Property that has been or is to be sold or transferred by us or such subsidiary to such person, with the intention of taking back a lease of such property or assets (a Sale and Leaseback
Transaction) unless either:
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(i) |
within 12 months after the receipt of the proceeds of the sale or transfer, we or any subsidiary apply an
amount equal to the greater of the net proceeds of the sale or transfer or the fair value (as determined in good faith by our board of directors) of such Property at the time of such sale or transfer to the prepayment or retirement (other than any
mandatory prepayment or retirement) of Senior Funded Debt; or |
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(ii) |
we or such subsidiary would be entitled, at the effective date of the sale or transfer, to incur debt secured
by a Lien on such Property in an amount at least equal to the Attributable Debt in respect of the Sale and Leaseback Transaction, without equally and ratably securing the notes pursuant to the covenant described under Limitation on
liens. |
The foregoing restriction in the paragraph above will not apply to any Sale and Leaseback Transaction
(i) for a term of not more than three years including renewals; (ii) between us and a subsidiary or between subsidiaries, provided that the lessor is us or a wholly owned subsidiary; or (iii) entered into within 270 days after
the later of the acquisition or completion of construction of the subject property or assets.
Merger, consolidation or sale of assets
The Indenture provides that we shall not merge, consolidate or amalgamate with or into any other person or sell, transfer, assign, lease,
convey or otherwise dispose of all or substantially all of our property in any one transaction or series of related transactions unless:
(1) the Company shall be the surviving person (the Surviving Person) or the Surviving Person (if other than the
Company) formed by such merger, consolidation or amalgamation or to which such sale, transfer, assignment, lease, conveyance or disposition is made shall be a person organized and existing under the laws of the U.S., any State thereof or the
District of Columbia,
(2) the Surviving Person (if other than the Company) expressly assumes, by supplemental indenture in
form reasonably satisfactory to the Trustee, executed and delivered to the Trustee by such Surviving Person, the due and punctual payment of the principal of, and premium, if any, and interest on, all the notes, according to their tenor, and the due
and punctual performance and observance of all the covenants and conditions of the Indenture to be performed by the Company,
(3) immediately before and immediately after giving effect to such transaction or series of related transactions, no default or
event of default shall have occurred and be continuing, and
(4) the Company shall deliver, or cause to be delivered, to
the Trustee, an officers certificate and an opinion of counsel, each stating that such transaction and the supplemental indenture, if any, in respect thereto comply with this covenant and that all conditions precedent in the Indenture relating
to such transaction have been complied with.
For the purposes of this covenant, the sale, transfer, assignment, lease, conveyance or
other disposition of all the property of one or more subsidiaries of the Company, which property, if held by the Company instead of such subsidiaries, would constitute all or substantially all the property of the Company on a consolidated basis,
shall be deemed to be the transfer of all or substantially all the property of the Company.
Definitions related to certain covenants
The following terms used in Certain covenants are defined as follows. Reference is made to the Indenture for the full
definition of all such terms as well as any other capitalized terms used herein for which no definition is provided.
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