AS FILED WITH THE As filed with the Securities and Exchange Commission on March 12, 2018.
Registration No. 333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION ON August __, 2003Registration No. 333-____________
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FORMS-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
Kansas City Power & Light Company
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Missouri | ||
(State of | (I.R.S. Employer Identification Number) |
1200 Main Street
Kansas City, Missouri 64105
(816)556-2200
(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)
Heather A. Humphrey
General Counsel and Senior Vice President—Corporate Services
1200 Main Street
Kansas City, Missouri 64105
(816)556-2200
(Name, address, including zip code, and telephone number, including area code, of agent for service)
with copies to:
S. Christina Kwon Hunton & Williams LLP 200 Park Avenue New York, New York 10166 | Todd W. Eckland Pillsbury Winthrop Shaw Pittman LLP 1540 Broadway New York, New York 10036 |
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Approximate date of commencement of proposed sale to the public:public: From time to time after the effective date of this Registration Statement.registration statement becomes effective.
If the only securities being registered on this Form are being offered pursuant to dividend or interest reinvestment plans, please check the following box. ☐
If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, other than securities offered only in connection with dividend or interest reinvestment plans, please check the following box. ☒
If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act of 1933, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐
If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act of 1933, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐
If delivery ofthis Form is a registration statement pursuant to General Instruction I.D. or a post-effective amendment thereto that shall become effective upon filing with the prospectus is expected to be madeCommission pursuant to Rule 434, please check the following box.
CALCULATION OF REGISTRATION FEE
Title of each class of securities to be registered | Amount to be registered (1) | Proposed maximum aggregate offering price (1) | Amount of registration fee |
Kansas City Power & Light Company Senior Debt Securities |
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Kansas City Power & Light Company Subordinated Debt Securities |
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KCPL Financing II Trust Preferred Securities |
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KCPL Financing III Trust Preferred Securities |
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Kansas City Power & Light Company Guarantees with respect to Trust Preferred Securities of KCPL Financing II and KCPL Financing III(2) |
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Total | $255,000,000 | $255,000,000 | $20,655 |
If this Form is a post-effective amendment to a registration statement filed pursuant to General Instruction II.D.I.D. filed to register additional securities or additional classes of Form S-3, which permitssecurities pursuant to Rule 413(b) under the registration fee to be calculated onSecurities Act of 1933, check the basisfollowing box. ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, anon-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule12b-2 of the maximum aggregate offering priceExchange Act.
Kansas City Power & Light Company | Large accelerated filer | ☐ | Accelerated filer | ☐ | ||||||
Non-accelerated filer | ☒ | Smaller reporting company | ☐ | |||||||
Emerging growth company | ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of all the securities listed, the table does not specify by each class information as to the amount to be registered, proposed max imum offering price per unit or proposed maximum aggregate offering price.
Registrant
CALCULATION OF REGISTRATION FEE
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Title of Each Class of Securities to Be Registered | Amount to be | Proposed Maximum Offering Price Per Unit(1)(2) | Proposed Offering Price(1)(2) | Amount of Registration Fee(1)(3) | ||||
Notes | — | — | — | — | ||||
General Mortgage Bonds | — | — | — | — | ||||
Total | $1,100,000,000 | 100% | $1,100,000,000 | $136,950 | ||||
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(1) | There are being registered hereunder such presently indeterminate principal amounts of Notes and General Mortgage Bonds with an aggregate initial offering price not to exceed $1,100,000,000. Pursuant to Rule 457(o) under the Securities Act of 1933, as amended, which permits the registration fee to be calculated on the basis of the maximum offering price of all the securities listed, this fee table does not specify by each class information as to the amount to be registered, proposed maximum offering price per unit or proposed maximum aggregate offering price. |
(2) | Estimated solely for the purpose of determining the registration fee. |
(3) | Calculated pursuant to Rule 457(o) under the Securities Act of 1933, as amended. |
The registrant hereby amends this Registration Statementregistration statement on such date or dates as may be necessary to delay its effective date until Registrantthe registrant shall file a further amendment which specifically states that this Registration Statementregistration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended or until this Registration Statementregistration statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.
[Subject to Completion, Dated August __, 2003]
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The information in this prospectus is not complete and may be changed. WeThese securities may not sell these securitiesbe sold until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and is not solicitingnor does it seek an offer to buy these securities in any statejurisdiction where the offer or sale is not permitted.]
PROSPECTUS
Subject to Completion, dated March 12, 2018
$255,000,000
1,100,000,000
KANSAS CITY POWER & LIGHT COMPANYSenior Debt SecuritiesSubordinated Debt Securities__________KCPL FINANCING IIKCPL FINANCING IIITrust Preferred Securities and Related Guarantees fully and unconditionally
Notes
General Mortgage Bonds
These securities are not obligations of, nor guaranteed as set forth herein, by, Kansas City Power & Light CompanyGreat Plains Energy Incorporated, our corporate parent.
Kansas City Power & Light Company (the "Company"(“KCP&L”), a wholly-owned subsidiary of Great Plains Energy Incorporated, and/or KCPL Financing II and KCPL Financing III may offer and sell, upfrom time to $255,000,000of these securities. time, notes and general mortgage bonds in one or more offerings. We may offer the securities simultaneously or at different times, in one or more separate series, in amounts, at prices and on terms to be determined at or prior to the time or times of sale.
This prospectus provides you with a general description of these securities. We will provide the specific information about the offering and the terms of these securities in one or more supplements to this prospectus. The supplements may also add, update or change information contained in this prospectus. This prospectus may not be used to offer and sell our securities unless accompanied by a prospectus supplement. You should read this prospectus and the related supplementprospectus supplements before you invest in these securities.
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Our principal executive offices are located at 1201 Walnut,1200 Main Street, Kansas City, Missouri 64106-212464105 and our telephone number is(816) 556-2200.
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Please referInvesting in these securities involves risks. You should carefully consider the information referred to "Risk Factors" beginningunder the heading “Risk Factors” on page 15 of this documentprospectus.
We may offer and sell these securities through one or more underwriters, dealers or agents or directly to purchasers, on a continuous or delayed basis. We will set forth in the related prospectus supplement the specific terms of the plan of distribution, including the name of the underwriters, dealers or agents, the discount or commission received by them from us as compensation, our other expenses for a discussionthe offering and sale of certain risks associated withthese securities and the Company.net proceeds we receive from the sale. See “Plan of Distribution.”
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These securities have not been approved or disapproved byNeither the Securities and Exchange Commission ornor any state securities commission nor havehas approved or disapproved of these organizationssecurities or determined thatif this prospectus is accuratetruthful or complete. Any representation to the contrary is a criminal offense.____________________
The date of this prospectus is ______________, 2003., 2018.
TABLE OF CONTENTS
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RISK FACTORS
You should carefully consider the risk factors described below, as well as the other information included or incorporated by reference in this prospectus, before making an investment in any of the securities being offered. The risks and uncertainties described below are not the only ones we face. Additional risks and uncertainties not presently known or that we currently believe to be immaterial may also adversely affect us.
We are exposed to commodity price risk. We engage in the wholesale and retail marketing of electricity and, accordingly, are exposed to risks associated with the price of electricity. In addition, we also purchase power as part of our load management operations. Further, since less than 1% of our revenues include an automatic fuel adjustment provision, we are exposed to risk from changes in the market prices of coal and natural gas used to generate power.
We manage one form of our exposure to commodity prices through the structure of our commercial contracts for purchase and delivery of coal, our predominant fuel source. About half of our delivered cost of coal is for rail transportation. We enter into long-term freight contracts to reduce the degree of variability in the delivered cost of coal. We also manage coal price risk in some cases by using short and intermediate-term fixed price contracts. We also manage commodity risk by establishing risk limits and entering into contracts to protect ourselves from volatility in the price of natural gas. However, we do not always hedge the entire exposure of our operations from commodity price volatility. To the extent that we do not do so or we are unsuccessful in doing so, our results of operations and financial position may be impacted as a result of changes in commodity prices.
The costs of compliance with new environmental laws and the incurrence of environmental liabilities could adversely affect our profitability. Our operations are subject to extensive regulation relating to environmental protection. New environmental laws and regulations affecting our operations may be adopted, and new interpretations of existing laws and regulations could be adopted or become applicable to us or our facilities, which may substantially increase our environmental expenditures in the future. In addition, we may not be able to recover all of our costs for environmental expenditures through rates at current levels in the future. Under current law, we are also generally responsible for any on-site liabilities associated with the environmental condition of our facilities that we have previously owned or operated, regardless of whether the liabilities arose befo re, during or after the time we owned or operated the facilities. The incurrence of a material environmental liability could have a material adverse effect on our results of operations and financial condition.
We have nuclear exposure.We own 47% of Wolf Creek Nuclear Operating Corporation, the operating company for the Wolf Creek Generating Station (Wolf Creek) located in Coffey County, Kansas. Our share of Wolf Creek's generating capacity is 550 megawatts which makes it our second largest generating facility, representing approximately 15% of 2002 generating capacity and about 26% of annual MWh generation over the past three years. Over this same period, the facility has operated at 92% average capacity.
Wolf Creek has the lowest fuel cost per mmBtu of any of our generating units. Its assets represent about 33% of our assets and its operating expenses represent about 19% of our operating expenses. An extended shut-down of Wolf Creek could have a substantial adverse effect on our business, financial condition and results of operations because of higher replacement power and other costs. Although not expected, the Nuclear Regulatory
Commission could impose an unscheduled plant shut-down, reacting to safety concerns at the plant or other similar nuclear units. If a long-term shut-down occurred, the state regulatory commissions could reduce rates by excluding the Wolf Creek investment from rate base.
Ownership and operation of a nuclear generating unit exposes us to risks regarding decommissioning costs at the end of the unit's life and to potential retrospective assessments and property losses in excess of insurance coverage. We contribute about $3 million annually to a tax-qualified trust fund to be used to decommission Wolf Creek. This funding level assumes a projected level of return on trust assets. If the actual return on trust assets is below the anticipated level, we could be responsible for the balance of funds required. However, if returns are lower than the expected level, we believe a rate increase would be allowed to ensure full recovery of decommissioning costs over the remaining life of the unit.
CAUTIONARY STATEMENTS REGARDINGCERTAIN FORWARD-LOOKING INFORMATION
Statements made in this prospectus that are not based on historical facts are forward-looking, may involve risks and uncertainties, and are intended to be as of the date when made. In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, we are providing a number of important factors that could cause actual results to differ materially from provided forward-looking information. These important factors include:
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This list of factors is not all-inclusive because it is not possible to predict all factors.
WHERE YOU CAN FIND MORE INFORMATION
We file annual, quarterly and current reports, and proxy statements and other information with the Securities and Exchange Commission (the "SEC") through the SEC's Electronic Data Gathering, Analysis and Retrieval system and these filings are publicly available through the SEC's website (http://www.sec.gov). You may read and copy such material at the public reference facilities maintained by the SEC at Judiciary Plaza, 450 Fifth Street, N.W., Washington, D.C. 20549. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. You may also obtain copies of such material at prescribed rates from the Public Reference Section of the SEC, 450 Fifth Street, N.W., Washington, D.C. 20549.
The SEC allows us to "incorporate by reference" into this prospectus the information we file with them. This means that we can disclose important information to you by referring you to the documents containing the information. The information we incorporate by reference is considered to be included in and an important part of this prospectus and should be read with the same care. Information that we file later with the SEC that is incorporated by reference into this prospectus (but not information filed or furnished to the SEC and not deemed incorporated) will automatically update and supercede this information. We are incorporating by reference into this prospectus the following documents that we have filed with the SEC and any subsequent filings we make with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Securities Exc hange Act of 1934 (excluding information deemed to be furnished and not filed with the SEC) until the offering of the securities described in this prospectus is completed:
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This prospectus is part of a registration statement we have filed with the SEC relating to our securities. As permitted by the SEC's rules, this prospectus does not contain all of the information included in the registration statementSecurities and the accompanying exhibits and schedules we file with the SEC. You should read the registration statement and the exhibits and schedules for more information about us and our securities. The registration statement, exhibits and schedules are also available at the SEC's Public Reference SectionExchange Commission, or through its website.
You may obtain a free copy of our filings with the SEC, by writing or telephoning us atunder the following address: Kansas City Power & Light Company, 1201 Walnut, Kansas City, Missouri 64106-2124 (Telephone No.: 816-556-2200) Attention: Corporate Secretary, or by contacting us on our website (www.kcpl.com). Information on our website is not partSecurities Act of this prospectus.
No separate financial statements of any Trust are included in this prospectus. We believe that such statements would not be material to holders of the Preferred Securities because each Trust has no independent operations and exists for the sole purpose of investing the proceeds of the sale of its Trust Securities (as defined herein) in the subordinated debt securities.
ABOUT THIS PROSPECTUS
This prospectus is part of1933, as amended, utilizing a registration statement we have filed with the SEC using a "shelf"“shelf” registration process. By using this process, we may, offer,from time to time, sell any combination of the securities described in this prospectus in one or more transactions
* senior debt securitiesofferings.
* subordinated debt securities
and KCPL Financing II and KCPL Financing III (individually, a "Trust" and collectively, the "Trusts") may offer
* trust preferred securities or capital securities (the "Preferred Securities")
in one or more offerings up to a total dollar amount of $255,000,000. This prospectus provides you with a general description of the securities.securities we may offer. Each time we offersell securities, we will provide you with a supplement to this prospectus that will describe the specific terms of that offering. The prospectus supplement may also add, update or change the information contained in this prospectus.prospectus, including information about us. If there is any inconsistency between the information in this prospectus and the prospectus supplement, you should rely on the information in the prospectus supplement. The registration statement we filed with the SEC includes exhibits that provide more detail on descriptions of the matters discussed in this prospectus. BeforeTherefore, for a complete understanding of our securities being offered, we urge you invest, you shouldto read carefully readthe registration statement (including the exhibits thereto), this prospectus the applicableand any prospectus supplement andaccompanying this prospectus, together with the information contained in the documents we refer to in this prospectusincorporated herein by reference under "Where“Where You Can Find More Information."Information,” before deciding whether to invest in any of our securities being offered.
References in thisThis prospectus, toany prospectus supplement and any free-writing prospectus that we file with the terms "we", "us" or other similar terms mean Kansas City Power & Light Company, unless the context clearly indicates otherwise. We are also referred to in this prospectus as "Kansas City Power & Light Company"Securities and "the Company."
You should rely only on the information contained or incorporatedExchange Commission (the “SEC”) contain and incorporate by reference in this prospectus and any accompanying prospectus supplement.information that you should consider when making your investment decision. We have not, and the underwriters have not, authorized anyone to provide you with different information, and neither we nor the underwriters of any offering of securities will authorize anyone else to provide you with any different information. If anyone provides you with different or inconsistent information, you should not rely on it. We are not, and the underwriters are not, making an offer
to sell these securities in any jurisdiction where the offer or sale is not permitted. TheYou should assume that the information containedappearing in this prospectus, any prospectus supplement and the documents incorporated by reference is accurate only as of their respective dates. Our business, financial condition, results of operations and prospects may have changed materially since those dates.
As described in more detail below under “Where You Can Find More Information,” we and Great Plains Energy Incorporated (“Great Plains Energy”), our parent company, separately file combined annual, quarterly and current reports. However, only the information related to KCP&L and its consolidated subsidiaries is incorporated by reference in this prospectus. You should not rely on any information relating solely to Great Plains Energy or its subsidiaries (other than the information provided separately by KCP&L or the subsidiaries of KCP&L) in determining whether to invest in any securities offered hereby. The securities are not guaranteed by Great Plains Energy or any of its or our subsidiaries. None of those entities has any obligation to make any capital contribution or distributions or to advance funds to us for the purpose of paying the principal of, or premium, if any, or interest on the securities or any other amount that may be required to be paid under any indenture, preventing or curing an event of default under the terms of any indenture, complying with any other obligation under any indenture or the securities or otherwise.
Unless the context otherwise requires or as otherwise indicated, when we refer to “Kansas City Power & Light,” “KCP&L,” the “Company,” “we,” “us” or “our” in this prospectus or when we otherwise refer to ourselves in this prospectus, we mean Kansas City Power & Light Company and not any of its subsidiaries or other affiliates, unless the context clearly indicates otherwise.
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CAUTIONARY STATEMENTSREGARDING
FORWARD-LOOKING INFORMATION
This prospectus and the documents incorporated or deemed incorporated by reference as described under the heading “Where You Can Find More Information” contain forward-looking statements that are not based on historical facts. In some cases, you can identify forward-looking statements by use of the words “may,” “should,” “expect,” “plan,” “anticipate,” “estimate,” “predict,” “potential,” or “continue.” Forward-looking statements include, but are not limited to, statements regarding the outcome of regulatory proceedings, cost estimates of capital projects and other matters affecting future operations. These forward-looking statements are based on assumptions, expectations, and assessments made by our management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Any forward-looking statements are not guarantees of our future performance and are subject to risks and uncertainties, including those described or referred to under the heading “Risk Factors” in this prospectus, in any prospectus supplement, and in our other SEC filings. These risks and uncertainties could cause actual results, developments and business decisions to differ materially from those contemplated or implied by forward-looking statements. Consequently, you should recognize these statements for what they are and we caution you not to rely upon them as facts. We claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for all forward-looking statements. We disclaim any duty to update the forward-looking statements, which apply only as of the date of this prospectus.
THE COMPANY Some of the factors that may cause actual results, developments and business decisions to differ materially from those contemplated by these forward-looking statements include the following:
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This list of factors is notall-inclusive because it is not possible to predict all factors.
In addition, actual results may differ materially from those contemplated in any forward-looking statement due to the other risk factors discussed under Item 1A of Part I of our Annual Report on Form10-K for the year ended December 31, 2017, which is incorporated by reference.
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KANSAS CITY POWER & LIGHT COMPANY
Kansas City Power & Light Company (“KCP&L”), a Missouri corporation incorporated in 1922 and headquartered in Kansas City, Missouri, is an integrated, regulated electric utility that engages in the generation, transmission, distribution and sale of electricity and serveselectricity. As of December 31, 2017, we served approximately 485,000542,500 customers located in all or portions of 24 counties in western Missouri and eastern Kansas. Our customers include over 425,000included approximately 479,300 residences, almost 55,00061,200 commercial firms, and almost 2,5002,000 industrials, municipalities and other electric utilities. Retail electricutilities as of December 31, 2017. Our retail revenues accounted foraveraged approximately 91%92% of our total operating revenues over the last three years. Wholesale firm power, bulk power sales and miscellaneous electric revenues accounted for the remainder of utilityour revenues. We are significantly impacted by seasonality with approximatelyone-third of our retail revenues recorded in the third quarter. In addition to our utility business, weMissouri and Kansas jurisdictional retail revenues averaged approximately 57% and 43%, respectively, of total retail revenues over the last three years. We have aone active wholly owned unregulated s ubsidiary called Home Service Solutions Inc. ("HSS"), which, through its subsidiary, provides primarily energy-related residential services.
Through a corporate restructuring consummated on October 1, 2001, Great Plains Energy Incorporated, a Missouri corporation incorporated in 2001 ("Great Plains Energy"), became the parent company and sole owner of Kansas City Power & Light Company's common stock. The restructuring was implemented through an Agreement and Plan of Merger whereby each outstanding share of Kansas City Power & Light Company stock was exchanged for a share of Great Plains Energy stock. As a result, Great Plains Energy replaced Kansas City Power & Light Company as the listed entity on the New York Stock Exchange. Great Plains Energy is a public utility holding company registered with and subject, with its subsidiaries, including us, to regulation by the SEC under the Public Utility Holding Company Act of 1935 , as amended. In connection with the reorganization, we transferred to Great Plains Energy our interest in two unregulated subsidiaries, Great Plains Power Incorporated and KLT Inc. For more details on the formation of the holding company and descriptions of the other Great Plains Energy subsidiaries, please refer to our 2002 Form 10-K, which is incorporated herein by reference. Receivables Company.
Our principal executive office isoffices are located at 1201 Walnut,1200 Main Street, Kansas City, Missouri 64106 (Telephone: 64105 and our telephone number is(816) 556-2200).556-2200.
THE TRUSTS
Each Trust
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Investing in our securities involves risks. Our business is a statutory business trust created under Delaware law pursuantinfluenced by many factors that are difficult to predict, involve uncertainties that may materially affect actual results and are often beyond our control. You should carefully consider the filing of a certificate of trust with the Delaware Secretary of State on December 11, 1996. The business of each Trust is defined in a Declaration of Trust which will be amended and restated in its entirety by the Amended and Restated Declaration of Trust substantially in the form filed as an exhibit to the Registration Statement of which this prospectus forms a part (the "Trust Agreement"). Each Trust Agreement will be qualified as an indentureinformation under the Trust Indenture Act of 1939, as amended (the "1939 Act"). The Company will own all the common securities (the "Common Securities" and, together with the Preferred Securities, the "Trust Securities") of each Trust. The Trust Securities represent undivided beneficial interests in the assets of the respective Trusts. Each Trust exists for the exclusive purposes of (i) issuing its Trust Securities representing undivided beneficial interests in the assets of such Trust, (ii) investing the gross proceeds of the sale of its Trust Securities in a related series of subordinated debt securities, and (iii) engaging in
only those other activities necessary or incidental to these purposes. The payment of periodic cash distributions on the Preferred Securities of each Trust and payments on liquidation and redemption with respect to the Preferred Securities of each Trust, in each case to the extent each Trust has funds available therefor, will be guaranteed by the Company (individually, a "Guarantee" and collectively, the "Guarantees") to the extent set forth under "Description of the Guarantees."heading “Risk Factors” in:
Each Trust's business and affairs will be conducted by its trustees, which shall be appointed by the Company as the holder of the Common Securities: two officers of the Company as Administrative Trustees; The Bank of New York as Property Trustee; and The Bank of New York as Delaware Trustee (collectively, the "Securities Trustees"). The Property Trustee of each Trust will act as the indenture trustee with respect to such Trust for purposes of compliance with the provisions of the 1939 Act.
The principal place of business of each Trust shall be c/o the Company, 1201 Walnut, Kansas City, Missouri 64106-2124, telephone (816) 556-2200, Attn: Corporate Secretary.
Reference is made to the
ACCOUNTING TREATMENT OF TRUSTS
For financial reporting purposes, as currently treated, the Trusts will be treated as subsidiaries of the Company and, accordingly, the accounts of the Trusts will be included in the consolidated financial statements of the Company (see below for potential effects of the Financial Accounting Standards Board (FASB) Interpretation No. 46, "Consolidation of Variable Interest Entities"). If the Trusts are treated as subsidiaries of the Company, Statement of Financial Accounting Standards No. 150, "Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity",fiscal year ended December 31, 2017, which is effective July 1, 2003,incorporated by reference into this prospectus; and
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RATIOOF EARNINGSTO FIXED CHARGES
The following table shows our ratio of earnings to fixed charges for the Company, will require thatperiods indicated:
Fiscal Years Ended December 31, | ||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||
3.05 | 3.30 | 2.57 | 2.69 | 2.76 |
For purposes of computing the Preferred Securities be presented as a separate line item in long-termratio of earnings to fixed charges: (i) earnings consist of income before deducting net provisions for income taxes and fixed charges; and (ii) fixed charges consist of interest on debt, in the consolidated statementamortization of capitalization of the Company,debt discount, premium and appropriate disclosures concerning the Preferred Securit ies, the Guaranteesexpense, and the subordinated debt securities will be included in the notes to the consolidated financial statements. For financial reporting purposes, the Company will record distributions payable on the Preferred Securities as an expense.estimated interest component of lease payments and rentals.
In January 2003, the FASB issued Interpretation No. 46. The Interpretation clarifies the application of Accounting Research Bulletin (ARB) No. 51, "Consolidated Financial Statements", to certain entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties (Variable Interest Entities). FASB Interpretation No. 46 is effective July 1, 2003, for the Company. The Company is currently assessing the impact of FASB Interpretation No. 46 on Preferred Securities issued by a Trust. If, as a result of our assessment, we determine that under FASB Interpretation No. 46, the Company is not the primary beneficiary of the Trust, we would not be allowed to consolidate the Trust. This would result in the Company including its investment in the common stock of the Trust in its consolidated balance sheet. Additionally, the subordina ted debt securities issued by the Company and
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held by the Trust would be presented as a separate line item in long-term debt in the consolidated statement of capitalization of the Company.
USE OF PROCEEDS
Each Trust will invest the proceeds received from the sale of its Preferred Securities in the Company's subordinated debt securities. Unless we inform you otherwise in a supplement to this prospectus, we anticipate using any net proceeds received by us from the issuance of any debtof the offered securities for general corporate purposes, including, among others:
repayment of debt; repurchase, retirement or refinancing of other securities; funding of construction expenditures; and acquisitions. Pending such uses, we may also invest the proceeds in certificates of deposit, United States government securities or certain other short-term interest-bearing securities. If we decide to use the net proceeds from a particular offering of securities for a specific purpose, we will describe that in the related prospectus supplement. |
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RATIO OF EARNINGS TO FIXED CHARGES
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The following table sets forth our ratio of earnings to fixed charges for the periods indicated:
Six Months | Year Ended December 31, | |||||
2003 |
| 2002 | 2001 | 2000 | 1999 | 1998 |
2.49 |
| 2.88 | 2.22 | 3.02 | 2.38 | 2.98 |
Our ratio of earnings to fixed charges includes our consolidated subsidiary HSS. In addition, the above ratios include KLT Inc. and Great Plains Power Incorporated for all periods prior to the October 1, 2001 reorganization.
For purposes of computing the ratio of earnings to fixed charges, "earnings" consists of net income from continuing operations before cumulative effect of changes in accounting principles, losses from equity investments and minority interests in consolidated subsidiaries with fixed charges, plus interest charges (excluding the reduction for capitalized interest), income taxes, and the estimated interest components of rents. "Fixed charges" consist of interest charges (excluding the reduction for capitalized interest) and the estimated interest components of rents.
DESCRIPTION OF DEBT SECURITIES
General. The senior debt securities and the subordinated debt securities, which we refer to collectively as the debt securities,notes will represent unsecured obligations of the Company. We maywill issue one or more series of debt securities directly to the public or to one or more Trusts. We expect that each series of senior debt securities or subordinated debt securities will be issuednotes under a separate indenture,the Indenture, dated as each may be amended or supplemented from time to time. We will issueof May 1, 2007, between the senior debt securities in one or more series under a senior indenture that we will enter into withCompany and The Bank of New York Mellon Trust Company, N.A., as trustee. We will issuerefer to this Indenture in this prospectus as the subordinated debt securities in one or more series under a
subordinated indenture we will enter into with“Indenture” and to The Bank of New York Mellon Trust Company, N.A. as trustee. The form of the senior indenture and“trustee.” If at any time there is more than one trustee under the form ofIndenture, the subordinated indenture are filedterm “trustee” as exhibitsused in this section with respect to the registration statementnotes of which this prospectus is a part. Each indenture will be qualified underany series means the Trust Indenture Acttrustee with respect to the notes of 1939. The following summaries of certainthat series.
We have summarized selected provisions of the senior indenture,Indenture below. However, the subordinated indenture and the applicable debt securitiesfollowing statements are summaries only, do not purport to be complete and are subject to, and qualified in their entirety by, all of the provisions of the senior indenture,Indenture, which is incorporated by reference herein. Certain of the subordinated indenture, includingterms used below are used herein with the definition of certainmeanings ascribed to such terms andby the applicable debt securities.Indenture. You should carefully read the summary below and the provisions of the indenturesIndenture that may be important to you before investing. The Indenture, and not the description contained herein, defines the rights of the holders of the notes. Copies of the indenturesIndenture will be available at the offices of the Trusteetrustee at 101 Barclay601 Travis Street, 816th Floor, West, New York, NY 10286.Houston, Texas 77002.
We may authorizeThe following sets forth certain general terms and provisions of the issuance and provide for thenotes. The particular terms of athe series of debt securities asnotes offered by any prospectus supplement will be described in the indentures. There will be no requirement under either the senior indenture or the subordinated indenture that our future issuances of debt securities be issued exclusively under either indenture. We will be free to employ other indentures or documentation containing provisions different from those included in either indenture or applicable to one or more issuances of senior debt securities or subordinated debt securities, as the case may be, in connection with future issuances of other debt securities.prospectus supplement. The senior indenture and the subordinated indenture will provideIndenture provides that the applicable debt securities willnotes may be issued in one or more series, may be issued at various times, may have differing maturity dates, and may bear interest at differing rates.rates and may have other differing terms and conditions, as described below. We need not issue all debt securitiesnotes of one series at the same time and, unless otherwise provided, we may reopen a series, without the consent of the holdersholder of the senior debt securities or the subordinated debt securitiesnotes of that series as the case may be, for issuances of additional senior debt securities or subordinated debt securities of that series, as applicable.notes. One or more series of the debt securitiesnotes may be issued with the same or various maturities at par, above par or at a discount. Debt securitiesNotes bearing no interest or interest at a rate which, at the time of issuance, is below the market rate ("(“Original Issue Discount Securities"Securities”) will be sold at a discount (which may be substantial) below their stated principal amount. Federal income tax consequences and other special considerations applicable to any such Original Issue Discount Securities will be described in the prospectus supplement relating thereto.to those securities. Unless otherwise described in the applicable prospectus supplement, neither indenture described above willthe Indenture does not limit the aggrega teaggregate amount of debt, including secured debt, that we or our subsidiaries may incur. There is no limitation of the amount of debt we may issue under the indentures. Both indentures willIndenture. The Indenture also permitpermits us to merge or consolidate or to transfer or lease our assets, subject to certain conditions (see "Consolidation,“—Consolidation, Merger and Sale"Sale or Disposition of Assets” below).
Ranking. The senior debt securities
Each series of notes will be our direct unsecured general obligations and will rank equally with all of our other unsecured and unsubordinated debt. As of June 30, 2003,December 31, 2017, our aggregate outstanding debt that would have ranked equally with the senior debt securitiesnotes was approximately $821.5$2,287.4 million. The subordinated debt securities will be our direct unsecured general obligations and will be junior in right of payment to our Senior Indebtedness
Unless otherwise provided in a prospectus supplement, the debt securitiesnotes will effectively rank junior to our first mortgage bonds ("General Mortgage Bonds") which were issued under the Generalour Mortgage Indenture and Deed of Trust, dated as of December 1,1986, between us and United Missouri Bank of Kansas City, N.A., as
supplemented ("Mortgage Indenture")(as defined below). The Mortgage Indenture constitutes a first mortgage lien upon substantially all of our fixed property and franchises.franchises, except property that has been, or may in the future be, released from the lien of the Mortgage Indenture. At June 30, 2003,December 31, 2017, there was approximately $213.8$479.5 million aggregate principal amount of Generalmortgage bonds outstanding, which amount does not include certaintax-exempt bonds secured by our mortgage bonds issued under the Mortgage Bonds outstanding.Indenture that we repurchased in September 2015 and are currently held by us (the “Company-HeldTax-Exempt Bonds”). We have agreed with the issuer of certain bond insurance policies that insure the Company-HeldTax-Exempt Bonds to not issue additional Generalmortgage bonds under the Mortgage BondsIndenture without the insurer’s consent if, after giving effect to the issuance of such additional General Mortgage Bonds,mortgage bonds, the proportion of secured debtmortgage bonds to total indebtedness exceeded 75%. Additionally, if the long termlong-term rating for such General Mortgage Bondsadditional mortgage bonds by Standard & Poor'sS&P
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Global Ratings or Moody'sMoody’s Investors Service, Inc. would be at or belowA- or A3, respectively, such agreements would prohibit us from issuing additional General Mortgage Bondsmortgage bonds if, after giving effect to such additional General Mortgage Bonds,mortgage bonds, the proportion of secured debtmortgage bonds to total indebtedness exceeded 50%. At June 30, 2003,December 31, 2017, the proportion of secured debtmortgage bonds to total indebtedness was ap proximately 21%approximately 17%.
Provisions of a Particular Series. Series
The prospectus supplement applicable to each issuance of debt securitiesnotes will specify, among other things:
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| the title and any limitation on aggregate principal amount of the notes; the original issue date of the notes; the date or dates on which the principal of any of the notes is payable; the fixed or variable interest rate or rates, or method of calculation of such rate or rates, for the notes, and the date from which interest will accrue; the terms, if any, regarding the optional or mandatory redemption of any notes, including the redemption date or dates, if any, and the price or prices applicable to such redemption; whether the notes are to be issued in whole or in part in the form of one of more global securities and, if so, the identity of the depositary for such global security or global securities; the denominations in which such notes will be issuable; the maximum annual interest rate, if any, of the notes; the period or periods within which, the price or prices at which and the terms and conditions upon which any notes may be repaid, in whole or in part, at the option of the holder thereof; the place or places where |
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The terms of any subordinated debt securities issued to a Trust will correspond to those of the related Preferred Securities of such Trust as described in the prospectus supplement relating to such Preferred Securities.
Subordination. The subordinated debt securities will be subordinate and junior in right of payment to all of our Senior Indebtedness, as defined below.
In the event (a) of any insolvency or bankruptcy proceeding or any receivership, liquidation, reorganization or other similar proceedings in respect of the Company or a substantial part of its property or of any proceedings for liquidation, dissolution or other winding up of the Company, whether or not involving insolvency or bankruptcy, or (b) subject to the terms of the subordinated indenture, that a default shall have occurred with respect to the payment of principal or interest on any Senior Indebtedness, and such default shall have continued beyond the period of grace and shall not have been cured, waived or ceased to exist, or (c) that the principal of, and accruedpremium, if any, and interest, if any, on the subordinated debt securities of notes shall be payable;
payable and such declaration shall not have been rescindedaddition, deletion or annulled, then all Senior Indebtedness must be paid in full before the holders of the subordinated debt securities are entitled to receive any payment.
The rights of the holders of the subordinated debt securities will be subrogatedmodification to the rightsevents of the holders of Senior Indebtedness to receive payments or distributionsdefault applicable to Senior Indebtedness until all amounts owing onthat series of notes and the subordinated debt securities are paid in full. If provided in the applicable prospectus supplement, limited subordination periods may apply in the event of non-payment defaults relating to Senior Indebtedness in situations where there has not been an acceleration of Senior Indebtedness.
As defined in the subordinated indenture, the term "Senior Indebtedness" means:
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in each case, amendments, renewals, extensions, modifications and refundings of any such indebtedness or obligations with Senior Indebtedness, whether existing as of the date of the subordinated indenture or subsequently incurred by us.
The subordinated indenture will not limit the aggregate amount of Senior Indebtedness that we may issue. As of June 30, 2003, our outstanding Senior Indebtedness totaled approximately $1,035.3 million.
Certain Covenants. We will covenant in the subordinated indenture,covenants for the benefit of the holders of each seriesthat series;
Guarantee with respect to the Trust Securities, if any, relatedrepaid pursuant to such seriesobligation;
The subordinated indenture further will provide that, for so long as the Trust Securities of any Trust remain outstanding, we covenant (i) to directly or indirectly maintain 100% ownership of the Common Securities of such Trust; provided, however, that any permitted successor of us under the subordinated indenture may succeed to our ownership of such Common Securities; (ii) to not cause, as sponsor of such Trust, or permit, as holder of Common Securities of such Trust, the dissolution, winding-up, or termination of such Trust, except in connection with a distribution of subordinated debt securities as provided in the Trust Agreement and in connection with certain mergers, consolidations or amalgamations permitted by the Trust Agreement; and (iii) to use reasonable efforts to cause such Trust (a) to remain a statutory business trust, except in connection with the distr ibution of subordinated debt securities to the holders of Trust Securities in liquidation of such Trust, the redemption of all of the Trust Securities of such Trust, or certain mergers, consolidations or amalgamations, each as permitted by the related Trust Agreement, and (b) to otherwise continue to be classified as a grantor trust for United States federal income tax purposes.
Registration, Transfer and Exchange.Exchange
Unless otherwise indicated in the applicable prospectus supplement, each series of debt securities, other than debt securities issued to a Trust,notes will initially be issued in the form of one or more global securities, in registered form, without coupons, as described under "Book-Entry
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“Book-Entry System."” The global securities will be registered in the name of a depository, or its nominee, and deposited with, or on behalf of, the depository. Except in the circumstances described under "Book-Entry“Book-Entry System,"” owners of beneficial interests in a global security will not be entitled to have debt securitiesnotes registered in their names, will not receive or be entitled to receive physical delivery of any debt securitiesnotes and will not be considered the registered holders thereof under the applicable indenture.Indenture.
Debt securitiesNotes of any series will be exchangeable for other debt securitiesnotes of the same series of any authorized denominations and of a like aggregate principal amount
and tenor. Subject to the terms of the applicable indentureIndenture and the limitations applicable to global securities, debt securitiesnotes may be presented for exchange or registration of transfer--dulytransfer—duly endorsed or accompanied by a duly executed instrument of transfer--attransfer at the office of any transfer agent we may designate for such purpose, without service charge but upon payment of any taxes and other governmental charges, and upon satisfaction of such other reasonable requirements as are described in the applicable indenture.Indenture.
Unless otherwise indicated in the applicable prospectus supplement, the transfer agent will be the trustee under the applicable indenture.Indenture. We may at any time designate additional transfer agents or rescind the designation of any transfer agent or approve a change in the office through which any transfer agent acts, except that we will be required to maintain a transfer agent in each place of payment for the debt securitiesnotes of each series.
Payment and Paying Agents.PrincipalAgents
Principal of and interest and premium, if any, on debt securitiesnotes issued in the form of global securities will be paid in the manner described under "Book-Entry System."“Book-Entry System” or as otherwise set forth in the applicable prospectus supplement.
Unless otherwise indicated in the applicable prospectus supplement, the principal of and any premium and interest on debt securitiesnotes of a particular series in the form of certificated securities will be payable at the office of the applicable trustee or at the authorized office of any paying agent or paying agents upon presentation and surrender of such debt securities.notes. We may at any time designate additional paying agents or rescind the designation of any paying agent or approve a change in the office through which any paying agent acts, except that we will be required to maintain a paying agent in each place of payment for the debt securitiesnotes of a particular series. Unless otherwise indicated in the applicable prospectus supplement, interest on the debt securitiesnotes of a particular series, other than interest at maturity, that are in the form of certificated securities will be paid by ch eckcheck payable in clearinghouse funds mailed to the person entitled thereto at such person'sperson’s address as it appears on the register for such debt securitiesnotes maintained by the applicable trustee.
All monies we pay to athe trustee or a paying agent for the payment of the principal of, and premium or interest, if any, on, any debt securitynote which remain unclaimed at the end of two years after such principal, premium or interest shall have become due and payable will be repaid to us, and the holder of such debt securitynote thereafter may look only to us for payment thereof. However, any such payment shall be subject to escheat pursuant to state abandoned property laws.
Redemption.AnyRedemption
Any terms for the optional or mandatory redemption of the debt securitiesnotes will be set forth in the applicable prospectus supplement. Unless otherwise indicated in the applicable prospectus supplement, debt securitiesnotes will be redeemable by us only upon notice by mail not less than 30 nor more than 60 days prior to the date fixed for redemption, and, if less than all the debt securitiesnotes of a series are to be redeemed, the particular debt securitiesnotes to be redeemed will be selected by such method as shall be provided for any particular series, or in the absence of any such provision, by the trustee in such manner as it shall deem fair and appropriate.
Any notice of redemption at our option may state that such redemption will be conditional upon receipt by the trustee or the paying agent or agents, on or prior to the date fixed for such redemption, of money sufficient to pay the principal of and premium, if any,
and interest on such debt securitiesnotes and that if such money has not been so received, such notice will be of no force and effect and we will not be required to redeem such debt securities.notes.
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Consolidation, Merger and Sale or Disposition of Assets.WeAssets
We may not, without the consent of the holders of any debt securities,notes, consolidate with or merge into any other corporation or sell, transfer, lease or otherwise dispose of our properties as or substantially as an entirety to any person, provided that:
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Upon any such consolidation, merger, sale, transfer, lease or other disposition of our properties as or substantially as an entirety, the successor corporation formed by such consolidation or into which we are merged or the person to whichwhom such sale, transfer, lease or other disposition is made, shall succeed to, and be substituted for, and may exercise every right and power of, us under the applicable indentureIndenture with the same effect as if such successor corporation or person had been named as us therein, and we will be released from all obligations under the applicable indenture.Indenture.
Certain of the indentures for our debt securities provide that the sale, conveyance or other transfer by the Company of its facilities for the generation of electric energy to any affiliate of the Company, shall not be subject to other restrictions on sales, conveyances, or other transfers provided that the facilities shall not in the aggregate represent assets with a depreciated value on the books of the Company in excess of 65% of the depreciated value of the Company's total assets as set forth in its most recent report filed on Form 10-K or 10-Q as of the date of the sale, conveyance, or other transfer.Modification
Modification.Without the consent of any holder of debt securities,notes, the trustee for such debt securitiesnotes and we may enter into one or more supplemental indentures for any of the following purposes:
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Except as provided above, and except as otherwise provided in the applicable prospectus supplement, the consent of the holders of a majority in aggregate principal amount of either the senior debt securities or the subordinated debt securities, as the case may be,notes of all series then outstanding, considered as one class, is required for the purpose of adding any provisions to, or changing in any manner, or eliminating any of the provisions of, the applicable indentureIndenture pursuant to one or more supplemental indentures or of modifying or waiving in any manner the rights of the holders of the applicable debt securities;notes; provided, however, that if less than all of the series of senior debt securities or subordinated debt securitiesnotes outstanding as the case may be, are directly affected by a proposed supplemental indenture, then the consent only of the holders
of a majority in aggregate principal amount of the outstanding applicable debt securitiesnotes of all series so directly affected, considered as one class, will be required.
Notwithstanding the foregoing, no such amendment or modification may, without the consent of each holder of outstanding debt securitiesnotes affected thereby:
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A supplemental indenture which changes or eliminates any covenant or other provision of the applicable indentureIndenture which has expressly been included solely for the benefit of one or more series of debt securities,notes, or which modifies the rights of the holders of debt securitiesnotes of such series with respect to such covenant or provision, will be deemed not to affect the rights under the applicable indentureIndenture of the holders of the debt securitiesnotes of any other series.
Events of Default.
Unless specifically deleted in a supplemental indenture or Board of Directors resolution under which a series of debt securitiesnotes is issued, or modified in any such supplemental indenture or resolution, each of the following will constitute an event of default under the senior indenture or the subordinated indentureIndenture with respect to senior debt securitiesnotes of any series:
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12 certain events of bankruptcy, insolvency, reorganization, assignment or receivership; or any other event of default specified in the applicable prospectus supplement with respect to notes of a particular series. Additional events of default with respect to a particular series of notes may be specified in a supplemental indenture or resolution of the Board of Directors establishing that series. |
No event of default with respect to the debt securitiesnotes of a particular series necessarily constitutes an event of default with respect to the debt securitiesnotes of any other series issued under the applicable indenture.Indenture.
If an event of default with respect to any series of debt securitiesnotes occurs and is continuing, then either the trustee for such series or the holders of a majority in aggregate principal amount of the outstanding debt securitiesnotes of such series, by notice in writing, may declare the principal amount of and interest on all of the debt securitiesnotes of such series to be due and payable immediately; provided, however, that if an event of default occurs and is continuing with respect to more than one series of debt securitiesnotes under a particular indenture,the Indenture, the trustee for such series or the holders of a majority in aggregate principal amount of the outstanding debt securitiesnotes of all such series, considered as one class, may make such declaration of acceleration and not the holders of the debt securitiesnotes of any one of such series.
At any time after an acceleration with respect to the debt securitiesnotes of any series has been declared, but before a judgment or decree for the payment of the money due has been obtained, the event or events of default giving rise to such acceleration will be waived, and the acceleration will be rescinded and annulled, if
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However, no such waiver or rescission and annulment shall extend to or shall affect any subsequent default or impair any related right.
Subject to the provisions of the applicable indentureIndenture relating to the duties of the trustee in case an event of default shall occur and be continuing, the trustee generally will be under no obligation to exercise any of its rights or powers under the applicable indentureIndenture at the request or direction of any of the holders unless such holders have offered to the trustee reasonable security or indemnity satisfactory to it. Subject to such provisions for the indemnification of the trustee and certain other limitations contained in the applicable indenture,Indenture, the holders of a majority in aggregate principal amount of the outstanding debt securitiesnotes of any series will have the right to direct the time, method and place of conducting any proceeding for any remedy available to the trustee, or of exercising any trust or power conferred on the trustee, with respect to the debt securitiesnotes of that seri es;series; provided, however, that if an event of default occurs and is continuing with respect to more than one series of debt securities,notes, the holders of a majority in aggregate principal amount of the outstanding debt securitiesnotes of all those series, considered as one class, will have the right to make such direction, and not the holders of the debt securitiesnotes of any one series. Any direction provided by the holders shall not be in conflict with any rule of law or with the senior indenture or the subordinated indenture, as the case may be,Indenture and will not involve the trustee in personal liability in circumstances where reasonable indemnity would not, in the trustee'strustee’s sole discretion, be adequate and the trustee may take any other action it deems proper that is not inconsistent with such direction.
The holders of a majority in aggregate principal amount of the outstanding debt securitiesnotes of any series may waive any past default or event of default under the applicable indentureIndenture on behalf of all holders of debt securitiesnotes of that series with respect
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to the debt securitiesnotes of that series, except a default in the payment of principal of or any premium or interest on such debt securities.notes. No holder of debt securitiesnotes of any series may institute any proceeding with respect to the applicable indenture,Indenture, or for the appointment of a receiver or a trustee, or for any other remedy, unless such holder has previously given to the trustee for such series written notice of a continuing event of default with respect to the debt securitiesnotes of such series, the holders of a majority in aggregate principal amount of the outstanding debt securitiesnotes of all series in respect of which an event of default has occurred and is continuing, considered as one class, have made written request to the trustee for such series to institute such proceeding and have offered such reasonable indemnity as the trustee may require, and the trustee for such series has failed to institute such proceeding within 60 days after such notice, request and offer. Furthermore, no holder of debt securitiesnotes of any series will be entitled to institute any such action if and to the extent that such action would disturb or prejudice the rights of other holders of those debt securities.notes.
Notwithstanding the foregoing, each holder of debt securitiesnotes of any series has the right, which is absolute and unconditional, to receive payment of the principal of and premium, if any, and interest if any, on such debt securitiesnotes when due and to institute suit for the enforcement of any such payment, and such rights may not be impaired without the consent of that holder of debt securities.notes.
The trustee, within 90 days after it receives notice of the occurrence of a default with respect to the debt securitiesnotes of any series, is required to give the holders of the debt securitiesnotes of that series notice of such default, unless cured or waived, but, except in the case of default in the payment of principal of, or premium, if any, or interest on, the debt securitiesnotes of that series, the trustee may withhold such notice if it determines in good faith that it is in the interest of such holders to do so. We will be required to deliver to the trusteestrustee for the debt securitiesnotes each year a certificate as to whether or not, to the knowledge of the officers signing such certificate, we are in compliance with all conditions and covenants under the applicable indenture,Indenture, determined without regard to any period of grace or requirement of notice under such indenture.the Indenture.
Defeasance and Discharge.
Unless the applicable prospectus supplement states otherwise, we may elect either:
| (1) | to defease and be discharged from any and all obligations in respect of the |
| to be released from the obligations of the |
In the case of either (1) or (2), the following conditions, among others, must be met:
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We may exercise our defeasance option under paragraph (1) with respect to debt securitiesnotes of any series notwithstanding our prior exercise of our covenant defeasance option under paragraph (2). If we exercise our defeasance option under paragraph (1) for debt securitiesnotes of any series, payment of the debt securitiesnotes of such series may not be accelerated because of a subsequent event of default. If we exercise our covenant defeasance option for debt securitiesnotes of any series, payment of the debt securitiesnotes of such series may not be accelerated by reference to a subsequent breach of any of the covenants noted under clauseparagraph (2) in the preceding paragraph.above. In the event we fail to comply with our remaining obligations with respect to the debt securitiesnotes of any series under the applicable indentureIndenture after exercising our covenant defeasance option and the debt securitiesnotes of such serie sseries are declared due and payable because of the subsequent occurrence of any event of default, the amount of money and U.S. government obligations on deposit with the trustee may be insufficient to pay amounts due on the debt securitiesnotes of such series at the time of the acceleration resulting from that event of default. However, we will remain liable for those payments.
Resignation or Removal of Trustee.TheTrustee
The trustee may resign at any time upon written notice to us specifying the day upon which the resignation is to take effect and such resignation will take effect immediately upon the later of the appointment of a successor trustee and such specified day. The trustee may be removed at any time with respect to debt securitiesnotes of any series by an instrument or concurrent instruments in writing filed with the trustee and signed by the holders, or theirattorneys-in-fact, of a majority in aggregate principal amount of that series of debt securitiesnotes then outstanding. In addition, so long as no event of default or event which, with the giving of notice or lapse of time or both, would become an event of default has occurred and is continuing, we may remove the trustee upon notice to the holder of each debt securitynote outstanding and the trustee, and appoint a successor trustee.
Concerning the Trustee. Trustee
As of June 30, 2003,December 31, 2017, The Bank of New York Mellon Trust Company, N.A., which will be the Senior Indenture Trustee, the Subordinated Indenture Trustee, the Senior Property Trustee and the Guarantee Trustee, wasis the trustee under the Indenture, and its affiliates were the trustees for $ 991.9$2,199.4 million of the Company'sour secured and unsecured debt (including Environmental Improvement Revenue debt and Environmental Improvement Revenue Refunding debt issued by certain governmental entities) and $637.5 million of the unsecured debt of Great Plains Energy Incorporated under sevenseveral separate indentures. In addition, an affiliate of The Bank of New York Mellon Trust Company, N.A. is one of the lenders under separate credit agreements with us, our parent and an affiliate and is the trustee under our nuclear decommissioning fund trust. Affiliates of The Bank of New York Mellon Trust Company, N.A. also a depository for funds and performsperform other services for, and transactstransact other banking business with, our affiliates and us in the normal course and may do so in the future.Each indenture will providefuture. The Indenture provides that our obligations to compensate the trustee and reimburse the trustee for expenses, disbursements and advances will be secured by a lien prior to that of the applicable debt securitiesnotes upon the property and funds held or collected by the trustee as such.such, except funds held in trust for the benefit of the holders of particular notes.
Governing Law. Law
The senior indenture, the subordinated indentureIndenture is, and the related debt securitiesnotes will be, governed by New York law.
DESCRIPTION OF THE PREFERRED SECURITIES
Each Trust may
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DESCRIPTIONOF GENERAL MORTGAGE BONDS
We will issue only oneeach series of Preferred Securities having terms described ingeneral mortgage bonds under the prospectus supplement relating thereto. TheGeneral Mortgage Indenture and Deed of Trust, Agreementdated as of each Trust will authorize the Administrative Trustees, on behalf of the Trust,December 1, 1986, as supplemented from time to issue the Preferred Securities of such Trust. The Preferred Securities of each Trust will have such terms, including distributions, redemption, voting, liquidation rights and such other preferred,
deferral or other special rights or such restrictions as shall be set forth in the Trust Agreement of such Trust. Reference is made to the prospectus supplement relating to the Preferred Securities of a Trust for specific terms, including:
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All Preferred Securities offered hereby will be guaranteedtime, executed by the Company to UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee. We refer in this prospectus to the extent set forth under ""Descriptiongeneral mortgage bonds as the “mortgage bonds,” to the mortgage as the “Mortgage Indenture” and to UMB Bank, N.A. as the “Mortgage Trustee.”
We have summarized selected provisions of the Guarantees.'' Any material United States federal income tax considerations applicable toMortgage Indenture below. However, the following statements are an offering of Preferred Securities will be described in the prospectus supplement relating thereto.
DESCRIPTION OF THE RELATED GUARANTEES
Set forth below is a summary of information concerning the Guarantees that will be executed and delivered by the Company for the benefit of the holders of Preferred Securities of the respective Trusts from time to time. Each Guarantee will be qualified as an indenture under the 1939 Act. The Bank of New York will act as trustee under each Guarantee (the "Guarantee Trustee'') for purposes of the 1939 Act. The terms of the respective Guarantees will be those set forth therein and those made part thereof by the 1939 Act. The following summary doesoutline only, do not purport to be complete, and is subject in all respects to the provisions of, and isare qualified in itstheir entirety by reference to the Guarantees, the form ofMortgage Indenture, which is filedincorporated by reference as an exhibit to the Registration Statementregistration statement of which this prospectus formsis a part, andpart. Certain of the 1939 Act. Each Guarantee will be heldterms used below are used in this prospectus with the meanings ascribed to such terms by the Guarantee Trustee for the benefit of holdersMortgage Indenture.
The following sets forth certain general terms and provisions of the Preferred Securities to which it relates.
General. Pursuant to each Guarantee, the Company will irrevocably and unconditionally agree, to the extent set forth therein, to pay in full, to the holders of the related Preferred Securities, the Guarantee Payments (as defined herein), to the extent not paid by, or on behalf of, the related Trust, as and when due, regardless of any defense, right of set-off or counterclaim that the Company may have or assert against any person.mortgage bonds. The following payments or distributions with respect to the Preferred Securities of any Trust to the extent not paid or made by, or on behalf of, such Trust will be subject to the Guarantee related thereto (without duplication):
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The Company's obligation to make a Guarantee Payment may be satisfied by direct payment of the required amounts by the Company to the holders of the related Preferred Securities or by causing the related Trust to pay such amounts to such holders.
Each Guarantee will be a guarantee of the Guarantee Payments with respect to the related Preferred Securities from the time of issuance of such Preferred Securities, but will not apply to the payment of distributions and other payments on such Preferred Securities when the related Trust does not have sufficient funds available to make such distributions or other payments.If the Company does not make interest payments on the subordinated debt securities held by the Property Trustee under any Trust, such Trust will not make distributions on its Preferred Securities.
Subordination. The Company's obligations under each Guarantee to make the Guarantee Payments will constitute an unsecured obligation of the Company and will rank:
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Theparticular terms of the Preferred Securitiesseries of mortgage bonds offered by any prospectus supplement will providebe described in that each holder of Preferred Securities by acceptance thereof agrees to the subordination provisions and otherprospectus supplement. Any terms of the Guarantee related thereto. The Company has outstanding common stockmortgage bonds that ranks junior to the Guarantees.
Each Guaranteeare not summarized herein will constitute a guarantee of payment and not of collection (that is, the guaranteed party may institute a legal proceeding directly against the guarantor to enforce its rights under the guarantee without first instituting a legal proceeding against any other person or entity).
Amendments and Assignment. Except with respect to any changes that do not materially and adversely affect the rights of holders of the related Preferred Securities (in which case no consent will be required), each Guarantee may be amended only with the prior approval of the holders of not less than 66 2/3% in liquidation amount of all of such outstanding Preferred Securities. The manner of obtaining any such approval of holders of the Preferred Securities will be as set forth in an accompanying prospectus supplement. All guarantees and agreements contained in each Guarantee shall bind the successors, assigns, receivers, trustees and representatives of the Company and shall inure to the benefit of the holders of the related Preferred Securities then outstanding.
Termination. Each Guarantee will terminate and be of no further force and effect as to the related Preferred Securities upon full payment of the Redemption Price of all
such Preferred Securities, upon distribution of subordinated debt securities to the holders of such Preferred Securities in exchange for all such Preferred Securities, or upon full payment of the amounts payable upon liquidation of the related Trust. Each Guarantee will continue to be effective or will be reinstated, as the case may be, if at any time any holder of the related Preferred Securities must restore payment of any sums paid with respect to such Preferred Securities or under such Guarantee.
Events of Default. An event of default under each Guarantee will occur upon the failure by the Company to perform any of its payment or other obligations thereunder. The holders of a majority in liquidation amount of the Preferred Securities to which any Guarantee relates have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Guarantee Trustee in respect of such Guarantee or exercising any trust or power conferred upon the Guarantee Trustee under such Guarantee. Any holder of the related Preferred Securities may institute a legal proceeding directly against the Company to enforce its rights under such Guarantee without first instituting a legal proceeding against or requesting or directing that action be taken by the Guarantee Trustee or any other person. The holders of a majority in liquidation amount of Preferr ed Securities of any series may, by vote, on behalf of the holders of all the Preferred Securities of such series, waive any past event of default and its consequences.
Information Concerning the Guarantee Trustee. The Guarantee Trustee, prior to the occurrence of any event of default with respect to any Guarantee and after the curing or waiving of all events of default with respect to such Guarantee, will undertake to perform only such duties as are specifically set forth in such Guarantee and, in case an event of default has occurred (that has not been cured or waived), the Guarantee Trustee shall exercise such of the rights and powers vested in it by such Guarantee and use the same degree of care and skill as a prudent individual would exercise or use in the conduct of his or her own affairs. Subject to such provisions, the Guarantee Trustee is under no obligation to exercise any of the rights or powers vested in it by any Guarantee at the request or direction of any holder of the related Preferred Securities, unless offered reasona ble indemnity against the costs, expenses and liabilities which might be incurred thereby.
The Bank of New York, the Guarantee Trustee, also serves as Property Trustee, the Senior Indenture Trustee, and the Subordinated Indenture Trustee.
Governing Law. Each Guarantee will be governed by, and construed in accordance with, the internal laws of the State of New York.
The Agreements as to Expenses and Liabilities. Pursuant to an Agreement as to Expenses and Liabilities to be entered into by the Company under each Trust Agreement, the Company will irrevocably and unconditionally guarantee to each person or entity to whom each Trust becomes indebted or liable the full payment of any indebtedness, expenses or liabilities of such Trust, other than obligations of such Trust to pay to the holders of the related Preferred Securities or other similar interests in such Trust the amounts due such holders pursuant to the terms of such Preferred Securities or such other similar interests, as the case may be.
RELATIONSHIP AMONG THE PREFERRED SECURITIES,THE SUBORDINATED DEBT SECURITIES AND THE GUARANTEES
As long as payments of interest and other payments are made when due on each series of subordinated debt securities issued to a Trust, such payments will be sufficient to cover distributions and payments due on the related Trust Securities of such Trust primarily because (i) the aggregate principal amount of each series of subordinated debt securities will be at least equal to the sum of the aggregate stated liquidation amount of the related Trust Securities; (ii) the interest rate and interest and other payment dates on each series of subordinated debt securities will match the distribution rate and distribution and other payment dates for the related Preferred Securities; (iii) the Company shall pay for all costs and expenses of each Trust pursuant to the Agreements as to Expenses and Liabilities; and (iv) each Trust Agreement provides that the Securities Truste es under each Trust Agreement shall not cause or permit the Trust to, among other things, engage in any activity that is not consistent with the purposes of the Trust.
Payments of distributions (to the extent funds for such purpose are available) and other payments due on the Preferred Securities (to the extent funds for such purpose are legally and immediately available) will be guaranteed by the Company as and to the extent set forth under "Description of the Guarantees.'' If the Company does not make interest payments on any series of subordinated debt securities, it is not expected that the related Trust will have sufficient funds to pay distributions on its Preferred Securities. Each Guarantee is a guarantee from the time of its issuance, but does not apply to any payment of distributions unless and until the related Trust has sufficient funds available for the payment of such distributions.
If the Company fails to make interest or other payments on any series of subordinated debt securities when due (taking into account any extension period as described in the applicable prospectus supplement), the holders of the related Preferred Securities may rely on the enforcement by the Property Trustee as a holder of subordinated debt securities against the Company. Such holders may direct the Property Trustee to enforce its rights under the subordinated debt securities of such series, including proceeding directly against the Company to enforce such subordinated debt securities. If the Property Trustee fails to enforce its rights under any series of subordinated debt securities, to the fullest extent permitted by applicable law, any holder of related Preferred Securities may institute a legal proceeding directly against the Company to enforce the Property Trustee's rights under such series of subordinated debt securities without first instituting any legal proceeding against the Property Trustee or any other person or entity. Notwithstanding the foregoing, a holder of Preferred Securities may institute a legal proceeding directly against the Company, without first instituting a legal proceeding against the Property Trustee or any other person or entity, for enforcement of payment to such holder of principal of or interest on subordinated debt securities of the related series having a principal amount equal to the aggregate stated liquidation amount of the Preferred Securities of such holder on or after the due dates specified in the subordinated debt securities of such series.
If the Company fails to make payments under any Guarantee, such Guarantee provides a mechanism that allows the holders of the Preferred Securities to which such Guarantee relates to direct the Guarantee Trustee to enforce its rights under such
Guarantee. In addition, a holder of Preferred Securities may institute a legal proceeding directly against the Company to enforce its rights under the related Guarantee without first instituting a legal proceeding against or requesting or directing that action be taken by the Guarantee Trustee or any other person or entity.
Each Guarantee, the Subordinated Note Indenture, the subordinated debt securities of the related series, the related Trust Agreement and the related Agreement as to Expenses and Liabilities, as described above, constitute a full and unconditional guarantee by the Company of the payments due on the related series of Preferred Securities.
Upon any voluntary or involuntary dissolution, winding-up or termination of any Trust, unless subordinated debt securities of the related series are distributed in connection with such action, the holders of Preferred Securities of such Trust will be entitled to receive, out of assets legally available for distribution to holders, a liquidation distribution in cash as described in the applicable prospectus supplement. Upon any voluntary or involuntary liquidation or bankruptcy of the Company, the Property Trustee, as holder of the related series of subordinated debt securities, would be a subordinated creditor of the Company, subordinated in right of payment to all Senior Indebtedness, but entitled to receive payment in full of principal and interest, before any stockholders of the Company receive payments or distributions. Because the Company is guarantor under each Guarantee and has ag reed to pay for all costs, expenses and liabilities of each Trust (other than the Trust's obligations to holders of the Preferred Securities) pursuant to the related Agreement as to Expenses and Liabilities, the positions of a holder of Preferred Securities and a holder of subordinated debt securities of the related series relative to other creditors and to stockholders of the Company in the event of liquidation or bankruptcy of the Company would be substantially the same.
A default or event of default under any Senior Indebtedness would not constitute a default or Event of Default under the Subordinated Note Indenture. However, in the event of payment defaults under, or acceleration of, Senior Indebtedness, the subordination provisions of the subordinated debt securities provide that no payments may be made in respect of the subordinated debt securities until such Senior Indebtedness has been paid in full or any payment default thereunder has been cured or waived. Failure to make required payments on the subordinated debt securities of any series would constitute an Event of Default under the Subordinated Note Indenture with respect to the subordinated debt securities of such series except that failure to make interest payments on the subordinated debt securities of such series will not be an Event of Default during an extension period as described in the applicable prospectus supplement.
BOOK-ENTRY SYSTEMSecurity and Priority
The Company’s principal plants and properties, insofar as they constitute real estate, are owned; certain other facilities of the Company are located on premises held by the Company under leases, permits or easements; and the Company’s electric transmission and distribution lines and systems (which constitute a substantial portion of the Company’s investment in physical property) are for the most part located over or under highways, streets, other public places or property owned by others for which permits, grants, easements, licenses or franchises (deemed satisfactory but without examination of underlying land titles) have been obtained.
The Mortgage Indenture constitutes a mortgage lien upon substantially all of the fixed property and franchises of the Company (except property that has been, or may in the future be, released from the lien of the Mortgage Indenture, as described below), consisting principally of electric generating plants, electric transmission and distribution lines and systems, and buildings, subject to encumbrances permitted under the Mortgage Indenture. (Mortgage Indenture Section 1.03(ff).) The Mortgage Indenture subjects to the lien thereof property, of the character initially mortgaged, which is acquired by the Company subsequent to December 1, 1986. Such after-acquired property may be subject to prior liens which secure debt outstanding at the time of such acquisition in an amount not in excess of 75% of the cost or fair value, whichever is less, of such after-acquired property at such time. (Mortgage Indenture Section 1.03(ff)(xv).)
The property excepted from the lien of the Mortgage Indenture consists principally of: cash and securities (unless deposited with the Mortgage Trustee); accounts receivable; contracts and operating agreements not pledged or required to be pledged with the Mortgage Trustee; equipment, spare parts, tools, materials, supplies and fuel held for sale or lease in the ordinary course of business or for use or consumption in, or the operation of, any properties of, or for the benefit of, the Company, or held in advance of use thereof for maintenance or fixed capital purposes; electricity, gas, steam, water, ice and other materials, products or services for sale, distribution or use; vehicles; leasehold interests and leasehold improvements; minerals and mineral rights; nuclear fuel, cores and materials; communications equipment, computers and office furniture; and other real and personal property which is not an integral part of the electric and any steam generating, transmission and distribution operations of the Company. (Mortgage Indenture Section 1.03(s).)
The mortgage bonds will rank equally and ratably (except as to sinking funds and other analogous funds established for the exclusive benefit of a particular series) with all mortgage bonds, regardless of series, from time to time issued and outstanding under the Mortgage Indenture.
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The Mortgage Indenture provides that the Mortgage Trustee shall have a lien on the mortgaged property, prior to the mortgage bonds, for the payment of its reasonable compensation and expenses and for indemnity against certain liabilities. (Mortgage Indenture Section 14.09.)
Issuance of Additional Mortgage Bonds. The maximum principal amount of mortgage bonds which may be issued under the Mortgage Indenture is not limited. Mortgage bonds of any series may be issued from time to time in principal amounts:
(Mortgage Indenture Articles III, IV, V and VI.)
“Bondable property” includes: the Company’s electric and any steam generating, transmission and distribution properties; construction work in progress; property in the process of purchase to which the Company has legal title; fractional and undivided interests of the Company in certain property owned jointly or in common with other persons; engineering, financial, economic, environmental, geological and legal or other surveys, data processing equipment and software associated with the acquisition or construction of property; paving, grading and other improvements to property owned by others but used by the Company; and certain property owned by the Company located on property owned by others, including governments. (Mortgage Indenture Section 1.03(h).)
“Prior lien bonds” means any indebtedness secured by liens either (i) existing both at and immediately prior to the acquisition of the property by the Company, or (ii) created as purchase money mortgages at the time the Company acquires the property, and in each case ranking prior to, or on a parity with, the lien of the Mortgage Indenture. (Mortgage Indenture Sections 1.03(hh) and 1.03(ii).)
The amount of bondable property is the lesser of its cost or fair value determined in accordance with generally accepted accounting principles in effect at December 1, 1986 or, at the option of the Company, at the date of their determination, minus 133 1/3% of the principal amount of all prior lien bonds which are (a) outstanding and secured by a prior lien on bondable property owned by the Company at December 1, 1986, and (b) outstanding and secured by a prior lien, other than due solely to an after-acquired property clause, on bondable property at the date of its acquisition by the Company after such date. (Mortgage Indenture Section 1.03(h).) In determining generally accepted accounting principles, the Company may conform to accounting orders from any governmental regulatory commission. (Mortgage Indenture Section 1.03(u).)
Withdrawal of Certain Cash
Cash deposited with the Mortgage Trustee as a basis for the issue of additional mortgage bonds may be withdrawn by the Company in the amount of 75% of the lesser of the cost or fair value of unbonded bondable property that is bonded, after deducting 133 1/3% of the principal amount of all prior lien bonds which are (a) outstanding and secured by a prior lien on such bondable property owned by the Company at December 1, 1986, and (b) outstanding and secured by a prior lien, other than due solely to an after-acquired property clause, on bondable property at the date of its acquisition by the Company after such date.
Any other cash deposited with the Mortgage Trustee may be withdrawn by the Company in the amount of:
100% of the lesser of the cost or fair value of unbonded bondable property that is bonded, after deducting 133 1/3% of the principal amount of all prior lien bonds which are (a) outstanding and
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secured by a prior lien on such bondable property owned by the Company at December 1, 1986, and (b) outstanding and secured by a prior lien, other than due solely to an after-acquired property clause, on bondable property at the date of its acquisition by the Company after such date; or |
(Mortgage Indenture Article XI.)
Release and Substitution of Property
Mortgaged property may be released from the lien of the Mortgage Indenture:
(Mortgage Indenture Article X.)
Events of Default
The Mortgage Indenture provides generally that a default occurs upon:
In case of default, the Mortgage Trustee or the holders of a majority in principal amount of the outstanding mortgage bonds may declare the principal of and interest on all mortgage bonds to be immediately due and payable, but the holders of a majority in principal amount of the outstanding mortgage bonds may rescind such declaration if such default has been cured. (Mortgage Indenture Sections 12.02 and 12.04.)
The Company is required to file with the Mortgage Trustee such information, documents and reports with respect to compliance by the Company with the conditions and covenants of the Mortgage Indenture as may be required by the rules and regulations of the SEC. (Mortgage Indenture Section 17.02.) The Company is not required to furnish any statement as to the absence of any default.
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Modification of the Mortgage Indenture
In general, modifications or alterations of the Mortgage Indenture and any applicable supplemental indenture and of the rights or obligations of the Company and of the bondholders, as well as waivers of compliance with the Mortgage Indenture (including any applicable supplemental indenture) may be made, with the consent of the holders of a majority in principal amount of the outstanding mortgage bonds affected by the proposed action, if approved by the Company. Provisions relating to such modifications or alterations and waivers of compliance are subject to certain restrictions designed to safeguard the positions of the bondholders and the Mortgage Trustee with respect to certain matters of basic importance, including payment of principal of and interest and premium (if any) on mortgage bonds and creation of liens ranking prior to or on a parity with the lien of the Mortgage Indenture as to any mortgaged property. (Mortgage Indenture Section 12.24 and Article XV.)
Concerning the Mortgage Trustee
As of December 31, 2017, the Mortgage Trustee was the trustee for $400.0 million of mortgage bonds issued under the Mortgage Indenture. In addition, the Company and its affiliates maintain general banking accounts with the Mortgage Trustee. The Mortgage Trustee is also one of the lenders under separate credit agreements with us, our parent and one of our affiliates.
The Mortgage Indenture provides that the holders of a majority in principal amount of the outstanding mortgage bonds have the right to require the Mortgage Trustee to take certain action on behalf of the bondholders, but under certain circumstances the Mortgage Trustee may decline to follow such directions or to exercise certain of its powers. (Mortgage Indenture Section 12.05.) Prior to taking any such action the Mortgage Trustee is entitled to indemnity satisfactory to the Mortgage Trustee against costs, expenses and liabilities which may be incurred in the course of such action. (Mortgage Indenture Section 12.16.) This right does not, however, impair the absolute right of any holder of mortgage bonds to enforce payment of the principal of, or premium, if any, and interest on such mortgage bonds when due. (Mortgage Indenture Section 12.23.) The Company has the right to remove the Mortgage Trustee and appoint a successor Mortgage Trustee not more frequently than once in anyten-year period. (Mortgage Indenture Section 14.18.)
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Unless otherwise indicated in the applicable prospectus supplement, each series of debt securities (other than debt securities issued to a Trust) and Preferred Securitiesnotes or mortgage bonds will initially be issued in the form of one or more global securities, in registered form, without coupons. The global securitysecurities will be deposited with, or on behalf of, the depository, and registered in the name of the depository or a nominee of the depository. Unless otherwise indicated in the applicable prospectus supplement, the depository for any global securities will be The Depository Trust Company, or DTC.
So long as the depository, or its nominee, is the registered owner of a global security, such depository or such nominee, as the case may be, will be considered the owner of such global security for all purposes under the applicable indenture, including for any notices and voting. Except in limited circumstances, the owners of beneficial interests in a global security will not be entitled to have securities registered in their names, will not receive or be entitled to receive physical delivery of any such securities and will not be considered the registered holder thereof under the applicable indenture. Accordingly, each person holding a beneficial interest in a global security must rely on the procedures of the depository and, if such person is not a direct participant, on procedures of the direct participant through which such person holds its interest, to exercise a nyany of the rights of a registered owner of such security.
GlobalExcept as otherwise provided in any applicable prospectus supplement, global securities may be exchanged in whole for certificated securities only if:
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In any such case, we have agreed to notify the applicable trustee in writing that, upon surrender by the direct participants and indirect participants of their interest in such global securities, certificated securities representing the applicable securities will be issued to each person that such direct participants and indirect participants and the depository identify as being the beneficial ownersowner of such securities.
The following is based solely on information furnished by DTC:
DTC will act as depository for the global securities. The global securities will be issued as fully-registered securities registered in the name of Cede & Co., DTC's (DTC’s partnership nominee.nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered global security certificate will be issued for each issue of the global securities, each in the aggregate principal amount of such issue, and will be deposited with DTC.
If, however, the aggregate principal amount of any issue of a series of debt securities exceeds $500 million, one certificate will be issued with respect to each $500 million of principal amount, and an additional certificate will be issued with respect to any remaining principal amount of such series. DTC is a limited-purpose trust company organized under the New York Banking Law, a "banking organization"“banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation"“clearing corporation” within the meaning of the New York Uniform Commercial Code, and a "clearing corporation"“clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934.Act. DTC holds and provides asset servicing for securities that its direct participants deposit with DTC. DTC also facilitates the post-trade settlement among direct participants of sales and other securities transactions such as transfers and pledges, in deposited
securities, through electronic computerized book-entry changes intransfers and pledges between direct participants' accounts, thereby eliminatingparticipants’ accounts. This eliminates the need for physical movement of securities certificates.
Direct participants include both U.S. andnon-U.S. securities brokers and dealers, banks, trust companies, clearing corporations and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing
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Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by a numberthe users of its direct participants and by the New York Stock Exchange, Inc., the American Stock Exchange, Inc., and the National Association of Securities Dealers, Inc.regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. andnon-U.S.securities brokers and dealers, banks, and trust companies and clearing corporations that clear through or maintain a custodial relationship with a direct participant, either directly or indirectly, which are referred to as indirect participants and, together with the direct participants, the participants. The DTC rules applicable to DTC and its participants are on file with the SEC. More information about DTC can be found at www.dtcc.com. The contents of such website do not constitute part of this prospectus.
Purchases of global securities under the DTC system must be made by or through direct participants, who will receive a credit for such purchases ofthe global securities on DTC'sDTC’s records. The ownership interest of each actual purchaser of each global security, or beneficial owners,owner, is in turn to be recorded on the direct and indirect participants'participants’ records. Beneficial owners will not receive written confirmation from DTC of their purchase, but beneficialpurchase. Beneficial owners, however, are expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the direct or indirect participant through which the beneficial ownersowner entered into the transaction. Transfers of ownership interests in the global securities are to be accomplished by entries made on the books of direct and indirect participants acting on behalf of beneficial owners. Beneficial owners will not receive certificates representing their ownership interests in the global securities, except in the event that use of the book-entry system for the global securities is discontinued.
To facilitate subsequent transfers, all global securities deposited by direct participants with DTC are registered in the name of DTC'sDTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of global securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect noany change in beneficial ownership. DTC has no knowledge of the actual beneficial owners of the global securities; DTC'sDTC’s records reflect only the identity of the direct participants to whose accounts such global securities are credited, which may or may not be the beneficial owners. The direct and indirect participants will remain responsible for keeping account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to direct participants, by direct participants to indirect participants, and by direct participants and indirect participants to beneficial owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial owners of global securities may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the global securities, such as redemptions, tenders, defaults, and proposed amendments to the security documents. For example, beneficial owners of global securities may wish to ascertain that the nominee holding the global securities for their benefit has agreed to obtain and transmit notices to beneficial owners. In the alternative, beneficial owners may wish to provide their names and addresses to the registrar and request that copies of the notices be provided directly to them.
If the global securities are redeemable, redemption notices shall be sent to Cede & Co.DTC. If less than all of the global securities are being redeemed, DTC'sDTC’s practice is to determine by lot the amount of the interest of each direct participant in such issue to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the global securities.securities unless authorized by a direct participant in accordance with DTC’s procedures. Under its usual procedures, DTC mails an omnibus proxy to us as soon as possible after the record date. The omnibus proxy assigns Cede & Co'sCo.’s consenting or
voting rights to those direct participants to whose accounts the global securities are credited on the record date, identified in a listing attached to the omnibus proxy.
Principal, interest and premium payments, if any, on the global securities will be made to DTC in immediately available funds. DTC'sCede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit direct participants'participants’ accounts upon DTC’s receipt of funds and corresponding detail information from us or the trustee for such securities, on the payable date on which interest is payable in accordance with thetheir respective holdings shown on DTC's records, unless DTC has reason to believe it will not receive payment on such date.DTC’s
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records. Payments by participants to beneficial owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street“street name,"” and will be the responsibility of such participant and not of DTC, the trustee for such securities, or us, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal, interest and premium, if any, on any of the aforementioned securities represented by g lobalglobal securities to DTCCede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the appropriate trustee and us. Disbursement of such payments to direct participants shall be the responsibility of DTC, and disbursement of such payments to the beneficial owners shall be the responsibility of the participants.
DTC may discontinue providing its services as depository with respect to the global securities at any time by giving reasonable notice to us or the applicable trustee. Under such circumstances, in the event that a successor depository is not obtained, securities certificates will be required to be printed and delivered to the holders of record. Additionally, we may decide to discontinue use of the system of book-entry transfers through DTC (or a successor securities depository) with respect to the global securities.
The information in this section coveringconcerning DTC and DTC'sDTC’s book-entry system has been obtained from sources, including DTC, whichthat we believe to be reliable.reliable, but we take no responsibility for the accuracy thereof.
The underwriters, dealers or agents of any of the securities may be direct participants of DTC.
None of the trustees, us or any agent for payment on or registration of transfer or exchange of any global security will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial interests in such global security or for maintaining, supervising or reviewing any records relating to such beneficial interests.
PLAN OF DISTRIBUTION
The Company
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We may sell the senior debt securities and the subordinated debt securities and the Trusts may sell the Preferred Securities in one or more of the following ways from time to time: (i) to underwriters for resale to the public or to institutional investors; (ii) directly to institutional investors; or (iii) through dealers or agents to the public or to institutional investors. The prospectus supplement with respect to each series of senior debt securities subordinated debt securities or Preferred Securities will set forth the specific terms of the offering of such senior debt securities, subordinated debt securities or Preferred Securities, including the name or names of any underwriters, dealers or agents, the purchase price of such senior debt securities, subordinated debt securities or Preferred Securities and the proceeds to the Company or the applicable Trustus from such sale, any underwriting discou ntsdiscounts or agency fees and other items constituting underwriters'underwriters’, dealers’ or agents'agents’ compensation, any initial public offering price, any discounts or concessions allowed or reallowed or paid to dealers and any securities exchange on which such senior debt securities subordinated debt securities or Preferred Securities may be listed.
If underwriters participate in the sale, such senior debt securities subordinated debt securities or Preferred Securities will be acquired by the underwriters for their own account and may be resold from time to time in one or more transactions, including negotiated transactions, at a fixed public offering price or at varying prices determined at the time of sale. The securities may be offered to the public either through underwriting syndicates represented by one or more managing underwriters or directly by one or more of those firms. The specific managing underwriter or underwriters, if any, will be named in the prospectus supplement relating to the particular securities together with the members of the underwriting syndicate, if any.
Unless otherwise set forth in the applicable prospectus supplement, the obligations of the underwriters to purchase any series of senior debt securities subordinated debt securities or Preferred Securities will be subject to certain conditions precedent and the underwriters will be obligated to purchase all of such series of senior debt securities subordinated debt securities or Preferred Securities,being offered, if any are purchased.
We may sell the securities directly or through agents we designate from time to time. The applicable prospectus supplement will set forth the name of any agent involved in the offer or sale of the securities in respect of which such prospectus supplement is delivered and any commissions payable by us to such agent. Unless otherwise indicated in the applicable prospectus supplement, any agent will be acting on a best efforts basis for the period of its appointment.
Underwriters and agents may be entitled under agreements entered into with the Company and/or the applicable Trustus to indemnification against certain civil liabilities, including liabilities under the Securities Act of 1933, Act.as amended. Underwriters and agents may engage in transactions with, or perform services for, the Companyus in the ordinary course of business.
Each series of senior debt securities subordinated debt securities or Preferred Securities will be a new issue of securities and will have no established trading market. Any underwriters to whom senior debt securities subordinated debt securities or Preferred Securities are sold for public offering and sale may make a market in such senior debt securities, subordinated debt securities or Preferred Securities, but such underwriters will not be obligated to do so and may discontinue any market making at any time without notice. The senior debt securities subordinated debt securities or Preferred Securities may or may not be listed on a national securities exchange.
LEGAL MATTERS
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Legal matters with respect to the debt securities offered herebyunder this prospectus will be passed upon for us by Heather A. Humphrey, General Counsel and Senior Vice President—Corporate Services and Hunton & Williams LLP. Pillsbury Winthrop Shaw Pittman LLP will pass on certain matters for the Company by Jeanie Sell Latz, Esq., Corporate Secretary.underwriters, dealers, purchasers, or agents. From time to time, Pillsbury Winthrop Shaw Pittman LLP acts as counsel for us and our affiliates for various matters. At August 6, 2003,March 5, 2018, Ms. LatzHumphrey owned beneficially 22,427a number of shares of common stock of Great Plains Energy'sEnergy Incorporated, including restricted stock, and performance shares which may be paid in shares of common stock including option grants and shares that may be acquired at a later date based on corporate and Ms. Latz's individual performance.
Certain matters of Delaware law relating to the validityGreat Plains Energy Incorporated’s performance, which represented less than 0.1% of the Preferred Securities will be passed upon on behalftotal outstanding common stock of the Company and the Trusts by Pepper Hamilton LLP, special Delaware counsel to the Company and the Trusts.Great Plains Energy Incorporated.
Certain legal matters will be passed upon for the underwriters by Dewey Ballantine LLP, New York, New York. Dewey Ballantine LLP will rely for purposes of their opinions upon the opinion of Ms. Latz as to matters of Missouri law. Dewey Ballantine LLP has performed, and may perform in the future, legal services for the Company and its affiliates.EXPERTS
EXPERTS
The consolidated financial statements, as of December 31, 2002, and for the year then ended and the related financial statement schedule, incorporated in this prospectus by reference tofrom the CurrentAnnual Report on Form 8-K/A10-K of Kansas City Power & Light Company (a wholly-owned subsidiaryfor the year ended December 31, 2017, and the effectiveness of Great Plains Energy Incorporated) dated August 14, 2003, (the "August 14, 2003 Form 8-K/A")Kansas City Power & Light Company and subsidiaries’ internal control over financial reporting have been audited by Deloitte & Touche LLP, an independent auditors,registered public accounting firm, as stated in their report,reports, which isare incorporated herein by reference (which report expresses an unqualified opinionreference. Such consolidated financial statements and includes an explanatory paragraph referring to a change in accounting principle), and hasfinancial statement schedule have been so incorporated in
reliance upon the reportreports of such firm given onupon their authority as experts in auditingaccounting and accounting.auditing.
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WHERE YOU CAN FIND MORE INFORMATION
We file annual, quarterly and current reports and other information with the SEC through the SEC’s Electronic Data Gathering, Analysis and Retrieval system and these filings are publicly available through the SEC’s website (http://www.sec.gov). You may read and copy such material at the SEC’s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. You may obtain information on the operation of the Public Reference Room by calling the SEC at1-800-SEC-0330.
The SEC allows us to “incorporate by reference” into this prospectus the information we file with it. This means that we can disclose important information to you by referring you to the documents containing the information. The information we incorporate by reference is considered to be included in and an important part of this prospectus and should be read with the same care. Information that we file later with the SEC that is incorporated by reference into this prospectus will automatically update and supersede this information. We are incorporating by reference into this prospectus the following documents that we have filed with the SEC and any subsequent filings we make with the SEC under Section 13(a), 13(c), 14 or 15(d) of the Exchange Act (excluding information deemed to be furnished and not filed with the SEC) until the offering of the securities described in this prospectus is completed:
We and our parent company, Great Plains Energy Incorporated, separately filed the combined Annual Report on Form10-K and the Current Reports on Form8-K listed above. However, the information contained in those combined reports relating solely to our parent and its subsidiaries (other than KCP&L and its consolidated financial statementssubsidiaries), including KCP&L Greater Missouri Operations Company, was separately filed by Great Plains Energy Incorporated on its behalf, and the information contained in those combined reports relating solely to KCP&L and its consolidated subsidiaries was separately filed by us. We do not intend to incorporate by reference into this prospectus the information relating to Great Plains Energy Incorporated and its subsidiaries (other than KCP&L and its consolidated subsidiaries or information provided separately by KCP&L or its consolidated subsidiaries), and we make no representation as to the information relating to Great Plains Energy Incorporated and its subsidiaries (other than KCP&L and its consolidated subsidiaries) contained in such combined reports. The only information you should rely upon in determining whether to invest in the securities offered hereby is the information of KCP&L and its consolidated subsidiaries contained in this prospectus and any prospectus supplement, the information separately provided by KCP&L and its consolidated subsidiaries in the documents incorporated by reference herein and therein and any free writing prospectus used in connection with the offering of securities described in this prospectus.
Our website is www.kcpl.com. Information contained on our website is not incorporated herein. We make available, free of charge, on or through the Investor Relations tab on our website, our Annual Reports on Form10-K, Quarterly Reports on Form10-Q, Current Reports on Form8-K, and amendments to those reports, filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. In addition, we make available on or through our website all other reports, notifications and certifications filed electronically with the SEC. You may obtain a free copy of our filings with the SEC by writing or telephoning us at the following address: Kansas City Power & Light Company, (a wholly-owned subsidiary of Great Plains Energy Incorporated) as of December 31, 2001 and for each of the two years in the period ended December 31, 2001 incorporated in this prospectus by reference to the August 14, 2003 Form 8-K/A, except as they relate to DTI Holdings, Inc. and Subsidiaries (Debtors-in-Possession), and the 2001 and 2000 financial statement schedule information incorporated in this prospectus by reference to the August 14, 2003 Form 8-K/A, have been audited by PricewaterhouseCoopers LLP, independent accountants, whose reports thereon (which report relating to the consolidated financial statements as of December 31, 2001 and for each of the two years in the period ended December 31, 2001 includes an explanatory paragraph relating to the Company's corporate reorganization in 2001) also appear in the August 14, 2003 Form 8-K/A. The report of PricewaterhouseCoopers LLP, independent accountants, on the consolidated financial statements as of December 31, 2001 and for each of the two years in the period ended December 31, 2001 referred to above, insofar as it relates to the amounts included for DTI Holdings, Inc. and Subsidiaries (Debtors-in-Possession), is based solely on the report of Deloitte & Touche LLP. The financial statements of DTI Holdings, Inc. and Subsidiaries (Debtors-in-Possession) (not presented separately or incorporated by reference herein) have been audited by Deloitte & Touche LLP, independent auditors, as stated in their report (which expresses an unqualified opinion and includes explanatory paragraphs referring to DTI Holdings, Inc. and Subsidiaries' filing for reorganization under Chapter 11 of the Federal Bankruptcy Code, substantial doubt about DTI Holdings, Inc. and Subsidiaries' ability to continue as a going concern and an impairment charge r ecorded by DTI Holdings, Inc. and Subsidiaries) which also appears in the August 14, 2003 Form 8-K/A. The consolidated financial statements of1200 Main Street, Kansas City, Power & Light Company referred to above have been incorporated in this prospectus in relianceMissouri 64105 (Telephone No.:816-556-2200), Attention: Corporate Secretary, or by contacting us on the reports of such firms, given on their authority as experts in auditing and accounting.our website.
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PART IIII.
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 14. Other Expenses of Issuance and Distribution.ITEM 14: OTHER EXPENSESOF ISSUANCESAND DISTRIBUTIONS
Expenses payable by Registrantthe registrant for the sale of the Securities,its securities, other than underwriting discount and commissions, are estimated as follows:
Securities and Exchange Commission | $ | 136,950 | ||
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Accounting Fees and Expenses | * | |||
Printing of Registration Statement, Prospectus, Bonds, etc. |
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* | Because an indeterminate amount of securities are covered by this registration statement and the number of offerings is indeterminate, the expenses in connection with the issuance and distribution of the securities are currently not determinable. |
ITEM 15: INDEMNIFICATIONOF OFFICERSAND DIRECTORS
Item 15. Indemnification of Directors and Officers.Kansas City Power & Light Company
RSMo.Missouri Revised Statutes (RSMo) Section 351.355 (2001)(2016) provides as follows:
1. A corporation created under the laws of this state may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit, or proceeding, whether civil, criminal, administrative or investigative, other than an action by or in the right of the corporation, by reason of the fact that he or she is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys'attorneys’ fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him or her in connection with such action, suit, or proceeding if he or she acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. The termination of any action, suit, or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had reasonable cause to believe that his or her conduct was unlawful.
2. The corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the actfact that he or she is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against expenses, including attorneys'attorneys’ fees, and amounts paid in settlement actually and reasonably incurred by him or her in connection with the defense or settlement of the action or suit if he or she acted in
good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the corporation; except that no indemnification shall be made in respect of any claim, issue or matter as to which such person shall have been adjudged to be liable for negligence or misconduct in the performance of his or her duty to the corporation unless and only to the extent that the court in which the action
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or suit was brought determines upon application that, despite the adjudication of liability and in view of all the circumstances of the case, the person is fairly and reasonably entitled to indemnity for such expenses which the court shall deem proper.
3. Except as otherwise provided in the Articlesarticles of Incorporationincorporation or the bylaws, to the extent that a director, officer, employee or agent of the corporation has been successful on the merits or otherwise in defense of any action, suit, or proceeding referred to in subsections 1 and 2 of this section, or in defense of any claim, issue or matter therein, he or she shall be indemnified against expenses, including attorneys'attorneys’ fees, actually and reasonably incurred by him or her in connection with the action, suit, or proceeding.
4. Any indemnification under subsections 1 and 2 of this section, unless ordered by a court, shall be made by the corporation only as authorized in the specific case upon a determination that indemnification of the director, officer, employee or agent is proper in the circumstances because he or she has met the applicable standard of conduct set forth in this section. The determination shall be made by the board of directors by a majority vote of a quorum consisting of directors who were not parties to the action, suit, or proceeding, or if such a quorum is not obtainable, or even if obtainable a quorum of disinterested directors so directs, by independent legal counsel in a written opinion, or by the shareholders.
5. Expenses incurred in defending aany civil, criminal, administrative, or criminalinvestigative action, suit or proceeding may be paid by the corporation in advance of the final disposition of the action, suit, or proceeding as authorized by the board of directors in the specific case upon receipt of an undertaking by or on behalf of the director, officer, employee or agent to repay such amount unless it shall ultimately be determined that he or she is entitled to be indemnified by the corporation as authorized in this section.
6. The indemnification provided by this section shall not be deemed exclusive of any other rights to which those seeking indemnification may be entitled under the Articlesarticles of Incorporationincorporation or bylaws or any agreement, vote of shareholders or disinterested directors or otherwise, both as to action in his or her official capacity and as to action in another capacity while holding such office, and shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person.
7. A corporation created under the laws of this state shall have the power to give any further indemnity, in addition to the indemnity authorized or contemplated under other subsections of this section, including subsection 6, to any person who is or was a director, officer, employee or agent, or to any person who is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, provided such further indemnity is either (i) authorized, directed, or provided for in the Articlesarticles of Incorporationincorporation of the corporation or any duly adopted amendment thereof or (ii) is authorized, directed, or provided for in any bylaw
or agreement of the corporation which has been adopted by a vote of the shareholders of the corporation, and provided further that no such indemnity shall indemnify any person from or on account of such person'sperson’s conduct which was finally adjudged to have been knowingly fraudulent, deliberately dishonest or willful misconduct. Nothing in this subsection shall be deemed to limit the power of the corporation under subsection 6 of this section to enact bylaws or to enter into agreements without shareholder adoption of the same.
8. The corporation may purchase and maintain insurance or another arrangement on behalf of any person who is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against any liability asserted against him or her and incurred by him or her in any such capacity, or arising out of his or her status as such, whether or not the corporation would have the power to indemnify him or her against such liability under the provisions of this section. Without limiting the power of the corporation to procure or maintain any kind of insurance or other arrangement the corporation may for the benefit of persons indemnified by the corporation create a trust fund, establish any form of self insurance, secure its indemnity
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obligation by grant of a security interest or other lien on the assets of the corporation, or establish a letter of credit, guaranty, or surety arrangement. The insurance or other arrangement may be procured, maintained, or established within the corporation or with any insurer or other person deemed appropriate by the board of directors regardless of whether all or part of the stock or other securities of the insurer or other person are owned in whole or in part by the corporation. In the absence of fraud the judgment of the board of directors as to the terms and conditions of the insurance or other arrangement and the identity of the insurer or other person participating in an arrangement shall be conclusive and the insurance or arrangement shall not be voidable and shall not subject the directors approving the insurance or arrangement to liability on any ground regardless of whether directors participating in the approval are beneficiaries of the insurance arrangement.
9. Any provision of this chapter to the contrary notwithstanding, the provisions of this section shall apply to all existing and new domestic corporations, including but not limited to banks, trust companies, insurance companies, building and loan associations, savings bank and safe deposit companies, mortgage loan companies, corporations formed for benevolent, religious, scientific or educational purposes and nonprofit corporations.
10. For the purpose of this section, references to "the corporation"“the corporation” include all constituent corporations absorbed in a consolidation or merger as well as the resulting or surviving corporation so that any person who is or was a director, officer, employee or agent of such a constituent corporation or is or was serving at the request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise shall stand in the same position under the provisions of this section with respect to the resulting or surviving corporation as he or she would if he or she had served the resulting or surviving corporation in the same capacity.
11. For purposes of this section, the term "other enterprise"“other enterprise” shall include employee benefit plans; the term "fines"“fines” shall include any excise taxes assessed on a person with respect to an employee benefit plan; and the term "serving“serving at the request of the corporation"corporation” shall include any service as a director, officer, employee or agent of the corporation which imposes duties on, or involves services by, such director, officer, employee, or agent with respect to an employee benefit plan, its participants, or beneficiaries; and a person who acted in good faith and in a manner he or she reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner "not“not opposed to the best interests of the corporation"corporation” as referred to in this section.
The officers and directors of theKansas City Power & Light Company have entered into indemnification agreements with the CompanyGreat Plains Energy Incorporated indemnifying such officers and directors to the extent allowed under the above RSMo.RSMo Section 351.355 (2001)(2016).
Article XIIIXI of the Amended and Restated Articles of Consolidation of theKansas City Power & Light Company provides as follows:
ARTICLE THIRTEENTH.ELEVENTH. (a) Right to Indemnification. Each person who was or is made a party or is threatened to be made a party to any action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that he or she is
or was a directorDirector or officer of the Company or is or was an employee of the Company acting within the scope and course of his or her employment or is or was serving at the request of the Company as a director,Director, officer, employee or agent of another corporation or of a partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans, shall be indemnified and held harmless by the Company to the fullest extent authorized by The Missouri General and Business Corporation Law, as the same exists or may hereafter be amended, against all expense, liability and loss (including attorneys'attorneys’ fees, judgments, fines, ERISA excise taxes or penalties and amounts paid to or to be paid in settlement) actually and reasonably incurred by such person in connection therewith. The Company may in its discretion by action of its Board of Directors provide indemnification to agents of the Company as provided for in this ARTICLE THIRTEENTH.ELEVENTH. Such indemnification shall c ontinuecontinue as to a person who has ceased to be a director,Director, officer, employee or agent and shall inure to the benefit of his or her heirs, executors and administrators.
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(b) Rights Not Exclusive. The indemnification and other rights provided by this ARTICLE THIRTEENTHELEVENTH shall not be deemed exclusive of any other rights to which a person may be entitled under any applicable law,By-laws of the Company, agreement, vote of shareholders or disinterested directorsDirectors or otherwise, both as to action in such person'sperson’s official capacity and as to action in any other capacity while holding the office of directorDirector or officer, and the Company is hereby expressly authorized by the shareholders of the Company to enter into agreements with its directorsDirectors and officers which provide greater indemnification rights than that generally provided by The Missouri General and Business Corporation Law; provided, however, that no such further indemnity shall indemnify any person from or on account of such director'sDirector’s or officer'sofficer’s conduct which was finally adjudged to have been knowingly fraudulent, deliberately dishonest or willful misconduct. Any such agreement providing for further indemnity entered into pursuant to this ARTICLE THIRTEENTHELEVENTH after the date of approval of this ARTICLE THIRTEENTHELEVENTH by the Company'sCompany’s shareholders need not be further approved by the shareholders of the Company in order to be fully effective and enforceable.
(c) Insurance. The Company may purchase and maintain insurance on behalf of any person who was or is a director,Director, officer, employee or agent of the Company, or was or is serving at the request of the Company as a director,Director, officer, employee or agent of another company,Company, partnership, joint venture, trust or other enterprise against any liability asserted against or incurred by such person in any such capacity, or arising out of his or her status as such, whether or not the Company would have the power to indemnify such person against such liability under the provisions of this ARTICLE THIRTEENTH.ELEVENTH.
(d) Amendment. This ARTICLE THIRTEENTHELEVENTH may be hereafter amended or repealed; however, no amendment or repeal shall reduce, terminate or otherwise adversely affect the right of a person entitled to obtain indemnification or an advance of expenses with respect to an action, suit or proceeding that pertains to or arises out of actions or omissions that occur prior to the later of (a) the effective date of such amendment or repeal; (b) the expiration date of such person'sperson’s then current term of office with, or service for, the Company (provided such person has a stated term of office or service and completes such term); or (c) the effective date such person resigns his or her office or terminates his or her service (provided such person has a stated term of office or service but resigns prior to the expiration of such term).
Insofar as indemnification for liabilities arising under the Securities Act of 1933, as amended (the "Act"“Act”) may be permitted to directors, officers and controlling persons of Registrant pursuant to the foregoing provisions, or otherwise, Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by Registrant of expenses incurred or paid by a director, officer or controlling person of Registrant in the successful defense of any action, suit or proceeding) is asserted against Registrant by such director, officer or controlling person in connection with the securities being registered, Registrant will, unless in the opinion of its counsel the ma ttermatter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
Item 16. List of Exhibits.ITEM 16: EXHIBITS
EXHIBIT INDEX
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| General Mortgage and Deed of Trust dated as of December 1, 1986, between Kansas City Power & Light Company and UMB Bank, |
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4.7 | * Thirteenth Supplemental Indenture dated as of March 1, 2009, to the General Mortgage and Deed of Trust dated as of December 1, 1986, between Kansas City Power & Light Company and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), Trustee (Exhibit 4.3 to Form8-K filed on March 24, 2009). | ||
4.8 | * Fourteenth Supplemental Indenture dated as of March 1, 2009, to the General Mortgage and Deed of Trust dated as of December 1, 1986, between Kansas City Power & Light Company and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), Trustee (Exhibit 4.4 to Form8-K filed on March 24, 2009). | ||
4.9 | * Fifteenth Supplemental Indenture dated as of June 30, 2011, to the General Mortgage and Deed of Trust dated as of December 1, 1986, between Kansas City Power & Light Company and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), Trustee (Exhibit 4.1 to Form10-Q for the quarter ended June 30, 2011). | ||
4.10 | + Form of supplemental indenture or other instrument establishing the issuance of one or more series of general mortgage bonds (including the form of general mortgage bond). | ||
4.11 | * Indenture dated as of May 1, 2007 between Kansas City Power & Light Company and The Bank of New York Trust Company, N.A., as Trustee (Exhibit | ||
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4.15 | * Supplemental Indenture No. 4 dated as of March | ||
4.16 | * Supplemental Indenture No. 5 dated as of August 18, 2015, between Kansas City Power & Light Company and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 toForm 8-K filed on August 18, 2015). |
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4.18 | * Supplemental Indenture No. 7 dated as of March 1, 2018, between Kansas City Power & Light Company and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 toForm 8-K filed on March 1, 2018). | ||
4.19 | + Form of supplemental indenture or other instrument establishing the issuance of one or more series of notes (including the form of note). | ||
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23.3 | Consent of | ||
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*Exhibits listed above which have heretofore been filed with the Commission and which were designated as noted above are hereby incorporated herein by reference and made a part hereof with the same effect as if filed herewith.
**To be subsequently filed or incorporated by reference.
Item 17. Undertakings.
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ITEM 17: UNDERTAKINGS
The undersigned registrant hereby undertakes:
(a) (1) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
(i) To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the SEC pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement; and
(iii) To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement;
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Provided, however, that paragraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) of this section do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the registrant pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of the registration statement.
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(ii) Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing the information required by Section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof; provided, however, that no statement made in a registration statement or prospectus that is a part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date.
(5) That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities:
The undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:
(i) Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;
(ii) Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;
(iii) The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and
(iv) Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.
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(b) The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant’s annual report pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan’s annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered herein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(c) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such issue.
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Signatures
Pursuant to the requirements of the Securities Act of 1933, as amended, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on FormS-3 and has duly caused this Registration Statement or amendment thereto to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Kansas City, State of Missouri, on the 26th day of August 2003.
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Pursuant to the requirements of the Securities Act of 1933, this Registration Statement or amendment has been signed below by the following persons in the capacities and on the dates indicated.
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Pursuant to the requirements of the Securities Act of 1933, KCPL Financing II certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-3 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized in the City of Kansas City, State of Missouri, on the 26ththis 12th day of August, 2003.March, 2018.
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KANSAS CITY POWER & LIGHT COMPANY | ||||
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By: | /S/ TERRY BASSHAM | |||
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Pursuant to the requirements of the Securities Act of 1933, KCPL Financing III certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-3 and has duly causedas amended, this registration statement to behas been signed on its behalf by the undersigned, thereunto duly authorized,following persons in the City of Kansas City, State of Missouri,capacities and on the 26th day of August, 2003.dates indicated.
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/s/ TERRY BASSHAM Terry Bassham | Chairman of the Board, President and Chief Executive Officer (Principal Executive Officer) | March 12, 2018 | ||
/s/ KEVIN E. BRYANT Kevin E. Bryant | Senior Vice President—Finance and Strategy and Chief Financial Officer (Principal Financial Officer) | March 12, 2018 | ||
/s/ STEVEN P. BUSSER Steven P. Busser | Vice President—Risk Management and Controller (Principal Accounting Officer) | March 12, 2018 | ||
* David L. Bodde | Director | March 12, 2018 | ||
* Randall C. Ferguson, Jr. | Director | March 12, 2018 | ||
* Gary D. Forsee | Director | March 12, 2018 | ||
* Scott D. Grimes | Director | March 12, 2018 | ||
* Thomas D. Hyde | Director | March 12, 2018 | ||
* Ann D. Murtlow | Director | March 12, 2018 | ||
* Sandra J. Price | Director | March 12, 2018 | ||
* John. J. Sherman | Director | March 12, 2018 |
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INDEX TO EXHIBITS
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Director | March 12, 2018 | |||
Attorney-in-fact |
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