)* |
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Total
Number of Shares Represented by
Certificate(s)* |
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Number of Shares
Tendered** |
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Book Entry
Shares
Tendered |
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Total Shares |
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* Need not be completed by stockholders tendering solely by book-entry transfers.
** Unless otherwise indicated, it will be assumed that all shares of common stock represented by
certificates described above are being tendered hereby. See Instruction 1. |
VOLUNTARY CORPORATE ACTIONS COY: GTI
2
THE INSTRUCTIONS ACCOMPANYING THIS LETTER OF TRANSMITTAL SHOULD BE READ CAREFULLY BEFORE THIS LETTER OF
TRANSMITTAL IS COMPLETED.
DELIVERY OF THIS LETTER OF TRANSMITTAL TO AN ADDRESS OTHER THAN AS SET FORTH ABOVE FOR THE DEPOSITARY WILL NOT
CONSTITUTE VALID DELIVERY. YOU MUST SIGN THIS LETTER OF TRANSMITTAL IN THE APPROPRIATE SPACE PROVIDED BELOW, WITH SIGNATURE GUARANTEE IF REQUIRED, AND COMPLETE THE IRS FORM W-9 SET FORTH BELOW, IF REQUIRED. PLEASE READ THE INSTRUCTIONS
ACCOMPANYING THIS LETTER OF TRANSMITTAL CAREFULLY BEFORE COMPLETING THIS LETTER OF TRANSMITTAL.
ALL QUESTIONS REGARDING THE OFFER SHOULD BE
DIRECTED TO THE INFORMATION AGENT, GEORGESON INC., AT 866-856-2826 FOR STOCKHOLDERS, BANKS AND BROKERS OR THE ADDRESS SET FORTH ON THE BACK PAGE OF THE OFFER TO PURCHASE.
IF YOU WOULD LIKE ADDITIONAL COPIES OF THIS LETTER OF TRANSMITTAL OR ANY OF THE OTHER OFFERING DOCUMENTS, YOU SHOULD CONTACT THE INFORMATION AGENT,
GEORGESON INC., AT 866-856-2826 FOR STOCKHOLDERS, BANKS AND BROKERS.
THE TENDER OFFER IS NOT BEING MADE TO (NOR WILL TENDER OF SHARES BE ACCEPTED
FROM OR ON BEHALF OF) STOCKHOLDERS IN ANY JURISDICTION WHERE IT WOULD BE ILLEGAL TO DO SO.
This Letter of Transmittal is being delivered to you in
connection with the offer by BCP IV GrafTech Holdings LP, a Delaware limited partnership (Purchaser) and Athena Acquisition Subsidiary Inc. (Acquisition Sub) to purchase all of the issued and outstanding shares of common
stock, par value $0.01 per share (the Shares), of GrafTech International Ltd., a Delaware corporation (GrafTech), at a purchase price of $5.05 per Share in cash, without interest thereon and subject to any required tax
withholding, upon the terms and subject to the conditions set forth in this Letter of Transmittal and the related Offer to Purchase by Purchaser and Acquisition Sub, dated May 26, 2015 (the Offer to Purchase, which, together with this
Letter of Transmittal, as they may be amended or supplemented from time to time, collectively constitute the Offer). The Offer expires on the Expiration Date. Expiration Date means midnight, New York City time, on July 7,
2015, unless we, in accordance with the Offer, extend the period during which the Offer is open, in which event the term Expiration Date means the latest time and date at which the Offer, as so extended, expires.
You should use this Letter of Transmittal to deliver to Computershare Trust Company, N.A. (the Depositary) Shares represented by stock
certificates, or held in book-entry form on the books of GrafTech, for tender. If you are delivering your Shares by book-entry transfer to an account maintained by the Depositary at The Depository Trust Company (DTC), you must use an
Agents Message (as defined in Instruction 2 below). In this Letter of Transmittal, stockholders who deliver certificates representing their Shares are referred to as Certificate Stockholders.
If certificates representing your Shares are not immediately available or you cannot deliver such certificates and all other required documents to the
Depositary on or prior to the Expiration Date or you cannot complete the book-entry transfer procedures on or prior to the Expiration Date, you may nevertheless tender your Shares according to the guaranteed delivery procedures set forth in The
Tender Offer Section 3 Procedures for Accepting the Offer and Tendering Shares in the Offer to Purchase. See Instruction 2 below. Delivery of documents to DTC will not constitute delivery to the Depositary.
If any certificate representing any Shares you are tendering with this Letter of Transmittal has been lost, stolen, destroyed or mutilated, you
should contact GrafTechs stock transfer agent, Computershare Trust Company, N.A. (the Transfer Agent) at (877) 373-6374 (toll free in the United States) or +1 (781) 575-3120 (international) regarding the requirements for
replacement. You may be required to post a bond to secure against the risk that such certificates may be subsequently recirculated. You are urged to contact the Transfer Agent immediately in order to receive further instructions, for a determination
of whether you will need to post a bond and to permit timely processing of this documentation. See Instruction 10.
VOLUNTARY CORPORATE ACTIONS COY: GTI
3
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CHECK HERE IF TENDERED SHARES ARE BEING DELIVERED BY BOOK-ENTRY TRANSFER TO THE ACCOUNT MAINTAINED BY THE DEPOSITARY WITH DTC AND COMPLETE THE FOLLOWING (ONLY FINANCIAL INSTITUTIONS THAT ARE PARTICIPANTS IN DTC MAY
DELIVER SHARES BY BOOK-ENTRY TRANSFER): |
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CHECK HERE IF TENDERED SHARES ARE BEING DELIVERED PURSUANT TO A NOTICE OF GUARANTEED DELIVERY PREVIOUSLY SENT TO THE DEPOSITARY AND COMPLETE THE FOLLOWING (PLEASE ENCLOSE A PHOTOCOPY OF SUCH NOTICE OF GUARANTEED
DELIVERY): |
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Name(s) of Registered Owner(s): |
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Window Ticket Number (if any) or DTC Participant Number: |
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Date of Execution of Notice of Guaranteed Delivery: |
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Name of Institution which Guaranteed Delivery: |
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NOTE: SIGNATURES MUST BE PROVIDED BELOW.
PLEASE READ THE ACCOMPANYING INSTRUCTIONS CAREFULLY.
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Ladies and Gentlemen:
The undersigned hereby tenders to BCP IV GrafTech Holdings LP, a Delaware limited partnership (Purchaser), or, if the Merger Condition (as defined
in the Offer to Purchase) is satisfied, Athena Acquisition Subsidiary Inc., a Delaware corporation (Acquisition Sub), the above-described shares of common stock, par value $0.01 per share (the Shares), of GrafTech
International Ltd., a Delaware corporation (GrafTech), at a purchase price of $5.05 per Share in cash (the Offer Price), without interest thereon and subject to any required tax withholding, upon the terms and subject to the
conditions set forth in the Offer to Purchase by Purchaser, dated May 26, 2015, which the undersigned hereby acknowledges the undersigned has received (the Offer to Purchase, which, together with this Letter of Transmittal, as they may
be amended or supplemented from time to time, collectively constitute the Offer). The Offer expires on the Expiration Date. Expiration Date means midnight, New York City time, on July 7, 2015, unless we, in accordance with
the Offer, extend the period during which the Offer is open, in which event the term Expiration Date means the latest time and date at which the Offer, as so extended, expires. The undersigned hereby acknowledges that Purchaser reserves
the right to transfer or assign, from time to time, in whole or in part, to one or more of its affiliates, without the consent of GrafTech, the right to purchase the Shares tendered herewith.
Upon the terms and subject to the conditions of the Offer (including, if the Offer is extended or amended, the terms and conditions of such extension or
amendment), subject to, and effective upon, acceptance for payment for the Shares validly tendered herewith and not validly withdrawn, the undersigned hereby sells, assigns and transfers to, or upon the order of, Purchaser or, if the Merger
Condition (as defined in the Offer to Purchase) is satisfied, Acquisition Sub, all right, title and interest in and to all of the Shares being tendered hereby and any and all cash dividends, distributions, rights, other Shares or other securities
issued or issuable in respect of such Shares on or after the date hereof (collectively, Distributions). In addition, the undersigned hereby irrevocably appoints Computershare Trust Company, N.A. (the Depositary) the true and
lawful agent and attorney-in-fact and proxy of the undersigned with respect to such Shares and any Distributions with full power of substitution (such proxies and power of attorney being deemed to be an irrevocable power coupled with an interest in
the tendered Shares and any Distributions) to the full extent of such stockholders rights with respect to such Shares and any Distributions (a) to deliver certificates representing such Shares (the Share Certificates) and any
Distributions, or transfer of ownership of such Shares and any Distributions on the account books maintained by The Depository Trust Company (DTC), together, in either such case, with all accompanying evidence of transfer and
authenticity, to or upon the order of Purchaser, (b) to present such Shares and any Distributions for transfer on the books of GrafTech, and (c) to receive all benefits and otherwise exercise all rights of beneficial ownership of such
Shares and any Distributions, all upon the terms and subject to the conditions of the Offer.
The undersigned hereby irrevocably appoints each of the
designees of Purchaser or Acquisition Sub, as applicable, the attorneys-in-fact and proxies of the undersigned, each with full power of substitution, to the full extent of such stockholders rights with respect to the Shares tendered hereby
which have been accepted for payment and with respect to any Distributions. The designees of Purchaser or Acquisition Sub, as applicable, will, with respect to such Shares and Distributions, be empowered to exercise all voting and any other rights
of such stockholder, as they, in their sole discretion, may deem proper at any annual, special, adjourned or postponed meeting of GrafTechs stockholders, by written consent in lieu of any such meeting or otherwise as such designee, in its, his
or her sole discretion, deems proper with respect to all Shares and any Distributions. This proxy and power of attorney shall be irrevocable and coupled with an interest in the tendered Shares and any Distributions. Such appointment is effective
when, and only to the extent that, Purchaser or, if the Merger Condition (as defined in the Offer to Purchase) is satisfied, Acquisition Sub, accepts the Shares tendered with this Letter of Transmittal for payment pursuant to the Offer. Upon the
effectiveness of such appointment, without further action, all prior powers of attorney, proxies and consents given by the undersigned with respect to such Shares and any associated Distributions (other than prior powers of attorney, proxies or
consent given by the undersigned to Purchaser or Acquisition Sub) will be revoked, and no subsequent powers of attorney, proxies, consents or revocations (other than powers of attorney, proxies, consents or revocations given to Purchaser or
Acquisition Sub) may be given (and, if given, will not be deemed effective). Purchaser or Acquisition Sub, as
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applicable, reserves the right to require that, in order for Shares to be deemed validly tendered, immediately upon Purchasers or Acquisition Subs, as applicable, acceptance for
payment of such Shares, Purchaser or Acquisition Sub, as applicable, must be able to exercise full voting, consent and other rights, to the extent permitted under applicable law, with respect to such Shares and any Distributions, including voting at
any meeting of stockholders or executing a written consent concerning any matter.
The undersigned hereby represents and warrants that the undersigned has
full power and authority to tender, sell, assign and transfer the Shares and any Distributions tendered hereby and, when the same are accepted for payment by Purchaser or, if the Merger Condition (as defined in the Offer to Purchase) is satisfied,
Acquisition Sub, Purchaser or Acquisition Sub, as applicable, will acquire good, marketable and unencumbered title thereto, free and clear of all liens, restrictions, charges and encumbrances, and that the same will not be subject to any adverse
claim. The undersigned hereby represents and warrants that the undersigned is the registered owner of the Shares, or the Share Certificate(s) have been endorsed to the undersigned in blank, or the undersigned is a participant in DTC whose name
appears on a security position listing as the owner of the Shares. The undersigned will, upon request, execute and deliver any additional documents deemed by the Depositary or Purchaser or Acquisition Sub, as applicable, to be necessary or desirable
to complete the sale, assignment and transfer of the Shares tendered hereby and any Distributions. In addition, the undersigned shall promptly remit and transfer to the Depositary for the account of Purchaser or Acquisition Sub, as applicable, any
and all Distributions in respect of the Shares tendered hereby, accompanied by appropriate documentation of transfer and, pending such remittance or appropriate assurance thereof, Purchaser or Acquisition Sub, as applicable, shall be entitled to all
rights and privileges as owner of any such Distributions and may withhold the entire Offer Price or deduct from the Offer Price the amount or value thereof, as determined by Purchaser or Acquisition Sub, as applicable, in each of its sole
discretion.
It is understood that the undersigned will not receive payment for the Shares unless and until the Shares are accepted for payment and until
the Share Certificate(s) owned by the undersigned are received by the Depositary at the address set forth above, together with such additional documents as the Depositary may require, or, in the case of Shares held in book-entry form, ownership of
Shares is validly transferred on the account books maintained by DTC, and until the same are processed for payment by the Depositary.
IT IS UNDERSTOOD
THAT THE METHOD OF DELIVERY OF THE SHARES, THE SHARE CERTIFICATE(S) AND ALL OTHER REQUIRED DOCUMENTS (INCLUDING DELIVERY THROUGH DTC) IS AT THE OPTION AND RISK OF THE UNDERSIGNED AND THAT THE RISK OF LOSS OF SUCH SHARES, SHARE CERTIFICATE(S) AND
OTHER DOCUMENTS SHALL PASS ONLY AFTER THE DEPOSITARY HAS ACTUALLY RECEIVED THE SHARES OR SHARE CERTIFICATE(S) (INCLUDING, IN THE CASE OF A BOOK-ENTRY TRANSFER, BY BOOK-ENTRY CONFIRMATION (AS DEFINED BELOW)). IF DELIVERY IS BY MAIL, IT IS RECOMMENDED
THAT ALL SUCH DOCUMENTS BE SENT BY PROPERLY INSURED REGISTERED MAIL WITH RETURN RECEIPT REQUESTED. IN ALL CASES, SUFFICIENT TIME SHOULD BE ALLOWED TO ENSURE TIMELY DELIVERY.
All authority conferred or agreed to be conferred pursuant to this Letter of Transmittal shall not be affected by, and shall survive, the death or incapacity
of the undersigned and any obligation of the undersigned hereunder shall be binding upon the heirs, executors, administrators, trustees in bankruptcy, personal representatives, successors and assigns of the undersigned. Except upon the terms and
subject to the conditions of the Offer, this tender is irrevocable.
The undersigned understands that the acceptance for payment by Purchaser or
Acquisition Sub, as applicable, of Shares tendered pursuant to one of the procedures described in The Tender Offer Section 3 Procedures for Accepting the Offer and Tender Shares in the Offer to Purchase and in the instructions
hereto will constitute a
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binding agreement between the undersigned and Purchaser or Acquisition Sub, as applicable, upon the terms and subject to the conditions of the Offer. The undersigned recognizes that under certain
circumstances, upon the terms and subject to the conditions of the Offer, Purchaser or Acquisition Sub, as applicable, may not be required to accept for payment any of the Shares tendered hereby.
Unless otherwise indicated herein under Special Payment Instructions, please issue the check for the Offer Price in the name(s) of, and/or return
any Share Certificates representing Shares not tendered or accepted for payment to, the registered owner(s) appearing under Description of Shares Tendered. Similarly, unless otherwise indicated under Special Delivery
Instructions, please mail the check for the Offer Price and/or return any Share Certificates representing Shares not tendered or accepted for payment (and accompanying documents, as appropriate) to the address(es) of the registered owner(s)
appearing under Description of Shares Tendered. In the event that both the Special Delivery Instructions and the Special Payment Instructions are completed, please issue the check for the Offer Price and/or issue any Share Certificates
representing Shares not tendered or accepted for payment (and any accompanying documents, as appropriate) in the name of, and deliver such check and/or return such Share Certificates (and any accompanying documents, as appropriate) to, the person or
persons so indicated. Unless otherwise indicated herein in the box titled Special Payment Instructions, please credit any Shares tendered hereby or by an Agents Message and delivered by book-entry transfer, but which are not
purchased, by crediting the account at DTC designated above. The undersigned recognizes that Purchaser or Acquisition Sub, as applicable, has no obligation pursuant to the Special Payment Instructions to transfer any Shares from the name of the
registered owner thereof if Purchaser or Acquisition Sub, as applicable, does not accept for payment any of the Shares so tendered.
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SPECIAL PAYMENT INSTRUCTIONS
(See Instructions 1, 4, 5 and 7)
To be completed ONLY if Share Certificate(s) not tendered or not accepted for payment and/or the check for the Offer Price in consideration of Shares accepted
for payment are to be issued in the name of someone other than the undersigned or if Shares tendered by book-entry transfer which are not accepted for payment are to be returned by credit to an account maintained at DTC other than that designated
above. Issue: ¨ Check and/or
¨ Share Certificates to: |
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(Please Print) |
Address: |
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(Include Zip Code) |
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(Tax Identification or Social Security Number) |
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¨ Credit Shares tendered by book-entry
transfer that are not accepted for payment to the DTC account set forth below. |
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(DTC Account Number) |
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SPECIAL DELIVERY INSTRUCTIONS
(See Instructions 1, 4, 5 and 7)
To be completed ONLY if Share Certificate(s) not tendered or not accepted for payment and/or the check for the Offer Price of Shares accepted for payment are
to be sent to someone other than the undersigned or to the undersigned at an address other than that shown in the box titled Description of Shares Tendered above.
Deliver: ¨ Check(s) and/or
¨ Share Certificates to: |
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(Please Print) |
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(Include Zip Code) |
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VOLUNTARY CORPORATE ACTIONS
COY: GTI
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IMPORTANTSIGN HERE
(U.S. Holders Please Also Complete the Enclosed IRS Form W-9)
(Non-U.S. Holders Please Obtain and Complete IRS Form W-8BEN, IRS Form W-8BEN-E or Other Applicable IRS Form W-8)
(Signature(s) of Stockholder(s))
Dated: , 2015
(Must be signed by registered owner(s) exactly as name(s) appear(s) on Share
Certificate(s) or on a security position listing or by person(s) authorized to become registered owner(s) by certificates and documents transmitted herewith. If signature is by trustees, executors, administrators, guardians, attorneys-in-fact,
officers of corporations or others acting in a fiduciary or representative capacity, please set forth full title and see Instruction 5. For information concerning signature guarantees, see Instruction 1.)
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Area Code and Telephone Number: |
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Tax Identification or Social Security No.: |
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GUARANTEE OF SIGNATURE(S)
(For use by Eligible Institutions only;
see Instructions 1 and 5)
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Area Code and Telephone Number: |
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Place medallion guarantee in space below: |
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INSTRUCTIONS
Forming Part of the Terms and Conditions of the Offer
1. Guarantee of Signatures. No signature guarantee is required on this Letter of Transmittal
(a) if this Letter of Transmittal is signed by the registered holder(s) (which term, for purposes of this Section 1, includes any participant in DTCs systems whose name appears on a security position listing as the owner of the
Shares) of the Shares tendered therewith, unless such holder or holders have completed either the box entitled Special Delivery Instructions or the box entitled Special Payment Instructions on the cover of this Letter of
Transmittal or (b) if the Shares are tendered for the account of a financial institution (including most commercial banks, savings and loan associations and brokerage houses) that is a member in good standing of the Security Transfer Agents
Medallion Program or any other eligible guarantor institution, as such term is defined in Rule 17Ad-15 of the Exchange Act (each an Eligible Institution and collectively Eligible Institutions) (for example, the
Security Transfer Agents Medallion Program, the New York Stock Exchange Medallion Signature Program and the Stock Exchanges Medallion Program). In all other cases, all signatures on this Letter of Transmittal must be guaranteed by an Eligible
Institution. See Instruction 5.
2. Delivery of Letter of Transmittal and Certificates or
Book-Entry Confirmations. This Letter of Transmittal is to be completed by stockholders if Share Certificates are to be forwarded herewith. A manually executed facsimile of this Letter of Transmittal may be used in lieu of
the original. If Shares represented by Share Certificates are being tendered, such Share Certificates, as well as this Letter of Transmittal properly completed and duly executed with any required signature guarantees, and any other documents
required by this Letter of Transmittal, must be received by the Depositary at its address set forth herein on or prior to the Expiration Date. If Shares are to be tendered by book-entry transfer, the procedures for tender by book-entry transfer set
forth in The Tender Offer Section 3 Procedures for Accepting the Offer and Tendering Shares in the Offer to Purchase must be followed, and an Agents Message and confirmation of a book-entry transfer into the
Depositarys account at DTC of Shares tendered by book-entry transfer (such a confirmation, a Book-Entry Confirmation) must be received by the Depositary on or prior to the Expiration Date.
Stockholders whose Share Certificates are not immediately available or who cannot deliver all other required documents to the Depositary on or prior to the
Expiration Date or who cannot complete the procedures for book-entry transfer on or prior to the Expiration Date may nevertheless tender their Shares by properly completing and duly executing a Notice of Guaranteed Delivery on or prior to the
Expiration Date pursuant to the guaranteed delivery procedure set forth in The Tender Offer Section 3 Procedures for Accepting the Offer and Tendering Shares in the Offer to Purchase. Pursuant to such procedure: (a) such
tender of such Shares must be made by or through an Eligible Institution, (b) a properly completed and duly executed Notice of Guaranteed Delivery with respect to such Shares substantially in the form provided by Purchaser must be received by
the Depositary on or prior to the Expiration Date, (c) if such Shares are represented by Share Certificates, such Shares Certificates, as well as this Letter of Transmittal properly completed and duly executed with any required signature
guarantees, and any other documents required by this Letter of Transmittal, must be received by the Depositary at its address set forth herein within three NYSE trading days after the date of execution of such Notice of Guaranteed Delivery and
(d) if such Shares are to be tendered by book-entry transfer, the procedures for tender by book-entry transfer set forth in The Tender Offer Section 3 Procedures for Accepting the Offer and Tendering Shares in the Offer to
Purchase must be followed, and a Book-Entry Confirmation must be received by the Depositary within three NYSE trading days after the date of execution of such Notice of Guaranteed Delivery.
The term Agents Message means a message, transmitted through electronic means by DTC to, and received by, the Depositary and forming part of
a Book-Entry Confirmation, that states that DTC has received an express acknowledgment from the participant in DTC tendering the Shares that are the subject of such Book-Entry Confirmation that such participant has received and agrees to be bound by
the terms of, this Letter of Transmittal, and that Purchaser may enforce such agreement against such participant. The term Agents Message also includes any hard copy printout evidencing such message generated by a computer terminal
maintained at the Depositarys office.
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THE METHOD OF DELIVERY OF THE SHARES (OR SHARE CERTIFICATES), THIS LETTER OF TRANSMITTAL AND ALL OTHER
REQUIRED DOCUMENTS, INCLUDING DELIVERY THROUGH DTC, IS AT THE ELECTION AND RISK OF THE TENDERING STOCKHOLDER. DELIVERY OF THE SHARES (OR SHARE CERTIFICATES), THIS LETTER OF TRANSMITTAL AND ALL OTHER REQUIRED DOCUMENTS WILL BE DEEMED MADE, AND RISK
OF LOSS THEREOF SHALL PASS, ONLY WHEN THEY ARE ACTUALLY RECEIVED BY THE DEPOSITARY (INCLUDING, IN THE CASE OF A BOOK-ENTRY TRANSFER OF SHARES, BY BOOK-ENTRY CONFIRMATION WITH RESPECT TO SUCH SHARES). IF SUCH DELIVERY IS BY MAIL, IT IS RECOMMENDED
THAT THE SHARES (OR SHARE CERTIFICATES), THIS LETTER OF TRANSMITTAL AND ALL OTHER REQUIRED DOCUMENTS BE SENT BY PROPERLY INSURED REGISTERED MAIL WITH RETURN RECEIPT REQUESTED. IN ALL CASES, SUFFICIENT TIME SHOULD BE ALLOWED TO ENSURE TIMELY
DELIVERY.
No alternative, conditional or contingent tenders will be accepted and no fractional Shares will be purchased. All tendering stockholders,
by execution of this Letter of Transmittal (or facsimile thereof), waive any right to receive any notice of the acceptance of their Shares for payment.
All questions as to validity, form and eligibility (including time of receipt) of the surrender of any Share Certificate hereunder, including questions as to
the proper completion or execution of any Letter of Transmittal, Notice of Guaranteed Delivery or other required documents and as to the proper form for transfer of any certificate of Shares, will be determined by Purchaser in its sole and absolute
discretion (which may be delegated in whole or in part to the Depositary), which determination will be final and binding. Purchaser or Acquisition Sub, as applicable, reserves the absolute right to reject any and all tenders determined by it not to
be in proper form or the acceptance for payment of or payment for which may be unlawful. Purchaser or Acquisition Sub, as applicable, also reserves the absolute right to waive any defect or irregularity in the surrender of any Shares or Share
Certificate(s) whether or not similar defects or irregularities are waived in the case of any other stockholder. A surrender will not be deemed to have been validly made until all defects and irregularities have been cured or waived.
3. Inadequate Space. If the space provided on the cover page to this Letter of Transmittal is
inadequate, the certificate numbers and/or the number of Shares should be listed on a separate schedule attached hereto and separately signed on each page thereof in the same manner as this Letter of Transmittal is signed.
4. Partial Tenders (Applicable to Certificate Stockholders Only). If fewer than all
the Shares evidenced by any Share Certificate delivered to the Depositary are to be tendered, stockholders should contact GrafTechs Transfer Agent at (877) 373-6374 (toll free in the United States) or +1 (781) 575-3120 (international) to
arrange to have such Share Certificate divided into separate Share Certificates representing the number of shares to be tendered and the number of shares to not be tendered. The stockholder should then tender the Share Certificate representing the
number of Shares to be tendered as set forth in this Letter of Transmittal. All Shares represented by Share Certificates delivered to the Depositary will be deemed to have been tendered.
5. Signatures on Letter of Transmittal; Stock Powers and Endorsements. If this Letter of
Transmittal is signed by the registered owner(s) of the Shares tendered hereby, the signature(s) must correspond with the name(s) as written on the face of the Share Certificate(s) without alteration or any other change whatsoever.
If any Shares tendered hereby are owned of record by two or more joint owners, all such owners must sign this Letter of Transmittal.
If any tendered Shares are registered in the names of different holder(s), it will be necessary to complete, sign and submit as many separate Letters of
Transmittal (or facsimiles thereof) as there are different registrations of such Shares.
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If this Letter of Transmittal or any certificates or stock powers are signed by trustees, executors,
administrators, guardians, attorneys-in-fact, officers of corporations or others acting in a fiduciary or representative capacity, such persons should so indicate when signing, and proper evidence satisfactory to Purchaser or Acquisition Sub, as
applicable, of their authority so to act must be submitted.
If this Letter of Transmittal is signed by the registered owner(s) of the Shares listed and
transmitted hereby, no endorsements of Share Certificates or separate stock powers are required unless payment is to be made to, or Share Certificates representing Shares not tendered or accepted for payment are to be issued in the name of, a person
other than the registered owner(s), in which case the Share Certificates representing the Shares tendered by this Letter of Transmittal must be endorsed or accompanied by appropriate stock powers, in either case, signed exactly as the name(s) of the
registered owner(s) or holder(s) appear(s) on the Share Certificates. Signatures on such Share Certificates or stock powers must be guaranteed by an Eligible Institution.
If this Letter of Transmittal is signed by a person other than the registered owner(s) of the Share(s) listed, the Share Certificate(s) must be endorsed or
accompanied by the appropriate stock powers, in either case, signed exactly as the name or names of the registered owner(s) or holder(s) appear(s) on the Share Certificate(s). Signatures on such Share Certificates or stock powers must be guaranteed
by an Eligible Institution.
6. Transfer Taxes. Except as otherwise provided in this
Instruction 6, Purchaser or Acquisition Sub, as applicable, will pay any transfer taxes with respect to the transfer and sale of Shares to it or to its order pursuant to the Offer (for the avoidance of doubt, transfer taxes do not include U.S.
federal income or backup withholding taxes). If, however, payment of the Offer Price is to be made to, or (in the circumstances permitted hereby) if Share Certificates not tendered or accepted for payment are to be registered in the name of, any
person other than the registered owner(s), or if tendered Share Certificates are registered in the name of any person other than the person signing this Letter of Transmittal, the amount of any transfer taxes (whether imposed on the registered
owner(s) or such person) payable on account of the transfer to such person will be deducted from the Offer Price unless satisfactory evidence of the payment of such taxes, or exemption therefrom, is submitted.
Except as provided in this Instruction 6, it will not be necessary for transfer tax stamps to be affixed to the Share Certificates listed in this Letter of
Transmittal.
7. Special Payment and Delivery Instructions. If a check for the Offer Price
is to be issued, and/or Share Certificates representing Shares not tendered or accepted for payment are to be issued or returned to, a person other than the signer(s) of this Letter of Transmittal or to an address other than that shown in the box
titled Description of Shares Tendered above, the appropriate boxes on this Letter of Transmittal should be completed. stockholders delivering Shares tendered hereby or by Agents Message by book-entry transfer may request that
Shares not purchased be credited to an account maintained at DTC as such stockholder may designate in the box titled Special Payment Instructions herein. If no such instructions are given, all such Shares not purchased will be returned
by crediting the same account at DTC as the account from which such Shares were delivered.
8. Requests for
Assistance or Additional Copies. Questions or requests for assistance may be directed to Georgeson Inc. (the Information Agent) at their respective addresses and telephone numbers set forth below or to your
broker, dealer, commercial bank or trust company. Additional copies of the Offer to Purchase, this Letter of Transmittal, the Notice of Guaranteed Delivery and other tender offer materials may be obtained from the Information Agent as set forth
below, and will be furnished at Purchasers expense.
9. Backup Withholding. Under
U.S. federal income tax laws, the Depositary will be required to withhold a portion of the amount of any payments made to certain stockholders pursuant to the Offer, as applicable. In order to avoid such backup withholding, each tendering
stockholder or payee that is a United States person (for U.S. federal income tax purposes), must provide the Depositary with such stockholders or payees correct taxpayer identification number (TIN) and certify that such
stockholder or payee is not subject to such backup withholding by completing the attached IRS Form W-9. If a tendering U.S. stockholder has been notified by the
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Internal Revenue Service that such stockholder is subject to backup withholding, such stockholder must cross out item 2 in Part II of the IRS Form W-9, unless such stockholder has since been
notified by the Internal Revenue Service that such stockholder is no longer subject to backup withholding. Failure to provide the information on the IRS Form W-9 may subject the tendering stockholder to federal income tax withholding on the payment
of the Offer Price for all Shares purchased from such stockholder. If the tendering U.S. stockholder has not been issued a TIN and has applied for one or intends to apply for one in the near future, such stockholder should write Applied
For in Part I of the IRS Form W-9, and sign and date the IRS Form W-9. If the tendering stockholder wrote Applied For in Part I and the Depositary is not provided with a TIN by the time of payment, the Depositary will withhold a
portion of all payments of the Offer Price to such stockholder until a TIN is provided to the Depositary.
Certain stockholders or payees
(including, among others, corporations, and certain non-resident alien individuals and foreign entities) are not subject to these backup withholding and reporting requirements. A tendering stockholder who is a foreign individual or a foreign entity
should complete, sign, and submit to the Depositary the appropriate IRS Form W-8. The appropriate IRS Form W-8 may be downloaded from the Internal Revenue Services website at the following address: http://www.irs.gov. Failure to
complete the IRS Form W-9 or the appropriate IRS Form W-8 will not, by itself, cause Shares to be deemed invalidly tendered, but may require the Depositary to withhold a portion of the amount of any payments made of the Offer Price pursuant to the
Offer.
NOTE: FAILURE TO COMPLETE AND RETURN THE IRS FORM W-9 OR THE APPROPRIATE IRS FORM W-8 MAY RESULT IN BACKUP WITHHOLDING OF A PORTION OF ANY
PAYMENTS MADE TO YOU PURSUANT TO THE OFFER. PLEASE REVIEW THE IMPORTANT TAX INFORMATION SECTION BELOW.
10. Lost, Destroyed, Mutilated or Stolen Share Certificates. If any Share Certificate has been
lost, destroyed, mutilated or stolen, the stockholder should promptly notify GrafTechs Transfer Agent at (877) 373-6374 (toll free in the United States) or +1 (781) 575-3120 (international). The stockholder will then be instructed as to the
steps that must be taken in order to replace the Share Certificate. This Letter of Transmittal and related documents cannot be processed until the procedures for replacing lost, mutilated, destroyed or stolen Share Certificates have been
followed.
11. Waiver of Conditions. Purchaser or Acquisition Sub, as applicable,
expressly reserves the right, in each of its sole discretion, to, upon the terms and subject to the conditions of the Offer, increase the Offer Price, waive any Offer Condition (as defined in the Offer to Purchase) or make any other changes to the
terms and conditions of the Offer.
IMPORTANT: THIS LETTER OF TRANSMITTAL (OR A MANUALLY EXECUTED FACSIMILE COPY THEREOF) OR AN AGENTS
MESSAGE, TOGETHER WITH SHARE CERTIFICATE(S) OR BOOK-ENTRY CONFIRMATION OR A PROPERLY COMPLETED AND DULY EXECUTED NOTICE OF GUARANTEED DELIVERY AND ALL OTHER REQUIRED DOCUMENTS, MUST BE RECEIVED BY THE DEPOSITARY PRIOR TO THE EXPIRATION DATE.
IMPORTANT TAX INFORMATION
Under
U.S. federal income tax law, a stockholder that is a non-exempt United States person (for U.S. federal income tax purposes) whose tendered Shares are accepted for payment, is required by law to provide the Depositary (as payer) with such
stockholders correct TIN on the IRS Form W-9 below. If such stockholder is an individual, the TIN is such stockholders social security number. If the Depositary is not provided with the correct TIN, the stockholder may be subject to
penalties imposed by the Internal Revenue Service (IRS) and payments that are made to such stockholder with respect to Shares purchased pursuant to the Offer may be subject to backup withholding.
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If backup withholding applies, the Depositary is required to withhold 28% of any payments of the Offer Price made
to the stockholder. Backup withholding is not an additional tax. Rather, the tax liability of persons subject to backup withholding will be reduced by the amount of tax withheld. If withholding results in an overpayment of taxes, a refund or credit
may be obtained from the IRS provided that the required information is furnished to the IRS.
IRS Form W-9
To prevent backup withholding on payments that are made to a U.S. stockholder with respect to Shares purchased pursuant to the Offer, the stockholder is
required to notify the Depositary of such stockholders correct TIN by completing the IRS Form W-9 below, certifying, under penalties of perjury, (i) that the TIN provided on the IRS Form W-9 is correct (or that such stockholder is
awaiting a TIN), (ii) that such stockholder is not subject to backup withholding because (a) such stockholder has not been notified by the IRS that such stockholder is subject to backup withholding as a result of a failure to report all
interest or dividends, (b) the IRS has notified such stockholder that such stockholder is no longer subject to backup withholding or (c) such stockholder is exempt from backup withholding, and (iii) that such stockholder is a U.S.
person.
What Number to Give the Depositary
Each United States stockholder is generally required to give the Depositary its TIN (generally the stockholders social security number or employer
identification number). If the tendering stockholder has not been issued a TIN and has applied for a number or intends to apply for a number in the near future, the stockholder should write Applied For in Part I, and sign and date the
IRS Form W-9 below. Notwithstanding that Applied For is written in Part I, the Depositary will withhold 28% of all payments of the Offer Price to such stockholder until a TIN is provided to the Depositary. Such amounts will be refunded
to such surrendering stockholder if a TIN is provided to the Depositary within 60 days.
Exempt Stockholders
Certain stockholders (including, among others, corporations, and certain non-resident alien individuals and foreign entities) are not subject to these
backup withholding and reporting requirements. A tendering stockholder who is a foreign individual or a foreign entity should complete, sign, and submit to the Depositary the appropriate IRS Form W-8. The appropriate IRS Form W-8 may be downloaded
from the IRSs website at the following address: http://www.irs.gov.
Please consult your accountant or tax advisor for further
guidance regarding the completion of the IRS Form W-9, IRS Form W-8BEN, IRS Form W-8BEN-E or another version of IRS Form W-8 to claim exemption from backup withholding, or contact the Depositary. Failure to complete the IRS Form W-9 or the
appropriate IRS Form W-8 will not, by itself, cause Shares to be deemed invalidly tendered, but may require the Depositary to withhold a portion of the amount of any payments of the Offer Price pursuant to the Offer.
VOLUNTARY CORPORATE ACTIONS COY: GTI
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Form W-9 (Rev. August 2013)
Department of the Treasury Internal Revenue
Service |
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Request for Taxpayer
Identification Number and Certification |
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Give Form to the requester. Do not send to the IRS. |
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Print or type
See Specific Instructions
on page 2. |
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Name (as shown on
your income tax return) |
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Business
name/disregarded entity name, if different from above |
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Check appropriate box for federal tax classification:
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Exemptions (see instructions):
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¨ Individual/sole proprietor |
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C Corporation |
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S Corporation |
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Partnership |
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Trust/estate
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Exempt payee code
(if any) |
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¨ Limited liability company. Enter the tax
classification (C=C corporation, S=S corporation, P=partnership) u
¨ Other (see instructions) u |
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Exemption from FATCA reporting code (if
any)
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Address (number, street, and apt. or suite no.) |
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Requesters name and address (optional)
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City, state, and
ZIP code |
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List account
number(s) here (optional) |
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Part I |
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Taxpayer Identification Number (TIN) |
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Enter your TIN in the appropriate box. The TIN provided must
match the name given on the Name line to avoid backup withholding. For individuals, this is your social security number (SSN). However, for a resident alien, sole proprietor, or disregarded entity, see the Part I instructions on page 3.
For other entities, it is your employer identification number (EIN). If you do not have a number, see How to get a TIN on page 3.
Note. If the account is in more than one name, see the chart on page 4 for guidelines on whose number to enter. |
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Social security number
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Employer identification
number |
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Under penalties of perjury, I certify that:
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The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me), and |
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I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a
failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding, and |
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I am a U.S. citizen or other U.S. person (defined below), and |
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The FATCA code(s) entered on this form (if any) indicating that I am exempt from FATCA reporting is correct. |
Certification instructions. You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding
because you have failed to report all interest and dividends on your tax return. For real estate transactions, item 2 does not apply. For mortgage interest paid, acquisition or abandonment of secured property, cancellation of debt, contributions to
an individual retirement arrangement (IRA), and generally, payments other than interest and dividends, you are not required to sign the certification, but you must provide your correct TIN. See the instructions on page 3.
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Sign Here |
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Signature of U.S. person u |
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Date u |
General Instructions
Section references are to the Internal Revenue Code unless otherwise noted.
Future developments. The IRS has created a page on IRS.gov for information about Form W-9, at www.irs.gov/w9. Information about any future
developments affecting Form W-9 (such as legislation enacted after we release it) will be posted on that page.
Purpose of Form
A person who is required to file an information return with the IRS must obtain your correct taxpayer identification number (TIN) to report, for example, income
paid to you, payments made to you in settlement of payment card and third party network transactions, real estate transactions, mortgage interest you paid, acquisition or abandonment of secured property, cancellation of debt, or contributions you
made to an IRA.
Use Form W-9 only if you are a U.S. person (including a resident alien), to provide your correct TIN to the person
requesting it (the requester) and, when applicable, to:
1. Certify that the TIN you are giving is correct (or you are waiting for a number
to be issued),
2. Certify that you are not subject to backup withholding, or
3. Claim exemption from backup withholding if you are a U.S. exempt payee. If applicable, you are also certifying that as a U.S. person, your
allocable share of any partnership income from a U.S. trade or business is not subject to the withholding tax on foreign partners share of effectively connected income, and
4. Certify that FATCA code(s) entered on this form (if any) indicating that you are exempt from
the FATCA reporting, is correct.
Note. If you are a U.S. person and a requester gives you a form other than Form W-9 to request your TIN, you must
use the requesters form if it is substantially similar to this Form W-9.
Definition of a U.S. person. For federal tax purposes, you are
considered a U.S. person if you are:
An individual who is a U.S. citizen or U.S. resident alien,
A partnership, corporation, company, or association created or organized in the United States or under the laws of the United States,
An estate (other than a foreign estate), or
A
domestic trust (as defined in Regulations section 301.7701-7).
Special rules for partnerships. Partnerships that conduct a trade or business in the
United States are generally required to pay a withholding tax under section 1446 on any foreign partners share of effectively connected taxable income from such business. Further, in certain cases where a Form W-9 has not been received, the
rules under section 1446 require a partnership to presume that a partner is a foreign person, and pay the section 1446 withholding tax. Therefore, if you are a U.S. person that is a partner in a partnership conducting a trade or business in the
United States, provide Form W-9 to the partnership to establish your U.S. status and avoid section 1446 withholding on your share of partnership income.
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Cat. No. 10231X |
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Form W-9 (Rev. 8-2013) |
14
Form W-9 (Rev. 8-2013) |
Page 2 |
In the cases below, the following person must give Form W-9 to the partnership for purposes of
establishing its U.S. status and avoiding withholding on its allocable share of net income from the partnership conducting a trade or business in the United States:
In the case of a disregarded entity with a U.S. owner, the U.S. owner of the disregarded entity and not the entity,
In the case of a grantor trust with a U.S. grantor or other U.S. owner, generally, the U.S. grantor or other U.S. owner of the grantor trust and not the
trust, and
In the case of a U.S. trust (other than a grantor trust), the U.S. trust (other than a grantor trust) and not the beneficiaries of the
trust.
Foreign person. If you are a foreign person or the U.S. branch of a foreign bank that has elected to be treated as a U.S. person, do not use
Form W-9. Instead, use the appropriate Form W-8 or Form 8233 (see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities).
Nonresident alien who becomes a resident alien. Generally, only a nonresident alien individual may use the terms of a tax treaty to reduce or eliminate
U.S. tax on certain types of income. However, most tax treaties contain a provision known as a saving clause. Exceptions specified in the saving clause may permit an exemption from tax to continue for certain types of income even after
the payee has otherwise become a U.S. resident alien for tax purposes.
If you are a U.S. resident alien who is relying on an exception
contained in the saving clause of a tax treaty to claim an exemption from U.S. tax on certain types of income, you must attach a statement to Form W-9 that specifies the following five items:
1. The treaty country. Generally, this must be the same treaty under which you claimed exemption from tax as a nonresident alien.
2. The treaty article addressing the income.
3. The article number (or location) in the tax treaty that contains the saving clause and its exceptions.
4. The type and amount of income that qualifies for the exemption from tax.
5. Sufficient facts to justify the exemption from tax under the terms of the treaty article.
Example. Article 20 of the U.S.-China income tax treaty allows an exemption from tax for scholarship income received by a Chinese
student temporarily present in the United States. Under U.S. law, this student will become a resident alien for tax purposes if his or her stay in the United States exceeds 5 calendar years. However, paragraph 2 of the first Protocol to the
U.S.-China treaty (dated April 30, 1984) allows the provisions of Article 20 to continue to apply even after the Chinese student becomes a resident alien of the United States. A Chinese student who qualifies for this exception (under paragraph
2 of the first protocol) and is relying on this exception to claim an exemption from tax on his or her scholarship or fellowship income would attach to Form W-9 a statement that includes the information described above to support that exemption.
If you are a nonresident alien or a foreign entity, give the requester the appropriate completed Form W-8 or Form 8233.
What is backup withholding? Persons making certain payments to you must under certain conditions withhold and pay to the IRS a percentage of such
payments. This is called backup withholding. Payments that may be subject to backup withholding include interest, tax-exempt interest, dividends, broker and barter exchange transactions, rents, royalties, nonemployee pay, payments made
in settlement of payment card and third party network transactions, and certain payments from fishing boat operators. Real estate transactions are not subject to backup withholding.
You will not be subject to backup withholding on payments you receive if you give the requester your correct TIN, make the proper
certifications, and report all your taxable interest and dividends on your tax return.
Payments you receive will be subject to backup withholding if:
1. You do not furnish your TIN to the requester,
2. You do not certify your TIN when required (see the Part II instructions on page 3 for details),
3. The IRS tells the requester that you furnished an incorrect TIN,
4. The IRS tells you that you are subject to backup withholding because you did not report all your interest and dividends on your tax return
(for reportable interest and dividends only), or
5. You do not certify to the requester that you are not subject to backup withholding
under 4 above (for reportable interest and dividend accounts opened after 1983 only).
Certain payees and payments are exempt from backup withholding. See Exempt payee code on
page 3 and the separate Instructions for the Requester of Form W-9 for more information.
Also see Special rules for partnerships on
page 1.
What is FATCA reporting? The Foreign Account Tax Compliance Act (FATCA) requires a participating foreign financial institution to report all
United States account holders that are specified United States persons. Certain payees are exempt from FATCA reporting. See Exemption from FATCA reporting code on page 3 and the Instructions for the Requester of Form W-9 for more information.
Updating Your Information
You must provide updated
information to any person to whom you claimed to be an exempt payee if you are no longer an exempt payee and anticipate receiving reportable payments in the future from this person. For example, you may need to provide updated information if you are
a C corporation that elects to be an S corporation, or if you no longer are tax exempt. In addition, you must furnish a new Form W-9 if the name or TIN changes for the account, for example, if the grantor of a grantor trust dies.
Penalties
Failure to furnish TIN. If you fail to
furnish your correct TIN to a requester, you are subject to a penalty of $50 for each such failure unless your failure is due to reasonable cause and not to willful neglect.
Civil penalty for false information with respect to withholding. If you make a false statement with no reasonable basis that results in no backup
withholding, you are subject to a $500 penalty.
Criminal penalty for falsifying information. Willfully falsifying certifications or affirmations may
subject you to criminal penalties including fines and/or imprisonment.
Misuse of TINs. If the requester discloses or uses TINs in violation of
federal law, the requester may be subject to civil and criminal penalties.
Specific Instructions
Name
If you are an individual, you must generally enter
the name shown on your income tax return. However, if you have changed your last name, for instance, due to marriage without informing the Social Security Administration of the name change, enter your first name, the last name shown on your social
security card, and your new last name.
If the account is in joint names, list first, and then circle, the name of the person or entity
whose number you entered in Part I of the form.
Sole proprietor. Enter your individual name as shown on your income tax return on
the Name line. You may enter your business, trade, or doing business as (DBA) name on the Business name/disregarded entity name line.
Partnership, C Corporation, or S Corporation. Enter the entitys name on the Name line and any business, trade, or
doing business as (DBA) name on the Business name/disregarded entity name line.
Disregarded entity. For
U.S. federal tax purposes, an entity that is disregarded as an entity separate from its owner is treated as a disregarded entity. See Regulation section 301.7701-2(c)(2)(iii). Enter the owners name on the Name line. The
name of the entity entered on the Name line should never be a disregarded entity. The name on the Name line must be the name shown on the income tax return on which the income should be reported. For example, if a foreign LLC
that is treated as a disregarded entity for U.S. federal tax purposes has a single owner that is a U.S. person, the U.S. owners name is required to be provided on the Name line. If the direct owner of the entity is also a
disregarded entity, enter the first owner that is not disregarded for federal tax purposes. Enter the disregarded entitys name on the Business name/disregarded entity name line. If the owner of the disregarded entity is a foreign
person, the owner must complete an appropriate Form W-8 instead of a Form W-9. This is the case even if the foreign person has a U.S. TIN.
Note.
Check the appropriate box for the U.S. federal tax classification of the person whose name is entered on the Name line (Individual/sole proprietor, Partnership, C Corporation, S Corporation, Trust/estate).
Limited Liability Company (LLC). If the person identified on the Name line is an LLC, check the Limited liability company box
only and enter the
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Form W-9 (Rev. 8-2013) |
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Page 3 |
appropriate code for the U.S. federal tax classification in the space provided. If you are an LLC that is treated as a partnership for U.S. federal tax purposes, enter P for
partnership. If you are an LLC that has filed a Form 8832 or a Form 2553 to be taxed as a corporation, enter C for C corporation or S for S corporation, as appropriate. If you are an LLC that is disregarded as an entity
separate from its owner under Regulation section 301.7701-3 (except for employment and excise tax), do not check the LLC box unless the owner of the LLC (required to be identified on the Name line) is another LLC that is not disregarded
for U.S. federal tax purposes. If the LLC is disregarded as an entity separate from its owner, enter the appropriate tax classification of the owner identified on the Name line.
Other entities. Enter your business name as shown on required U.S. federal tax documents on the Name line. This name should match the name
shown on the charter or other legal document creating the entity. You may enter any business, trade, or DBA name on the Business name/disregarded entity name line.
Exemptions
If you are exempt from backup withholding
and/or FATCA reporting, enter in the Exemptions box, any code(s) that may apply to you. See Exempt payee code and Exemption from FATCA reporting code on page 3.
Exempt payee code. Generally, individuals (including sole proprietors) are not exempt from backup withholding. Corporations are exempt from backup
withholding for certain payments, such as interest and dividends. Corporations are not exempt from backup withholding for payments made in settlement of payment card or third party network transactions.
Note. If you are exempt from backup withholding, you should still complete this form to avoid possible erroneous backup withholding.
The following codes identify payees that are exempt from backup withholding:
1An organization exempt from tax under section 501(a), any IRA, or a custodial account under section 403(b)(7) if the account satisfies
the requirements of section 401(f)(2)
2The United States or any of its agencies or instrumentalities
3A state, the District of Columbia, a possession of the United States, or any of their political subdivisions or instrumentalities
4A foreign government or any of its political subdivisions, agencies, or instrumentalities
5A corporation
6A
dealer in securities or commodities required to register in the United States, the District of Columbia, or a possession of the United States
7A futures commission merchant registered with the Commodity Futures Trading Commission
8A real estate investment trust
9An entity registered at all times during the tax year under the Investment Company Act of 1940
10A common trust fund operated by a bank under section 584(a)
11A financial institution
12A middleman known in the investment community as a nominee or custodian
13A trust exempt from tax under section 664 or described in section 4947
The following chart shows types of payments that may be exempt from backup withholding. The
chart applies to the exempt payees listed above, 1 through 13.
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IF the payment is for |
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THEN the payment is exempt for |
Interest and dividend payments |
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All exempt payees except for 7 |
Broker transactions |
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Exempt payees 1 through 4 and 6 through 11 and all C corporations. S corporations must not enter an exempt payee code because they are exempt only for sales of noncovered securities acquired
prior to 2012. |
Barter exchange transactions and patronage dividends |
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Exempt payees 1 through 4 |
Payments over $600 required to be reported and direct sales over $5,0001 |
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Generally, exempt payees 1 through 52 |
Payments made in settlement of payment card or third party network transactions |
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Exempt payees 1 through 4 |
1 |
See Form 1099-MISC, Miscellaneous Income, and its instructions. |
2 |
However, the following payments made to a corporation and reportable on Form 1099-MISC are not exempt from backup withholding: medical and health care payments, attorneys fees, gross proceeds paid to an attorney,
and payments for services paid by a federal executive agency. |
Exemption from FATCA reporting code. The following codes identify payees
that are exempt from reporting under FATCA. These codes apply to persons submitting this form for accounts maintained outside of the United States by certain foreign financial institutions. Therefore, if you are only submitting this form for an
account you hold in the United States, you may leave this field blank. Consult with the person requesting this form if you are uncertain if the financial institution is subject to these requirements.
AAn organization exempt from tax under section 501(a) or any individual retirement plan as defined in section 7701(a)(37)
BThe United States or any of its agencies or instrumentalities
CA state, the District of Columbia, a possession of the United States, or any of their political subdivisions or instrumentalities
DA corporation the stock of which is regularly traded on one or more established securities markets, as described in Reg. section
1.1472-1(c)(1)(i)
EA corporation that is a member of the same expanded affiliated group as a corporation described in Reg. section
1.1472-1(c)(1)(i)
FA dealer in securities, commodities, or derivative financial instruments (including notional principal contracts,
futures, forwards, and options) that is registered as such under the laws of the United States or any state
GA real estate
investment trust
HA regulated investment company as defined in section 851 or an entity registered at all times during the tax year
under the Investment Company Act of 1940
IA common trust fund as defined in section 584(a)
JA bank as defined in section 581
KA broker
LA trust
exempt from tax under section 664 or described in section 4947(a)(1)
MA tax exempt trust under a section 403(b) plan or section
457(g) plan
Part I. Taxpayer Identification Number (TIN)
Enter your TIN in the appropriate box. If you are a resident alien and you do not have and are not eligible to get an SSN, your TIN is your IRS
individual taxpayer identification number (ITIN). Enter it in the social security number box. If you do not have an ITIN, see How to get a TIN below.
If you are a sole proprietor and you have an EIN, you may enter either your SSN or EIN. However, the IRS prefers that you use your SSN.
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Form W-9 (Rev. 8-2013) |
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If you are a single-member LLC that is disregarded as an entity separate from its owner
(see Limited Liability Company (LLC) on page 2), enter the owners SSN (or EIN, if the owner has one). Do not enter the disregarded entitys EIN. If the LLC is classified as a corporation or partnership, enter the
entitys EIN.
Note. See the chart on page 4 for further clarification of name and TIN combinations.
How to get a TIN. If you do not have a TIN, apply for one immediately. To apply for an SSN, get Form SS-5, Application for a Social Security Card, from
your local Social Security Administration office or get this form online at www.ssa.gov. You may also get this form by calling 1-800-772-1213. Use Form W-7, Application for IRS Individual Taxpayer Identification Number, to apply for an ITIN,
or Form SS-4, Application for Employer Identification Number, to apply for an EIN. You can apply for an EIN online by accessing the IRS website at www.irs.gov/businesses and clicking on Employer Identification Number (EIN) under Starting a
Business. You can get Forms W-7 and SS-4 from the IRS by visiting IRS.gov or by calling 1-800-TAX-FORM (1-800-829-3676).
If you are asked
to complete Form W-9 but do not have a TIN, apply for a TIN and write Applied For in the space for the TIN, sign and date the form, and give it to the requester. For interest and dividend payments, and certain payments made with respect
to readily tradable instruments, generally you will have 60 days to get a TIN and give it to the requester before you are subject to backup withholding on payments. The 60-day rule does not apply to other types of payments. You will be subject to
backup withholding on all such payments until you provide your TIN to the requester.
Note. Entering Applied For means that you have
already applied for a TIN or that you intend to apply for one soon.
Caution: A disregarded U.S. entity that has a foreign owner must use the
appropriate Form W-8.
Part II. Certification
To
establish to the withholding agent that you are a U.S. person, or resident alien, sign Form W-9. You may be requested to sign by the withholding agent even if items 1, 4, or 5 below indicate otherwise.
For a joint account, only the person whose TIN is shown in Part I should sign (when required). In the case of a disregarded entity, the person
identified on the Name line must sign. Exempt payees, see Exempt payee code earlier.
Signature requirements. Complete the
certification as indicated in items 1 through 5 below.
1. Interest, dividend, and barter exchange accounts opened before 1984 and
broker accounts considered active during 1983. You must give your correct TIN, but you do not have to sign the certification.
2.
Interest, dividend, broker, and barter exchange accounts opened after 1983 and broker accounts considered inactive during 1983. You must sign the certification or backup withholding will apply. If you are subject to backup withholding and you
are merely providing your correct TIN to the requester, you must cross out item 2 in the certification before signing the form.
3. Real
estate transactions. You must sign the certification. You may cross out item 2 of the certification.
4. Other payments. You
must give your correct TIN, but you do not have to sign the certification unless you have been notified that you have previously given an incorrect TIN. Other payments include payments made in the course of the requesters trade or
business for rents, royalties, goods (other than bills for merchandise), medical and health care services (including payments to corporations), payments to a nonemployee for services, payments made in settlement of payment card and third party
network transactions, payments to certain fishing boat crew members and fishermen, and gross proceeds paid to attorneys (including payments to corporations).
5. Mortgage interest paid by you, acquisition or abandonment of secured property, cancellation of debt, qualified tuition program payments
(under section 529), IRA, Coverdell ESA, Archer MSA or HSA contributions or distributions, and pension distributions. You must give your correct TIN, but you do not have to sign the certification.
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What Name and Number To Give the Requester |
For this type of account: |
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Give name and SSN of: |
1. Individual |
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The individual |
2. Two or more individuals (joint account) |
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The actual owner of the account or, if combined funds, the first individual on the account1 |
3. Custodian account of a minor (Uniform Gift to Minors
Act) |
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The minor2 |
4. a. The usual revocable savings trust (grantor is also
trustee) |
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The grantor-trustee1 |
b. So-called trust account that is not a
legal or valid trust under state law |
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The actual owner1 |
5. Sole proprietorship or disregarded entity owned by an
individual |
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The owner3 |
6. Grantor trust filing under Optional Form 1099 Filing Method
1 (see Regulation section 1.671-4(b)(2)(i)(A)) |
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The grantor* |
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For this type of account: |
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Give name and EIN of: |
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7. Disregarded entity not owned by an individual |
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The owner |
8. A valid trust, estate, or pension trust |
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Legal entity4 |
9. Corporation or LLC electing corporate status on Form 8832
or Form 2553 |
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The corporation |
10. Association, club, religious, charitable, educational, or other
tax-exempt organization |
|
The organization |
11. Partnership or multi-member LLC |
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The partnership |
12. A broker or registered nominee |
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The broker or nominee |
13. Account with the Department of Agriculture in the name of a public
entity (such as a state or local government, school district, or prison) that receives agricultural program payments |
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The public entity |
14. Grantor trust filing under the Form
1041 Filing Method or the Optional Form 1099 Filing Method 2 (see Regulation section 1.671-4(b)(2)(i)(B)) |
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The trust |
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1 |
List first and circle the name of the person whose number you furnish. If only one person on a joint account has an SSN, that persons number must be furnished. |
2 |
Circle the minors name and furnish the minors SSN. |
3 |
You must show your individual name and you may also enter your business or DBA name on the Business name/disregarded entity name line. You may use either your SSN or EIN (if you have one), but
the IRS encourages you to use your SSN. |
4 |
List first and circle the name of the trust, estate, or pension trust. (Do not furnish the TIN of the personal representative or trustee unless the legal entity itself is not designated in the account title.) Also see
Special rules for partnerships on page 1. |
*Note. |
Grantor also must provide a Form W-9 to trustee of trust. |
Note. If no name is circled when more
than one name is listed, the number will be considered to be that of the first name listed.
Secure Your Tax Records from Identity Theft
Identity theft occurs when someone uses your personal information such as your name, social security number (SSN), or other identifying information,
17
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|
|
Form W-9 (Rev. 8-2013) |
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Page 4 |
without your permission, to commit fraud or other crimes. An identity thief may use your SSN to get a job or may file a tax return using your SSN to receive a refund.
To reduce your risk:
|
|
Ensure your employer is protecting your SSN, and |
|
|
Be careful when choosing a tax preparer. |
If your tax records are affected by identity
theft and you receive a notice from the IRS, respond right away to the name and phone number printed on the IRS notice or letter.
If your
tax records are not currently affected by identity theft but you think you are at risk due to a lost or stolen purse or wallet, questionable credit card activity or credit report, contact the IRS Identity Theft Hotline at 1-800-908-4490 or submit
Form 14039.
For more information, see Publication 4535, Identity Theft Prevention and Victim Assistance.
Victims of identity theft who are experiencing economic harm or a system problem, or are seeking help in resolving tax problems that have not
been resolved through normal channels, may be eligible for Taxpayer Advocate
Service (TAS) assistance. You can reach TAS by calling the TAS toll-free case intake line at 1-877-777-4778 or TTY/TDD 1-800-829-4059.
Protect yourself from suspicious emails or phishing schemes.
Phishing is the creation and use of email and websites designed to mimic legitimate business emails and websites. The most common act is
sending an email to a user falsely claiming to be an established legitimate enterprise in an attempt to scam the user into surrendering private information that will be used for identity theft.
The IRS does not initiate contacts with taxpayers via emails. Also, the IRS does not request personal detailed information through email or ask
taxpayers for the PIN numbers, passwords, or similar secret access information for their credit card, bank, or other financial accounts.
If you receive an unsolicited email claiming to be from the IRS, forward this message to phishing@irs.gov. You may also report misuse of
the IRS name, logo, or other IRS property to the Treasury Inspector General for Tax Administration at 1-800-366-4484. You can forward suspicious emails to the Federal Trade Commission at: spam@uce.gov or contact them at
www.ftc.gov/idtheft or 1-877-IDTHEFT (1-877-438-4338).
Visit IRS.gov to learn more about identity theft and how to reduce your
risk.
Privacy Act Notice
Section 6109 of the Internal
Revenue Code requires you to provide your correct TIN to persons (including federal agencies) who are required to file information returns with the IRS to report interest, dividends, or certain other income paid to you; mortgage interest you paid;
the acquisition or abandonment of secured property; the cancellation of debt; or contributions you made to an IRA, Archer MSA, or HSA. The person collecting this form uses the information on the form to file information returns with the IRS,
reporting the above information. Routine uses of this information include giving it to the Department of Justice for civil and criminal litigation and to cities, states, the District of Columbia, and U.S. commonwealths and possessions for use in
administering their laws. The information also may be disclosed to other countries under a treaty, to federal and state agencies to enforce civil and criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism. You
must provide your TIN whether or not you are required to file a tax return. Under section 3406, payers must generally withhold a percentage of taxable interest, dividend, and certain other payments to a payee who does not give a TIN to the payer.
Certain penalties may also apply for providing false or fraudulent information.
18
The Depositary for the Offer to Purchase is:
Computershare Trust Company, N.A.
If delivering by mail:
By First Class, Registered or Certified Mail:
Computershare Trust Company, N.A.
c/o Voluntary Corporate Actions
PO
Box 43011
Providence, RI 02940-3011
By Express or Overnight Delivery:
Computershare Trust Company, N.A.
c/o Voluntary Corporate Actions
250 Royall Street, Suite V
Canton,
MA 02021
DELIVERY OF THIS LETTER OF TRANSMITTAL TO AN ADDRESS OTHER THAN AS SET FORTH ABOVE WILL NOT CONSTITUTE A VALID DELIVERY TO THE DEPOSITARY.
Any questions or requests for assistance may be directed to the Information Agent at its telephone number and location listed below. Requests for
additional copies of this Offer to Purchase and the Letter of Transmittal may be directed to the Information Agent at its telephone number and location listed below. You may also contact your broker, dealer, commercial bank or trust company or other
nominee for assistance concerning the Offer.
The Information Agent for the Offer is:
480 Washington Boulevard, 26th Floor
Jersey City, NJ 07310
Shareholders, Banks and Brokers
Call Toll Free:
866-856-2826
Or email: graftech@georgeson.com
Exhibit (a)(1)(C)
NOTICE OF GUARANTEED DELIVERY
To Tender Shares of Common Stock
of
GRAFTECH
INTERNATIONAL LTD.
at
$5.05 Per Share in Cash
Pursuant to the Offer to Purchase dated May 26, 2015
by
BCP IV GRAFTECH
HOLDINGS LP
and
ATHENA ACQUISITION SUBSIDIARY INC.,
its wholly-owned subsidiary
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT MIDNIGHT,
NEW YORK CITY TIME, ON JULY 7, 2015, UNLESS THE TENDER OFFER IS EXTENDED.
This Notice of Guaranteed Delivery, or one substantially in the form hereof, must be used to accept the Offer (as defined below) if
(i) certificates representing shares of common stock, par value $0.01 per share (the Shares), of GrafTech International Ltd., a Delaware corporation, are not immediately available, (ii) the procedure for book-entry transfer
cannot be completed on a timely basis or (iii) time will not permit all required documents to reach Computershare Trust Company, N.A. (the Depositary) prior to the expiration of the Offer. This Notice of Guaranteed Delivery may be
delivered by facsimile transmission, mail or overnight courier to the Depositary and must include a Guarantee by an Eligible Institution (as defined in The Tender Offer Section 3 Procedures for Accepting the Offer and
Tendering Shares in the Offer to Purchase). See The Tender Offer Section 3 Procedures for Accepting the Offer and Tendering Shares in the Offer to Purchase.
The Depositary for the Offer is:
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If delivering by mail: |
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By Facsimile Transmission: |
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|
By First Class, Registered or Certified Mail:
Computershare Trust Company, N.A.
c/o Voluntary Corporate Actions PO
Box 43011 Providence, RI 02940-3011
By Express or Overnight Delivery:
Computershare Trust Company, N.A.
c/o Voluntary Corporate Actions 250
Royall Street, Suite V Canton, MA 02021 |
|
(617) 360-6810
Confirm Facsimile Receipt
by Telephone: (781)
575-2332 |
DELIVERY OF THIS INSTRUMENT TO AN ADDRESS, OR TRANSMISSION OF INSTRUCTIONS VIA FACSIMILE TRANSMISSION,
OTHER THAN AS SET FORTH ABOVE, WILL NOT CONSTITUTE A VALID DELIVERY TO THE DEPOSITARY.
THIS FORM IS NOT TO BE USED TO GUARANTEE
SIGNATURES. IF A SIGNATURE ON A LETTER OF TRANSMITTAL IS REQUIRED TO BE GUARANTEED BY AN ELIGIBLE INSTITUTION UNDER THE INSTRUCTIONS THERETO, SUCH SIGNATURE GUARANTEE MUST APPEAR IN THE APPLICABLE SPACE PROVIDED IN THE SIGNATURE BOX ON
THE APPROPRIATE LETTER OF TRANSMITTAL.
VOLUNTARY CORPORATE
ACTIONS COY: GTI
The Eligible Institution that completes this form must communicate the guarantee to the
Depositary and must deliver the Letter of Transmittal or an Agents Message (as defined in The Tender Offer Section 2 Acceptance for Payment and Payment of Shares in the Offer to Purchase) and certificates for Shares to the
Depositary within the time period shown herein. Failure to do so could result in a financial loss to such Eligible Institution.
Ladies and Gentlemen:
Pursuant to the guaranteed delivery procedures set forth in The Tender Offer Section 3 Procedures for Accepting the
Offer and Tendering Shares in the Offer to Purchase, the undersigned hereby tenders to BCP IV GrafTech Holdings LP, a Delaware limited partnership, or Athena Acquisition Subsidiary Inc., a Delaware corporation, as applicable, the number of shares of
common stock, par value $0.01 per share (the Shares), of GrafTech International Ltd., a Delaware corporation, specified below, upon the terms and subject to the conditions set forth in The Tender Offer Section 11 Conditions
of the Offer in the Offer to Purchase, dated May 26, 2015, and in the related Letter of Transmittal (which, together with the Offer to Purchase, as they may be amended or supplemented from time to time, collectively constitute the
Offer). The undersigned hereby acknowledges receipt of the Letter of Transmittal.
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Name(s) of Record Holder(s): |
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Number of Shares Tendered: |
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Certificate Number(s) (if available): |
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(Please type or print) |
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Address(es): |
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(Zip Code) |
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Name of Tendering Institution: |
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Area Code and Telephone No.(s): |
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¨ Check if delivery will be by book-entry transfer |
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Signature(s): |
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DTC Account No.: |
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Transaction Code No.: |
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Dated: ,
2015 |
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VOLUNTARY CORPORATE ACTIONS COY: GTI
2
GUARANTEE
(Not to be used for signature guarantee)
The undersigned, an Eligible Institution (as defined in The Tender Offer Section 3 Procedures for Accepting the Offer and
Tendering Shares in the Offer to Purchase), hereby (i) represents that the above-named person(s) own(s) the Shares tendered hereby within the meaning of Rule 14e-4 under the Securities Exchange Act of 1934, as amended (Rule
14e-4), (ii) represents that the tender of Shares effected hereby complies with Rule 14e-4, and (iii) guarantees delivery to the Depositary, at one of its addresses set forth above, of certificates representing the Shares tendered
hereby, in proper form for transfer, or a confirmation of a book-entry transfer of such Shares into the Depositarys account at The Depository Trust Company, in either case together with a properly completed and duly executed Letter of
Transmittal (or facsimile thereof) or, in the case of a book-entry transfer, an Agents Message (as defined in The Tender Offer Section 2 Acceptance for Payment and Payment for Shares in the Offer to Purchase), together with
any other documents required by the Letter of Transmittal, all within three (3) NYSE trading days after the date hereof.
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Name of Firm
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Address
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Zip Code
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Area Code and Telephone No.
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Authorized Signature
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Name (Please Print or Type)
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Title |
Date:
, 2015
NOTE: DO NOT SEND
CERTIFICATES FOR SHARES WITH THIS NOTICE.
CERTIFICATES SHOULD BE SENT WITH YOUR LETTER OF TRANSMITTAL.
VOLUNTARY CORPORATE ACTIONS COY: GTI
3
Exhibit (a)(1)(D)
Offer to Purchase
All
Outstanding Shares of Common Stock
of
GRAFTECH INTERNATIONAL LTD.
at
$5.05 Per Share in
Cash
Pursuant to the Offer to Purchase dated May 26, 2015
by
BCP IV GRAFTECH
HOLDINGS LP
and
ATHENA ACQUISITION SUBSIDIARY INC.
its wholly-owned subsidiary
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT MIDNIGHT,
NEW YORK CITY TIME, ON JULY 7, 2015, UNLESS THE OFFER IS EXTENDED.
May 26, 2015
To Brokers, Dealers, Commercial
Banks, Trust Companies and Other Nominees:
We have been engaged by BCP IV GrafTech Holdings LP, a Delaware limited partnership
(Purchaser) and Athena Acquisition Subsidiary Inc., a Delaware corporation (Acquisition Sub) to act as information agent (the Information Agent) in connection with Purchasers and Acquisition Subs offer
to purchase all of the issued and outstanding shares of common stock, par value $0.01 per share (the Shares), of GrafTech International Ltd., a Delaware corporation (the Company), at a purchase price of $5.05 per Share in
cash, without interest thereon and subject to any required tax withholding, upon the terms and subject to the conditions set forth in the Offer to Purchase, dated May 26, 2015 (the Offer to Purchase) and in the related Letter of
Transmittal (which, together with the Offer to Purchase, as they may be amended or supplemented from time to time, collectively constitute the Offer). Please furnish copies of the enclosed materials to those of your clients for whom you
hold Shares registered in your name or in the name of your nominee.
THE BOARD OF DIRECTORS OF THE COMPANY UNANIMOUSLY RECOMMENDS THAT
STOCKHOLDERS TENDER ALL OF THEIR SHARES INTO THE OFFER.
The Offer is not subject to any financing condition. The conditions to the Offer are described in The Tender Offer Section 11
Conditions of the Offer in the Offer to Purchase.
For your information and for forwarding to your clients for whom you hold Shares
registered in your name or in the name of your nominee, we are enclosing the following documents:
1. The Offer to Purchase;
2. The Letter of Transmittal (including IRS Form W-9) for your use in accepting the Offer and tendering Shares and for the information of your
clients;
3. A Notice of Guaranteed Delivery that accompanies the Offer to Purchase to be used to accept the Offer if the Shares and all
other required documents cannot be delivered to Computershare Trust Company, N.A., which
is the depositary for the Offer (the Depositary), by the expiration date of the Offer or if the procedure for book-entry transfer cannot be completed by the expiration date of the
Offer;
4. A form of letter which may be sent to your clients for whose accounts you hold Shares registered in your name or in the name of
your nominee, with space provided for obtaining such clients instructions with regard to the Offer;
5. The Companys
Solicitation/Recommendation Statement on Schedule 14D-9; and
6. A return envelope addressed to the Depositary for your use only.
We urge you to contact your clients as promptly as possible. Please note that the Offer and withdrawal rights will expire at midnight, New
York City time, on July 7, 2015, unless the Offer is extended by Purchaser.
The Offer is being made pursuant to the Agreement and
Plan of Merger, dated as of May 17, 2015, the Merger Agreement), by and among the Company, Acquisition Sub, and Purchaser. The Merger Agreement provides that if the Merger Condition is satisfied, Acquisition Sub will be merged with
and into the Company (the Merger), with the Company continuing as the surviving corporation in the Merger.
The Board of
Directors of the Company has: (i) determined that the Offer and the Merger are advisable, fair to and in the best interests of the Company and its stockholders (other than Purchaser and its affiliates), (ii) approved and adopted the Merger Agreement
and the transactions contemplated thereby and (iii) resolved to recommend that the stockholders of the Company accept the Offer and tender their Shares pursuant to the Offer.
For Shares to be properly tendered pursuant to the Offer, (i) the share certificates or confirmation of receipt of such Shares under the
procedure for book-entry transfer, together with a properly completed and duly executed Letter of Transmittal, including any required signature guarantees, or an Agents Message (as defined in the Offer to Purchase) in the case of
book-entry transfer, and any other documents required in the Letter of Transmittal, must be timely received by the Depositary or (ii) the tendering stockholder must comply with the guaranteed delivery procedures, all in accordance with the
Offer to Purchase and the Letter of Transmittal.
Purchaser or Acquisition Sub, as applicable, will not pay any fees or commissions to any
broker or dealer or to any other person (other than to the Depositary and the Information Agent as described in the Offer to Purchase) in connection with the solicitation of tenders of Shares pursuant to the Offer. Purchaser or Acquisition Sub, as
applicable, will, however, upon request, reimburse brokers, dealers, commercial banks and trust companies for reasonable and necessary costs and expenses incurred by them in forwarding materials to their customers. Purchaser or Acquisition Sub, as
applicable, will pay all stock transfer taxes applicable to its purchase of Shares pursuant to the Offer, subject to Instruction 6 of the Letter of Transmittal.
Any inquiries you may have with respect to the Offer should be addressed to, and additional copies of the enclosed materials may be obtained
from, the Information Agent or the undersigned at the addresses and telephone numbers set forth on the back cover of the Offer to Purchase.
Very truly yours,
GEORGESON INC.
Nothing contained herein or in the enclosed documents shall render you, the agent of Purchaser, the Information Agent or the Depositary or any
affiliate of any of them or authorize you or any other person to use any document or make any statement on behalf of any of them in connection with the Offer other than the enclosed documents and the statements contained therein.
2
The Information Agent for the Offer is:
480 Washington Boulevard, 26th Floor
Jersey City, NJ 07310
Shareholders, Banks and Brokers
Call Toll Free:
866-856-2826
Or email: graftech@georgeson.com
3
Exhibit (a)(1)(E)
Offer to Purchase
All
Outstanding Shares of Common Stock
of
GRAFTECH INTERNATIONAL LTD.
at
$5.05 Per Share in
Cash
Pursuant to the Offer to Purchase dated May 26, 2015
by
BCP IV GRAFTECH
HOLDINGS LP
and
ATHENA ACQUISITION SUBSIDIARY INC.,
its wholly-owned subsidiary
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT MIDNIGHT,
NEW YORK CITY TIME, ON JULY 7, 2015, UNLESS THE
OFFER IS EXTENDED.
May 26, 2015
To Our Clients:
Enclosed for your consideration are the Offer to Purchase, dated May 26, 2015 (the Offer to Purchase), and the related Letter of
Transmittal in connection with the offer by BCP IV GrafTech Holdings LP, a Delaware limited partnership (Purchaser), and Athena Acquisition Subsidiary Inc., a Delaware corporation (Acquisition Sub) to purchase all of the
issued and outstanding shares of common stock, par value $0.01 per Share (the Shares) of GrafTech International Ltd., a Delaware corporation (the Company), at a purchase price of $5.05 per Share in cash, without interest
thereon and subject to any required tax withholding, upon the terms and subject to the conditions set forth in the Offer to Purchase and in the related Letter of Transmittal (which, together with the Offer to Purchase, as they may be amended or
supplemented from time to time, collectively constitute the Offer).
Also enclosed is the Companys
Solicitation/Recommendation Statement on Schedule 14D-9.
THE BOARD OF DIRECTORS OF THE COMPANY UNANIMOUSLY RECOMMENDS THAT YOU
TENDER ALL OF YOUR SHARES IN THE OFFER.
We or our nominees are the holder of record of Shares held for your account. A tender of such Shares can be made only by us as the
holder of record and pursuant to your instructions. The Letter of Transmittal is furnished to you for your information only and cannot be used by you to tender Shares held by us for your account.
We request instructions as to whether you wish us to tender any or all of the Shares held by us for your account, upon the terms and
subject to the conditions set forth in the enclosed Offer to Purchase and the Letter of Transmittal.
Please note carefully the following:
|
1. |
The offer price for the Offer is $5.05 per Share in cash, without interest thereon and subject to any required tax withholding. |
|
2. |
The Offer is being made for all issued and outstanding Shares. |
|
3. |
The Offer is being made pursuant to an Agreement and Plan of Merger, dated as of May 17, 2015 (as it may be amended from time to time, the Merger Agreement), by and among the Company, Acquisition Sub,
and Purchaser. The Merger Agreement provides, among other things, that following the consummation of the Offer and subject to certain conditions to the merger, including that the number of Shares validly tendered and not withdrawn in accordance with
the terms of the Offer, when combined with the number of Shares owned by Brookfield Capital Partners Ltd. (Brookfield) and its controlled affiliates (including Purchaser and Acquisition Sub), including any Shares issuable upon conversion
of the Series A Convertible Preferred Stock (Series A Preferred Stock) issued and outstanding as of such date (including Series A Preferred Stock issuable upon conversion of the Companys Series B Convertible Preferred Stock
(Series B Preferred Stock and collectively with the Series A Preferred Stock, the Preferred Stock) issued and outstanding as of such date) (the Underlying Shares), represents at least 80% of the then-outstanding
Shares plus all Underlying Shares (the Merger Condition), Purchaser will transfer the Preferred Stock (and any Shares owned by Purchaser) to Acquisition Sub, Acquisition Sub (instead of Purchaser) will accept the Shares for purchase in
the Offer and Acquisition Sub will be merged with and into the Company (the Merger), with the Company continuing as the surviving corporation. In the Merger, (i) each Share issued and outstanding immediately prior to the effective
time of the Merger (other than (A) Shares owned by Purchaser, Acquisition Sub or the Company, (B) Shares held by any subsidiary of the Company or Purchaser (other than Acquisition Sub), and (C) Shares held by Company stockholders who
have properly and validly perfected their statutory rights of appraisal in respect of such Shares in accordance with Section 262 of the General Corporation Law of the State of Delaware (the DGCL)) will be cancelled and converted
into the right to receive an amount in cash equal to the Offer Price and (ii) each share of Preferred Stock issued and outstanding immediately prior to the effective time of the Merger, if any, will remain issued and outstanding, except that
shares of Preferred Stock owned by the Purchaser and its subsidiaries will be cancelled and cease to exist and any accrued but unpaid dividends payable in respect of the Preferred Stock will be paid to Purchaser. |
|
4. |
The Board of Directors of the Company has: (i) determined that it is in the best interests of the Company and its stockholders, and declared it advisable, to enter into the Merger Agreement, (ii) approved the
execution and delivery by the Company of the Merger Agreement, the performance by the Company of its covenants and agreements contained therein and the consummation of the Offer and, if applicable, the Merger upon the terms and subject to the
conditions contained therein and (iii) resolved to recommend that the holders of Shares accept the Offer and tender their Shares pursuant to the Offer. |
|
5. |
The Offer and withdrawal rights will expire at midnight, New York City time, on July 7, 2015, unless the Offer is extended by Purchaser. |
|
6. |
The Offer is not subject to a financing condition. The obligation of Purchaser or Acquisition Sub, as applicable, to accept for payment and pay for Shares validly tendered (and not withdrawn) pursuant to the Offer is
subject to the conditions set forth in The Tender Offer Section 11Conditions of the Offer in the Offer to Purchase (collectively, the Offer Conditions). Among the Offer Conditions are: (i) the Minimum Condition (as
defined in the Offer to Purchase), and (ii) the expiration or termination of the waiting period applicable to Purchasers purchase of Shares pursuant to the Offer under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.
|
If you wish to have us tender any or all of your Shares, please so instruct us by completing, executing, detaching and
returning to us the Instruction Form on the detachable part hereof. An envelope to return your instructions to us is enclosed. If you authorize tender of your Shares, all such Shares will be tendered unless otherwise specified on the Instruction
Form.
Your prompt action is requested. Your Instruction Form should be forwarded to us in ample time to permit us to submit the tender
on your behalf before the expiration of the Offer.
The Offer is not being made to, nor will tenders be accepted from or on behalf of,
holders of Shares in any jurisdiction in which the making of the Offer or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction.
INSTRUCTION FORM
With Respect to the Offer to Purchase
All Outstanding Shares of Common Stock
of
GRAFTECH
INTERNATIONAL LTD.
at
$5.05 Per Share in Cash
Pursuant to the Offer to Purchase dated May 26, 2015
by
BCP IV GRAFTECH
HOLDINGS LP
and
ATHENA ACQUISITION SUBSIDIARY INC.
its wholly-owned subsidiary
The undersigned acknowledge(s) receipt of your letter and the enclosed Offer to Purchase, dated May 26, 2015, and the related Letter of
Transmittal, in connection with the offer by BCP IV GrafTech Holdings LP, a Delaware limited partnership (Purchaser) and Athena Acquisition Subsidiary Inc., a Delaware corporation (Acquisition Sub), to purchase all of the
issued and outstanding shares of common stock, par value $0.01 per share (the Shares) of GrafTech International Ltd., a Delaware corporation, at a purchase price of $5.05 per Share in cash, without interest thereon and subject to any
required tax withholding, upon the terms and subject to the conditions set forth in the Offer to Purchase, dated May 26, 2015 (the Offer to Purchase) and in the related Letter of Transmittal (which, together with the Offer to Purchase,
as they may be amended or supplemented from time to time, collectively constitute the Offer).
The undersigned hereby
instruct(s) you to tender to Purchaser or Acquisition Sub, as applicable, the number of Shares indicated below (or, if no number is indicated, all Shares) which are held by you for the account of the undersigned, upon the terms and subject to the
conditions set forth in the Offer.
The method of delivery of this document is at the election and risk of the tendering stockholder.
If delivery is by mail, then registered mail with return receipt requested, properly insured, is recommended. In all cases, sufficient time should be allowed to ensure timely delivery.
|
|
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Number of Shares to be Tendered: |
|
SIGN HERE |
Shares* |
|
Signature(s) |
Account No. |
|
|
Dated
, 2015 |
|
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Area Code and Phone Number |
|
|
Tax Identification Number or Social Security Number |
|
Please Print name(s) and address(es) here |
* |
Unless otherwise indicated, it will be assumed that all Shares held by us for your account are to be tendered. |
Exhibit (a)(1)(F)
This announcement is neither an offer to purchase nor a solicitation of an offer to sell Shares (as defined below). The Offer (as defined below) is made
only by the Offer to Purchase, dated May 26, 2015, and the related Letter of Transmittal and any amendments or supplements thereto, and is being made to all holders of Shares. The Offer is not being made to (nor will tenders be accepted from or on
behalf of) holders of Shares in any jurisdiction in which the making of the Offer or the acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In those jurisdictions where
applicable laws require the Offer to be made by a licensed broker or dealer, the Offer shall be deemed to be made on behalf of Purchaser (as defined below) by one or more registered brokers or dealers licensed under the laws of such jurisdiction to
be designated by Purchaser.
Notice of Offer to Purchase
All Outstanding Shares of Common Stock
of
GRAFTECH
INTERNATIONAL LTD.
at
$5.05 Per Share in Cash
by
BCP IV GRAFTECH
HOLDINGS LP
and
ATHENA ACQUISITION SUBSIDIARY INC.,
its wholly-owned subsidiary
BCP IV GrafTech Holdings LP, a Delaware limited partnership (Purchaser) and Athena Acquisition Subsidiary Inc., a Delaware
corporation (Acquisition Sub) are offering to purchase all of the issued and outstanding shares of common stock, par value $0.01 per share (the Shares), of GrafTech International Ltd., a Delaware corporation (the
Company), at a purchase price of $5.05 per Share in cash (the Offer Price), without interest thereon and subject to any required tax withholding, upon the terms and subject to the conditions set forth in the Offer to
Purchase, dated May 26, 2015, and in the related Letter of Transmittal (which, together with the Offer to Purchase, as they may be amended or supplemented from time to time, collectively constitute the Offer). Stockholders of record who
tender directly to Computershare Trust Company, N.A. (the Depositary) will not be obligated to pay brokerage fees or commissions or, except as may be set forth in the Letter of Transmittal, transfer taxes, on the purchase of Shares by
Purchaser or, if the Merger Condition (as defined below) is satisfied, Acquisition Sub, pursuant to the Offer. Stockholders who hold their Shares through a broker, dealer, commercial bank, trust company or other nominee should consult such
institution as to whether it charges any service fees or commissions.
THE OFFER AND THE WITHDRAWAL RIGHTS WILL EXPIRE AT MIDNIGHT, NEW YORK
CITY TIME, ON JULY 7, 2015, UNLESS THE OFFER IS EXTENDED.
The Offer is being made pursuant to an Agreement and Plan of Merger, dated as of May 17, 2015 (as it may be amended from time to time,
the Merger Agreement), by and among the Company, Purchaser and Acquisition Sub pursuant to which, after the consummation of the Offer and subject to the satisfaction or waiver of certain conditions to the merger, including that the
number of Shares validly tendered and not withdrawn in accordance with the terms of the Offer, when combined with the number of Shares owned by Brookfield Capital Partners Ltd. (Brookfield) and its controlled affiliates (including
Purchaser and Acquisition Sub), including any Shares issuable upon conversion of the Companys Series A Convertible Preferred Stock (Series A Preferred Stock) issued and outstanding as of such date (including Series A Preferred
Stock issuable upon conversion of the Companys Series B Convertible Preferred Stock (Series B Preferred Stock and collectively with the Series A Preferred Stock, the Preferred Stock) issued and outstanding as of such
date) (the Underlying Shares), represents at least 80% of the then-
outstanding Shares plus all Underlying Shares (the Merger Condition), Purchaser will transfer the Preferred Stock (and any Shares owned by Purchaser) to Acquisition Sub, Acquisition
Sub (instead of Purchaser) will accept the Shares for purchase in the Offer and Acquisition Sub will be merged with and into the Company (the Merger), with the Company continuing as the surviving corporation. In the Merger, (i) each
Share issued and outstanding immediately prior to the effective time of the Merger (other than (A) Shares owned by Purchaser, Acquisition Sub or the Company, (B) Shares held by any subsidiary of the Company or Purchaser (other than
Acquisition Sub), and (C) Shares held by Company stockholders who have properly and validly perfected their statutory rights of appraisal in respect of such Shares in accordance with Section 262 of the General Corporation Law of the State
of Delaware (the DGCL)) will be cancelled and converted into the right to receive an amount in cash equal to the Offer Price and (ii) each share of Preferred Stock issued and outstanding immediately prior to the effective time of
the Merger, if any, will remain issued and outstanding, except that shares of Preferred Stock owned by the Purchaser and its subsidiaries will be cancelled and cease to exist and any accrued but unpaid dividends payable in respect of the Preferred
Stock will be paid to Purchaser. Under no circumstances will interest be paid on the purchase price for the Shares, regardless of any extension of the Offer or any delay in making payment for Shares. The Merger Agreement is more fully
described in Special Factors Section 6 The Merger Agreement; Other Agreements in the Offer to Purchase.
The obligation
of Purchaser or, if the Merger Condition is satisfied, Acquisition Sub, to accept for payment and pay for Shares validly tendered (and not withdrawn) pursuant to the Offer is subject to the conditions set forth in The Tender Offer
Section 11 Conditions to the Offer in the Offer to Purchase (collectively, the Offer Conditions).
The term
Expiration Date means July 7, 2015, unless the expiration of the Offer is extended to a subsequent date in accordance with the terms of the Merger Agreement, in which event the term Expiration Date means such subsequent date.
The Board of Directors of the Company has: (i) determined that the Offer and the Merger are advisable, fair to and in the best
interests of the Company and its stockholders (other than Purchaser and its affiliates), (ii) approved and adopted the Merger Agreement and the transactions contemplated thereby and (iii) resolved to recommend that the stockholders of the Company
accept the Offer and tender their Shares pursuant to the Offer.
The Merger Agreement provides that: (i) Purchaser shall extend
the Offer for any period required by any law or order, or any rule, regulation, interpretation or position of the SEC or its staff or the NYSE, in any such case which is applicable to the Offer; (ii) in the event that (A) the Minimum
Condition (as defined in the Offer to Purchase) is satisfied and any or all of the other conditions to the Offer are not satisfied or waived (if permitted) as of July 7, 2015 (the Initial Expiration Date) or the Go-Shop Extension Date
(as defined in the Offer to Purchase), Purchaser will extend the Offer for successive extension periods of ten business days (or any longer or shorter period as may be approved in advance by the Company) in order to permit the satisfaction of all of
the conditions to the Offer or (B) the Minimum Condition is not satisfied as of the Initial Expiration Date or the Go-Shop Extension Expiration Date (as defined in the Offer to Purchase), Purchaser may (in its sole discretion) extend the Offer
for successive extension periods of up to ten business days each (or any longer period as may be approved in advance by the Company) in order to permit the satisfaction of the Minimum Condition and certain other conditions set forth in the Merger
Agreement that have not then been satisfied or waived (if permitted); provided that Purchaser shall not be required to extend the Termination Date (as defined in the Merger Agreement); and (iii) in the event the Company receives an acquisition
proposal during the Go-Shop Period (as defined in the Offer to Purchase) which is, or could reasonably be expected to result in a Superior Proposal (as defined in the Offer to Purchase), the Company may extend the Go-Shop Period by up to fifteen
(15) days (the Go-Shop Extension), and Purchaser will extend the Offer until ten business days after the expiration of the Go-Shop Extension (or for such longer period as Purchaser may deem reasonably necessary as may be approved in
advance by the Company).
It is not expected that there will be a subsequent offering period. However, Purchaser may, and
reserves the right to elect to, provide for a subsequent offering period as contemplated by Rule 14d-11 promulgated under the Exchange Act of not less than three (3) nor more than twenty (20) business days beginning on the next
business day after the Expiration Date, during which any remaining holders of Shares may tender, but not withdraw, their Shares and receive the Offer Price. If Purchaser elects to provide for a subsequent offering period, all Shares that were
2
validly tendered during the initial offering period will be accepted immediately and paid for promptly. A subsequent offering period, if included, will be an additional period.
Except as set forth in the Merger Agreement, and subject to the applicable rules and regulations of the United States Securities and Exchange
Commission (SEC), Purchaser expressly reserves the right to waive (in whole or in part) any of the Offer conditions at any time and from time to time, to increase the Offer Price or to make any other changes in the terms and conditions
of the Offer. Any extension, delay, termination or amendment of the Offer will be followed as promptly as practicable by a public announcement thereof, and such announcement in the case of an extension will be made no later than 9:00 a.m., New York
City time, on the next business day after the Expiration Date.
For purposes of the Offer, Purchaser or, if the Merger Condition is
satisfied, Acquisition Sub, will be deemed to have accepted for payment, and thereby purchased, Shares validly tendered and not withdrawn as, if and when it gives oral or written notice to the Depositary of its acceptance for payment of such Shares
pursuant to the Offer. Upon the terms and subject to the conditions of the Offer, payment for Shares accepted for payment pursuant to the Offer will be made by deposit of the Offer Price for such Shares with the Depositary, which will act as agent
for tendering stockholders for the purpose of receiving payments from Purchaser or, if the Merger Condition is satisfied, Acquisition Sub, and transmitting such payments to tendering stockholders whose Shares have been accepted for payment. If
Purchaser extends the Offer, is delayed in its acceptance for payment of Shares or it or Acquisition Sub, as applicable, is unable to accept Shares for payment pursuant to the Offer for any reason, then, without prejudice to Purchasers or
Acquisition Subs rights under the Offer, the Depositary may retain tendered Shares on Purchasers or Acquisition Subs behalf, as applicable, and such Shares may not be withdrawn except to the extent that tendering stockholders are
entitled to withdrawal rights as described in Section 4 Withdrawal Rights under The Tender Offer in the Offer to Purchase and as otherwise required by Rule 14e-1(c) under the Exchange Act. Under no circumstances will
Purchaser or Acquisition Sub pay interest on the Offer Price for Shares, regardless of any extension of the Offer or any delay in making such payment.
In all cases, Purchaser or, if the Merger Condition is satisfied, Acquisition Sub, will pay for Shares accepted for payment pursuant to the
Offer only after timely receipt by the Depositary of (i) the certificates evidencing such Shares (the Share Certificates) or confirmation of a book-entry transfer of such Shares into the Depositarys account at The Depository
Trust Company (DTC) (such a confirmation, a Book-Entry Confirmation) pursuant to the procedures set forth in The Tender Offer Section 3 Procedures for Accepting the Offer and Tendering Shares in the Offer
to Purchase and (ii) the Letter of Transmittal (or a manually signed facsimile thereof), properly completed and duly executed, with any required signature guarantees and any other documents required by the Letter of Transmittal or, in the case
of a book-entry transfer, an Agents Message (as defined in The Tender Offer Section 2 Acceptance for Payment and Payment for Shares in the Offer to Purchase) in lieu of the Letter of Transmittal and such other documents.
Accordingly, tendering stockholders may be paid at different times depending upon when Share Certificates or Book-Entry Confirmations with respect to Shares are actually received by the Depositary.
Shares tendered pursuant to the Offer may be withdrawn at any time prior to the scheduled expiration of the Offer. Thereafter, tenders are
irrevocable, except that Shares tendered may also be withdrawn after July 25, 2015 if Purchaser or, if the Merger Condition is satisfied, Acquisition Sub, has not accepted them for payment. For a withdrawal of Shares to be effective, the Depositary
must timely receive a written or facsimile transmission notice of withdrawal at one of its addresses set forth on the back cover of the Offer to Purchase. Any notice of withdrawal must specify the name of the person who tendered the Shares to be
withdrawn, the number of Shares to be withdrawn and the name in which the Share Certificates are registered, if different from that of the person who tendered such Shares. The signature(s) on the notice of withdrawal must be guaranteed by an
Eligible Institution (as defined in The Tender Offer Section 3 Procedures for Accepting the Offer and Tendering Shares in the Offer to Purchase), unless such Shares have been tendered for the account of an Eligible Institution. If
Shares have been tendered pursuant to the procedures for book-entry transfer as set forth in The Tender Offer Section 3 Procedures for Accepting the Offer and Tendering Shares in the Offer to Purchase, any notice of withdrawal
must specify the name and number of the account at DTC to be credited with the withdrawn Shares. If Share Certificates representing the Shares to be withdrawn have been delivered or otherwise identified to the Depositary, then, prior to the physical
release of such Share Certificates, the name of the registered owners and the serial numbers shown on such Share Certificates must also be furnished to the Depositary.
Purchaser will determine, in its sole discretion, all questions as to the form and validity (including time of receipt) of any notice of
withdrawal, and such determination will be final and binding. No withdrawal of Shares shall be deemed to have been properly made until all defects and irregularities
3
have been cured or waived. None of Purchaser, Acquisition Sub or any of their respective affiliates or assigns, the Depositary, Georgeson Inc. (the Information Agent) or any other
person will be under any duty to give notification of any defects or irregularities in any notice of withdrawal or incur any liability for failure to give such notification.
Withdrawals of tenders of Shares may not be rescinded and any Shares properly withdrawn will be deemed not validly tendered for purposes of
the Offer. Withdrawn Shares may, however, be retendered by following one of the procedures for tendering Shares described in The Tender Offer Section 3Procedures for Accepting the Offer and Tendering Shares in the Offer to Purchase
at any time prior to the scheduled expiration of the Offer.
The information required to be disclosed by paragraph (d)(1) of Rule 14d-6 of
the General Rules and Regulations under the Exchange Act is contained in the Offer to Purchase and is incorporated herein by reference.
The Company provided Purchaser with the Companys stockholder list and security position listings for the purpose of disseminating the
Offer to Purchase, the related Letter of Transmittal and related documents to holders of Shares. The Offer to Purchase and related Letter of Transmittal will be mailed to record holders of Shares whose names appear on the Companys stockholder
list and will be furnished for subsequent transmittal to beneficial owners of Shares, to brokers, dealers, commercial banks, trust companies and similar persons whose names, or the names of whose nominees, appear on the stockholder list or, if
applicable, who are listed as participants in a clearing agencys security position listing.
The receipt of cash by a holder of
Shares pursuant to the Offer or the Merger will be a taxable transaction to U.S. stockholders for U.S. federal income tax purposes. See The Tender Offer Section 5 Certain U.S. Federal Income Tax Consequences of the Offer in the
Offer to Purchase for a more detailed discussion of the tax treatment of the Offer. You are urged to consult with your own tax advisor as to the particular tax consequences to you of the Offer and the Merger.
The Offer to Purchase and the related Letter of Transmittal contain important information. Stockholders should carefully read both
documents in their entirety before any decision is made with respect to the Offer.
Questions or requests for assistance may be
directed to the Information Agent at the address and telephone numbers set forth below. Requests for copies of the Offer to Purchase, the related Letter of Transmittal and the Notice of Guaranteed Delivery may be directed to the Information Agent or
to brokers, dealers, commercial banks or trust companies. Such copies will be furnished promptly at Purchasers expense. Purchaser will not pay any fees or commissions to any broker or dealer or any other person (other than the Information
Agent or the Depositary) for soliciting tenders of Shares pursuant to the Offer.
The Information Agent for the Offer is:
480 Washington Boulevard, 26th Floor
Jersey City, NJ 07310
Shareholders, Banks and Brokers
Call Toll Free:
866-856-2826
Or email: graftech@georgeson.com
May 26, 2015
4
Exhibit (a)(1)(G)
Offer to Purchase
All
Outstanding Shares of Common Stock
of
GRAFTECH INTERNATIONAL LTD.
at
$5.05 Per Share in
Cash
Pursuant to the Offer to Purchase dated May 26, 2015
by
BCP IV GRAFTECH
HOLDINGS LP
and
ATHENA ACQUISITION SUBSIDIARY INC.,
its wholly-owned subsidiary
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT MIDNIGHT,
NEW YORK CITY TIME, ON JULY 7, 2015, UNLESS THE
OFFER IS EXTENDED.
May 26, 2015
To Participants in the GrafTech
International Holdings Inc. Savings Plan:
Enclosed for your consideration are the Offer to Purchase, dated May 26, 2015 (the Offer
to Purchase), and the related Letter of Transmittal in connection with the offer by BCP IV GrafTech Holdings LP, a Delaware limited partnership (Purchaser), and Athena Acquisition Subsidiary Inc., a Delaware corporation
(Acquisition Sub) to purchase all of the issued and outstanding shares of common stock, par value $0.01 per Share (the Shares) of GrafTech International Ltd., a Delaware corporation (the Company), at a purchase
price of $5.05 per Share in cash, without interest thereon and subject to any required tax withholding, upon the terms and subject to the conditions set forth in the Offer to Purchase and in the related Letter of Transmittal (which, together with
the Offer to Purchase, as they may be amended or supplemented from time to time, collectively constitute the Offer).
Also
enclosed is the Companys Solicitation/Recommendation Statement on Schedule 14D-9.
THE BOARD OF DIRECTORS OF THE COMPANY UNANIMOUSLY RECOMMENDS THAT YOU
TENDER ALL OF YOUR SHARES IN THE OFFER.
We or our nominees are the holder of record of Shares held for your account. A tender of such Shares can be made only by us as the
holder of record and pursuant to your instructions. The Letter of Transmittal is furnished to you for your information only and cannot be used by you to tender Shares held by us for your account.
We request instructions as to whether you wish us to tender any or all of the Shares held by us for your account, upon the terms and
subject to the conditions set forth in the enclosed Offer to Purchase and the Letter of Transmittal.
Please note carefully the following:
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1. |
The offer price for the Offer is $5.05 per Share in cash, without interest thereon and subject to any required tax withholding. |
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2. |
The Offer is being made for all issued and outstanding Shares. |
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3. |
The Offer is being made pursuant to an Agreement and Plan of Merger, dated as of May 17, 2015 (as it may be amended from time to time, the Merger Agreement), by and among the Company, Acquisition Sub,
and Purchaser. The Merger Agreement provides, among other things, that following the consummation of the Offer and subject to certain conditions to the merger, including that the number of Shares validly tendered and not withdrawn in accordance with
the terms of the Offer, when combined with the number of Shares owned by Brookfield Capital Partners Ltd. (Brookfield) and its controlled affiliates (including Purchaser and Acquisition Sub), including any Shares issuable upon conversion
of the Series A Convertible Preferred Stock (Series A Preferred Stock) issued and outstanding as of such date (including Series A Preferred Stock issuable upon conversion of the Companys Series B Convertible Preferred Stock
(Series B Preferred Stock and collectively with the Series A Preferred Stock, the Preferred Stock) issued and outstanding as of such date) (the Underlying Shares), represents at least 80% of the then-outstanding
Shares plus all Underlying Shares (the Merger Condition), Purchaser will transfer the Preferred Stock (and any Shares owned by Purchaser) to Acquisition Sub, Acquisition Sub (instead of Purchaser) will accept the Shares for purchase in
the Offer and Acquisition Sub will be merged with and into the Company (the Merger), with the Company continuing as the surviving corporation. In the Merger, (i) each Share issued and outstanding immediately prior to the effective
time of the Merger (other than (A) Shares owned by Purchaser, Acquisition Sub or the Company, (B) Shares held by any subsidiary of the Company or Purchaser (other than Acquisition Sub), and (C) Shares held by Company stockholders who
have properly and validly perfected their statutory rights of appraisal in respect of such Shares in accordance with Section 262 of the General Corporation Law of the State of Delaware (the DGCL)) will be cancelled and converted
into the right to receive an amount in cash equal to the Offer Price and (ii) each share of Preferred Stock issued and outstanding immediately prior to the effective time of the Merger, if any, will remain issued and outstanding, except that
shares of Preferred Stock owned by the Purchaser and its subsidiaries will be cancelled and cease to exist and any accrued but unpaid dividends payable in respect of the Preferred Stock will be paid to Purchaser. |
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4. |
The Board of Directors of the Company has: (i) determined that it is in the best interests of the Company and its stockholders, and declared it advisable, to enter into the Merger Agreement, (ii) approved the
execution and delivery by the Company of the Merger Agreement, the performance by the Company of its covenants and agreements contained therein and the consummation of the Offer and, if applicable, the Merger upon the terms and subject to the
conditions contained therein and (iii) resolved to recommend that the holders of Shares accept the Offer and tender their Shares pursuant to the Offer. |
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5. |
The Offer and withdrawal rights will expire at midnight, New York City time, on July 7, 2015, unless the Offer is extended by Purchaser. |
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6. |
The Offer is not subject to a financing condition. The obligation of Purchaser or Acquisition Sub, as applicable, to accept for payment and pay for Shares validly tendered (and not withdrawn) pursuant to the Offer is
subject to the conditions set forth in The Tender Offer Section 11Conditions of the Offer in the Offer to Purchase (collectively, the Offer Conditions). Among the Offer Conditions are: (i) the Minimum Condition (as
defined in the Offer to Purchase), and (ii) the expiration or termination of the waiting period applicable to Purchasers purchase of Shares pursuant to the Offer under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.
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If you wish to have us tender any or all of your Shares, please so instruct us by completing, executing, detaching and
returning to us the Instruction Form on the detachable part hereof. An envelope to return your instructions to us is enclosed. If you authorize tender of your Shares, all such Shares will be tendered unless otherwise specified on the Instruction
Form.
Your prompt action is requested. Your Instruction Form must be received by us by 5:00 p.m. ET on July 2, 2015 to permit us to
submit the tender on your behalf before the expiration of the Offer.
The Offer is not being made to, nor will tenders be accepted
from or on behalf of, holders of Shares in any jurisdiction in which the making of the Offer or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction.
TENDER OFFER INSTRUCTION FORM FROM VANGUARD FIDUCIARY TRUST COMPANY
TENDER OFFER INSTRUCTION FORM
For
Participants in the GrafTech International Holdings Inc. Savings Plan (the Plan)
The undersigned acknowledge(s) receipt of
your letter and the enclosed Offer to Purchase, dated May 26, 2015, and the related Letter of Transmittal, in connection with the offer by BCP IV GrafTech Holdings LP, a Delaware limited partnership (Purchaser) and Athena Acquisition
Subsidiary, Inc., a Delaware corporation (Acquisition Sub), to purchase all of the issued and outstanding shares of common stock, par value $0.01 per share (the Shares) of GrafTech International Ltd., a Delaware corporation
(the Company), at a purchase price of $5.05 per Share in cash, without interest thereon and subject to any required tax withholding, upon the terms and subject to the conditions set forth in the Offer to Purchase, dated May 26, 2015 (the
Offer to Purchase) and in the related Letter of Transmittal (which, together with the Offer to Purchase, as they may be amended or supplemented from time to time, collectively constitute the Offer).
You can communicate your election to Vanguard by mailing this Instruction Form, with appropriate postage to:
By First Class, Registered or Certified Mail:
Computershare Trust Company, N.A.
c/o Voluntary Corporate Actions
PO
Box 43011
Providence, RI 02940-3011
By Express or Overnight Delivery:
Computershare Trust Company, N.A.
c/o Voluntary Corporate Actions
250
Royall Street, Suite V
Canton, MA 02021
Please note, that any Instruction Form must be RECEIVED, not just postmarked, by 5:00 p.m. ET on July 2, 2015 (the Plan deadline) unless the
Offer is extended, in order to be valid. Unless otherwise required by law, the last properly completed direction received from you by the deadline above is the one which will be followed.
IF YOU DO NOT SUBMIT PROPER DIRECTIONS TO VANGUARD AS DESCRIBED HEREIN BY THE PLAN DEADLINE, UNLESS THE OFFER IS EXTENDED, VANGUARD WILL NOT TENDER ANY OF THE
SHARES CREDITED TO YOUR ACCOUNT IN THE PLAN. IF THE FORM IS NOT SIGNED, VANGUARD WILL NOT TENDER YOUR SHARES UNLESS REQUIRED BY LAW TO DO OTHERWISE.
Vanguard makes no recommendation to any Plan participant as to whether to tender or not. Your instructions to Vanguard will be kept confidential. If you hold
Shares in more than one account under the Plan your tender offer instructions will apply to all shares in all Plan accounts. Your decision to tender or not tender Shares will not be shared with any of the Companys employees, officers, or
directors. Vanguard, as trustee, will act in accordance with the documents governing the Plan, ERISA and applicable law, which may under certain circumstances limit Vanguards ability to tender Shares in the Offer.
Offer to Purchase for Cash All Outstanding Shares of Common Stock of GrafTech International Ltd.
BEFORE COMPLETING THIS INSTRUCTION FORM, PLEASE CAREFULLY READ THE ENCLOSED MATERIALS. PLEASE NOTE THAT THE PLAN DEADLINE IS JULY 2, 2015.
In response to the offer by Purchaser and Acquisition Sub, to purchase all of the issued and outstanding Shares, I hereby instruct Vanguard
Fiduciary Trust Company to tender %* of the Shares allocated to my Plan account(s) in response to the Offer:
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Account Number |
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Date
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Daytime Phone Number
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Please Print Name and address(es) here
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Tax Identification Number or Social Security Number |
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Signature(s) |
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Unless otherwise indicated, it will be assumed that all Shares held by us for your account are to be tendered. |
VOLUNTARY CORPORATE ACTIONS COY: GTI
Exhibit (d)(3)
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Suite 300 Park Center I
6100 Oak Tree Boulevard Independence,
OH 44131 joel.hawthorne@graftech.com |
March 20, 2015
Brookfield
Capital Partners LLC
Brookfield Place, Suite 300
181 Bay
Street
Toronto, ON M5J 2T3
Attn: Peter Gordon, Managing
Partner
peter.gordon@brookfield.com
Facsimile:
416-365-9642
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Re: |
Confidentiality Agreement |
Gentlemen:
In connection with discussions relating to a possible negotiated transaction involving GrafTech International Ltd. (GrafTech) and
Brookfield Capital Partners LLC ( BCP), each of GrafTech or BCP (individually, a Party and, collectively, the Parties), directly or through its Representatives (as defined
below), may in the future request the furnishing of Information (as defined below) by or obtain Information from (in such capacity, the Requesting Party) the other Party (in such capacity, the Providing
Party) or its Representatives.
Each Party agrees, for consideration, the sufficiency and receipt of which is hereby acknowledged, and
intending to be legally bound, as follows:
1. The term Transaction means a financing transaction or direct or indirect
acquisition or business combination of any kind involving GrafTech and BCP, whether by means of a recapitalization, refinancing, share or debt issuance or placement, merger, consolidation, asset sale, share sale, share exchange, exchange offer,
tender offer, joint venture, or otherwise.
2. The term Information means all information (whether in written, electronic, oral
or other form and including trade secrets and non-public, confidential or proprietary information) relating to the Transaction (including any discussion, offer, submission, negotiation or proposal relating thereto or the possibility or desirability
thereof) or to the Providing Party or its subsidiaries or affiliates (including its or their past, present or prospective business, technology and know-how, technical data, intellectual property, operating or production methods or processes, supply
or sales methods or processes, sales contacts, sales offer or selling prices, pricing strategies, cost management and capital investment plans, financial condition, financial or business performance, revenues, costs, financing and capital plans,
forecasts or projections, assets, liabilities, liquidity, rights, obligations, strategies and plans) that is, on or after the date hereof, furnished by or on behalf of or obtained from the Providing Party or any of its or its affiliates parent
companies, subsidiaries, associates, related parties, partners, members, directors, officers, employees, representatives (including financial advisors, attorneys and accountants), agents or potential financing sources (collectively,
Representatives; provided, that only such persons that receive Information from (i) BCP or at the instruction or request of BCP (including Representatives for whom BCP requests access to a data room and
Representatives who accompany BCP on GrafTech site visits or
Brookfield Capital Partners LLC
March 20, 2015
management presentations or participate in meetings or conferences calls with GrafTech) or (ii) from Representatives described in the preceding clause (i) of this proviso shall be
BCPs Representatives for purposes of this letter agreement; provided further, that BCP shall not allow any technical or technology consultant or expert, or similar person, to become a BCP Representative without the prior written consent
of GrafTech. The term Information includes: (i) all letters, emails, text messages, recordings, videos and pictures to the extent they contain or reflect any of such information; (ii) all of such information
obtained through visual inspection of properties or through meetings; and (iii) all files, books, records, notes, compilations, analyses, forecasts, studies, reports and other documents (whether in written or electronic form) prepared by, on
behalf of or for the Requesting Party or its Representatives to the extent they contain or reflect any of such information (and the items described in this clause (iii) are collectively called Analyses).
The term Information does not, however, include information which: (i) is on the date hereof part of the public domain;
(ii) becomes after the date hereof part of the public domain other than as a result of a disclosure by the Requesting Party or any of its Representatives where such disclosure constitutes a breach of this letter agreement; (iii) is on the
date hereof known by the Requesting Party or any of its Representatives so long as such knowledge is demonstrated by reasonably convincing evidence; (iv) becomes after the date hereof known by the Requesting Party on a nonconfidential basis
from a source (other than the Providing Party or any of its Representatives) which, to the knowledge of senior management of the Requesting Party (including, in the case of BCP, the project teams and management of the relevant funds), is not
prohibited from disclosing such information to the Requesting Party by a statutory, regulatory, contractual or fiduciary obligation; or (v) is after the date hereof developed by the Requesting Party or any of its Representatives independent of
any information furnished by or on behalf of or obtained from the Providing Party or any of its Representatives so long as such independent development is demonstrated by reasonably convincing evidence.
3. For two years from the date hereof, the Requesting Party: (i) will keep all of the Information confidential and will not (except after compliance with
paragraph 5), without the Providing Partys prior written consent, disclose any of the Information in any manner whatsoever; (ii) will not use any of the Information in any manner whatsoever other than in connection with its review,
evaluation and pursuit of a negotiated Transaction; and (iii) will not, without the Providing Partys prior written consent, use any of the Information in connection with any of the activities prohibited by paragraph 11; provided,
however, that, notwithstanding the preceding clause (i), Information may be disclosed (x) to (but only to) Permitted Representatives of the Requesting Party (solely in their capacities as such) who need to know such Information for the
purpose of reviewing, evaluating or pursuing a negotiated Transaction, are informed in writing by the Requesting Party of the confidential nature and restricted use of such Information and, except as otherwise provided herein, agree to observe the
terms of this letter agreement applicable to Representatives (including, for the avoidance of doubt, this paragraph 3 and instructions given pursuant to paragraph 4) or (y) in compliance with paragraph 5. For the avoidance of doubt, GrafTech
shall have no obligation to provide Information that constitutes a trade secret, technology, know-how, technical data, patent files, idea files, non-public intellectual property, operating or production methods, techniques or processes, or similar
information (collectively Know How) unless GrafTech and BCP enter into mutually acceptable confidentiality and restricted use arrangements with respect to such Know How.
The term Permitted Representatives means, in the case of GrafTech, its Representatives and, in the case of BCP, Representatives of
BCP and its managed affiliated investment funds (collectively, the PE Funds) who are prohibited from sharing Information with the Non-PE Affiliates.
The term Non-PE Affiliates means affiliates of Brookfield Asset Management, Inc. that are engaged in the business of investing,
reinvesting or trading in, or owning, holding or voting securities, as to which
2
Brookfield Capital Partners LLC
March 20, 2015
pre-established ethical barriers between the PE Funds and such affiliates exist and are enforced that are effective and sufficient prevent to sharing information (including Information) between
the PE Funds and such affiliates, to prevent concerted activity between the PE Funds and such affiliates and to prevent trading on inside information and other violations of U.S. securities laws, rules and regulations.
The word negotiated means a transaction between the Parties that is pursued (and only pursued) privately (and not publicly) unless
otherwise agreed in writing by both Parties, without coercion and with the intent and design that it will be consummated pursuant to a mutually agreed definitive written agreement that is approved by the boards of directors of each Party (or, in the
case of BCP, the general partners or other governing bodies thereof) prior to execution.
The Requesting Party will and will cause its Representatives to
only make that number of copies of Information (whether in written, electronic or other form) that is reasonable for its or their review, evaluation and pursuit of a negotiated Transaction. The Parties will adopt and follow reasonable and
appropriate protocols for the disclosure, analysis, retention and disposition of information (including Information) that either Party reasonably deems to be sensitive from an antitrust or securities compliance standpoint. Such protocols may include
disclosure of such sensitive information only through outside counsel to the Parties, which counsel shall be directed to adopt procedures to prevent the disclosure of such information of the Providing Party (or any related Analyses from which it
would be reasonably foreseeable that such information could be derived) to the Requesting Party or any of its Representatives.
4. Except after compliance
with paragraph 5 and without limiting paragraph 3, neither Party will and each Party will instruct its Representatives not to, without the other Partys prior written consent, disclose to any person, including by way of public announcement:
(i) the fact that (a) this letter agreement or the Information exists, (b) information (including Information) of either Party has been, is or may be made available to the other Party or its Representatives concerning the Transaction
or for any other purpose not in the ordinary course of business, (c) either Party has been, is or may be evaluating, reviewing or pursuing the Transaction or (d) any discussions, offers, submissions, negotiations or proposals concerning to
the Transaction or otherwise involving the Parties not in the ordinary course of business have taken place or been made, are taking place or being made or may take place or be made; or (ii) any other event or circumstance (including the terms,
conditions or status) relating to the Transaction, such discussions, offers, submissions, negotiations or proposals, or the possibility or desirability thereof.
5. If the Requesting Party or any of its Representatives is required by applicable law, rule, regulation or legal process to disclose any Information (which,
for purposes of this paragraph 5, includes any disclosure of the type described in paragraph 4), the Requesting Party will, to the extent legally permissible, promptly give written notice to that effect to the Providing Party. The phrase legal
process includes orders of courts or governmental or regulatory authorities, interrogatories, subpoenas and civil investigative demands. The Providing Party shall be entitled to seek a protective order or other appropriate remedy. If the
Providing Party seeks such an order or remedy, the Requesting Party will and will cause each of its Representatives to, upon request, use commercially reasonable efforts to cooperate with the Providing Party. Regardless of whether such a protective
order or other remedy is obtained, the Requesting Party will and will cause each of its Representatives to furnish only that portion of the Information which, based on the written opinion or advice of qualified internal or outside legal counsel of
the Requesting Party, is legally required to be furnished. The Requesting Party shall as promptly as possible (prior to or concurrently with the furnishing of such Information) and to the extent legally permissible give to the Providing Party a copy
of such advice or opinion and written notice to the Providing Party of the Information to be so furnished. If such a protective order or other remedy is not obtained, the Requesting Party and each of its Representatives will exercise commercially
reasonable efforts to obtain confidential treatment with respect to such Information. If such a protective order or
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other remedy is obtained, the Requesting Party and each of its Representatives will exercise commercially reasonable efforts to furnish such Information only in accordance with and subject to
such protective order or remedy. To the extent that the Requesting Party or its Representatives furnish Information in accordance with this paragraph 5, such furnishing will not constitute a breach of this letter agreement.
6. At any time upon the Providing Partys written request, the Requesting Party will, at its election, either: (i) promptly destroy at its expense
all of the Information (in any form other than oral) provided by the Providing Party or its Representatives, together with that portion of Analyses to the extent they contain Information, in each case, in its or its Representatives possession
(including the originals and all copies) and confirm such destruction in writing to the Providing Party; or (ii) promptly deliver to the Providing Party at its expense all of the Information (in any form other than oral) provided by the
Providing Party or its Representatives, together with that portion of Analyses to the extent they contain Information, in each case, in its or its Representatives possession (including the originals and all copies); in each case, except that
outside counsel of the Requesting Party may retain one copy solely for document retention purposes for evidencing compliance with antitrust and securities laws, the Requesting Party and its Representatives may retain Information to the extent
required by law, rule or regulation and the Requesting Party and its Representatives shall not be required to destroy any computer records or files containing Information which have been created pursuant to automatic archiving and back-up procedures
which cannot be reasonably deleted. All oral Information will continue to be subject to the terms of this letter agreement.
7. Subject to the next
sentence, each Party acknowledges that neither the other Party nor any of the other Partys Representatives makes any express or implied representation, warranty, guaranty or other commitment as to the accuracy or completeness of any
information (including Information) and agrees that none of them will have any liability to the other Party or its Representatives relating to any information (including Information) or for any errors therein, omissions therefrom, use thereof or
conclusions derived therefrom (including a determination as to whether to enter into or complete the Transaction). Each Party agrees that it will be entitled to rely on (but solely on) such representations, warranties, covenants and other terms as
may be included in the written definitive agreement, if any, with respect to the Transaction, subject to such limitations and restrictions as may be contained therein. Notwithstanding any other provision of this letter agreement to the contrary,
nothing contained herein shall be deemed to constitute a waiver of claims for fraud or willful and material misrepresentation with respect to the Information.
8. Each Party is aware, and will advise its Representatives who are informed of the matters that are the subject of this letter agreement, of the restrictions
imposed by U.S. and other applicable securities laws on the purchase or sale of securities by any person who has received material, non-public information from or about the issuer of such securities and on the communication of such information to
any other person when it is reasonably foreseeable that such other person may purchase or sell such securities. BCP is aware, and will advise its Permitted Representatives who are informed of the matters that are the subject of this letter
agreement, that export or re-export of certain technical data furnished by or on behalf of or obtained from GrafTech or any of its Representatives or disclosure thereof may be prohibited by, or require a license under, U.S. or other applicable
export laws, rules and regulations. Each Party will and will cause its Representatives to fully comply with such laws, rules and regulations. Neither this letter agreement nor any furnishing of information will constitute or be deemed to constitute
the award or grant of any right, license or consent, express or implied, of any kind under any patent, trademark, copyright, trade secret or other intellectual property of any kind or constitute or create a joint venture, partnership, profit sharing
arrangement, pooling arrangement or agency arrangement of any kind.
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9. Each Party agrees that all communications, discussions, offers, submissions, negotiations, questions and proposals of any kind regarding the Transaction or
the process relating to the Transaction and all requests for additional information, facility tours, management presentations or meetings, or other meetings will be first submitted or directed to a senior executive officer or other Representative of
the other Party (in each case, who has been specifically designated by such other Party and who has previously been informed of the matters that are the subject of this letter agreement) and not to any other person. BCP agrees that GrafTech has the
right to change the process relating to the Transaction, reject any and all proposals and terminate access to or furnishing of information (including Information) as well as any and all communications, discussions, offers, submissions, negotiations,
questions and proposals, at any time and for any reason or no reason. Each Party agrees that, unless and until a written definitive agreement relating to the Transaction has been executed by both Parties (but without limiting obligations hereunder
or liability or remedies for breach hereof), neither the other Party nor any of its Representatives will have any liability to such Party or any of its Representatives (or any of its shareholders, lenders, debtholders or creditors) with respect to
the Transaction, whether by virtue of this letter agreement, any other expression (whether in written, electronic, oral or other form) with respect to the Transaction, or otherwise.
10. BCP represents that, to its knowledge, as of the date hereof, neither it nor any of the PE Funds or its or their controlled affiliates or subsidiaries is
a direct or indirect record or beneficial owner of any common or preferred equity securities or other voting securities of GrafTech, any convertible debt securities of GrafTech or any short interest or derivative instruments with respect any of such
securities (collectively, Securities); provided, however, that no representation is made with respect to the Non-PE Affiliates, personal holdings of any director, officer or employee, or any qualified employee benefit plan.
11. BCP agrees that, for a period of 18 months from the date hereof (the Standstill Period), without the prior written consent
of GrafTech, it will not and will not permit any of the PE Funds or its or their controlled affiliates or subsidiaries (excluding Non-PE Affiliates) to, directly or indirectly (including through any of its or their Representatives): (i) offer
to acquire, agree to acquire or acquire, by purchase, tender offer or exchange offer, or by merger, consolidation or business combination, or otherwise, (a) any direct or indirect record or beneficial ownership of any Securities, (b) any
subsidiaries, plants, lines of business or other assets of GrafTech or any beneficial ownership therein, or (c) entertain offers or proposals to do so or seek to do so; (ii) initiate, make or participate in any solicitation of proxies to
vote (including solicitation of written consents) with respect to any Securities, or entertain offers or proposals to do so or seek to do so; (iii) offer to enter into or enter into any agreement, arrangement, understanding or device (including
a proxy, voting trust, voting agreement, nominee arrangement or power of attorney) with respect to voting (including the execution or delivery of written consents), or withholding votes or abstaining from voting (including non-execution or
non-delivery of written consents), with respect to any Securities, or entertain offers or proposals to do so or seek to do so; (iv) advise or influence any other person with respect to voting (including the execution or delivery of written
consents), or withhold votes or abstaining from voting (including non-execution or non-delivery of written consents), with respect to any Securities, or entertain offers or proposals to do so or seek to do so; (v) advise or influence any other
person with respect to acquiring, holding or selling, in a tender offer or exchange offer, or otherwise, any Securities, or entertain offers or proposals to do so or seek to do so; (vi) take any action to change, control or influence the
management (including the composition of the board of directors) or policies, or to obtain representation on the board of directors, of GrafTech, or entertain offers or proposals to do so or seek to do so; (vii) make any announcement with
respect to, submit a proposal for or make any offer as to any Transaction or other extraordinary transaction (including any tender offer, exchange offer, change in control, merger, consolidation, reincorporation, restructuring, reorganization,
recapitalization, refinancing, business combination, joint venture, asset sale, asset exchange, liquidation, dissolution, charter or by-law amendment, debt redemption, share repurchase, dividend, distribution, spin-off or
split-
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off, or any sale of subsidiaries, plants, lines of business or other assets, or any change in management (including the composition of the board of directors) or policies) involving GrafTech or
any of its securities or assets, or entertain offers or proposals to do so or seek to do so; (viii) form, join, assist, encourage or participate in any group relating to any of the foregoing or assist or encourage any other person to take any
action relating to any of the foregoing; (ix) enter into or entertain any questions, discussions, negotiations, submissions, understandings or arrangements with any other person or group regarding any of the foregoing; (x) take any action
that would require GrafTech to make any public announcement relating to any of the foregoing, or entertain offers or proposals to do so or seek to do so; or (xi) publicly request or propose that GrafTech amend, waive or consider the amendment
or waiver of any restriction under this paragraph 11; provided, however, that, notwithstanding anything contained in the preceding provisions of this paragraph 11 to the contrary, during the Standstill Period, (1) BCP may make
confidential, nonpublic proposals to the board of directors of GrafTech or a committee thereof for a negotiated Transaction and (2) this paragraph 11 shall not apply to (i) routine trading activities of Non-PE Affiliates so long as BCP
shall not have disclosed Information to such persons or (ii) Representatives, except to the extent such Representatives are acting for, on behalf of or in concert with BCP in connection with any action prohibited by this paragraph 11 (for this
purpose and the avoidance of doubt, this exception does not apply to any of the PE Funds or its or their controlled affiliates or subsidiaries (excluding Non-PE Affiliates)) . BCP will promptly advise GrafTech of any questions, offers, submissions
or proposals made to BCP or, to its knowledge, its affiliates (including through any of its or their Representatives) by any third party with respect to any action prohibited by this paragraph 11.
The provisions of this paragraph 11 shall be inoperative and of no force or effect, and nothing in this letter agreement shall prohibit BCP or its PE Funds or
its or their controlled affiliates or subsidiaries from taking the actions otherwise prohibited by this paragraph 11, if GrafTech enters into a definitive agreement with respect to, or publicly announces that it plans to enter into, a Competing
Transaction.
For purposes of this paragraph 11, (i) Competing Transaction means any offer, proposal, inquiry or indication
of interest from a person other than BCP or its PE Funds or its or their controlled affiliates or subsidiaries relating to a transaction involving all or substantially of the stock or assets of GrafTech.
12. For a period of 12 months from the date hereof, BCP will not and will not permit any of the PE Funds or its or their controlled affiliates or subsidiaries
that have received Information subject to this letter agreement to, directly or indirectly, without GrafTechs prior written consent, solicit the employment of or employ any senior level employee of GrafTech with whom it has in the future
contact or who becomes in the future known to it in connection with the review, evaluation or pursuit of the Transaction; provided, however, that this letter agreement shall not prohibit general solicitations or the advertising of employment
opportunities in industry or trade publications and other publications of general circulation or the employment of any individual (i) who contacts them in response to any such general solicitation or advertisement or on such individuals
own initiative or (ii) whose employment has been terminated by GrafTech.
13. Each Party will cause its Representatives to observe the applicable
terms of this letter agreement, and each Party will be responsible for any breach of this letter agreement by any of them. Each Party acknowledges that money damages for a breach of this letter agreement by it or any of its Representatives is
unlikely to be calculable, that such a breach is likely to cause irreparable harm to the other Party and that remedies at law are likely to be inadequate or insufficient to protect the other Party against any such breach or any threatened breach of
this letter agreement by it or any of them. Each Party, on behalf of itself and its Representatives, agrees to the granting of injunctive relief in favor of the other Party in the
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event of any such breach or threatened breach, without proof of actual damages and without the requirement of posting bond or other security. Such relief shall not be the exclusive remedy for
such a breach or threatened breach, but shall be in addition to all other rights and remedies available at law, in equity or otherwise to the other Party. In the event of litigation relating to this letter agreement wherein a court of competent
jurisdiction determines in a final, nonappealable order that this letter agreement has been breached by a Party, then such Party will reimburse the other Party for all reasonable costs and expenses (including reasonable legal fees and expenses of
one outside counsel) incurred in connection with such litigation.
14. All notices required or permitted to be given pursuant to this letter agreement
shall be given by written notice, shall be transmitted by personal delivery, registered or certified mail (return receipt requested, postage prepaid), internationally recognized courier service, facsimile or email,1 and shall be addressed to the intended recipient at its address set forth herein or otherwise specifically provided for such purpose. A Party may designate a new address to which such notices shall
thereafter be transmitted by giving written notice to that effect to the other Party. Each notice transmitted in the manner described herein shall be deemed to have been: (i) delivered to the addressee as indicated by the return receipt (if
transmitted by mail), the mailing label (if transmitted by courier service), the affidavit of the messenger (if transmitted by personal delivery) or the answerback, call back or email receipt (if transmitted by facsimile or email); or
(ii) presented for delivery to the addressee as so indicated during normal business hours, if such delivery shall have been refused for any reason.
15. THE VALIDITY, INTERPRETATION, PERFORMANCE AND ENFORCEMENT OF THIS LETTER AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF DELAWARE (WITHOUT GIVING
EFFECT TO THE LAWS, RULES OR PRINCIPLES OF SUCH STATE REGARDING CONFLICTS OF LAWS). Each Party, on behalf of itself and its Representatives, agrees that any proceeding arising out of or relating to this letter agreement or the breach or threatened
breach hereof shall be commenced and prosecuted in a court in the State of Delaware, consents and submits to the non-exclusive personal jurisdiction of any court in such State in respect of any such
proceeding, consents to service of process upon it with respect to any such proceeding by any means by which notices may be transmitted hereunder or by any other means permitted by applicable laws and rules, waives any objection that it may now or
hereafter have to the laying of venue of any such proceeding in any court in such State and any claim that it may now or hereafter have that any such proceeding in any court in such State has been brought in an inconvenient forum and WAIVES TRIAL BY
JURY IN ANY SUCH PROCEEDING.
16. This letter agreement shall be binding upon the Parties and their respective successors and assigns. This letter
agreement shall inure to the benefit of the Parties and their respective successors and permitted assigns. Neither Party shall assign any of its rights or delegate any of its duties under this Agreement without the prior written consent of the other
Party. Any assignment of rights or delegation of duties under this letter agreement by a Party without the prior written consent of the other Party shall be void. No assignment of rights or delegation of duties hereunder, or other transfer of rights
or duties hereunder by merger, consolidation, operation of law or otherwise, shall relieve the assignor, delegator or transferor of its obligations hereunder. This letter agreement constitutes the entire agreement between the Parties with respect to
the subject matter hereof and cancels and supersedes all of the previous or contemporaneous contracts, representations, warranties and understandings (whether oral or written) by or between the Parties with respect to the subject matter hereof.
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17. As used herein: (i) the word including shall in all cases be deemed to the followed by the phrase without
limitation; (ii) the word person shall include individuals and corporations, societies, companies, unions, partnerships, trusts, unincorporated associations, governments and governmental instrumentalities, and
other entities of any kind and the phrase board of directors shall include an equivalent governing body; (iii) subject to clause (iv) below, the words affiliate,
associate, beneficial owner, group, proxies and, in respect of proxies, solicitation, and correlative terms, shall have
the broadest meanings that they have under the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder (collectively, the Exchange Act), except that, for purposes of the definition of
beneficial owner, a person shall be deemed to be the beneficial owner of securities where such person has the right to acquire beneficial ownership at any time by any means, notwithstanding the reference to 60 days in Rule
13d-3(d)(1)(i) under the Exchange Act; (iv) references to an affiliate of a person shall also include any group of which it or any of its other affiliates is a member and any other person with whom it or any of them is
acting in concert and to a Party shall be deem to include its successors; (v) a person who, directly or indirectly, creates or uses any agreement, understanding, arrangement or device for the purpose of denying or
preventing beneficial ownership of a security as part of a plan or scheme to evade the requirements of this letter agreement shall be deemed to be the beneficial owner of such securities; (vi) a person shall be deemed
to be acting in concert with another person if such person or any of its affiliates knowingly and intentionally acts (whether or not pursuant to an agreement, arrangement or understanding) in concert or in parallel with
such other person toward a common goal relating to the management, governance, control, Securities or assets of a Party; (vii) a derivative instrument shall include an option, warrant, swap, exchangeable or other
security, instrument or right with a payment, gain or loss mechanism determined in whole or in part in reference to a price related to or the value of shares of a Party or the voting or results of voting of such shares, and any other direct or
indirect opportunity to profit from any change in the value of, or from any voting or results of voting of, such shares; and (viii) a person shall be deemed to have a short interest in such shares if such person has
any direct or indirect opportunity (whether or not pursuant to an agreement, arrangement or understanding) to profit from any decrease in the value of such shares.
18. No addition to, and no cancellation, extension, modification or amendment of, this letter agreement shall be binding upon a Party unless such addition,
cancellation, extension, modification or amendment is set forth in a written instrument which expressly states that it adds to, amends, cancels, extend or modifies this letter agreement (and, in relation to paragraphs 7 and 11, specifically refers
thereto) and which is executed and delivered on behalf of each Party by an officer of such Party. No waiver of, or agreement under, any provision hereof shall be binding upon a Party unless it is expressly set forth in a written instrument which is
executed and delivered on behalf of such Party by an officer of such Party. Neither the exercise (from time to time and at any time) by a Party of, nor the delay or failure (at any time or for any period of time) to exercise, any right, power or
remedy shall constitute a waiver of the right to exercise, or impair, limit or restrict the exercise of, such right, power or remedy or any other right, power or remedy at any time and from time to time thereafter. No waiver of any right, power or
remedy of a Party shall be deemed to be a waiver of any other right, power or remedy of such Party or shall, except to the extent so waived, impair, limit or restrict the exercise of such right, power or remedy.
19. This letter agreement may be signed in any number of counterparts, each of which shall constitute an original instrument, but all of which together shall
constitute one and the same instrument. This letter agreement shall become effective at such time as counterparts shall have been executed and delivered by each of the Parties, regardless of whether each of the Parties has executed the same
counterpart. It shall not be necessary when making proof of this letter agreement to account for any counterparts other than a sufficient number of counterparts which, when taken together, contain signatures of both of the Parties. A PDF or
facsimile of an original shall be as effective as delivery of such original.
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20. If any provision hereof shall hereafter be held to be invalid, unenforceable or illegal, in whole or in part, by a court of competent jurisdiction under
any circumstances for any reason, (i) such holding shall not affect or impair the validity, enforceability or legality of the other provisions of this letter agreement and (ii) the Parties shall negotiate in good faith so that such
provision shall be reformed (and other provisions shall be added) to the minimum extent necessary to cause such provision to become valid, enforceable and legal and to preserve the benefits intended to be afforded thereby.
21. Notwithstanding anything contained herein to the contrary, each Party and each of its Representatives may furnish, to any person, information as to the
tax treatment and tax structure of any transaction discussed by the Parties and their Representatives and all documents of any kind (including tax opinions or other analyses) relating to such tax treatment and tax structure.
22. This agreement shall terminate and be of no further force or effect two years from the date hereof. Termination shall not affect liability for breach
prior thereto.
Please confirm that this letter accurately reflects the agreement of the Parties by signing and returning to GrafTech the enclosed
duplicate copy of this letter.
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Very truly yours, |
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GrafTech International Ltd. |
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By: |
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/s/Joel L. Hawthorne |
Name: |
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Joel L. Hawthorne |
Title: |
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CEO and President |
Accepted and agreed as of
the date first above written.
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Brookfield Capital Partners LLC |
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By: |
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/s/ Dave Gregory |
Name: |
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Dave Gregory |
Title: |
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Vice President |
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