The terms of the notesNotes and our other senior debt do not limit our ability or the ability of our subsidiaries to incur additional debt or issue preferred stock. Accordingly, we or our subsidiaries could enter into acquisitions, new financings, refinancings, recapitalizations, capital leases or other highly leveraged transactions that could significantly increase our or our subsidiaries’ total amount of outstanding debt. The interest payments needed to service this increased level of indebtednessdebt could adversely affect our consolidated financial results and our ability to service the notes.Notes. Many of our subsidiaries’ debt agreements contain covenants, or may in the future contain covenants, that restrict or limit, among other things, such subsidiaries’ ability to create liens, sell assets, make certain distributions, incur additional debt or miss contractual deadlines or requirements, and our ability to comply with these covenants may be affected by events beyond our control. Further, if an event of default accelerates a repayment obligation and such acceleration results in an event of default under some or all of our other indebtedness,debt or the indenture for the notes,Notes, we may not have sufficient funds to repay all of the accelerated indebtednessdebt and the notesNotes simultaneously, and the other risks described under “— Our“Our Corporate and Financial Structure Risks” may be magnified as well.
Because we are a holding company, the claims of our senior and, if any, our subordinated debt holders are structurally subordinated with respect to the assets and earnings of our subsidiaries. Therefore, your rights and the rights of our other creditors to participate in the assets of any subsidiary in the event of a liquidation or reorganization are subject to the prior claims of the subsidiary’s creditors and preferred shareholders.shareholders, if any. In addition, a significant amountpursuant to separate financing agreements, substantially all of PacifiCorp’s electric utility properties and MidAmerican Energy Company’s electric utility properties in the state of Iowa, the equity interest of MidAmerican Funding, LLC’s subsidiary, substantially all of Nevada Power Company’s and Sierra Pacific Power Company’s properties in Nevada, the long-term customer contracts of Kern River and substantially all of the stock or assets of our operating subsidiaries of MidAmerican Renewables, LLC that are direct or indirect owners of generation projects, is directly or indirectly pledged to secure their financings and, therefore, may be unavailable as potential sources of repayment of the notes.
Notes and our other senior debt.A downgrade in our credit ratings or the credit ratings of our subsidiaries could negatively affect our or our subsidiaries’ access to capital, increase the cost of borrowing or raise energy transaction credit support requirements.
Our senior unsecured long-term debt is rated investment grade, and the notes are rated investment grade, by various rating agencies. We cannot assure that our senior unsecured long-term debt rating will continue tonot be rated investment gradereduced in the future. Although none of our outstanding debt has rating-downgrade triggers that would accelerate a repayment obligation, a credit rating downgrade would increase our borrowing costs and commitment fees on theour revolving credit agreements and other financing arrangements, perhaps significantly.significantly, and would cause our obligations under commitments to provide equity contributions in support of the construction of solar projects by certain of our indirect subsidiaries to be supported by cash collateral or letters of credit. In addition, we would likely be required to pay a higher interest rate in future financings, and the potential pool of investors and funding sources would likely decrease. Further, access to the commercial paper market, theour principal source of short-term borrowings, could be significantly limited, resulting in higher interest costs.
Similarly, any downgrade or other event negatively affecting the credit ratings of our subsidiaries could make their costs of borrowing higher or access to funding sources more limited, which in turn could cause us to provide liquidity in the form of capital contributions or loans to such subsidiaries, thus reducing our and our subsidiaries’ liquidity and borrowing capacity.
Most of our subsidiaries’ large wholesale customers, suppliers and counterparties require our subsidiaries to have sufficient creditworthiness in order to enter into transactions, particularly in the wholesale energy markets. If our credit ratings or the credit ratings of our subsidiaries were to decline, especially below investment grade, operatingfinancing costs and borrowings would likely increase because certain counterparties may require a letter of credit, collateral in the form of cash-related instrumentscash, a letter of credit or some other form of security for existing transactions and as a condition to furtherentering into future transactions with us or our subsidiaries.
Such amounts may be material and may adversely affect our subsidiaries’ liquidity and cash flows.Our majority shareholder, Berkshire Hathaway, could exercise control over us in a manner that would benefit Berkshire Hathaway to the detriment of our creditors.
Berkshire Hathaway is our majority owner and has control over all decisions requiring shareholder approval, including the election of our directors.approval. In circumstances involving a conflict of interest between Berkshire Hathaway and our creditors, Berkshire Hathaway could exercise its control in a manner that would benefit Berkshire Hathaway to the detriment of our creditors.
Much of our growth has been achieved through acquisitions and additional acquisitions, including the NV Energy Transaction, may not be successful.
Much of our growth has been achieved through acquisitions. Future acquisitions may range from buying individual assets to the purchase of entire businesses. WeOn December 19, 2013, we completed the NV Energy Transaction, and we will continue to investigate and pursue opportunities
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for future acquisitions that we believe, but cannot assure you, may increase shareholder value and expand or complement existing businesses. We may participate in bidding or other negotiations at any time for such acquisition opportunities which may or may not be successful. Any transaction that does take place may involve consideration in the form of cash or debt or equity securities.
Completion of any acquisition entails numerous risks, including, among others, the:
failure to complete the transaction for various reasons, such as the inability to obtain the required regulatory approvals, materially adverse developments in the potential acquiree’s business or financial condition or successful intervening offers by third parties;
failure of the combined business to realize the expected benefits or to meet regulatory commitments; and
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| • | failure to complete the transaction for various reasons, such as the inability to obtain the required regulatory approvals, materially adverse developments in the potential acquiree’s business or financial condition or successful intervening offers by third parties; |
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| • | failure of the combined business to realize the expected benefits or to meet regulatory commitments; and |
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| • | need for substantial additional capital and financial investments. |
need for substantial additional capital and financial investments.
An acquisition could cause an interruption of, or a loss of momentum in, the activities of one or more of our businesses. The diversion of management’s attention and any delays or difficulties encountered in connection with the approval and integration of the acquired operations could adversely affect our combined businesses and financial results our ability to service the notes and could impair our ability to realize the anticipated benefits of the acquisition.
We cannot assure you that future acquisitions, if any, or any related integration efforts, including those related to the NV Energy Transaction, will be successful, or that our ability to repay our notesobligations, including the Notes, will not be adversely affected by any future acquisitions.
Our regulatedWe and our businesses are subject to extensive regulationsfederal, state, local and foreign legislation and regulation, including numerous environmental, health, safety, reliability and other laws and regulations that affect theirus and our businesses’ operations and costscosts. These laws and may affect our ability to service the notes. These regulations and laws are complex, dynamic and subject to new interpretations or change. In addition, new laws and regulations are continually being proposed and enacted that impose new or revised requirements or standards on us and our businesses.
OurWe and our businesses are subjectrequired to comply with numerous federal, state, local and foreign laws and regulations that have broad application to us and laws enforced by regulatory agencies. In the U.S., these regulatory agencies include, among others, the Federal Energy Regulatory Commission (or the FERC), the Environmental Protection Agency (or the EPA), the Nuclear Regulatory Commission (or the NRC) and the U.S. Department of Transportation (or the DOT). In addition, our domestic utility subsidiaries are subject to state utility regulation in each state in which they operate. In the U.K., these regulatory agencies include, among others, the Gas and Electricity Markets Authority (or GEMA), which discharges certain of its powers through its staff within the Office of Gas and Electricity Markets (or Ofgem).
Regulations affect almost every aspect of our business and limit our ability to independently make and implement management decisions regarding, among other items,
business combinations,acquiring businesses; constructing, acquiring or disposing of operating
assets,assets; operating and maintaining generating facilities and transmission and distribution system assets; complying with pipeline safety and integrity and environmental requirements; setting rates charged to
customers,customers; establishing capital structures and issuing debt or equity
securities, engagingsecurities; transacting between subsidiaries and affiliates; and paying dividends or similar distributions. These laws and regulations are implemented and enforced by federal, state and local regulatory agencies, such as, among others, the Occupational Safety and Health Administration, the Federal Energy Regulatory Commission (“FERC”), the Environmental Protection Agency, the Department of Transportation, the Nuclear Regulatory Commission (“NRC”) and various state regulatory commissions and agencies in
transactions betweenthe United States, and foreign regulatory agencies, such as the Gas and Electricity Markets Authority (“GEMA”), which discharges certain of its powers through its staff within Ofgem, in Great Britain.Compliance with applicable laws and regulations generally requires our domestic utilitiessubsidiaries to obtain and comply with a wide variety of licenses, permits, inspections, audits and other approvals. Further, compliance with laws and regulations can require significant capital and operating expenditures, including expenditures for new equipment, inspection, cleanup costs, removal and remediation costs, damages arising out of contaminated properties and refunds, fines, penalties and injunctive measures affecting operating assets for failure to comply with environmental regulations. Compliance activities pursuant to existing or new laws and regulations could be prohibitively expensive or otherwise uneconomical. As a result, we could be required to shut down some facilities or materially alter their operations. Further, our subsidiaries may not be able to obtain or maintain all required environmental or other regulatory approvals and affiliates,permits for their operating assets or development projects. Delays in, or active opposition by third parties to, obtaining any required environmental or regulatory authorizations or failure to comply with the terms and paying dividends. Regulations areconditions of the authorizations may increase costs or prevent or delay our subsidiaries from operating their facilities, developing or favorably locating new facilities or expanding existing facilities. If our subsidiaries fail to comply with any environmental or other regulatory requirements, they may be subject to ongoing policy initiativespenalties and we cannot predictfines or other sanctions, including changes to the future courseway our electricity generating facilities are operated that may adversely impact generation or how the Pipeline Companies are permitted to operate their systems that may adversely impact throughput. The costs of changes in regulatorycomplying with laws regulations and orders, or the ultimate effect that regulatory changes may have on us. However, such changesregulations could adversely affect our consolidated financial results and our ability to service the notes.Notes. Not being able to operate existing facilities or develop new generating facilities to meet customer electricity needs could require our subsidiaries to increase their purchases of electricity on the wholesale market, which could increase market and price risks and adversely affect our consolidated financial results and our ability to service the Notes.
Existing laws and regulations, while comprehensive, are subject to changes and revisions from ongoing policy initiatives by legislators and regulators and to interpretations that may ultimately be resolved by the courts. For example, such changes in laws and regulations could result in, but are not limited to, increased retail competition within our subsidiaries’ service territories,territories; new environmental requirements, including the implementation of renewable portfolio standards and greenhouse gas emission reduction goals,goals; the issuance of new or stricter air quality standards; the implementation of energy efficiency mandates,mandates; the acquisitionissuance of regulations governing the management and disposal of coal combustion byproducts; changes in forecasting requirements; changes to our subsidiaries’ service territories as a result of condemnation or takeover by a municipalitymunicipalities or other governmental entities, particularly where they lack the exclusive right to serve their customers; the inability of our subsidiaries’ distribution facilities (by a vote in favor of a Public Utility District under Oregon law or by condemnation, negotiation or legislation under state law),to recover their costs; new pipeline safety requirements; or a negative impact on our subsidiaries’ current
transportation and cost recovery arrangements, including income tax recovery.
Federalarrangements. In addition to changes in existing legislation and regulation, new laws and regulations are likely to be enacted from time to time that impose additional or new requirements or standards on our businesses.Implementing actions required under, and otherwise complying with, new federal and state energy regulationlaws and regulations and changes in existing ones are emerging as one ofamong the moremost challenging aspects of managing utility operations. NewWe cannot accurately predict the type or scope of future laws and expanded regulations imposedthat may be enacted, changes in existing ones or new interpretations by policy makers,agency orders or court systems, and
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industry restructuring have imposed changes on the industry. The following are examples of changes to our regulatory environment that have impacted us:
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| • | Energy Policy Act of 2005— In the U.S., the Energy Policy Act of 2005 (or the Energy Policy Act), impacts many segments of the energy industry. The U.S. Congress granted the FERC additional authority in the Energy Policy Act which expanded its role from a regulatory body to an enforcement agency. To implement the law, the FERC adopted new regulations and issued regulatory decisions addressing electric system reliability, electric transmission planning, operation, expansion and pricing, regulation of utility holding companies, market transparency for natural gas marketing and transportation, and enforcement authority, including the ability to assess civil penalties of up to $1 million per day per violation for non-compliance with regulations in either the electric or natural gas areas of the FERC’s jurisdiction. The FERC has essentially completed its implementation of the Energy Policy Act, and the emphasis of its recent decisions is on reporting and compliance. In that regard, the FERC has vigorously exercised its enforcement authority by imposing significant civil penalties for violations of its rules and regulations. In addition, as a result of past events affecting electric reliability, the Energy Policy Act requires federal agencies, working together with non-governmental organizations charged with electric reliability responsibilities, to adopt and implement measures designed to ensure the reliability of electric transmission and distribution systems. Since the adoption of the Energy Policy Act, the FERC has approved numerous electric reliability, cyber security and critical infrastructure protection standards developed by the North American Electric Reliability Corporation. A transmission owner’s reliability compliance issues with these and future standards could result in financial penalties. In FERC Order No. 693, the FERC implemented its authority to impose penalties of up to $1 million per day per violation for failure to comply with electric reliability standards. The adoption of these and future electric reliability standards has imposed more comprehensive and stringent requirements on us and our public utility subsidiaries, which has increased compliance costs. It is possible that the cost of complying with these and any additional standards adopted in the future could adversely affect our financial results and our ability to service the notes. |
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| • | FERC Orders— The FERC has issued a series of orders to encourage competition in natural gas markets, the expansion of existing pipelines and the construction of new pipelines and to foster greater competition in wholesale power markets by reducing barriers to entry in the provision of transmission service. As a result of FERC Order Nos. 636 and 637, in the natural gas markets, local distribution companies and end-use customers have additional choices in this more competitive environment and may be able to obtain service from more than one pipeline to fulfilldecisions nor can we determine their natural gas delivery requirements. Any new pipelines that are constructed could compete with our pipeline subsidiaries to service customer needs. Increased competition could reduce the volumes of gas transported by our pipeline subsidiaries or, in the absence of long-term fixed rate contracts, could force our pipeline subsidiaries to lower their rates to remain competitive. This could adversely affect our pipeline subsidiaries’ financial results. In FERC Order Nos. 888, 889, 890,890-A and 890-B, the FERC required electric utilities to adopt a pro forma Open Access Transmission Tariff (or OATT), by which transmission service would be provided on a just, reasonable and not unduly discriminatory or preferential basis. The rules adopted by these orders promote transparency and consistency in the administration of the OATT, increase the ability of customers to access new generating resources and promote efficient utilization of transmission by requiring an open, transparent and coordinated transmission planning process. Together with the increased reliability standards required of transmission providers, the costs of operating the transmission system and providing transmission service have increased and, to the extent such increased costs are not recovered in rates charged to customers, they could adversely affect our financial results and our ability to service the notes. |
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| • | Hydroelectric Relicensing— Currently, the Klamath hydroelectric system, whose operating license has expired and that is operating on annual licenses, is engaged in the FERC relicensing process. Through negotiations with relicensing stakeholders, disposition of the relicensing process and a path toward dam transfer and removal by a third party may occur as an alternative to relicensing. Hydroelectric |
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| | relicensing is a political and public regulatory process involving sensitive resource issues and uncertainties. We cannot predict with certainty the requirements (financial, operational or otherwise) that may be imposed by relicensing, the economic impact of those requirements, and whether new licenses will ultimately be issued or whether PacifiCorp will be willing to meet the relicensing requirements to continue operating its hydroelectric generating facilities. Loss of hydroelectric resources or additional commitments arising from relicensing could adversely affect our financial results and our ability to service the notes. |
In addition to the foregoing examples, the Obama Administration has stated that many aspects of energy and the environment, including renewable resources and climate change, will be a key component of its policy agenda. In this regard, in June 2009, the U.S. House of Representatives passed the American Clean Energy and Security Act of 2009 (or Waxman-Markey bill), introduced by Representatives Henry Waxman and Edward Markey. In addition to a federal renewable portfolio standard, which would require utilities to obtain a portion of their energy from certain qualifying renewable sources, and energy efficiency measures, the bill requires a reduction in greenhouse gas emissions beginning in 2012, with emission reduction targets of 3% below 2005 levels by 2012; 17% below 2005 levels by 2020; 42% below 2005 levels by 2030; and 83% below 2005 levels by 2050 under a “cap and trade” program. Similar bills seeking to create “cap and trade” systems for greenhouse gas emissions have also been introduced in the U.S. Senate. If the Waxman-Markey bill or some other federal comprehensive climate change bill were to pass both Houses of Congress and be signed into law by the President, the impact on us at this time; however, any one of these could adversely affect our consolidated financial performanceresults and our ability to service the notes could be material and would depend on a number of factors, including the required timing and level of greenhouse gas reductions, the price and availability of offsets and allowances used for compliance and our ability to receive revenue from customers for increased costs. The new law would likely result in increased operating costs and expenses, additionalNotes through higher capital expenditures and asset retirements and may negatively impact demand for electricity.operating costs or restrict or otherwise cause an adverse change in how we operate our businesses. To the extent that our regulated subsidiaries are not allowed by their regulators to recover or cannot otherwise recover the costs to comply with climate change requirements, thesenew laws and regulations or changes in existing ones, the costs of complying with such additional requirements could have a material adverse impacteffect on our consolidated financial results and our ability to service the notes.Notes. Additionally, even if such costs are recoverable in rates, if they are substantial and result in rates increasing to levels that substantially reduce customer demand, this could have a material adverse impacteffect on our consolidated financial results and our ability to service the notes.
Our subsidiaries are subject to numerous environmental, health, safety and other laws, regulations and other requirements that could adversely affect our financial results and our ability to service the notes.
Operational Standards
Our subsidiaries are subject to numerous environmental, health, safety and other laws, regulations and requirements affecting many aspects of their present and future operations, including, among others:
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| • | the EPA’s Clean Air Interstate Rule (or CAIR), which establishedcap-and-trade programs to reduce sulfur dioxide (or SO2) and nitrous oxide (or NOx) emissions starting in 2009 to address alleged contributions to downwind non-attainment with the revised National Ambient Air Quality Standards; |
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| • | the implementation of federal and state renewable portfolio standards; |
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| • | other laws or regulations that establish or could establish standards for greenhouse gas emissions, water quality, wastewater discharges, solid waste and hazardous waste; |
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| • | the DOT regulations, effective in 2004, that establish mandatory inspections for all natural gas transmission pipelines in high-consequence areas within 10 years. These regulations require pipeline operators to implement integrity management programs, including more frequent inspections, and other safety protections in areas where the consequences of potential pipeline accidents pose the greatest risk to life and property; and |
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| • | the provisions of the Mine Improvement and New Emergency Response Act of 2006 to improve underground coal mine safety and emergency preparedness. |
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These and related laws, regulations and orders generally require our subsidiaries to obtain and comply with a wide variety of environmental licenses, permits, inspections and other approvals.
Compliance with environmental, health, safety and other laws, regulations and other requirements can require significant capital and operating expenditures, including expenditures for new equipment, inspection, cleanup costs, damages arising out of contaminated properties, and fines, penalties and injunctive measures affecting operating assets for failure to comply with environmental regulations. Compliance activities pursuant to regulations could be prohibitively expensive. As a result, some facilities may be required to shut down or alter their operations. Further, our subsidiaries may not be able to obtain or maintain all required environmental regulatory approvals for their operating assets or development projects. Delays in or active opposition by third parties to obtaining any required environmental or regulatory permits, failure to comply with the terms and conditions of the permits or increased regulatory or environmental requirements may increase costs or prevent or delay our subsidiaries from operating their facilities, developing new facilities, expanding existing facilities or favorably locating new facilities. If our subsidiaries fail to comply with all applicable environmental requirements, they may be subject to penalties and fines or other sanctions. The costs of complying with current or new environmental, health, safety and other laws, regulations and other requirements could adversely affect our financial results and our ability to service the notes. Not being able to operate existing facilities or develop new electric generating facilities to meet customer energy needs could require our subsidiaries to increase their purchases of power from the wholesale markets which could increase market and price risks and adversely affect our financial results and our ability to service the notes.
Proposals for voluntary initiatives and mandatory controls are being discussed both in the U.S. and worldwide to reduce so-called “greenhouse gases” such as carbon dioxide (a by-product of burning fossil fuels), methane (the primary component of natural gas) and methane leaks from pipelines. These actions could result in increased costs to (i) operate and maintain our facilities, (ii) install new emission controls on our facilities and (iii) administer and manage compliance with any greenhouse gas emissions program, such as through the purchase of emission credits as may be required. These actions could also increase the demand for natural gas, causing increased natural gas prices, thereby adversely affecting our operations and our ability to service the notes. See “— Our regulated businesses are subject to extensive regulations and legislation that affect their operations and costs and may affect our ability to service the notes. These regulations and laws are complex, dynamic and subject to change,” above for more detail on U.S. efforts and a discussion of the Waxman-Markey bill.
SiteClean-up and Contamination
Environmental, health, safety and other laws, regulations and requirements also impose obligations to remediate contaminated properties or to pay for the cost of such remediation, often by parties that did not actually cause the contamination. Our subsidiaries are generally responsible foron-site liabilities, and in some cases off-site liabilities, associated with the environmental condition of their assets, including power generating facilities and electric and natural gas transmission and distribution assets that our subsidiaries have acquired or developed, regardless of when the liabilities arose and whether they are known or unknown. In connection with acquisitions, we or our subsidiaries may obtain or require indemnification against some environmental liabilities. If our subsidiaries incur a material liability, or the other party to a transaction fails to meet its indemnification obligations, our subsidiaries could suffer material losses. Our subsidiaries have established reserves to recognize their estimated obligations for known remediation liabilities, but such estimates may change materially over time. PacifiCorp is required to fund its portion of the costs of mine reclamation at its coal mining operations, which include principally site restoration. Also, MidAmerican Energy is required to fund its portion of the costs of decommissioning the Quad Cities nuclear generation station (or Quad Cities Station) when it is retired from service, which may include site remediation or decontamination. In addition, future events, such as changes in existing laws or policies or their enforcement, or the discovery of currently unknown contamination, may give rise to additional remediation liabilities that may be material.
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Recovery of costs by our regulated subsidiaries is subject to regulatory review and approval, and the inability to recover costs may adversely affect theirour consolidated financial results and our ability to service the notes.results.
Public Utility Subsidiaries — State Rate Proceedings
Two of our regulated subsidiaries, PacifiCorp, and MidAmerican Energy Company, Nevada Power Company and Sierra Pacific Power Company (collectively, the “Utilities”) establish rates for their regulated retail service through state regulatory proceedings. These proceedings typically involve multiple parties, including government bodies and officials, consumer advocacy groups and various consumers of energy, who have differing concerns but who generally have the common objective of limiting rate increases.increases while also requiring the Utilities to ensure system reliability. Decisions are subject to judicial appeal, potentially leading to additionalfurther uncertainty associated with the approval proceedings.
Each state sets retail rates based in part upon the state utilityregulatory commission’s acceptance of an allocated share of total utility costs. When states adopt different methods to calculate interjurisdictional cost allocations, some costs may not be incorporated into rates of any state. Rate makingRatemaking is also generally done on the basis of estimates of normalized costs, so if a given year’s realized costs are higher than normalized costs, rates willmay not be sufficient to cover those costs. In some cases, actual costs are lower than the normalized or estimated costs recovered through rates and from time-to-time may result in a state regulator requiring refunds to customers. Each state utilityregulatory commission generally sets rates based on a test year established in accordance with that commission’s policies. Certain states use a futureThe test year or allow for escalation of historical costs while other states usedata adopted by each state regulatory commission may create a historical test year. Uselag between the incurrence of a historical test year may causecost and its recovery in rates. Each state regulatory lag which results in our utilities incurring costs, including significant new investments, for which recovery through rates is delayed. State regulatory commissionscommission also decide the allowed rate of return we will be given an opportunity to earn on our equity investment. They also decidedecides the allowed levels of expense and investment that they deemit deems are just and reasonable in providing service. The state regulatory commissionsthe service and may disallow recovery in rates for any costs that it believes do not meet such standard.
In Iowa, MidAmerican Energy has agreed not Additionally, each state regulatory commission establishes the allowed rate of return the Utilities will be given an opportunity to seek a general increase in electric base rates to become effective prior to January 1, 2014 unless its Iowa jurisdictional electric returnearn on equity for any year falls below 10%. MidAmerican Energy expects to continue to make significant capital expenditures to maintain and improve the reliabilitytheir sources of its generation, transmission and distribution facilities to reduce emissions and to support new business and customer growth. As a result, MidAmerican Energy’s financial results may be adversely affected if it is not able to deliver electricity in a cost-efficient manner and is unable to offset inflation and the cost of infrastructure investments with costs savings or additional sales.
In certain states, PacifiCorp and MidAmerican Energy are not permitted to pass through energy cost increases in their electric rates without a general rate case. Any significant increase in fuel costs for electricity generation or purchased power costs could have a negative impact on PacifiCorp or MidAmerican Energy, despite efforts to minimize this impact through future general rate cases or the use of hedging instruments. Any of these consequences could adversely affect our financial results and our ability to service the notes.
capital. While rate regulation is premised on providing a fair opportunity to obtainearn a reasonable rate of return on invested capital, the state regulatory commissions do not guarantee that we will be able to realize a reasonable rate of return.
In certain states where energy cost adjustment mechanisms are in place, energy cost increases above the level assumed in establishing base rates may be subject to customer sharing, and in other states, the Utilities are currently not permitted to pass through such energy cost increases without a general rate case. Any significant increase in fuel costs for electricity generation or purchased electricity costs could have a negative impact on the Utilities, despite efforts to minimize this impact through the use of hedging contracts and sharing mechanisms or through future general rate cases. Any of these consequences could adversely affect our consolidated financial results and our ability to service the Notes.
Public Utility Subsidiaries — FERC Jurisdiction
The FERC establishesauthorizes cost-based tariffs under which both PacifiCorp and MidAmerican Energy providerates associated with transmission services provided by the Utilities’ transmission facilities. Under the Federal Power Act, the Utilities may voluntarily file, or may be obligated to wholesale markets and retail markets in states that allow retail competition.file, for changes, including general rate changes, to their system-wide transmission service rates. General rate changes implemented may be subject to refund. The FERC also has responsibility for approving both cost- and market-based rates under which both these companiesthe Utilities sell electricity at wholesale, and has licensing authority over most of PacifiCorp’s hydroelectric generating facilities.facilities and has broad jurisdiction over energy markets. The FERC may impose price limitations, bidding rules and other mechanisms to address some of the volatility of these markets or may (pursuant to pending or future proceedings)could revoke or restrict the ability of our public utility subsidiariesthe Utilities to sell electricity at market-based rates, which could adversely affect our consolidated financial results and our ability to service the notes.Notes. The FERC also maintains rules concerning standards of conduct, interlocking directorates and cross-subsidization. As a transmission owning member of the Midcontinent Independent System Operator, Inc. (“MISO”), MidAmerican Energy integrates into the Midwest Independent Transmission System Operator (or Midwest ISO), itCompany is also becomes subject to Midwest ISO-directedMISO-directed modifications of market rules, which are subject to FERC approval and operational procedures. The
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FERC may also impose substantial civil penalties for any non-compliance with the Federal Power Act and the FERC’s rules and orders.
Interstate Pipelines
The North American Electric Reliability Corporation (“NERC”) has standards in place to ensure the reliability of the electric transmission grid and generation system. The Utilities are subject to the NERC’s regulations and periodic audits to ensure compliance with those regulations. The NERC may carry out enforcement actions for non-compliance and administer significant financial penalties, subject to the FERC’s review.
The FERC also has jurisdiction over, among other things, the construction, abandonment, modification and operation of natural gas pipelines and related facilities used in the transportation, storage and sale of natural gas in interstate commerce, including the modification or abandonment of such facilities andall rates, charges and terms and conditions of service for the transportation of natural gas in interstate commerce.service. The FERC was granted expandedalso has market transparency authority under § 23 of the Natural Gas Act (or the NGA), a section added to the NGA by the Energy Policy Act of 2005. The FERCand has adopted additional reporting and internet posting requirements for natural gas pipelines and buyers and sellers of natural gas, including revisions to the FERC Form No. 2 and the adoption of FERC Form 552, an annual report of aggregate volumes of gas sales and purchases at wholesale. The FERC has closed an inquiry into the methodologygas.
Rates for rate recovery by natural gas pipelines of fuel and lost and unaccounted-for gas costs, and while not taking any action, the FERC expressed its support for an amendment to the NGA that would provide it with the authority to order refunds in connection with its review of interstate pipeline transportation rates.
Rates established for our U.S. interstate natural gas transmission and storage operations at Northern Natural Gasthe Pipeline Companies, which include reservation, commodity, surcharges, fuel and Kern Rivergas lost and unaccounted for charges, are subject toauthorized by the FERC. In accordance with the FERC’s rate-making principles, the Pipeline Companies’ current maximum tariff rates are designed to recover prudently incurred costs included in their pipeline system’s regulatory authority. Thecost of service that are associated with the construction, operation and maintenance of their pipeline system and to afford our Pipeline Companies an opportunity to earn a reasonable rate of return. Nevertheless, the rates the FERC authorizes these companiesour Pipeline Companies to charge their customers may not be sufficient to coverrecover the costs incurred to provide services in any given period. These pipelines,Moreover, from time to time, have in effect rate settlements approved by the FERC which prevent themmay change, alter or third parties from modifyingrefine its policies or methodologies for establishing pipeline rates except for allowed adjustments, for certain periods. These settlements do not precludeand terms and conditions of service. In addition, the FERC from initiating a separate proceedinghas the authority under Section 5 of the Natural Gas Act of 1938 (“NGA”) to modify theinvestigate whether a pipeline may be earning more than its allowed rate of return and, when appropriate, to institute proceedings against such pipeline to reduce rates. It is not possible to determine at this time whether any such actions would be instituted with respect to our Pipeline Companies’ rates or what the outcome would be, but such proceedings could result in significantly adverse rate adjustments.
decreases.Under FERC policy, interstate pipelines and their customers may execute contracts at negotiated rates, which may be above or below the maximum tariff rate for that service or the pipeline may agree to provide a discounted rate, which would be a rate between the maximum and minimum tariff rates. In a rate proceeding, rates in these contracts are generally not subject to adjustment. It is possible that the cost to perform services under negotiated or discounted rate contracts will exceed the cost used in the determination of the negotiated or discounted rates, which could result either in losses or lower rates of return for providing such services. FERC policy allows interstate natural gas pipelines to design new maximum tariff rates to recover such costs under certain circumstances in rate cases. However, with respect to discounts granted to affiliates, the interstate natural gas pipeline must demonstrate that the discounted rate was necessary in order to meet competition.
U.K. Electricity DistributionGEMA Jurisdiction
Northern ElectricPowergrid (Northeast) Limited and Yorkshire Electricity,Northern Powergrid (Yorkshire) plc (collectively, the “Northern Powergrid Distribution Companies”), as distribution network operators (or DNOs),Distribution Network Operators (“DNOs”) and holders of electricity distribution licenses, are subject to regulation by GEMA. Most of the revenue of a DNO is controlled by a distribution price control formula set out in the electricity distribution license. The price control formula does not directly constrain profits from year to year, but is a control on revenue that operates independently of most of the DNO’s actual costs. It has been the practice of Ofgem to review and reset the formula at five-year intervals, although the formula has been, and may be, reviewed at other times at the discretion of Ofgem. The current five-year cost control period became effective on April 1, 2005. A resetting of the formula requiresdoes not require the consent of the DNO; however,DNO, but if a licensee disagrees with a change to its license modifications may be unilaterally imposed by Ofgem without such consent following review byit can appeal the British competition commission.matter to the United Kingdom’s Competition Commission. GEMA is able to impose financial penalties on DNOs that contravene any of their electricity distribution license duties or certain of their duties under British law, or fail to achieve satisfactory performance of individual standards prescribed by GEMA. Any penalty imposed must be reasonable and may not exceed 10% of the DNO’s revenue. During the term of theany price control, additional costs have a direct impact on the financial results of the Northern ElectricPowergrid Distribution Companies.
Our subsidiaries are subject to operating uncertainties, including costs to maintain, repair and Yorkshire Electricityreplace utility and interstate natural gas pipeline systems and occurrences of catastrophic events, which could adversely affect our consolidated financial results and our ability to service the notes.
Notes.The operation of complex utility systems or interstate natural gas pipeline systems that are spread over large geographic areas involves many operating uncertainties and events beyond our control. These potential events, some of which could be catastrophic, include the breakdown, blowout or failure of electricity generating equipment and facilities, compressors, pipelines, transmission and distribution lines or other equipment or processes; unscheduled outages; strikes, lockouts or other labor-related actions; shortages of qualified labor; transmission and distribution system constraints; terrorist activities or military or other actions, including cyberattacks; fuel shortages or interruptions; unavailability of critical equipment, materials and supplies; low water flows and other weather-related impacts; performance below expected levels of output, capacity or efficiency; operator error; third party excavation errors; unexpected degradation of our pipeline systems; design, construction or manufacturing defects; and catastrophic events such as severe storms, floods, fires, earthquakes, explosions, landslides, wars, terrorism, embargoes and mining accidents. A catastrophic event might result in injury or loss of life, extensive property damage or environmental or natural resource damages. Any of these events or other operational events could significantly reduce or eliminate our subsidiaries’ revenue or significantly increase their expenses, thereby reducing the availability of distributions to us. For example, if our subsidiaries cannot operate their electricity or natural gas facilities at full capacity due to damage caused by a catastrophic event, their revenue could decrease and their expenses could increase due to the need to obtain energy from more expensive sources. Further, we and our subsidiaries self-insure many risks, and current and future insurance coverage may not be sufficient to replace lost revenue or cover repair and replacement costs. The scope, cost and availability of our and our subsidiaries’ insurance coverage may change, including the portion that is self-insured. Any reduction of our subsidiaries’ revenue or increase in their expenses resulting from the risks described above, could adversely affect our consolidated financial results and our ability to service the Notes.
Through our subsidiaries, and joint ventures, we are actively pursuing, developing and constructing new or expanded facilities, the completion and expected costcosts of which isare subject to significant risk, and our subsidiaries and joint ventures have significant funding needs related to their planned capital expenditures.
Through our subsidiaries, and joint ventures, we are continuing toactively pursue, develop and construct new or expanded facilities. We expect that these subsidiaries and joint ventures will incur substantial annual capital expenditures over the next several years. Expenditures couldSuch expenditures include and may include in the future, among others, amountsconstruction and other costs for new electricelectricity generating facilities, electric transmission or distribution projects, environmental control and compliance systems, natural gas storage facilities, new or expanded pipeline systems, as well as the continued maintenanceand upgrades of the installed asset base.
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Development and construction of major facilities are subject to substantial risks, including fluctuations in the price and availability of commodities, manufactured goods, equipment, labor,
siting and permitting andchanges in environmental and operational compliance matters, load forecasts and other items over a multi-year construction period, as well as counterparty risk and the economic viability of our suppliers.suppliers, customers and contractors. Certain of our construction projects are substantially dependent upon a single supplier or contractor and replacement of such supplier or contractor may be difficult and cannot be assured. These risks may result in the inability to timely complete a project or higher than expected costs to complete an asset and place it in service.service and, in extreme cases, the loss of the power purchase agreements or other long-term off-take contracts underlying such projects. Such costs may not be recoverable in the regulated rates or market or contract prices our subsidiaries are able to charge their customers. Delays in construction of renewable projects may result in delayed in-service dates which may result in the loss of income tax benefits. It is also possible that additional generation needs may be obtained through power purchase agreements, which could increase long-term purchase obligations and force reliance on the operating performance of a third party. The inability to successfully and timely complete a project, avoid unexpected costs or to recover any such costs could adversely affect our consolidated financial results and our ability to service the notes.
Notes.Furthermore, our subsidiaries and joint ventures depend upon both internal and external sources of liquidity to provide working capital and to fund capital requirements. In some cases, like our solar projects, we have committed to provide significant amounts of equity to our subsidiaries that are engaged in construction projects. If we do not provide needed funding to our subsidiaries and joint ventures and the subsidiaries and joint ventures are unable to obtain funding from external sources, they may need to postpone or cancel planned capital expenditures.
Failure to construct these planned projects could limit opportunities for revenue growth, increase operating costs orand adversely affect the reliability of electricelectricity service to our customers. For example, if PacifiCorp is not able to expand its existing portfolio of generating facilities, it may be required to enter into long-term wholesale electricity procurementpurchase contracts or procurepurchase wholesale electricity at more volatile and potentially higher prices in the spot markets to support growingserve retail loads.
A significant sustained decrease in demand for electricity or natural gas or electricity in the markets served by our subsidiaries’ pipeline and gas distribution systemssubsidiaries would significantly decrease our operating revenuesrevenue and therebycould adversely affect our business,consolidated financial results and our ability to service the notes.Notes.
A significant sustained decrease in demand for electricity or natural gas or electricity in the markets served by our subsidiaries would significantly reduce our operating revenue and could adversely affect our consolidated financial results and our ability to service the notes.Notes. Factors that could lead to a decrease in market demand include, among others:
a depression, recession or other adverse economic condition that results in a lower level of economic activity or reduced spending by consumers on electricity or natural gas;
an increase in the market price of electricity or natural gas or a decrease in the price of other competing forms of energy;
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| • | a depression, recession or other adverse economic condition, including the significant adverse changes in the economy and credit markets in 2008 and 2009 that may continue into future periods, that results in a lower level of economic activity or reduced spending by consumers on electricity or natural gas; |
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| • | an increase in the market price of natural gas or electricity or a decrease in the price of other competing forms of energy; |
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| • | efforts by customers, legislators and regulators to reduce their consumption of energy through various conservation and energy efficiency measures and programs; |
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| • | higher fuel taxes or other governmental or regulatory actions that increase, directly or indirectly, the cost of natural gas or the fuel source for electricity generation or that limit the use of natural gas or the generation of electricity from fossil fuels; and |
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| • | a shift to more energy-efficient or alternative fuel machinery or an improvement in fuel economy, whether as a result of technological advances by manufacturers, legislation mandating higher fuel economy or lower emissions, price differentials, incentives or otherwise. |
shifts in competitively priced natural gas supply sources away from the sources connected to our Pipeline Companies’ systems, including new shale gas sources;
efforts by customers, legislators and regulators to reduce the consumption of electricity generated or distributed by our subsidiaries through various conservation, energy efficiency and distributed generation measures and programs;
laws mandating or encouraging renewable energy sources, which may decrease the demand for natural gas;
higher fuel taxes or other governmental or regulatory actions that increase, directly or indirectly, the cost of natural gas or other fuel sources for electricity generation or that limit the use of natural gas or the generation of electricity from fossil fuels;
a shift to more energy-efficient or alternative fuel machinery or an improvement in fuel economy, whether as a result of technological advances by manufacturers, legislation mandating higher fuel economy or lower emissions, price differentials, incentives or otherwise;
a reduction in the state or federal subsidies or tax incentives that are provided to agricultural, industrial or other customers, or a significant sustained change in prices for commodities such as ethanol or corn for ethanol manufacturers; and
sustained mild weather that reduces heating or cooling needs.
Our operating results may fluctuate on a seasonal and quarterly basis and may be adversely affected by weather.
In most parts of the United States and other markets in which our subsidiaries operate, demand for electricity peaks during the hot summer months when irrigation and cooling needs are higher. Market prices for electricity also generally peak at that time. In other areas, demand for electricity peaks during the winter. In addition, demand for natural gas and other fuels generally peaks during the winter when heating needs are higher. This is especially true in Northern Natural Gas’ traditional end-use and distribution market area and MidAmerican Energy Company’s and Sierra Pacific Power Company’s retail natural gas businesses. Further, extreme weather conditions, such as heat waves, winter storms or floods could cause these seasonal fluctuations to be more pronounced. Periods of low rainfall or snowpack may impact electricity generation at PacifiCorp’s hydroelectric generating facilities, which may result in greater purchases of electricity from the wholesale market or from other sources at market prices. Additionally, PacifiCorp and MidAmerican Energy Company have added substantial wind-powered generating capacity, and our unregulated businesses are adding solar and wind-powered generating capacity, each of which is also a climate-dependent resource.
As a result, the overall financial results of our subsidiaries may fluctuate substantially on a seasonal and quarterly basis. We have historically provided less service, and consequently earned less income, when weather conditions are mild. Unusually mild weather in the future may adversely affect our consolidated financial results and our ability to service the Notes through lower revenue or margins. Conversely, unusually extreme weather conditions could increase our costs to provide services and could adversely affect our consolidated financial results and our ability to service the Notes. The extent of fluctuation in our consolidated financial results may change depending on a number of factors related to our subsidiaries’ regulatory environment and contractual agreements, including their ability to recover energy costs, the existence of revenue sharing provisions and terms of wholesale sale contracts.
Our subsidiaries are subject to market risk counterparty performance risk and other risks associated with the wholesale energy markets.markets, which could adversely affect our consolidated financial results and our ability to service the Notes.
In general, wholesaleour primary market risk is the risk of adverse fluctuations in the market price of wholesale electricity and fuel, including natural gas, coal and coal,fuel oil, which is compounded by volumetric changes affecting the availability of or demand for electricity and fuel. PacifiCorpThe market price of wholesale electricity may be influenced by several factors, such as the adequacy or type of generating capacity, scheduled and MidAmerican Energyunscheduled outages of generating facilities, prices and availability of fuel sources for generation, disruptions or constraints to transmission and distribution facilities, weather conditions, demand for electricity, economic growth and changes in technology. Volumetric changes are caused by fluctuations in generation or changes in customer needs that can be due to the weather, electricity and fuel prices, the economy, regulations or customer behavior. For example, the Utilities purchase electricity and fuel in the open market or pursuant to short-term or variable-priced contracts as part of their normal operating businesses. If market prices rise, especially in a time when larger than expected volumes must be purchased at market or short-term prices, PacifiCorp or MidAmerican Energythe Utilities may incur significantly greater expense than anticipated. Likewise, if electricity market prices decline in a period when PacifiCorp or
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MidAmerican Energy isthe Utilities are a net seller of electricity in the wholesale market, PacifiCorp or MidAmerican Energy willthe Utilities could earn less revenue.
Wholesale electricity prices Although the Utilities have energy cost adjustment mechanisms in
PacifiCorp’s service areas are influenced primarily by factors throughoutcertain states, the
Western U.S. relating to supply and demand. Those factors include the adequacy of generating capacity, scheduled and unscheduled outages of generating facilities, hydroelectric generation levels, prices and availability of fuel sources for generation, disruptions or constraints to transmission facilities, weather conditions, economic growth andrisks associated with changes in
technology. Volumetric changesmarket prices are
caused by unanticipated changes in generation availability or changes in customer loads duenot fully mitigated.Certain of our subsidiaries are subject to the weather, electricity prices, the economy, regulationsrisk that customers will not renew their contracts or customer behavior. Although PacifiCorp plans for resources to meet its current and expected retail and wholesale load obligations, PacifiCorp is a net buyer of electricity during peak periods and therefore, its energy costs may be adversely impacted by market risk. In addition, PacifiCorp may not be able to timely recover all, if any, of those increased costs unless the state regulators authorize such recovery.
MidAmerican Energy’s total accredited net generating capability exceeds its historical peak load. As a result, in comparison to PacifiCorp, which relies to a significant extent on purchased power to satisfy its peak load, MidAmerican Energy has less exposure to wholesale electricity market price fluctuations. The actual amount of generation capacity available at any time, however, may be less than the accredited capacity due to regulatory restrictions, transmission constraints, contractual commitments to third parties, fuel restrictions and generating units being temporarily out of service for inspection, maintenance, refueling, modifications or other reasons. In such circumstances, MidAmerican Energy may need to purchase energy in the wholesale markets and it may not recover in rates all of the additional costs that may be associated with such purchases. Most of MidAmerican Energy’s electric wholesale sales and purchases take place under market-based pricing allowed by the FERC and are therefore subject to market volatility, including price fluctuations.
PacifiCorp and MidAmerican Energy are also exposed to risks related to performance of contractual obligations by wholesale suppliers and customers. These risks have increased as a result of the current recessionary environment and many companies’ weakened financial condition. Each utility relies on suppliers to deliver commodities, primarily natural gas, coal and electricity, in accordance with short- and long-term contracts. Failure or delay by suppliers to provide these commodities pursuant to existing contracts could disrupt the delivery of electricity and require the utilities to incur additional expenses to meet customer needs. In addition, when these contracts terminate, the utilities mayour subsidiaries will be unable to purchase the commodities on terms equivalent to the termsobtain new customers for expanded capacity, each of current contracts.
PacifiCorp and MidAmerican Energy rely on wholesale customers to take delivery of the energy they have committed to purchase and to pay for the energy on a timely basis. Failure of customers to take delivery may require these subsidiaries to find other customers to take the energy at lower prices than the original customers committed to pay. At certain times of the year, prices paid by PacifiCorp and MidAmerican Energy for energy needed to satisfy their customers’ energy needs may exceed the amounts they receive through rates from these customers. Ifwhich could adversely affect our wholesale customers are unable to pay us for energy or fulfill their obligations as counterparties to hedging transactions, it may have a significant adverse impact on our cash flows. If the strategy used to minimize these risk exposures is ineffective or if PacifiCorp’s or MidAmerican Energy’s wholesale customers’ financial condition deteriorates as a result of recent economic conditions causing them to be unable to pay, significant losses could result and our ability to service the notes could be adversely affected.
The deterioration in the credit quality of certain wholesale suppliers and customers of PacifiCorp and MidAmerican Energy as a result of the adverse economic changes experienced in 2008 and 2009 could have an adverse impact on their ability to perform their contractual obligations, which in turn could have an adverse impact on ourconsolidated financial results and our ability to service the notes.
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Disruptions inSubstantially all of the financial markets could affect ourPipeline Companies’ revenues are generated under transportation and our subsidiaries’ ability to obtain debt financing,storage contracts that periodically must be renegotiated and draw uponextended or renew existing credit facilities, and have other adverse effects on us and our subsidiaries, including our ability to service the notes.
The U.S. and global credit markets have experienced historic dislocations and liquidity disruptions that have caused financing to be unavailable in many cases. These circumstances have materially impacted liquidity in the bank and debt capital markets, making financing terms less attractive for borrowers who are able to find financing, and in many cases have resulted in the unavailability of certain types of debt financing. In addition, many large financial institutions have experienced financial difficulties with some unable to survive as independent institutions and others filing for bankruptcy protection. These conditions may continue to impact the number of financial institutions able to provide credit. It is also possible that these financial institutions may not be able to provide previously arranged funding under revolving credit facilities or other arrangements like those that we and our subsidiaries have established as potential sources of liquidity for working capital and to fund capital requirements. For example, several of our revolving credit facility agreements have been reduced due to the Lehman Brothers Holdings Inc. bankruptcy filing in September 2008. Continued uncertainty in the credit markets may negatively impact our and our subsidiaries’ ability to access funds on favorable terms or at all. If we or our subsidiaries were to need to access funds but are unable to do so, that failure could have a material adverse effect on our financial condition and our ability to service the notes.
Our subsidiaries are exposed to credit risk of counterparties with whom they do business,replaced, and the failure of their significant customers to perform under or to renew their contracts, or failure to obtain new customers for expanded capacity, could adversely affect our financial results and our ability to service the notes.
Certain of our subsidiariesPipeline Companies are dependent upon a relatively small number offew customers for a significantsubstantial portion of their revenues. For example:
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| • | a significant portion of our pipeline subsidiaries’ capacity is contracted under long-term arrangements, and our pipeline subsidiaries are dependent upon relatively few customers for a substantial portion of their revenues; |
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| • | PacifiCorp and MidAmerican Energy rely on their wholesale customers to fulfill their commitments and pay for energy delivered to them on a timely basis; |
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| • | our U.K. utility electricity distribution businesses are dependent upon a relatively small number of retail suppliers; and |
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| • | generally, a single power purchaser takes energy from each of our non-utility generating facilities. |
Adverse economic conditions or other events affecting counterparties with whom our subsidiaries conduct business could impair the ability of these counterparties to pay for services or fulfill their contractual obligations, or cause them to delay or reduce such payments to our subsidiaries. Our subsidiaries depend on these counterparties to remit payments on a timely basis. Some suppliers and customers experienced deteriorating credit quality in 2008 and 2009, and we continue to monitor these parties to attempt to reduce the impact of any potential counterparty default. Any delay or default in payment or limitation on the subsidiaries to negotiate alternative arrangements could adversely affect our financial results and our ability to service the notes.
revenue. If our subsidiaries are unable to renew, remarket, or find replacements for their long-term arrangements,customer agreements on favorable terms, our sales volumes and revenuesoperating revenue would be exposed to reduction and increased volatility. For example, without the benefit of long-term transportation agreements, we cannot assure that our pipeline subsidiariesthe Pipeline Companies will be able to transport natural gas at efficient capacity levels. Similarly, without long-term power purchase agreements, we cannot assure that our regulated subsidiaries and our unregulated power generators will be able to operate profitably. Failure to maintain existing long-term agreements or secure new long-term agreements, or being required to discount rates significantly upon renewal or replacement, could adversely affect our consolidated financial results and our ability to service the notes.
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Notes. The replacement of any existing long-term agreements depends on market conditions and other factors that may be beyond our subsidiaries’ control.
InflationPotential terrorist activities and changes in commodity prices and fuel transportation costs maythe impact of military or other actions, including cyberattacks, could adversely affect our consolidated financial results and our ability to service the notes.Notes.
Inflation may affect our businesses by increasing both operating and capital costs. As a result of existing rate agreements and competitive price pressures, our subsidiaries may not be able to pass the costs of inflation on to their customers. If our subsidiaries are unable to manage cost increases or pass them on to their customers, our financial results and our ability to service the notes could be adversely affected.
Our subsidiaries have a multitude of long-term agreements of varying duration that are material to the operation of their businesses, such as power purchase, coal and gas supply and transportation contracts. The failure to maintain, renew or replace these agreements on similar terms and conditions could increase our exposure to changes in prices, thereby increasing the volatility of our financial results and adversely affecting our ability to service the notes. For example, each of our electric utilities currently has contracts of varying durations for the supply and transportation of coal for much of their existing generation capacity, although PacifiCorp obtains some of its coal supply from mines owned or leased by it. When these contracts expire or if they are not honored, we may not be able to purchase or transport coal on terms as favorable as the current contracts. We have similar exposures regarding the market price of natural gas. Changes in the cost of coal or natural gas supply and transportation and changes in the relationship between such costs and the market price of power will affect our financial results and our ability to service the notes. Since the sales price we receive for power may not change at the same rate as our coal or natural gas supply and transportation costs, we may be unable to pass on the changes in costs to our customers. In addition, the overall prices we charge our retail customers in some jurisdictions are capped and our fuel recovery mechanisms in other states are frozen for various periods of time or have been eliminated.
Our public utility subsidiaries’ financial results may be adversely affected if they are unable to obtain adequate, reliable and affordable access to transmission service.
Our public utility subsidiaries depend on transmission facilities owned and operated by other utilities to transport electricity and natural gas to both wholesale and retail markets, as well as natural gas purchased to supply some of our subsidiaries’ electric generating facilities. If adequate transmission is unavailable, our subsidiaries may be unable to purchase and sell and deliver products. Such unavailability could also hinder our subsidiaries from providing adequate or economical electricity or natural gas to their wholesale and retail electric and gas customers and could adversely affect their financial results and our ability to service the notes.
The different regional power markets have varying and dynamic regulatory structures, which could affect our businesses’ growth and performance. In addition, the independent system operators who oversee the transmission systems in regional power markets have imposed in the past, and may impose in the future, price limitations and other mechanisms to counter volatility in the power markets. These types of price limitations and other mechanisms may adversely impact the financial results of our utilities and our ability to service the notes.
Our operating results may fluctuate on a seasonal and quarterly basis and may be adversely affected by weather.
The sale of electric power and natural gas are generally seasonal businesses. In most parts of the U.S. and other markets in which our subsidiaries operate, demand for electricity peaks during the hot summer months when cooling needs are higher. Market prices for electric supply also generally peak at that time. In other areas, demand for electricity peaks during the winter. In addition, demand for gas and other fuels generally peaks during the winter when heating needs are higher. This is especially true in Northern Natural Gas’ market area and MidAmerican Energy’s retail gas business. Further, extreme weather conditions such as heat waves or winter storms could cause these seasonal fluctuations to be more pronounced. Periods of low rainfall or snow-pack may also impact electric generation at PacifiCorp’s hydroelectric systems.
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As a result, the overall financial results of our subsidiaries may fluctuate substantially on a seasonal and quarterly basis. We have historically sold less power, and consequently earned less income, when weather conditions are mild. Unusually mild weather in the future may adversely affect our financial results and our ability to service the notes through lower revenues or margins. Conversely, unusually extreme weather conditions could increase our costs to provide power and could adversely affect our financial results and our ability to service the notes. Furthermore, during or following periods of low rainfall or snowpack, PacifiCorp may obtain substantially less electricity from hydroelectric generating facilities and must purchase greater amounts of electricity from the wholesale market or from other sources at market prices. Additionally, both PacifiCorp and MidAmerican Energy have added substantial wind-powered generation capacity, which is a climate dependent resource resulting in a variable production output that may at times affect the amount of energy available for sale or purchase. The extent of fluctuation in financial results may change depending on a number of factors related to our subsidiaries’ regulatory environment and contractual agreements, including their ability to recover power costs, the existence of revenue sharing provisions and terms of the power sale contracts.
Our subsidiaries are subject to operating uncertainties that could adversely affect our financial results and our ability to service the notes.
The operation of complex electric and gas utility (including generation, transmission and distribution) systems, pipelines or power generating facilities that are spread over large geographic areas involves many operating uncertainties and events beyond our control. These potential events include the breakdown or failure of power generation equipment, compressors, pipelines, transmission and distribution lines or other equipment or processes, unscheduled generating facility outages, strikes, lockouts or other labor-related actions, shortage of qualified labor, transmission and distribution system constraints or outages, fuel shortages or interruptions, unavailability of critical equipment, materials and supplies, low water flows and other weather-related impacts, performance below expected levels of output, capacity or efficiency, operator error and catastrophic events such as severe storms, fires, earthquakes, explosions or mining accidents. A casualty occurrence might result in injury or loss of life, extensive property damage or environmental damage. Any of these risks or other operational risks could significantly reduce or eliminate our subsidiaries’ revenues or significantly increase their expenses, thereby reducing the availability of distributions to us. For example, if our subsidiaries cannot operate their electric or natural gas facilities at full capacity due to damage caused by a catastrophic event, their revenues could decrease due to decreased sales and their expenses could increase due to the need to obtain energy from more expensive sources. Further, we self-insure many risks, and current and future insurance coverage may not be sufficient to replace lost revenue or cover repair and replacement costs. Any reduction of revenues for such reason, or any other reduction of our subsidiaries’ revenues or increase in their expenses resulting from the risks described above could adversely affect our financial results and our ability to service the notes.
Potential terrorist activities or military or other actions could adversely affect our financial results and our ability to service the notes.
The continuedongoing threat of terrorism since September 11, 2001 and the impact of military andor other actions by the U.S. and its allies has led tonations or politically, ethnically or religiously motivated organizations regionally or globally may create increased political, economic, social and financial market instability, and has subjectedwhich could subject our subsidiaries’ operations to increased risks. The U.S.Additionally, the United States government has issued warnings that energy assets, specifically pipeline, nuclear generation and other electric utility infrastructure are potential targets for terrorist organizations. Cyberattacks could adversely affect our subsidiaries’ ability to operate their facilities, information technology and business systems, or compromise confidential customer and employee information. Political, economic, social or financial market instability or damage to or interference with the operating assets of our subsidiaries, customers or suppliers may result in business interruptions, lost revenue, higher commodity prices, disruption in fuel supplies, lower energy consumption and unstable markets, particularly with respect to electricity and natural gas, and electric energy, increased security, repair or other costs, thatany of which may materially adversely affect us and our subsidiaries in ways that cannot be predicted at this time. Any of these risks could materially affect our consolidated financial results and decreaseour ability to service the amount of funds we have available to make payments on the notes.Notes. Furthermore, instability in the financial markets as a result of terrorism, sustained or significant cyberattacks, or war could also materially adversely affect our ability and theour subsidiaries’ ability of our subsidiaries to raise capital.
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The insurance industry changed in response to these events. As a result, insurance covering risks we and our subsidiaries typically insure against may decrease in scope and availability, and we may elect to self-insure against many such risks. In addition, the available insurance may have higher deductibles, higher premiums and more restrictive policy terms.
MidAmerican Energy Company is subject to the unique risks associated with nuclear generation.
The ownership and operation of nuclear power plants, such as MidAmerican Energy’sEnergy Company’s 25% ownership interest in the Quad Cities Station, involves certain risks. These risks include, among other items, mechanical or structural problems, inadequacy or lapses in maintenance protocols, the impairment of reactor operation and safety systems due to human error, the costs of storage, handling and disposal of nuclear materials, limitations on the amounts and types of insurance coverage commercially available, and uncertainties with respect to the technological and financial aspects of decommissioning nuclear facilities at the end of their useful lives. The prolonged unavailability of the Quad Cities Station could have a materially adversely affectadverse effect on MidAmerican Energy’sEnergy Company’s financial results and our ability to service the notes,Notes, particularly when the cost to produce power at the plant is significantly less than market wholesale power prices. The following are among the more significant of these risks:
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| | • | | Operational Risk—Operations at any nuclear power plant could degrade to the point where the plant would have to be shut down. If such degradations were to occur, the process of identifying and correcting the causes of the operational downgrade to return the plant to operation could require significant time and expense, resulting in both lost revenue and increased fuel and |
| purchased power expenseelectricity costs to meet supply commitments. Rather than incurring substantial costs to restart the plant, the plant could be shut down. Furthermore, a shut-down or failure at any other nuclear plant could cause regulators to require a shut-down or reduced availability at the Quad Cities Station. |
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In addition, issues relating to the disposal of nuclear waste material, including the availability, unavailability and expense of a permanent repository for spent nuclear fuel, could adversely impact operations as well as the cost and ability to decommission nuclear plants, including Quad Cities Station, in the future.
| | • | | Regulatory Risk—The NRC may modify, suspend or revoke licenses and impose civil penalties for failure to comply with theapplicable Atomic Energy Act of 1954, as amended, applicable regulations or the terms of the licenses of nuclear facilities. Unless extended, the NRC operating licenses for the Quad Cities Station will expire in 2032. Changes in regulations by the NRC could require a substantial increase in capital expenditures or result in increased operating or decommissioning costs. |
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| | • | | Nuclear Accident Riskand Catastrophic Risks—Accidents and other unforeseen problemscatastrophic events have occurred at nuclear facilities other than the Quad Cities Station, both in the U.S.United States and elsewhere.elsewhere, such as at the Fukushima Daiichi nuclear plant in Japan as a result of the earthquake and tsunami in March 2011. The consequences of an accident or catastrophic event can be severe and include loss of life and property damage. Any resulting liability from a nuclear accident or catastrophic event could exceed MidAmerican Energy’sEnergy Company’s resources, including insurance coverage. |
Our subsidiaries are subject to counterparty credit risk, which could adversely affect our consolidated financial results and our ability to service the Notes.
Our subsidiaries are subject to counterparty credit risk related to contractual payment obligations with wholesale suppliers, customers and, as is the case for MidAmerican Energy Company, other participants in organized Regional Transmission Organization (“RTO”) markets. Adverse economic conditions or other events affecting counterparties with whom our subsidiaries conduct business could impair the ability of these counterparties to meet their payment obligations. Our subsidiaries depend on these counterparties to remit payments on a timely basis. We continue to monitor the creditworthiness of our wholesale suppliers and customers in an attempt to reduce the impact of any potential counterparty default. If strategies used to minimize these risk exposures are ineffective or if any of our subsidiaries’ wholesale suppliers’ or customers’ financial condition deteriorates or they otherwise become unable to pay, it could have a significant adverse impact on our consolidated financial results and our ability to service the Notes.
Transactional activities of MidAmerican Energy Company and other participants in organized RTO markets are governed by credit policies specified in each respective RTO’s governing tariff and related business practices. Credit policies of RTOs, which have been developed through extensive stakeholder participation, generally seek to minimize potential loss in the event of a market participant default without unnecessarily inhibiting access to the marketplace. In the event of a default by an RTO market participant on its market-related obligations, losses are typically allocated among all other market participants in proportion to each participant’s share of overall market activity during the period of time the loss was incurred. Because of this, MidAmerican Energy Company has potential indirect exposure with respect to the creditworthiness of every other market participant in the RTO markets where it actively participates, including the MISO, the PJM Interconnection, L.L.C., and the Electric Reliability Council of Texas.
Our subsidiaries are subject to counterparty performance risk, which could adversely affect our consolidated financial results.
Our subsidiaries are subject to counterparty performance risk related to performance of contractual obligations by wholesale suppliers, customers, contractors and, as is the case for MidAmerican Energy Company, other participants in organized RTO markets. Each subsidiary relies on wholesale suppliers to deliver
commodities, primarily natural gas, coal and electricity, in accordance with short- and long-term contracts. Failure or delay by suppliers to provide these commodities pursuant to existing contracts could disrupt the delivery of electricity and require the Utilities to incur additional expenses to meet customer needs. In addition, when these contracts terminate, the Utilities may be unable to purchase the commodities on terms equivalent to the terms of current contracts.
Our subsidiaries rely on wholesale customers to take delivery of the energy they have committed to purchase. Failure of customers to take delivery may require these subsidiaries to find other customers to take the energy at lower prices than the original customers committed to pay. If our subsidiaries’ wholesale customers are unable to fulfill their obligations, there may be a significant adverse impact on our consolidated financial results and our ability to service the Notes.
Generally, a single customer purchases the energy from our independent power projects in the United States and the Philippines pursuant to long-term power purchase agreements. Without performance by the counterparties under these agreements, we cannot assure that our unregulated power generators will be able to operate profitably.
Inflation and changes in commodity prices and fuel transportation costs may adversely affect our consolidated financial results and our ability to service the Notes.
Inflation and increases in commodity prices and fuel transportation costs may affect our businesses by increasing both operating and capital costs. As a result of existing rate agreements, contractual arrangements or competitive price pressures, our subsidiaries may not be able to pass the costs of inflation on to their customers. If our subsidiaries are unable to manage cost increases or pass them on to their customers, our consolidated financial results and our ability to service the Notes could be adversely affected.
Disruptions in the financial markets could affect our and our subsidiaries’ ability to obtain debt financing or to draw upon or renew existing credit facilities and have other adverse effects on us and our subsidiaries, including our ability to service the Notes.
Disruptions in the financial markets could affect our and our subsidiaries’ ability to obtain debt financing or to draw upon or renew existing credit facilities and have other adverse effects on us and our subsidiaries, including our ability to service the Notes. Significant dislocations and liquidity disruptions in the United States, Great Britain and global credit markets, such as those that occurred in 2008 and 2009, may materially impact liquidity in the bank and debt capital markets, making financing terms less attractive for borrowers that are able to find financing and, in other cases, may cause certain types of debt financing, or any financing, to be unavailable. Additionally, economic uncertainty in the United States or globally may adversely affect the United States’ credit markets and could negatively impact our and our subsidiaries’ ability to access funds on favorable terms or at all. If we or our subsidiaries are unable to access the bank and debt markets to meet liquidity and capital expenditure needs, it may adversely affect the timing and amount of our capital expenditures, acquisition financing and our consolidated financial results and our ability to service the Notes.
Poor performance of plan and fund investments and other factors impacting the pension and other postretirement benefit plans and nuclear decommissioning and mine reclamation trust funds could unfavorably impact our cash flows and liquidity.
Costs of providing our defined benefit pension and other postretirement benefit plans depend upon a number of factors, including the rates of return on plan assets, the level and nature of benefits provided, discount rates, the interest rates used to measure required minimum funding levels, changes in benefit design, changes in laws and government regulation and our required or voluntary contributions made to the plans. Certain of our pension and other postretirement benefit plans are in underfunded positions. Even if sustained growth in the investments over future periods increases the value of these plans’ assets, we will likely be required to make significant cash
contributions to fund these plans in the future. Additionally, our plans have investments in domestic and foreign equity and debt securities and other investments that are subject to loss. Losses from investments could add to the volatility, size and timing of future contributions. Furthermore, the Pension Protection Act of 2006, as amended, may result in more volatility in the amount and timing of future contributions.
In addition, MidAmerican Energy Company is required to fund over time the projected costs of decommissioning Quad Cities Station, a nuclear power plant. Funds MidAmerican Energy Company has invested in a nuclear decommissioning trust are invested in debt and equity securities and poor performance of these investments will reduce the amount of funds available for their intended purpose, which could require MidAmerican Energy Company to make additional cash contributions. Such cash funding obligations, which are also impacted by the other factors described above, could have a material impact on MidAmerican Energy Company’s liquidity by reducing its available cash thereby adversely affecting our ability to service the Notes.
We own investments and projects located in foreign countries that are exposed to increased economic, regulatory and political risks.
We own and may acquire significant energy-related investments and projects outside of the U.S.United States. In addition to the currentany disruption in the global financial markets, the economic, regulatory and political conditions in some of the countries where we have operations or are pursuing investment opportunities may present increased risks related to, among others, inflation, foreign currency exchange rate fluctuations, currency repatriation restrictions, nationalization, renegotiation, privatization, availability of financing on suitable terms, customer creditworthiness, construction delays, business interruption, political instability, civil unrest, guerilla activity, terrorism, expropriation, trade sanctions, contract nullification and changes in law, regulations or tax policy. We may not be capable of either fully insuring against or effectively hedging these risks.
We are exposed to risks related to fluctuations in foreign currency exchange rates.
Our business operations and investments outside the U.S.United States increase our risk related to fluctuations in foreign currency exchange rates, primarily the British pound. Our principal reporting currency is the U.S.United States dollar, and the value of the assets and liabilities, earnings, cash flows and potential distributions from our foreign operations changes with the fluctuations of the currency in which they transact. We may selectively reduce some foreign currency exchange rate risk by, among other things, requiring contracted amounts be settled in, U.S.or indexed to, United States dollars indexing contracts to the U.S. dollaror a currency freely convertible into United States dollars, or hedging through foreign currency derivatives. These efforts, however, may not
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be effective and could negatively affect our consolidated financial results and our ability to service the notes. We attempt, in many circumstances, to structure foreign transactions to provide for payments to be made in, or indexed to, U.S. dollars or a currency freely convertible into U.S. dollars.results. We may not be able to obtain sufficient dollars or other hard currency or available dollars may not be allocated to pay such obligations, which could adversely affect our consolidated financial results and our ability to service the notes.
results.Cyclical fluctuations in the residential real estate brokerage and mortgage businesses could adversely affect HomeServices.
The residential real estate brokerage and mortgage industries tend to experience cycles of greater and lesser activity and profitability and are typically affected by changes in economic conditions, including the current downturn in the U.S. housing market, which are beyond HomeServices’ control. Any of the following, among others, are examples of items that could have a material adverse effect on HomeServices’ businesses by causing a general decline in the number of home sales, sale prices or the number of home financings which, in turn, would adversely affect its financial results and our ability to service the notes:
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| • | rising interest rates or unemployment rates, including the recent significant rise in unemployment in the U.S. which may continue into future periods; |
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| • | periods of economic slowdown or recession in the markets served, including the significant adverse changes in the economy in 2008 and 2009 that may continue into future periods; |
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| • | decreasing home affordability; |
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| • | lack of available mortgage credit for potential homebuyers, including the reduced availability of credit generally in 2008 and 2009 which may continue into future periods; |
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| • | declining demand for residential real estate as an investment; |
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| • | nontraditional sources of new competition; and |
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| • | changes in applicable tax law. |
Poor performance of plan and fund investments and other factors impacting pensions, postretirement benefits plans, nuclear decommissioning and mine reclamation costs could unfavorably impact our cash flows and liquidity.
Costs of providing our non-contributory defined benefit pension and postretirement benefits plans depend upon a number of factors, including the rates of return on plan assets, the level and nature of benefits provided, discount rates, the interest rates used to measure required minimum funding levels, or unemployment rates, including a sustained high unemployment rate in the United States;
periods of economic slowdown or recession in the markets served;
decreasing home affordability;
lack of available mortgage credit for potential homebuyers, such as the reduced availability of credit, which may continue into future periods;
declining demand for residential real estate as an investment;
nontraditional sources of new competition; and
changes in benefit design, changes in laws and government regulation and our required or voluntary contributions made to the plans. Our pension and postretirement benefits plans are in underfunded positions. The recent declines in the global financial markets have exacerbated these plans’ underfunded positions. Even with sustained growth in the investments over future periods to increase the value of these plans’ assets, we will likely be required to make significant cash contributions to fund these plans. Furthermore, the recently enacted Pension Protection Act of 2006 may result in more volatility in the amount and timing of future contributions. Similarly, funds dedicated to nuclear decommissioning and mine reclamation are also invested in equity and fixed income securities and poor performance of these investments will reduce the amount of funds available for their intended purpose which would require us to make additional cash contributions. Such cash funding obligations, which are also impacted by the other factors described above, could have a material impact on our liquidity by reducing our cash flows, and thereby adversely affecting our ability to service the notes.applicable tax law.
We and our subsidiaries are involved in numerousa variety of legal proceedings, the outcomes of which are uncertain and could adversely affect our consolidated financial results and our ability to service the notes.results.
We and our subsidiaries are, and in the future may become, a party to numerousa variety of legal proceedings. Litigation is subject to many uncertainties, and we cannot predict the outcome of individual matters.matters with certainty. It is possible that the final resolution of some of the matters in which we and our subsidiaries are involved could result in additional material payments substantially in excess of established reserves over an extended period of time andor in amountsterms that could have a material
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adverse effect on our financial results and our ability to service the notes. Similarly, it is also possible that the terms of resolution could require that weus or our subsidiaries to change business practices and procedures which could also have a material adverse effect on our financial results and our ability to service the notes.or divest ownership of assets. Further, litigation could result in the imposition of financial penalties or injunctions and adverse regulatory consequences, any of which could limit our ability to take certain desired actions or the denial of needed permits, licenses or regulatory authority to conduct our business, including the siting or permitting of facilities. Any of these outcomes could adversely affecthave a material adverse effect on our consolidated financial results and our ability to service the notes.
results.Potential changes in accounting standards might cause us to revisemay impact our consolidated financial results and disclosuredisclosures in the future, which may change the way analysts measure our business or financial performance.
Accounting irregularities discovered in the past few years in various industries have caused regulators and legislators to take a renewed look at accounting practices, financial disclosures and companies’ relationships with their independent auditors. Because it is still unclear what laws or regulations will ultimately develop, we cannot predict the ultimate impact of any future changes in accounting regulations or practices in general with respect to public companies or the energy industry or in our operations specifically. In addition, theThe Financial Accounting Standards Board (or FASB), the FERC or(“FASB”) and the SEC could enact newcontinuously make changes to accounting standards and disclosure and other financial reporting requirements. New or revised accounting standards and requirements issued by the FASB or the SEC or new accounting orders issued by the FERC orders that mightcould significantly impact how we are required to record revenues, expenses, assetsour consolidated financial results and liabilities.
disclosures.Other Risks Associated with the Notes
Your ability to transfer the notesNotes is limited by the absence of a market for the notes,Notes, and a trading market for the notesNotes may not develop.
There is no existing public trading market for the notesNotes and a market for the notesNotes might not develop and you may not be able to sell the notesNotes or obtain a suitable price. If such a market were to develop, the notesNotes could trade at prices that may be higher or lower than their initial offering price depending on many factors, including prevailing interest rates, our operating results and the market for similar securities. We do not intend to apply for listing of the notesNotes on a securities exchange or an automated dealer quotation system. As a result, it may be difficult for you to find a buyer for the notesNotes at the time you want to sell them and, even if you find a buyer, you might not get the price you want.
You may not be able to sell your initial notesInitial Notes if you do not exchange them for registered exchange notesExchange Notes in the exchange offer.Exchange Offer.
If you do not exchange your initial notesInitial Notes for registered exchange notesExchange Notes in the exchange offer,Exchange Offer, your initial notesInitial Notes will continue to be subject to the restrictions on transfer as stated in the legends on the initial notes.Initial Notes. In general, you may not offer, sell or otherwise transfer the initial notesInitial Notes in the U.S. unless they are:
registered under the Securities Act;
offered or sold under an exemption from the Securities Act and applicable state securities laws; or
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| • | registered under the Securities Act; |
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| • | offered or sold under an exemption from the Securities Act and applicable state securities laws; or |
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| • | offered or sold in a transaction not subject to the Securities Act and applicable state securities laws. |
offered or sold in a transaction not subject to the Securities Act and applicable state securities laws.
We do not currently anticipate that we will register any untendered initial notesInitial Notes under the Securities Act. Except for limited instances involving the initial purchasers or holders of notesInitial Notes who are not eligible to participate in the exchange offerExchange Offer or who do not receive freely transferable exchange notesExchange Notes in the exchange offer,Exchange Offer, following completion of the Exchange Offer, we will not be under any further obligation to register the initial notesInitial Notes under the Securities Act under the registration rights agreement or otherwise. Also, if the exchange offerExchange Offer is completed on the terms and within the time period contemplated by this prospectus, no additional interest attributable to a failure to timely comply with our obligations under the registration rights agreement will be payable on your initial notes.
Initial Notes.Your ability to sell your initial notesInitial Notes may be significantly more limited and the price at which you may be able to sell your initial notesInitial Notes may be significantly lower if you do not exchange them for registered exchange notesExchange Notes in the exchange offer.Exchange Offer.
To the extent that initial notesInitial Notes are exchanged for registered exchange notesExchange Notes in the exchange offer,Exchange Offer, the trading market for the initial notesInitial Notes that remain outstanding may be significantly more limited. As a result, the
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liquidity of the initial notesInitial Notes not tendered for exchange could be adversely affected. The extent of the market for initial notesInitial Notes will depend upon a number of factors, including the number of holders of initial notesInitial Notes remaining outstanding and the interest of securities firms in maintaining a market in the initial notes.Initial Notes. An issue of securities with a lesser outstanding market value available for trading, which is called the “float,” may command a lower price than would be comparable to an issue of securities with a greater float. As a result, the market price for initial notesInitial Notes that are not exchanged in the exchange offerExchange Offer may be affected adversely to the extent that initial notesInitial Notes exchanged in the exchange offerExchange Offer reduce the float. The reduced float also may make the trading price of the initial notesInitial Notes that are not exchanged more volatile.
There are state securities law restrictions on the resale of the exchange notes.Exchange Notes.
In order to comply with the securities laws of certain jurisdictions, the exchange notesExchange Notes may not be offered or resold by any holder unless they have been registered or qualified for sale in such jurisdictions or an exemption from registration or qualification is available and the requirements of such exemption have been satisfied. We do not currently intend to register or qualify the resale of the exchange notesExchange Notes in any such jurisdictions. However, an exemption is generally available for sales to registered broker-dealers and certain institutional buyers. Other exemptions under applicable state securities laws may also be available.
We will not accept your initial notesInitial Notes for exchange if you fail to follow the exchange offerExchange Offer procedures and, as a result, your initial notesInitial Notes will continue to be subject to existing transfer restrictions and you may not be able to sell your initial notes.Initial Notes.
We will issue exchange notesExchange Notes in exchange for initial notesInitial Notes tendered and accepted for exchange pursuant to the exchange offerExchange Offer only after compliance by you with all of the conditions of the exchange offerExchange Offer described elsewhere in this prospectus under the caption, “The Exchange Offer — Offer—How to Tender,” including timely (i) receipt by the exchange agent of (a) a properly completed and duly executed letter of transmittal, together with any required signature guarantees and any other required documents and (b) the certificate(s) representing the initial notesInitial Notes being tendered; (ii) compliance with the procedures for book-entry transfers described elsewhere in this prospectus; or (iii) compliance with the guaranteed delivery procedures set forth elsewhere in this prospectus. We are under no duty to give notification of defects or irregularities with respect to the tenders of initial notesInitial Notes for exchange. If there are defects or irregularities with respect to your tender of initial notes,Initial Notes, we will not accept your initial notesInitial Notes for exchange. See “The Exchange Offer.”
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DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS
This prospectus contains statements that do not directly or exclusively relate to historical facts. These statements are “forward-looking statements” within the meaning of Section 27A of the Private Securities Litigation ReformAct and Section 21E of the U.S. Securities Exchange Act of 1995. You1934, as amended (the “Exchange Act”). Forward-looking statements can typically identify forward-looking statementsbe identified by the use of forward-looking words, such as will,” “may,” “could,” “project,” “believe,” “anticipate,” “expect,” “estimate,” “continue,” “intend,” “potential,” “plan,” “forecast” and similar terms. These statements are based upon our current intentions, assumptions, expectations and beliefs and are subject to risks, uncertainties and other important factors. Many of these factors are outside our control and could cause actual results to differ materially from those expressed or implied by oursuch forward-looking statements. These factors include, among others:
general economic, political and business conditions, as well as changes in, and compliance with, laws and regulations, including reliability and safety standards, affecting our operations or related industries;
changes in, and compliance with, environmental laws, regulations, decisions and policies that could, among other items, increase operating and capital costs, reduce facility output, accelerate facility retirements or delay facility construction or acquisition;
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| • | general economic, political and business conditions in the jurisdictions in which our facilities operate; |
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| • | changes in governmental, legislative or regulatory requirements affecting us or the electric or gas utility, pipeline or power generation industries; |
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| • | changes in, and compliance with, environmental laws, regulations, decisions and policies that could increase operating and capital costs, reduce plant output or delay plant construction; |
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| • | the outcome of general rate cases and other proceedings conducted by regulatory commissions or other governmental and legal bodies; |
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| • | changes in economic, industry or weather conditions, as well as demographic trends, that could affect customer growth and usage or supply of electricity and gas or our ability to obtain long-term contracts with customers; |
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| • | a high degree of variance between actual and forecasted load and prices that could impact the hedging strategy and costs to balance electricity and load supply; |
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| • | changes in prices and availability for both purchases and sales of wholesale electricity, coal, natural gas, other fuel sources and fuel transportation that could have a significant impact on generation capacity and energy costs; |
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| • | the financial condition and creditworthiness of our significant customers and suppliers; |
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| • | changes in business strategy or development plans; |
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| • | availability, terms and deployment of capital, including severe reductions in demand for investment-grade commercial paper, debt securities and other sources of debt financing and volatility in the London Interbank Offered Rate, the base interest rate for our and our subsidiaries’ credit facilities; |
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| • | changes in our and our subsidiaries’ credit ratings; |
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| • | performance of our generating facilities, including unscheduled outages or repairs; |
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| • | risks relating to nuclear generation; |
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| • | the impact of derivative instruments used to mitigate or manage volume, price and interest rate risk, including increased collateral requirements, and changes in the commodity prices, interest rates and other conditions that affect the value of derivative instruments; |
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| • | the impact of increases in healthcare costs and changes in interest rates, mortality, morbidity, investment performance and legislation on pension and other postretirement benefits expense and funding requirements; |
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| • | changes in the residential real estate brokerage and mortgage industries that could affect brokerage transaction levels; |
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| • | unanticipated construction delays, changes in costs, receipt of required permits and authorizations, ability to fund capital projects and other factors that could affect future generating facilities and infrastructure additions; |
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the outcome of rate cases and other proceedings conducted by regulatory commissions or other governmental and legal bodies and our ability to recover costs in rates in a timely manner;
changes in economic, industry, competition or weather conditions, as well as demographic trends, new technologies and various conservation, energy efficiency and distributed generation measures and programs, that could affect customer growth and usage, electricity and natural gas supply or our ability to obtain long-term contracts with customers and suppliers;
a high degree of variance between actual and forecasted load or generation that could impact our hedging strategy and the cost of balancing our generation resources with our retail load obligations;
performance and availability of our facilities, including the impacts of outages and repairs, transmission constraints, weather, including wind, solar and hydroelectric conditions, and operating conditions;
changes in prices, availability and demand for wholesale electricity, coal, natural gas, other fuel sources and fuel transportation that could have a significant impact on generating capacity and energy costs;
the financial condition and creditworthiness of our significant customers and suppliers;
changes in business strategy or development plans;
availability, terms and deployment of capital, including reductions in demand for investment-grade commercial paper, debt securities and other sources of debt financing and volatility in the London Interbank Offered Rate, the base interest rate for our and our subsidiaries’ credit facilities;
changes in our and our subsidiaries’ credit ratings;
risks relating to nuclear generation;
the impact of certain contracts used to mitigate or manage volume, price and interest rate risk, including increased collateral requirements, and changes in commodity prices, interest rates and other conditions that affect the fair value of certain contracts;
the impact of inflation on costs and our ability to recover such costs in regulated rates;
increases in employee healthcare costs, including the implementation of the Affordable Care Act;
the impact of investment performance and changes in interest rates, legislation, healthcare cost trends, mortality and morbidity on pension and other postretirement benefits expense and funding requirements;
changes in the residential real estate brokerage and mortgage industries and regulations that could affect brokerage and mortgage transaction levels;
unanticipated construction delays, changes in costs, receipt of required permits and authorizations, ability to fund capital projects and other factors that could affect future facilities and infrastructure additions;
the availability and price of natural gas in applicable geographic regions and demand for natural gas supply;
the impact of new accounting guidance or changes in current accounting estimates and assumptions on our consolidated financial results;
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| • | the impact of new accounting pronouncements or changes in current accounting estimates and assumptions on financial results; |
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| • | our ability to successfully integrate future acquired operations into our business; |
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| • | other risks or unforeseen events, including litigation, wars, the effects of terrorism, embargoes and other catastrophic events; and |
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| • | other business or investment considerations that may be disclosed from time to time in our filings with the SEC or in other publicly disseminated written documents. |
our ability to successfully integrate NV Energy and future acquired operations into our business;
other risks or unforeseen events, including the effects of storms, floods, fires, earthquakes, explosions, landslides, litigation, wars, terrorism, embargoes and other catastrophic events, including catastrophic events triggered by a breakdown or failure of our operating assets; and
other business or investment considerations that may be disclosed from time to time in our filings with the SEC or in other publicly disseminated written documents.
Further details of the potential risks and uncertainties affecting us are described in the “Risk Factors” section of this prospectus and in the documents incorporated by reference into this prospectus. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The foregoing review of factors should not be construed as exclusive.
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USE OF PROCEEDS
We will not receive any proceeds from the issuance of the exchange notesExchange Notes in the exchange offer.Exchange Offer. The exchange notesExchange Notes will evidence the same debt as the initial notesInitial Notes tendered in exchange for exchange notes.Exchange Notes. Accordingly, the issuance of the exchange notesExchange Notes will not result in any change in our indebtedness.
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THE EXCHANGE OFFER
Purpose of the Exchange Offer
On July 7, 2009,November 8, 2013, we privately placed the initial notesInitial Notes in a transaction exempt from registration under the Securities Act. Accordingly, the initial notesInitial Notes may not be reoffered, resold or otherwise transferred in the U.S.United States unless so registered or unless an exemption from the Securities Act registration requirements is available. Pursuant to a registration rights agreement with the initial purchasers of the initial notes,Initial Notes, we agreed, for the benefit of holders of the initial notes,Initial Notes, to:
prepare and file an exchange offer registration statement with the SEC with respect to a registered offer to exchange the Initial Notes for Exchange Notes issued under the same indenture as the Initial Notes, in the same aggregate principal amount as and with terms that are identical in all material respects to the Initial Notes except that they will not contain terms with respect to transfer restrictions;
use our reasonable best efforts to cause the exchange offer registration statement to become effective under the Securities Act on or before November 8, 2014 (within 365 days after November 8, 2013, the date on which we issued the Initial Notes) (such 365th day being the “Exchange Offer Effectiveness Deadline” for the exchange offer registration statement); and
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| • | prepare and file an exchange offer registration statement with the SEC with respect to a registered offer to exchange the initial notes for exchange notes issued under the same indenture as the initial notes, in the same aggregate principal amount as and with terms that are identical in all material respects to the initial notes except that they will not contain terms with respect to transfer restrictions; |
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| • | use our reasonable best efforts to cause the exchange offer registration statement to become effective under the Securities Act on or before July 7, 2010 (within 365 days after July 7, 2009, the date on which we issued the initial notes) (such 365th day being the “Exchange Offer Effectiveness Deadline” for the exchange offer registration statement); and |
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| • | promptly after the exchange offer registration statement is declared effective, offer the exchange notes in exchange for surrender of the initial notes. |
promptly after the exchange offer registration statement is declared effective, offer the Exchange Notes in exchange for surrender of the Initial Notes.
We will be entitled to consummate the exchange offerExchange Offer on the expiration date (as defined below) provided that we have accepted all initial notesInitial Notes previously validly tendered in accordance with the terms set forth in this prospectus and the applicable letter of transmittal.
In addition, under certain circumstances described below, we may be required to file a shelf registration statement to cover resales of the notes.
If we do not comply with certain of our obligations under the registration rights agreement, we must pay additional interest on the initial notesInitial Notes in addition to the interest that is otherwise due on the notes. The purpose of the exchange offerExchange Offer is to fulfill our obligations with respect to the registration rights agreement.
If you are a broker-dealer that receives exchange notesExchange Notes for its own account in exchange for initial notes,Initial Notes, where you acquired such initial notesInitial Notes as a result of market-making activities or other trading activities, you must acknowledge that you will deliver a prospectus in connection with any resale of such exchange notes.Exchange Notes. See “Plan of Distribution.”
Upon the terms and subject to the conditions contained in this prospectus and in the letters of transmittal that accompany this prospectus, we are offering to exchange $1,000 in principal amount of exchange notesExchange Notes for each $1,000 in principal amount of initial notes.Initial Notes. The terms of the exchange notesExchange Notes are identical in all material respects to the terms of the initial notesInitial Notes except that the exchange notesExchange Notes will generally be freely transferable. The exchange notesExchange Notes will evidence the same debt as the initial notesInitial Notes and will be entitled to the benefits of the indenture. Any initial notesInitial Notes that remain outstanding after the consummation of the exchange offer,Exchange Offer, together with all exchange notesExchange Notes issued in connection with the exchange offer,Exchange Offer, will be treated as a single class of securities under the indenture. See “Description of the Notes.”
The exchange offerExchange Offer is not conditioned on any minimum aggregate principal amount of initial notesInitial Notes being tendered for exchange.
Based on existing interpretations of the Securities Act by the staff of the SEC set forth in several no-action letters to third parties, and subject to the immediately following sentence, we believe that you may offer for
resale, resell and otherwise transfer the exchange notesExchange Notes without further compliance with the registration and prospectus delivery provisions of the Securities Act. However, if you are an “affiliate” (within the meaning of the Securities Act) of ours or you intend to participate in the exchange offerExchange Offer for the purpose of
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distributing the exchange notesExchange Notes or you are a broker-dealer (within the meaning of the Securities Act) that acquired notes in a transaction other than as part of its market-making or other trading activities and who has arranged or has an understanding with any person to participate in the distribution of the exchange notes,Exchange Notes, you:
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| | (1) | will not be able to rely on the interpretations by the staff of the SEC set forth in the above-mentioned no-action letters; |
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| | (2) | will not be able to tender your notes in the exchange offer;Exchange Offer; and |
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| | (3) | must comply with the registration and prospectus delivery requirements of the Securities Act in connection with any sale or transfer of your notes unless such sale or transfer is made pursuant to an exemption from such requirements.requirements |
Subject to exceptions for certain holders, to participate in the exchange offerExchange Offer you will be required to represent to us at the time of the consummation of the exchange offer,Exchange Offer, among other things, that: (i) you are not an affiliate of ours; (ii) any exchange notesExchange Notes to be received by you will be acquired in the ordinary course of your business; and (iii) at the time of commencement of the exchange offer,Exchange Offer, you have no arrangement or understanding with any person to participate in a distribution (within the meaning of the Securities Act) of the notes. In addition, in connection with any resales of exchange notes,Exchange Notes, any broker-dealer who acquired exchange notesExchange Notes for its own account as a result of market-making activities or other trading activities must deliver a prospectus meeting the requirements of the Securities Act. The SEC has taken the position that such a broker-dealer may fulfill its prospectus delivery requirements with respect to the exchange notesExchange Notes (other than a resale of an unsold allotment from the initial sale of the initial notes)Initial Notes) with this prospectus. Under the registration rights agreement, we are required to allow a broker-dealer and other persons with similar prospectus delivery requirements, if any, to use this prospectus in connection with the resale of such exchange notesExchange Notes for a period of time not less than 120 days following the consummation of the exchange offer.Exchange Offer. If you are a broker-dealer that receives exchange notesExchange Notes for its own account in exchange for initial notes,Initial Notes, where you acquired such initial notesInitial Notes as a result of market-making activities or other trading activities, you must acknowledge that you will deliver a prospectus in connection with any resale of such exchange notes.Exchange Notes. See “Plan of Distribution.”
You will not be required by us to pay brokerage commissions or fees or, subject to the instructions in the applicable letter of transmittal, transfer taxes relating to your exchange of Initial Notes for Exchange Notes in the Exchange Offer.
Shelf Registration Statement
If:
we are not permitted to effect the Exchange Offer because of any change in law or in applicable interpretations of such law by the staff of the SEC;
the Exchange Offer is not consummated by the 40th day after the date on which the exchange offer registration statement was declared effective;
any of the initial purchasers of the Initial Notes so requests with respect to the Initial Notes not eligible to be exchanged for Exchange Notes in the Exchange Offer and held by it following the consummation of Exchange Offer;
any holder of the notes (other than a broker-dealer electing to exchange Initial Notes acquired for its own account as a result of market-making or other trading activities for exchange notessecurities) is not eligible to participate in the exchange offer.
Shelf Registration Statement
If:
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| • | we are not permitted to effect the exchange offer because of any change in lawExchange Offer and any such holder so requests for any reason other than the failure by such holder to make a timely and valid tender in accordance with the terms of Exchange Offer; or in applicable interpretations of such law by the staff of the SEC; |
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| • | the exchange offer is not consummated by the 40th day after the date on which the exchange offer registration statement was declared effective; |
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| • | any of the initial purchasers of the initial notes so requests with respect to the initial notes not eligible to be exchanged for exchange notes in the exchange offer and held by it following the consummation of exchange offer; |
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| • | any holder of the notes (other than a broker-dealer electing to exchange initial notes acquired for its own account as a result of market-making or other trading activities for exchange securities) is not eligible to participate in the exchange offer and any such holder so requests for any reason other than the failure by such holder to make a timely and valid tender in accordance with the terms of exchange offer; or |
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| • | any holder of the notes (other than a broker-dealer electing to exchange initial notes acquired for its own account as a result of market-making or other trading activities for exchange notes) participates in the exchange offer but does not receive freely tradable exchange notes on the date of the exchange and |
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any holder of the notes (other than a broker-dealer electing to exchange Initial Notes acquired for its own account as a result of market-making or other trading activities for Exchange Notes) participates in the Exchange Offer but does not receive freely tradable Exchange Notes on the date of the exchange and any such holder so requests for any reason other than the failure by such holder to make a timely and valid tender in accordance with the terms of Exchange Offer,
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| | any such holder so requests for any reason other than the failure by such holder to make a timely and valid tender in accordance with the terms of exchange offer, |
we will:
as promptly as practicable prepare and file with the SEC a “shelf” registration statement relating to the offer and sale (on a continuous basis) of the notes that are not otherwise freely tradable;
use our reasonable best efforts to cause the shelf registration statement to be declared effective not later than the latter to occur of the date that is (i) 150 days after the date on which our obligation to file the shelf registration arises or (ii) November 8, 2014 (365 days after November 8, 2013, the date on which we issued the Initial Notes) (such 150th or 365th day, as the case may be, being the “Shelf Effectiveness Deadline” for the shelf registration statement); and
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| • | as promptly as practicable prepare and file with the SEC a “shelf” registration statement relating to the offer and sale (on a continuous basis) of the notes that are not otherwise freely tradable; |
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| • | use our reasonable best efforts to cause the shelf registration statement to be declared effective not later than the latter to occur of the date that is (i) 150 days after the date on which our obligation to file the shelf registration arises or (ii) July 7, 2010 (365 days after July 7, 2009, the date on which we issued the initial notes) (such 150th or 365th day, as the case may be, being the “Shelf Effectiveness Deadline” for the shelf registration statement); and |
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| • | use our reasonable best efforts to keep the shelf registration statement continuously effective until the later of (i) one year from the date on which we issued the initial notes (subject to extension under certain circumstances) or (ii) 90 days from the date of effectiveness of such shelf registration statement, or such shorter period ending when all the notes covered by the shelf registration statement have been sold pursuant to the shelf registration statement or are no longer “Transfer Restricted Securities” as defined in the registration rights agreement. |
use our reasonable best efforts to keep the shelf registration statement continuously effective until the later of (i) one year from the date on which we issued the Initial Notes (subject to extension under certain circumstances) or (ii) 90 days from the date of effectiveness of such shelf registration statement, or such shorter period ending when all the notes covered by the shelf registration statement have been sold pursuant to the shelf registration statement or are no longer “Transfer Restricted Securities” as defined in the registration rights agreement.
The foregoing obligations are subject to our right to postpone or suspend the filing or effectiveness of any shelf registration statement (or exchange offer registration statement) if such action is required by law or taken by us in good faith and for valid business reasons in accordance with the terms of the registration rights agreement.
You will not be entitled, except if you were an initial purchaser of the initial notes,Initial Notes, to have your notes registered under any shelf registration statement (if one is filed), unless you agree in writing to be bound by the applicable provisions of the registration rights agreement. In order to sell your notes under the shelf registration statement, you generally must be named as a selling security holder in the related prospectus and must deliver a prospectus to purchasers. Consequently, you will be subject to the civil liability provisions under the Securities Act in connection with those sales and indemnification obligations under the registration rights agreements.
agreement.Additional Interest
A registration default will be deemed to have occurred:
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| | (1) | if the exchange offer registration statement is not declared effective on or before July 7, 2010November 8, 2014 (within 365 days after July 7, 2009,November 8, 2013, the date on which we issued the initial notes)Initial Notes); |
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| | (2) | with respect to certain notes that qualify as “Transfer Restricted Securities”, if a required shelf registration statement is not declared effective on or prior to the applicable Effectiveness Deadline; or |
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| | (3) | with respect to any Transfer Restricted Securities, on and after the applicable Shelf Effectiveness Deadline or Exchange Offer Effectiveness Deadline (plus an additional 30 days in respect of an exchange offer registration statement), either the exchange offer registration statement or the shelf registration statement has been declared effective, but such registration statement or the related prospectus thereafter ceases to be effective or usable (subject to certain exceptions) in connection with resales of such initial notesInitial Notes or exchange notesExchange Notes for the periods specified and in accordance with the registration rights agreement because (i) any event occurs as a result of which the related prospectus forming part of such registration statement would include any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein in the light of the circumstances under which they were made not misleading, (ii) it shall be necessary to amend such |
| registration statement or supplement the related prospectus to comply with the Securities Act or the Securities Exchange Act, of 1934, as amended (or the Exchange Act), or the respective rules thereunder or (iii) of a Suspension (as defined in the registration rights agreement) by us in accordance with provisions and procedures provided in the registration rights agreement. |
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Additional interest will accrue on the initial notesInitial Notes subject to such registration default, for so long as they constitute Transfer Restricted Securities, at a rate of 0.50% per annum from and including the date on which any such registration default occurs to but excluding the date on which all such registration defaults have ceased to be continuing. In no event will such additional interest be payable for periods after July 7, 2011.November 8, 2015. At our written request, the Representative, as such term is defined in the registration rights agreement, may, in its sole discretion, agree to shorten such penalty interest period. In each case, such additional interest is payable in addition to any other interest payable from time to time with respect to the initial notesInitial Notes and the exchange notes.Exchange Notes. The exchange notesExchange Notes will not contain any additional provisions regarding the payment of additional interest.
Expiration Date; Extensions; Termination; Amendments
The exchange offerExchange Offer expires on the expiration date. The expiration date is 5:00 p.m., New York City time, on , 2009,2014, unless we in our sole discretion extend the period during which the exchange offerExchange Offer is open, in which event the expiration date is the latest time and date on which the exchange offer,Exchange Offer, as so extended by us, expires. We reserve the right to extend the exchange offerExchange Offer at any time and from time to time by giving written notice to The Bank of New York Mellon Trust Company, N.A., as the exchange agent, before 9:00 a.m., New York City time, on the first business day following the previously scheduled expiration date and by timely public announcement communicated in accordance with applicable law or regulation. During any extension of the exchange offer,Exchange Offer, all initial notesInitial Notes previously tendered pursuant to the exchange offerExchange Offer and not validly withdrawn will remain subject to the exchange offer.
Exchange Offer.The exchange date will occur promptly after the expiration date. We expressly reserve the right to (i) terminate the exchange offerExchange Offer and not accept for exchange any initial notesInitial Notes for any reason, including if any of the events set forth below under “—Conditions to the Exchange Offer” shall have occurred and shall not have been waived by us and (ii) amend the terms of the exchange offerExchange Offer in any manner, whether before or after any tender of the initial notes.Initial Notes. If any such termination or amendment occurs, we will notify the exchange agent in writing and will either issue a press release or give written notice to the holders of the initial notesInitial Notes as promptly as practicable. Unless we terminate the exchange offerExchange Offer prior to 5:00 p.m., New York City time, on the expiration date, we will exchange the initial notesInitial Notes for the exchange notesExchange Notes on the exchange date.
If we waive any material condition to the exchange offer,Exchange Offer, or amend the exchange offerExchange Offer in any other material respect, and if at the time that notice of such waiver or amendment is first published, sent or given to holders of initial notesInitial Notes in the manner specified above, the exchange offerExchange Offer is scheduled to expire at any time earlier than the expiration of a period ending on the fifth business day from, and including, the date that such notice is first so published, sent or given, then the exchange offerExchange Offer will be extended until the expiration of such period of five business days.
This prospectus and the related letters of transmittal and other relevant materials will be mailed by us to record holders of initial notesInitial Notes and will be furnished to brokers, banks and similar persons whose names, or the names of whose nominees, appear on the lists of holders for subsequent transmittal to beneficial owners of initial notes.
Initial Notes.How to Tender
The tender to us of initial notesInitial Notes by you pursuant to one of the procedures set forth below will constitute an agreement between you and us in accordance with the terms and subject to the conditions set forth herein and in the applicable letter of transmittal.
General Procedures. To validly tender the initial notesInitial Notes pursuant to the exchange offer,Exchange Offer, either:
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| | (1) | (i) a properly completed and duly executed letter of transmittal or a facsimile thereof (all references in this prospectus to the letter of transmittal shall be deemed to include a facsimile thereof), together with any required signature guarantees and any other documents required by the letter of transmittal, must be received by the exchange agent at its address or facsimile number set forth on the back cover |
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| | |
| | of this prospectus on or prior to the expiration date and (ii) the certificate(s) representing the initial notesInitial Notes being tendered must be received by the exchange agent on or prior to the expiration date; |
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| | (2) | for book-entry transfers, (i) an “agent’s message” (as defined below) properly transmitted through DTC’sthe Depositary Trust Company’s (“DTC”) Automated Tender Offer Program (or ATOP)(“ATOP”), together with any other documents required by the letter of transmittal, must be received by the exchange agent at its office set forth on the back cover of this prospectus on or prior to the expiration date and (ii) the initial notesInitial Notes must be tendered pursuant to the procedures for book-entry transfer set forth below and a confirmation of a book-entry transfer of such initial notesInitial Notes into the exchange agent’s account at the DTC (which we refer to as a Book-Entry Confirmation) must be received by the exchange agent on or prior to the expiration date; or |
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| | (3) | the guaranteed delivery procedures set forth below must be complied with. |
The term “agent’s message” means a message, transmitted by the DTC and received by the exchange agent and forming part of a Book-Entry Confirmation, which states that DTC has received an express acknowledgment from a participant tendering initial notesInitial Notes that are the subject of the Book-Entry Confirmation that the participant has received and agrees to be bound by the terms of the letter of transmittal, and that we may enforce that agreement against the participant.
If tendered initial notesInitial Notes are registered in the name of the signer of the letter of transmittal and the exchange notesExchange Notes to be issued in exchange therefor are to be issued (and any untendered initial notesInitial Notes are to be reissued) in the name of the registered holder, the signature of such signer need not be guaranteed. In any other case, the tendered initial notesInitial Notes must be endorsed or accompanied by written instruments of transfer in form satisfactory to us and duly executed by the registered holder and the signature on the endorsement or instrument of transfer must be guaranteed by a firm, which we refer to as an Eligible Institution, that is a member of a recognized signature guarantee medallion program within the meaning ofRule 17Ad-15 under the Exchange Act of 1934.Act. If the exchange notesExchange Notes and/or initial notes Initial Notes not exchanged are to be delivered to an address other than that of the registered holder appearing on the note register for the initial notes,Initial Notes, the signature on the letter of transmittal must be guaranteed by an Eligible Institution.
Any beneficial owner whose initial notesInitial Notes are registered in the name of a broker, dealer, commercial bank, trust company or other nominee and who wishes to tender initial notesInitial Notes should contact such holder promptly and instruct such holder to tender initial notesInitial Notes on such beneficial owner’s behalf. If such beneficial owner wishes to tender such initial notesInitial Notes himself, such beneficial owner must, prior to completing and executing the letter of transmittal and delivering such initial notes,Initial Notes, either make appropriate arrangements to register ownership of the initial notesInitial Notes in such beneficial owner’s name or follow the procedures described in the immediately preceding paragraph. The transfer of record ownership may take considerable time.
Book-Entry Transfer. The exchange agent will make a request to establish an account with respect to the initial notesInitial Notes at DTC for purposes of the exchange offerExchange Offer within two business days after the date of this prospectus. Any financial institution that is a participant in DTC’s systems may utilize DTC’s ATOP procedures to tender initial notesInitial Notes and may make book-entry delivery of initial notesInitial Notes by causing DTC to transfer such initial notesInitial Notes into the exchange agent’s account at DTC in accordance with DTC’s ATOP procedures for transfer. However, although delivery of initial notesInitial Notes may be effected through book-entry transfer at DTC, the letter of transmittal, with any required signature guarantees and any other required documents, must, in any case, be transmitted to and received by the exchange agent at its address or facsimile number set forth on the back cover of this prospectus on or prior to the expiration date, unless the holder either (i) complies with the guaranteed delivery procedures described below or (ii) sends an agent’s message through ATOP.
If delivery is made through ATOP, the exchange for the initial notesInitial Notes so tendered will be made only after a Book-Entry Confirmation and an agent’s message and any other documents required by the letter of transmittal have been received by the exchange agent, in each case on or prior to the expiration date.
The method of delivery of initial notesInitial Notes and all other documents is at your election and risk. If sent by mail, we recommend that you use registered mail, return receipt requested, obtain proper insurance, and complete the mailing sufficiently in advance of the expiration date to permit delivery to the
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exchange agent on or before the expiration date. Delivery of documents to DTC does not constitute delivery to the exchange agent.
Guaranteed Delivery Procedures. If a holder desires to accept the exchange offerExchange Offer and time will not permit a letter of transmittal or initial notesInitial Notes to reach the exchange agent on or before the expiration date, or the procedures for book-entry transfer set forth above cannot be completed on a timely basis, a tender may nevertheless be effected, provided that all of the following guaranteed delivery procedures are complied with:
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| | (1) | such tenders are made by or through an Eligible Institution; |
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| | (2) | the exchange agent has received at its office set forth on the back cover hereof on or prior to the expiration date a properly completed and duly executed notice of guaranteed delivery, by telegram, telex, facsimile transmission, letter or courier, or an electronic message transmitted through ATOP with respect to guaranteed delivery for book-entry transfers, (i) setting forth the name and address of the tendering holder, the name(s) in which the initial notesInitial Notes are registered, the principal amount of the initial notesInitial Notes and, if possible, the certificate number(s) of the initial notesInitial Notes to be tendered, (ii) stating that the tender is being made thereby and (iii) guaranteeing that within three New York Stock Exchange trading days after the date of execution by the Eligible Institution of such notice of guaranteed delivery, or transmission of such electronic message through ATOP for book-entry transfers, the certificates for all physically tendered initial notes,Initial Notes, in proper form for transfer, or a Book-Entry Confirmation in the case of book-entry transfers, together with a properly completed and duly executed letter of transmittal with any required signature guarantees, or a properly transmitted agent’s message through ATOP in the case of book-entry transfers, and any other documents required by the letter of transmittal, will be deposited by the Eligible Institution with the exchange agent; and |
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| | (3) | the certificates for all physically tendered initial notes,Initial Notes, in proper form for transfer, or a Book-Entry Confirmation in the case of book-entry transfers, together with a properly completed and duly executed letter of transmittal with any required signature guarantees, or a properly transmitted agent’s message through ATOP in the case of book-entry transfers, and any other documents required by the letter of transmittal, must be received by the exchange agent within three New York Stock Exchange trading days after the date of execution by the Eligible Institution of the notice of guaranteed delivery or transmission of such electronic message through ATOP with respect to guaranteed delivery for book-entry transfers. |
Unless all of the guaranteed delivery procedures set forth in the preceding paragraph are complied with, we may, at our option, reject the tender. Copies of a Notice of Guaranteed Delivery which may be used by Eligible Institutions for the purposes described in this paragraph are being delivered with this prospectus and the related letter of transmittal. A tender will be deemed to have been received as of the date when the tendering holder’s properly completed and duly signed letter of transmittal accompanied by the initial notesInitial Notes (or agent’s message accompanied by a Book-Entry Confirmation in the case of a book-entry transfer) is received by the exchange agent. Issuances of exchange notesExchange Notes in exchange for initial notesInitial Notes tendered pursuant to a notice of guaranteed delivery by an Eligible Institution or an electronic message transmitted through ATOP with respect to guaranteed delivery for book-entry transfers will be made only against deposit of the letter of transmittal (and any other required documents) and the tendered initial notesInitial Notes or, in the case of a book-entry transfer, against deposit of an agent’s message through ATOP (and any other required documents) and a timely Book-Entry Confirmation.
All questions as to the validity, form, eligibility (including time of receipt) and acceptance for exchange of any tender of initial notesInitial Notes will be determined by us and our determination will be final and binding. We reserve the absolute right to reject any or all tenders not in proper form or the acceptances for exchange of which may, in the opinion of our counsel, be unlawful. We also reserve the absolute right to waive any of the conditions of the exchange offerExchange Offer or any defect or irregularities in tenders of any particular holder whether or not similar defects or irregularities are waived in the case of other holders. None of us, the exchange agent or any other person will be under any duty to give notification of any defects or irregularities in tenders or shall incur any liability for failure to give any such notification. Our interpretation of the terms and conditions of the exchange offerExchange Offer (including the letters of transmittal and the instructions thereto) will be final and binding.
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Terms and Conditions of the Letters of Transmittal
The letters of transmittal contain, among other things, the following terms and conditions, which are part of the exchange offer.
Exchange Offer.The party tendering initial notesInitial Notes for exchange, whom we refer to as the Transferor, exchanges, assigns and transfers the initial notesInitial Notes to us and irrevocably constitutes and appoints the exchange agent as the Transferor’s agent and attorney-in-fact to cause the initial notesInitial Notes to be assigned, transferred and exchanged. The Transferor represents and warrants that it has full power and authority to tender, exchange, assign and transfer the initial notesInitial Notes and to acquire exchange notesExchange Notes issuable upon the exchange of such tendered initial notes,Initial Notes, and that, when the same are accepted for exchange, we will acquire good and unencumbered title to the tendered initial notes,Initial Notes, free and clear of all liens, restrictions, charges and encumbrances and not subject to any adverse claim. The Transferor also warrants that it will, upon request, execute and deliver any additional documents deemed by us to be necessary or desirable to complete the exchange, assignment and transfer of tendered initial notes.Initial Notes. The Transferor further agrees that acceptance of any tendered initial notesInitial Notes by us and the issuance of exchange notesExchange Notes in exchange therefor shall constitute performance in full by us of our obligations under the registration rights agreement and that we shall have no further obligations or liabilities thereunder (except in certain limited circumstances). All authority conferred by the Transferor will survive the death or incapacity of the Transferor and every obligation of the Transferor shall be binding upon the heirs, legal representatives, successors, assigns, executors and administrators of such Transferor.
See “—Terms of the Exchange.”
Initial notes tendered pursuant to the exchange offerExchange Offer may be withdrawn at any time prior to the expiration date. For a withdrawal to be effective, a written or facsimile transmission notice of withdrawal must be timely received by the exchange agent at its address set forth on the back cover of this prospectus. Any such notice of withdrawal must specify the person named in the letter of transmittal as having tendered initial notesInitial Notes to be withdrawn, the certificate numbers of initial notesInitial Notes to be withdrawn, the principal amount of initial notesInitial Notes to be withdrawn (which must be an authorized denomination), a statement that such holder is withdrawing his election to have such initial notesInitial Notes exchanged, and the name of the registered holder of such initial notes,Initial Notes, and must be signed by the holder in the same manner as the original signature on the letter of transmittal (including any required signature guarantees) or be accompanied by documents of transfer sufficient to have the trustee register the transfer of such initial notesInitial Notes into the name of the person withdrawing the tender. The exchange agent will return the properly withdrawn initial notesInitial Notes promptly following receipt of notice of withdrawal. If initial notesInitial Notes have been tendered pursuant to the procedures for book-entry transfer set forth above, any notice of withdrawal must specify the name and number of the account at DTC to be credited with the withdrawn initial notesInitial Notes or otherwise comply with DTC’s procedures, and in such case the initial notesInitial Notes will be credited to such account by the exchange agent promptly after withdrawal. All questions as to the validity of notices of withdrawals, including time of receipt, will be determined by us, and our determination will be final and binding on all parties.
Acceptance of Initial Notes for Exchange; Delivery of Exchange Notes
Upon the terms and subject to the conditions of the exchange offer,Exchange Offer, the acceptance for exchange of initial notesInitial Notes validly tendered and not withdrawn and the issuance of the exchange notesExchange Notes will be made on the exchange date. For the purposes of the exchange offer,Exchange Offer, we shall be deemed to have accepted for exchange validly tendered initial notesInitial Notes when, as and if we have given written notice thereof to the exchange agent.
In all cases, delivery of exchange notesExchange Notes in exchange for initial notesInitial Notes tendered and accepted pursuant to this exchange offerExchange Offer will be made only after timely receipt by the exchange agent of:
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| | (1) | a certificate or certificates representing the initial notesInitial Notes or, in the case of book-entry transfers, a Book-Entry Confirmation; |
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| | |
| | (2) | a properly completed and duly executed letter of transmittal or, in the case of book-entry transfers, an agent’s message properly transmitted through ATOP; and |
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| | (3) | any other documents required by the letter of transmittal. |
The exchange agent will act as agent for the tendering holders of initial notesInitial Notes for the purposes of receiving exchange notesExchange Notes from us and causing the initial notesInitial Notes to be assigned, transferred and exchanged. Upon the terms and subject to the conditions of the exchange offer,Exchange Offer, delivery of exchange notesExchange Notes to be issued in exchange for accepted initial notesInitial Notes will be made by the exchange agent promptly after acceptance of the tendered initial notes.Initial Notes. Initial notes not accepted for exchange by us will be returned without expense to the tendering holders (or in the case of initial notesInitial Notes tendered by book-entry transfer into the exchange agent’s account at DTC pursuant to the procedures described above, such non-exchanged initial notesInitial Notes will be credited to an account maintained with DTC) promptly following the expiration date or, if we terminate the exchange offerExchange Offer prior to the expiration date, promptly after the exchange offerExchange Offer is so terminated.
Conditions to the Exchange Offer
We are not required to accept for exchange, or to issue exchange notesExchange Notes in exchange for, any outstanding initial notes.Initial Notes. We may terminate or extend the exchange offerExchange Offer by oral or written notice to the exchange agent and by timely public announcement communicated in accordance with applicable law or regulation for any reason, if any of the following shall have occurred:
any federal law, statute, rule, regulation or interpretation of the staff of the SEC has been proposed, adopted or enacted that, in our judgment, might impair our ability to proceed with the Exchange Offer or otherwise make it inadvisable to proceed with the Exchange Offer;
an action or proceeding has been instituted or threatened in any court or by any governmental agency that, in our judgment, might impair our ability to proceed with the Exchange Offer or otherwise make it inadvisable to proceed with the Exchange Offer;
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| • | any federal law, statute, rule, regulation or interpretation of the staff of the SEC has been proposed, adopted or enacted that, in our judgment, might impair our ability to proceed with the exchange offer or otherwise make it inadvisable to proceed with the exchange offer; |
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| • | an action or proceeding has been instituted or threatened in any court or by any governmental agency that, in our judgment, might impair our ability to proceed with the exchange offer or otherwise make it inadvisable to proceed with the exchange offer; |
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| • | there has occurred a material adverse development in any existing action or proceeding that might impair our ability to proceed with the exchange offer or otherwise make it inadvisable to proceed with the exchange offer; |
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| • | any stop order is threatened or in effect with respect to the registration statement of which this prospectus is a part or the qualification of the indenture under the Trust Indenture Act of 1939; |
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| • | all governmental approvals that we deem necessary for the consummation of the exchange offer have not been obtained; |
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| • | there is a change in the current interpretation by the staff of the SEC which permits holders who have made the required representations to us to resell, offer for resale, or otherwise transfer exchange notes issued in the exchange offer without registration of the exchange notes and delivery of a prospectus; or |
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| • | a material adverse change shall have occurred in our business, condition, operations or prospects. |
there has occurred a material adverse development in any existing action or proceeding that might impair our ability to proceed with the Exchange Offer or otherwise make it inadvisable to proceed with the Exchange Offer;
any stop order is threatened or in effect with respect to the registration statement of which this prospectus is a part or the qualification of the indenture under the U.S. Trust Indenture Act of 1939, as amended;
all governmental approvals that we deem necessary for the consummation of the Exchange Offer have not been obtained;
there is a change in the current interpretation by the staff of the SEC which permits holders who have made the required representations to us to resell, offer for resale, or otherwise transfer Exchange Notes issued in the Exchange Offer without registration of the Exchange Notes and delivery of a prospectus; or
a material adverse change shall have occurred in our business, condition, operations or prospects.
The foregoing conditions are for our sole benefit and may be asserted by us with respect to all or any portion of the exchange offerExchange Offer regardless of the circumstances (including any action or inaction by us) giving rise to such condition or may be waived by us in whole or in part at any time or from time to time in our sole discretion. The failure by us at any time to exercise any of the foregoing rights will not be deemed a waiver of any such right, and each right will be deemed an ongoing right which may be asserted at any time or from time to time. In addition, we have reserved the right, notwithstanding the satisfaction of each of the foregoing conditions, to terminate or amend the exchange offer.
Exchange Offer.Any determination by us concerning the fulfillment or non-fulfillment of any conditions will be final and binding upon all parties.
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Exchange Agent
The Bank of New York Mellon Trust Company, N.A. has been appointed as the exchange agent for the exchange offer.Exchange Offer. Letters of transmittal must be addressed to the exchange agent at its address set forth on the back cover page of this prospectus. Delivery to an address other than as set forth herein, or transmissions of instructions via a facsimile or telex number other than the ones set forth herein, will not constitute a valid delivery. The Bank of New York Mellon Trust Company, N.A. is the trustee under the indenture. The Bank of New York Mellon Trust Company, N.A. (or one of its affiliates) currently serves, and may in the future serve, as trustee under indentures evidencing other indebtedness of us and our affiliates. The Bank of New York Mellon Trust Company, N.A., is an affiliate of one of the initial purchasers of the Initial Notes. The Bank of New York Mellon Trust Company, N.A. (or one of its affiliates) is also, and may in the future be, a lender under credit facilities for us and our affiliates.
Solicitation of Tenders; Expenses
We have not retained any dealer-manager or similar agent in connection with the exchange offerExchange Offer and will not make any payments to brokers, dealers or others for soliciting acceptances of the exchange offer.Exchange Offer. We will, however, pay the exchange agent reasonable and customary fees for its services and will reimburse it for reasonableout-of-pocket expenses in connection therewith. We will also pay brokerage houses and other custodians, nominees and fiduciaries the reasonableout-of-pocket expenses incurred by them in forwarding tenders for their customers. The expenses to be incurred in connection with the exchange offer,Exchange Offer, including the fees and expenses of the exchange agent and printing, accounting and legal fees, will be paid by us and are estimated at approximately $250,000.
$300,000.No dealer, salesperson or other individual has been authorized to give any information or to make any representations not contained in this prospectus in connection with the exchange offer.Exchange Offer. If given or made, such information or representations must not be relied upon as having been authorized by us. Neither the delivery of this prospectus nor any exchange made hereunder shall, under any circumstances, create any implication that there has been no change in our affairs since the respective dates as of which information is given herein.
The exchange offerExchange Offer is not being made to (nor will tenders be accepted from or on behalf of) holders of initial notesInitial Notes in any jurisdiction in which the making of the exchange offerExchange Offer or the acceptance thereof would not be in compliance with the laws of such jurisdiction. However, we may, at our discretion, take such action as we may deem necessary to make the exchange offerExchange Offer in any such jurisdiction and extend the exchange offerExchange Offer to holders of initial notesInitial Notes in such jurisdiction. In any jurisdiction the securities laws or blue sky laws of which require the exchange offerExchange Offer to be made by a licensed broker or dealer, the exchange offerExchange Offer is being made on behalf of us by one or more registered brokers or dealers which are licensed under the laws of such jurisdiction.
You will not have appraisal rights in connection with the exchange offer.
Exchange Offer.U.S. Federal Income Tax Consequences
The exchange of initial notesInitial Notes for exchange notesExchange Notes will not be a taxable exchange for U.S. federal income tax purposes, and holders will not recognize any taxable gain or loss or any interest income as a result of such exchange. See “Certain U.S. Federal Income Tax Considerations.”
Participation in the exchange offerExchange Offer is voluntary and you should carefully consider whether to accept. You are urged to consult your financial and tax advisors in making your own decisions on what action to take.
As a result of the making of, and upon acceptance for exchange of all validly tendered initial notesInitial Notes pursuant to the terms of this exchange offer,Exchange Offer, we will have fulfilled a covenant contained in the terms of the initial notesInitial Notes and the registration rights agreement. Holders of the initial notesInitial Notes who do not tender their initial notesInitial Notes in the exchange offerExchange Offer will continue to hold such initial notesInitial Notes and will be entitled to all the rights, and
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limitations applicable thereto, under the indenture, except for any such rights under the registration rights agreement which by their terms terminate or cease to have further effect as a result of the making of this exchange offer.Exchange Offer. See “Description of the Notes.” All untendered initial notesInitial Notes will continue to be subject to the restriction, on transfer set forth in the indenture. To the extent that initial notesInitial Notes are tendered and accepted in the exchange offer,Exchange Offer, the trading market, if any, for the initial notesInitial Notes could be adversely affected. See “Risk Factors — Factors—Your ability to sell your initial notesInitial Notes may be significantly more limited and the price at which you may be able to sell your initial notesInitial Notes may be significantly lower if you do not exchange them for registered exchange notesExchange Notes in the exchange offer.Exchange Offer.”
We may in the future seek to acquire untendered initial notesInitial Notes in open market or privately negotiated transactions, through subsequent exchange offers or otherwise. We have no present plan to acquire any initial notesInitial Notes which are not tendered in the exchange offer.
36Exchange Offer.
SELECTED HISTORICAL FINANCIAL AND OPERATING DATA
The following table sets forth our selected consolidated historical financial and operating data, which should be read in conjunction with our historical Consolidated Financial Statementsconsolidated financial statements and notes thereto incorporated by reference intoin this prospectus. The selected consolidated historical financial and operating data as of JuneSeptember 30, 2009,2013, and for the six-monthnine-month periods ended JuneSeptember 30, 20092013 and 2008,2012, have been derived from our historical unaudited interim Consolidated Financial Statementsconsolidated financial statements and notes thereto incorporated by reference intoin this prospectus. In the opinion of management, these historical unaudited interim Consolidated Financial Statementsconsolidated financial statements include all adjustments necessary for a fair presentation. Effective January 1, 2009, we adopted Statement of Financial Accounting Standards No. 160, “Noncontrolling Interests in Consolidated Financial Statements — an amendment of ARB No. 51” (or SFAS No. 160). The adoption of SFAS No. 160 did not materially impact our consolidated financial condition, results of operations or cash flows, but did impact the presentation of noncontrolling interests in our Consolidated Financial Statements. The selected consolidated historical financial and operating data as of December 31, 20082012 and 2007,2011, and for each of the three years in the period ended December 31, 2008,2012, have been derived from our historical audited Consolidated Financial Statementsconsolidated financial statements and notes thereto incorporated by reference intoin this prospectus, and have been retrospectively adjusted for the adoption of SFAS No. 160.prospectus. The selected consolidated historical financial and operating data as of December 31, 2006, 20052010, 2009 and 2004,2008, and for the years ended December 31, 20052009 and 2004,2008, have been derived from our historical audited Consolidated Financial Statementsconsolidated financial statements and notes thereto not included in or incorporated by reference intoin this prospectus, and have been retrospectively adjusted for the adoption of SFAS No. 160.
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| | | Six-Month Periods
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| | | Ended June 30, | | | Years Ended December 31, | |
| | | 2009 | | | 2008 | | | 2008 | | | 2007 | | | 2006(1) | | | 2005 | | | 2004 | |
| | | (in millions) | |
| |
Consolidated Statements of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating revenue | | $ | 5,471 | | | $ | 6,348 | | | $ | 12,668 | | | $ | 12,376 | | | $ | 10,301 | | | $ | 7,116 | | | $ | 6,553 | |
| Depreciation and amortization | | | 611 | | | | 570 | | | | 1,129 | | | | 1,150 | | | | 1,007 | | | | 608 | | | | 638 | |
| Total operating costs and expenses | | | 4,310 | | | | 4,993 | | | | 9,840 | | | | 9,688 | | | | 8,181 | | | | 5,587 | | | | 5,028 | |
| Operating income | | | 1,161 | | | | 1,355 | | | | 2,828 | | | | 2,688 | | | | 2,120 | | | | 1,529 | | | | 1,525 | |
| Interest expense, net of capitalized interest | | | 623 | | | | 635 | | | | 1,279 | | | | 1,266 | | | | 1,112 | | | | 874 | | | | 883 | |
Income from continuing operations(2) | | | 500 | | | | 571 | | | | 1,871 | | | | 1,219 | | | | 943 | | | | 573 | | | | 551 | |
Income (loss) from discontinued operations, net of tax(3) | | | — | | | | — | | | | — | | | | — | | | | — | | | | 5 | | | | (368 | ) |
| Net income attributable to noncontrolling interests | | | 12 | | | | 9 | | | | 21 | | | | 30 | | | | 27 | | | | 15 | | | | 13 | |
Net income attributable to MEHC(2) | | | 488 | | | | 562 | | | | 1,850 | | | | 1,189 | | | | 916 | | | | 563 | | | | 170 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | As of
| | | | | | | | | | | | | | | | |
| | | June 30,
| | | As of December 31, | |
| | | 2009 | | | 2008 | | | 2007 | | | 2006(1) | | | 2005 | | | 2004 | |
| | | (in millions) | |
| |
Consolidated Balance Sheets Data: | | | | | | | | | | | | | | | | | | | | | | | | |
| Property, plant and equipment, net | | $ | 29,987 | | | $ | 28,454 | | | $ | 26,221 | | | $ | 24,039 | | | $ | 11,915 | | | $ | 11,607 | |
| Total assets | | | 41,838 | | | | 41,441 | | | | 39,216 | | | | 36,447 | | | | 20,371 | | | | 19,904 | |
| Short-term debt | | | 314 | | | | 836 | | | | 130 | | | | 552 | | | | 70 | | | | 9 | |
| Long-term debt, including current maturities: | | | | | | | | | | | | | | | | | | | | | | | | |
| MEHC senior debt | | | 5,121 | | | | 5,121 | | | | 5,471 | | | | 4,479 | | | | 2,766 | | | | 3,032 | |
| MEHC subordinated debt – Berkshire Hathaway | | | 520 | | | | 1,087 | | | | 821 | | | | 1,055 | | | | 1,289 | | | | 1,478 | |
| MEHC subordinated debt – other | | | 236 | | | | 234 | | | | 304 | | | | 302 | | | | 299 | | | | 297 | |
| Subsidiary debt | | | 14,037 | | | | 12,954 | | | | 13,097 | | | | 11,614 | | | | 7,150 | | | | 7,191 | |
| Total MEHC shareholders’ equity | | | 10,952 | | | | 10,207 | | | | 9,326 | | | | 8,011 | | | | 3,385 | | | | 2,971 | |
| Noncontrolling interests | | | 267 | | | | 270 | | | | 256 | | | | 242 | | | | 110 | | | | 104 | |
37
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Nine-Month Periods
Ended September 30, | | | Years Ended
December 31, | |
| | | 2013 | | | 2012 | | | 2012 | | | 2011 | | | 2010 | | | 2009 | | | 2008 | |
| | | (In millions) | |
Consolidated Statements of Operations Data(1): | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating revenue | | $ | 9,388 | | | $ | 8,563 | | | $ | 11,548 | | | $ | 11,173 | | | $ | 11,127 | | | $ | 11,204 | | | $ | 12,668 | |
Depreciation and amortization | | | 1,166 | | | | 1,086 | | | | 1,455 | | | | 1,341 | | | | 1,276 | | | | 1,256 | | | | 1,129 | |
Total operating costs and expenses | | | 7,156 | | | | 6,522 | | | | 8,981 | | | | 8,489 | | | | 8,625 | | | | 8,739 | | | | 9,840 | |
Operating income | | | 2,232 | | | | 2,041 | | | | 2,567 | | | | 2,684 | | | | 2,502 | | | | 2,465 | | | | 2,828 | |
Interest expense, net of capitalized interest | | | 835 | | | | 847 | | | | 1,122 | | | | 1,156 | | | | 1,171 | | | | 1,234 | | | | 1,279 | |
Net income(2) | | | 1,302 | | | | 1,161 | | | | 1,495 | | | | 1,352 | | | | 1,310 | | | | 1,188 | | | | 1,871 | |
Net income attributable to MEHC shareholders(2) | | | 1,274 | | | | 1,145 | | | | 1,472 | | | | 1,331 | | | | 1,238 | | | | 1,157 | | | | 1,850 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | As of
September 30,
2013 | | | As of December 31, | |
| | | | 2012 | | | 2011 | | | 2010 | | | 2009 | | | 2008 | |
| | | (In millions) | |
Consolidated Balance Sheets Data(1): | | | | | | | | | | | | | | | | | | | | | | | | |
Property, plant and equipment, net | | $ | 39,436 | | | $ | 37,614 | | | $ | 34,167 | | | $ | 31,899 | | | $ | 30,936 | | | $ | 28,454 | |
Total assets | | | 56,160 | | | | 52,467 | | | | 47,718 | | | | 45,668 | | | | 44,684 | | | | 41,441 | |
Short-term debt | | | 158 | | | | 887 | | | | 865 | | | | 320 | | | | 179 | | | | 836 | |
Long-term debt, including current maturities: | | | | | | | | | | | | | | | | | | | | | | | | |
MEHC senior debt | | | 4,621 | | | | 4,621 | | | | 5,363 | | | | 5,371 | | | | 5,371 | | | | 5,121 | |
MEHC subordinated debt | | | — | | | | — | | | | 22 | | | | 315 | | | | 590 | | | | 1,321 | |
Subsidiary debt | | | 18,171 | | | | 16,114 | | | | 13,687 | | | | 13,805 | | | | 13,791 | | | | 12,954 | |
Total MEHC shareholders’ equity | | | 17,223 | | | | 15,742 | | | | 14,092 | | | | 13,232 | | | | 12,576 | | | | 10,207 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Nine-Month Periods
Ended September 30, | | | Years Ended
December 31, | |
| | | 2013 | | | 2012 | | | 2012 | | | 2011 | | | 2010 | | | 2009 | | | 2008 | |
| | | (In millions, except ratios) | |
Other Consolidated Financial Data(1): | | | | |
Capital expenditures | | $ | 2,885 | | | $ | 2,349 | | | $ | 3,380 | | | $ | 2,684 | | | $ | 2,593 | | | $ | 3,413 | | | $ | 3,937 | |
Net cash flows from operating activities | | | 3,683 | | | | 3,682 | | | | 4,327 | | | | 3,220 | | | | 2,759 | | | | 3,572 | | | | 2,587 | |
Net cash flows from investing activities | | | (3,621 | ) | | | (2,817 | ) | | | (4,321 | ) | | | (2,816 | ) | | | (2,484 | ) | | | (2,669 | ) | | | (4,344 | ) |
Net cash flows from financing activities | | | 1,047 | | | | 704 | | | | 477 | | | | (589 | ) | | | (234 | ) | | | (758 | ) | | | 866 | |
Ratio of earnings to fixed charges(2)(3) | | | 2.6 | x | | | 2.4 | x | | | 2.3 | x | | | 2.3 | x | | | 2.2 | x | | | 2.1 | x | | | 3.0 | x |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six-Month Periods
| | | | |
| | | Ended June 30, | | | Years Ended December 31, | |
| | | 2009 | | | 2008 | | | 2008 | | | 2007 | | | 2006(1) | | | 2005 | | | 2004 | |
| | | (in millions, except ratios) | |
| |
Other Consolidated Financial Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Capital expenditures | | $ | 1,693 | | | $ | 1,576 | | | $ | 3,937 | | | $ | 3,512 | | | $ | 2,423 | | | $ | 1,196 | | | $ | 1,179 | |
| Net cash flows from operating activities | | | 1,782 | | | | 1,292 | | | | 2,587 | | | | 2,335 | | | | 1,923 | | | | 1,311 | | | | 1,425 | |
| Net cash flows from investing activities | | | (714 | ) | | | (1,165 | ) | | | (4,344 | ) | | | (3,250 | ) | | | (7,321 | ) | | | (1,551 | ) | | | (1,098 | ) |
| Net cash flows from financing activities | | | (477 | ) | | | (305 | ) | | | 866 | | | | 1,747 | | | | 5,377 | | | | (219 | ) | | | (105 | ) |
Ratio of earnings to fixed charges(4) | | | 2.0 | x | | | 2.2 | x | | | 3.0 | x | | | 2.2 | x | | | 2.1 | x | | | 1.8 | x | | | 1.9x | |
| | |
| (1) | | Reflects the acquisition of PacifiCorpThe tables set forth above do not include any financial or operating data relating to NV Energy, which we acquired on March 21, 2006.December 19, 2013. |
|
| (2) | | Reflects the $646 million after-tax gain recognized in 2008 on the termination of the Constellation Energy Group, Inc. merger agreement on December 17, 2008.agreement. |
|
| (3) | | An indirect wholly owned subsidiary of ours owned a facility in California designed to recover zinc from geothermal brine. Effective September 10, 2004, management ceased the operation of the facility, which resulted in a non-cash, after-tax impairment charge of $340 million being recorded to write off the facility’s assets, rights to quantities of extractable minerals, and allocated goodwill. The charge and related activity, including the reclassification of such activity for all periods presented, are classified separately as discontinued operations. Substantially all of the remainder of the loss from discontinued operations in 2004 reflects losses incurred from operating the facility. The income from discontinued operations in 2005 reflects the proceeds received from the sale of assets, partially offset by the disposal costs incurred, in connection with the dismantling and decommissioning of the facility. |
|
(4) | | For purposes of calculating the ratio of earnings to fixed charges, earnings are divided by fixed charges. The term earnings is the amount resulting from adding and subtracting the following items. Add the following: (a) income from continuing operations before income tax expense and equity income, (b) fixed charges and (c) distributions from equity investees. Subtract the following: (a) capitalized interest of our non-rate regulated subsidiaries and (b) the pre-tax earnings required to cover any preferred stock dividend requirements of consolidated subsidiaries, which represents preferred dividends multiplied by the ratio which pre-tax income from continuing operations bears to income from continuing operations.pre-tax income. Fixed charges represent the aggregate of (a) interest costs, (b) amortization of deferred financing costs and unamortized discounts or premiums relating to any indebtedness, (c) estimated interest portion of rental payments and (d) pre-tax earnings required to cover any preferred stock dividend requirements of consolidated subsidiaries. |
38
DESCRIPTION OF THE NOTES
The initial notesInitial Notes were, and the exchange notesExchange Notes will be, issued pursuant to a supplemental indenture to the indenture, dated as of October 4, 2002, as amended to date, between us and The Bank of New York Mellon Trust Company, N.A,N.A., as trustee. The term “indenture” when used in this prospectus will refer to the indenture as amended by all supplemental indentures executed and delivered on or prior to the date on which the notesNotes are issued and sold. The terms of the notesNotes include those stated in the indenture and those made part of the indenture by reference to the U.S. Trust Indenture Act of 1939, as amended.
On October 4, 2002, we issued $200,000,000 of our 4.625% Senior Notes due 2007 (hereafter referred to as the series A notes) and $500,000,000 of our 5.875% Senior Notes due 2012 (hereafter referred to as the series B notes);, on May 16, 2003, we issued $450,000,000 of our 3.50% Senior Notes due 2008 (hereafter referred to as the series C notes);, on February 12, 2004, we issued $250,000,000 of our 5.00% Senior Notes due 2014 (hereafter referred to as the series D notes);, on March 24, 2006, we issued $1,700,000,000 of our 6.125% Senior Bonds due 2036 (hereafter referred to as the series E bonds);, on May 11, 2007, we issued $550,000,000 of our 5.95% Senior Bonds due 2037 (hereafter referred to as the series F bonds);, on August 28, 2007, we issued $1,000,000,000 of our 6.50% Senior Bonds due 2037 (hereafter referred to as the series G bonds), and on March 28, 2008, we issued $650,000,000 of our 5.75% Senior Notes due 2018 (hereafter referred to as the series H notes), and on July 7, 2009, we issued $250,000,000 of our 3.15% Senior Notes due 2012 (hereafter referred to as the series I notes), in each case pursuant to the indenture. The series A notes, the series B notes, the series C notes and the series CI notes have been repaid in full. Unless otherwise indicated, references hereafter to the securities“securities” in this prospectus include the series B notes, the series D notes, the series E bonds, the series F bonds, the series G bonds, the series H notes and the notesNotes (and any other series of notes bonds or other securities hereafter issued and outstanding under a supplemental indenture or otherwise pursuant to the indenture), except that any references to “securities” in this prospectus to the extent related to a determination of whether a “Change of Control” has occurred (and the related definitions), refer only to the notes andseries of securities issued under the indenture other than the series E bonds, the series F bonds, the series G bonds and the series HD notes. The principal difference between the Change of Control provisions for the notes and the series E, F and G bonds and the series HD notes and the comparable provisions for all other series of securities issued under the indenture relates to the definition of the applicable “Rating Decline.”
The following description is a summary of the material provisions of the indenture and the related registration rights agreement. It does not restate those agreements in their entirety. We urge you to read the indenture and the registration rights agreement because they, and not this description, define your rights as a holder of the notes.Notes. The definitions of certain capitalized terms used in the following summary are set forth below under “—Definitions.”
The indenture does not limit the aggregate principal amount of the debt securities that may be issued thereunder and provides that debt securities may be issued from time to time in one or more series.
The initial notes2017 Initial Notes were initially offered in the aggregate principal amount of $250,000,000.$400,000,000, the 2018 Initial Notes were initially offered in the aggregate principal amount of $350,000,000, the 2023 Initial Notes were initially offered in the aggregate principal amount of $500,000,000 and the 2043 Initial Notes were initially offered in the aggregate principal amount of $750,000,000. We may, without the consent of the holders, increase such principal amount in the future on the same terms and conditions (except for the issue date and issue price)offering price and, if applicable, the initial interest payment date and the initial interest accrual date) and with the same CUSIP number(s) as the notes.
Notes.The initial notes were,2017 Initial Notes bear, and the exchange notes will be, issued in one series,2017 Exchange Notes will bear, interest at the rate of 3.15%1.100% per annum and will mature on JulyMay 15, 2012.2017. The 2018 Initial Notes bear, and the 2018 Exchange Notes will bear, interest at the rate of 2.000% per annum and will mature on November 15, 2018. The 2023 Initial Notes bear, and the 2023 Exchange Notes will bear, interest at the rate of 3.750% per annum and will mature on November 15,
2023. The 2043 Initial Notes bear, and the 2043 Exchange Notes will bear, interest at the rate of 5.150% per annum and will mature on November 15, 2043. Interest on the notes iseach series of Notes will be payable semi-annually in arrears on each JanuaryMay 15 and JulyNovember 15, commencing JanuaryMay 15, 2010,2014, to the holders thereof at the close of business on the preceding JanuaryMay 1 and JulyNovember 1, respectively.respectively (whether or not a business day). Interest on each series of the notesNotes will be computed on the basis of a360-day year of twelve30-day months.
The initial notesEach series of Initial Notes were, and the exchange noteseach series of Exchange Notes will be, issued without coupons and in fully registered form only in denominations of $2,000 and any integral multiple of $1,000 in excess thereof.
MEHC filesWe file certain reports and other information with the SEC in accordance with the requirements of Sections 13 and 15(d) under the Exchange Act. See “Where You Can Find More Information.” In addition, atAt any time that Sections 13 and 15(d) cease to apply to MEHC,us, we will covenant, and have covenanted in the indenture to file comparable reports and information with the trustee and the SEC, and mail such reports and
39
information to holders of securities at their registered addresses, for so long as any securities remain outstanding.
If (i) thea registration statement of which this prospectus is a part is not declared effective by the SEC within 365 days after the closing date of the offering of the initial notes,Initial Notes, (ii) a shelf registration statement with respect to the resale of the notesNotes which is required under the registration rights agreement is not declared effective by the SEC before the later ofwithin 150 days after the date our obligation to file such shelf registration statement arises or(but in any event not prior to 365 days after the closing date forof the initial notesoffering of the Initial Notes) or (iii) any of the foregoing registration statements (or the prospectuses related thereto) after being declared effective by the SEC cease to be so effective or usable (subject to certain exceptions) in connection with certain resales of the initial notesInitial Notes or exchange notesExchange Notes for the periods specified and in accordance with the registration rights agreement, the interest rate on the notesNotes that are then subject to such cessation or other registration default and qualify as Transfer Restricted Securities will increase by 0.5%0.50% from and including the date on which any such event occurs until no later than July 7, 2011.such event ceases to be continuing. The exchange offer,Exchange Offer and the registration rights and additional interest provisions are more fully described under “The Exchange Offer.”
Any initial notesInitial Notes that remain outstanding after the consummation of the exchange offer,Exchange Offer, together with all exchange notesExchange Notes issued in connection with the exchange offer,Exchange Offer, will be treated as a single class of securities under the indenture.
General
The notes2017 Initial Notes are, and the 2017 Exchange Notes will be, redeemable, in whole or in part, at our option, at any time or from time to time prior to May 15, 2017, at a redemption price equal to the greater of:
| | |
| (1) | 100% of the principal amount of the notes being redeemed; or |
|
| (2) | the sum of the present values of the remaining scheduled payments of principal of and interest on the notes being redeemed discounted to the date of redemption on a semiannual basis (assuming a360-day year consisting of twelve30-day months) at a discount rate equal to the Treasury Yield plus 30 basis points, |
plus, for (1) or (2) above, whichever is applicable, accrued interest on such notes to the date of redemption.
Notice of redemption shall be given not less than 30 days nor more than 60 days prior to the date of redemption. If fewer than all of the notes are to be redeemed, the selection of the notes for redemption will be made by the trustee pro rata among all outstanding notes.
Unless we default in payment of the Redemption Price (as defined below), from and after the date of redemption the notes or portions of notes called for redemption will cease to bear interest, and the holders of those notes will have no right in respect of those notes except the right to receive the applicable Redemption Price.
Optional Redemption Provisions
Under the procedures described above, the price payable upon the optional redemption at any time of a note (or the Redemption Price) is determined by calculating the present value (or the Present Value) at such time of each remaining payment of principal of or interest on such note and then totaling those Present Values. If the sum of
those Present Values is equal to or less than(a) the greater of (i) 100% of the principal amount of
such note, the
Redemption Price of such note will be 100% of its principal amount (redemption at par). If2017 Initial Notes and 2017 Exchange Notes being redeemed and (ii) the sum of
those Present Values isthe present values of the remaining scheduled payments of principal and interest thereon from the redemption date to the maturity date (not including any portion of such payments of interest accrued to the redemption date), computed by discounting such payments, in each case to, but not including, the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 10 basis points (the “2017 Make-Whole Amount”), plus (b) accrued interest on the principal amount thereof to, but not including, the redemption date.The 2018 Initial Notes are, and the 2018 Exchange Notes will be, redeemable, in whole or in part, at our option, at any time or from time to time prior to October 15, 2018, at a redemption price equal to the sum of (a) the greater thanof (i) 100% of the principal amount of such note, the Redemption Price2018 Initial Notes and 2018 Exchange Notes being redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon from the redemption date to the maturity date (not including any portion of such note will bepayments of interest accrued to the redemption date), computed by discounting such greaterpayments, in each case to, but not including, the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 10 basis points (the “2018 Make-Whole Amount”), plus (b) accrued interest on the principal amount (redemptionthereof to, but not including, the redemption date.
On and after October 15, 2018, we may redeem all or any part of the 2018 Initial Notes and the 2018 Exchange Notes, at a premium). In no event may a note be redeemed optionally at less than 100% of its principal amount.
The Present Valueour option, at any time
or from time to time, at a redemption price equal to 100% of
a paymentthe principal amount of
principal ofthe 2018 Initial Notes and the 2018 Exchange Notes to be redeemed, plus any accrued and unpaid interest thereon to, but not including, the redemption date.The 2023 Initial Notes are, and the 2023 Exchange Notes will be, redeemable, in whole or interest on a note is calculated by applying to such payment the discount rate (or the Discount Rate) applicable to such payment. The Discount Rate
40
applicablein part, at our option, at any time
or from time to
paymenttime prior to August 15, 2023, at a redemption price equal to the sum of (a) the greater of (i) 100% of the principal amount of the 2023 Initial Notes and 2023 Exchange Notes being redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal
and interest thereon from the redemption date to the maturity date (not including any portion of
orsuch payments of interest accrued to the redemption date), computed by discounting such payments, in each case to, but not including, the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 20 basis points (the “2023 Make-Whole Amount”), plus (b) accrued interest on
the principal amount thereof to, but not including, the redemption date.On and after August 15, 2023, we may redeem all or any part of the 2023 Initial Notes and the 2023 Exchange Notes, at our option, at any time or from time to time, at a note equalsredemption price equal to 100% of the equivalent yieldprincipal amount of the 2023 Initial Notes and 2023 Exchange Notes to be redeemed, plus any accrued and unpaid interest thereon to, but not including, the redemption date.
The 2043 Initial Notes are, and the 2043 Exchange Notes will be, redeemable, in whole or in part, at our option, at any time or from time to time prior to May 15, 2043, at a redemption price equal to the sum of (a) the greater of (i) 100% of the principal amount of the 2043 Initial Notes and 2043 Exchange Notes being redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon from the redemption date to the maturity date (not including any portion of such payments of interest accrued to the redemption date), computed by discounting such payments, in each case to, but not including, the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at suchthe Treasury Rate plus 25 basis points (the “2043 Make-Whole Amount”), plus (b) accrued interest on the principal amount thereof to, but not including, the redemption date.
On and after May 15, 2043, we may redeem all or any part of the 2043 Initial Notes and the 2043 Exchange Notes, at our option, at any time or from time to time, at a redemption price equal to 100% of the principal amount of the 2043 Initial Notes and 2043 Exchange Notes to be redeemed, plus any accrued and unpaid interest thereon to, but not including, the redemption date.
For purposes of determining the 2017 Make-Whole Amount, the 2018 Make-Whole Amount, the 2023 Make-Whole Amount and the 2043 Make-Whole Amount, the following definitions apply:
“Comparable Treasury Issue” means, with respect to a fixed rate U.S. treasuryseries of Notes, the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the maturityremaining term of the Notes of such payment plus 30 basis points, such yield being calculated on the basis of the interest rate borne by such U.S. treasury security and the price at such time of such security. The U.S. treasury security employed in the calculation of a Discount Rate (or a Relevant Security) as well as the price and equivalent yield to maturity of such Relevant Security will be selected or determined by an Independent Investment Banker.
Whether the sum of the Present Values of the remaining payments of principal of and interest on a noteseries to be redeemed
optionally will or will not exceed 100%that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of such Notes.“Comparable Treasury Price” means, with respect to any redemption date, the Reference Treasury Dealer Quotation for such redemption date.
“Independent Investment Banker” means an investment banking institution of international standing appointed by us.
“Reference Treasury Dealer” means a primary U.S. government securities dealer in New York City appointed by us.
“Reference Treasury Dealer Quotation” means, with respect to the Reference Treasury Dealer and any redemption date, the average, as determined by us, of the bid and asked prices for the applicable Comparable Treasury Issue (expressed in each case as a percentage of its principal amount and accordingly, whetherquoted in writing to us by such note will be redeemedReference Treasury Dealer at par or at a premium will depend5:00 p.m. on the Discount Rate usedthird business day in New York City preceding such redemption date).
“Treasury Rate” means the rate per annum equal to calculate such Present Values. Such Discount Rate, in turn, will depend upon the semi-annual equivalent or interpolated (on a daycount basis) yield to maturity of the applicable Comparable Treasury Issue, assuming a Relevant Security, which yield will itself depend onprice for such Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the interest rate borne by, andapplicable Comparable Treasury Price for that redemption date.
Notice of any redemption is required to be mailed at least 30 days but not more than 60 days before the priceredemption date to each registered holder of Notes to be redeemed.
If less than all of the Relevant Security. While the interest rate borne by the Relevant Security is fixed, the price of the Relevant Security tends to vary with interest rate levels prevailing from time to time. In general, if at a particular time the prevailing level of interest rates for a newly issued U.S. treasury security having a maturity comparable to thatNotes of a Relevant Security is higher than the level of interest rates for newly issued U.S. treasury securities having a maturity comparable to such Relevant Security prevailing at the time the Relevant Security was issued, the price of the Relevant Security will be lower than its issue price. Conversely, if at a particular time the prevailing level of interest rates for a newly issued U.S. treasury security having a maturity comparable to that of a Relevant Security is lower than the level of interest rates prevailing for newly issued U.S. treasury securities having a maturity comparable to the Relevant Security at the time the Relevant Security was issued, the price of the Relevant Security will be higher than its issue price.
Because the equivalent yield to maturity on a Relevant Security depends on the interest rate it bears and its price, an increase or a decrease in the level of interest rates for newly issued U.S. treasury securities with a maturity comparable to that of a Relevant Security above or below the levels of interest rates for newly issued U.S. treasury securities having a maturity comparable to the Relevant Security prevailing at the time of issue of the Relevant Security will generally result in an increase or a decrease, respectively, in the Discount Rate used to determine the Present Value of a payment of principal of or interest on a note. An increase or a decrease in the Discount Rate, and therefore an increase or a decrease in the levels of interest rates for newly issued U.S. treasury securities having a maturity comparable to the Relevant Security, will result in a decrease or an increase, respectively, of the Present Value of a payment of principal of or interest on a note. In other words, the Redemption Price varies inversely with the levels of interest rates for newly issued U.S. treasury securities having a maturity comparable to the Comparable Treasury Issue. As noted above, however, if the sum of the Present Values of the remaining payments of principal of and interest on a note proposedseries are to be redeemed at any time, selection of the Notes of a series for redemption is less than its principal amount,required to be made by the trustee by such note may only be redeemed at par.
method as the Notes trustee deems fair and appropriate.Upon the payment of the redemption price, plus any accrued and unpaid interest, if any, to the date of redemption, interest will cease to accrue on and after the applicable redemption date on the Notes or such series or portions thereof called for redemption.
No Sinking Fund
The notesNo series of the Notes will not be subject to any mandatory sinking fund.
The notesEach series of the Notes are our general, unsecured senior obligations of MEHC and will rankpari passuin right of payment with all of our other existing and future senior unsecured obligations of MEHC (including the series BD notes, series D notes,the series E bonds, the series F bonds, the series G bonds and the series H notes) and senior in right of payment to all of our existing and future subordinated obligations of MEHC.obligations. The notesNotes will be effectively subordinated to all of our existing and future secured obligations of MEHC and to all existing and future obligations of MEHC’sour Subsidiaries. At JuneAs of September 30, 2009, MEHC’s2013, our outstanding senior indebtedness was $5.121approximately $4.6 billion, which does not include the $2.0 billion of Initial Notes. This amount excludes (i) our commitments to provide equity contributions in support of the construction of certain solar projects, totaling $3.0 billion as of September 30, 2013, and MEHC’s outstanding subordinated indebtedness, which consists of MEHC’s trust preferred securities, was $756 million. These amounts exclude MEHC’s(ii) our guarantees and letters of credit in respect of Subsidiaryour Subsidiaries and equity investment indebtednessmethod investments, aggregating $91approximately $229 million as of JuneSeptember 30, 2009. MEHC’s2013. Our Subsidiaries also have significant amounts of indebtedness. At JuneAs of September 30, 2009, MEHC’s2013, our consolidated Subsidiaries had outstanding indebtedness totaling $14.037 billion. This amount does not includeapproximately $18.2 billion, excluding (i) any trade debt, (ii) preferred stock obligations, of MEHC’s Subsidiaries, (iii) MEHC’sour Subsidiaries’ letters of credit in respect of their
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indebtedness, or (iv) MEHC’sour share of the outstanding indebtedness of its and itsour own or our Subsidiaries’ equity method investments.
In addition, upon completion of the NV Energy Transaction on December 19, 2013, we acquired subsidiaries that had outstanding debt of $4.921 billion as of September 30, 2013.Covenants
Except as set forth under “—Defeasance and Discharge — Discharge—Covenant Defeasance” below, for so long as any securities remain outstanding, we will comply with the terms of the covenants set forth below.
MEHCWe will not be permitted to pledge, mortgage, hypothecate or permit to exist any pledge, mortgage or other Lien upon any property or assets at any time directly owned by MEHCus to secure any indebtedness for money
borrowed which is incurred, issued, assumed or guaranteed by MEHC (or us (“Indebtedness for Borrowed Money)Money”), without making effective provisions whereby the outstanding securities will be equally and ratably secured with any and all such Indebtedness for Borrowed Money and with any other Indebtedness for Borrowed Money similarly entitled to be equally and ratably secured; provided, however, that this restriction will not apply to or prevent the creation or existence of:
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| | (1) | any Liens existing prior to the issuance of the securities; |
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| | (2) | purchase money Liens thatwhich do not exceed the cost or value of the purchased property or assets; |
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| | (3) | any Liens not to exceed 10% of Consolidated Net Tangible Assets; and |
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| | (4) | any Liens on property or assets granted in connection with extending, renewing, replacing or refinancing in whole or in part the Indebtedness for Borrowed Money (including, without limitation, increasing the principal amount of such Indebtedness for Borrowed Money) secured by Liens described in the foregoing clauses (1) through (3), provided that the Liens in connection with any such extension, renewal, replacement or refinancing will be limited to the specific property or assets that was subject to the original Lien. |
In the event that MEHC proposeswe propose to pledge, mortgage or hypothecate or permit to exist any pledge, mortgage or other Lien upon any property or assets at any time directly owned by itus to secure any Indebtedness for Borrowed Money, other than as permitted by clauses (1) through (4) of the previous paragraph, MEHC willwe are required to give prior written notice thereof to the trustee and MEHC will,we are required, prior to or simultaneously with such pledge, mortgage or hypothecation, to secure effectively secure all the securities equally and ratably with such Indebtedness for Borrowed Money.
The foregoing covenant will not restrict the ability of our Subsidiaries and affiliates to pledge, mortgage, hypothecate or permit to exist any mortgage, pledge or Lien upon their property or assets, in connection with project financings or otherwise.
Consolidation, Merger, Conveyance, Sale or Lease
So long as any securities are outstanding, MEHC iswe will not be permitted to consolidate with or merge with or into any other person, or convey, transfer or lease itsour consolidated properties and assets substantially as an entirety to any person, or permit any person to merge into or consolidate with MEHC,us, unless (1) MEHC iswe are the surviving or continuing corporation or the surviving or continuing corporation or purchaser or lessee is a corporation incorporated under the laws of the U.S.,United States, one of the states thereof or the District of Columbia or Canada and assumes MEHC’sour obligations under the securities and under the indenture and (2) immediately before and after such transaction, no event of default under the indenture shall have occurred and be continuing.
Except for a sale of theour consolidated properties and assets of MEHC substantially as an entirety as provided above, and other than properties or assets required to be sold to conform with laws or governmental regulations, MEHC iswe will not be permitted, directly or indirectly, to sell or otherwise dispose of any of itsour consolidated properties or assets (other than short-term, readily marketable investments purchased for cash management purposes with funds not representing the proceeds of other asset sales) if on a pro forma basis,
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the aggregate net book value of all such sales during the most recent12-month period would exceed 10% of Consolidated Net Tangible Assets computed as of the end of the most recent quarter preceding such sale; provided, however, that (1) any such sales shall be disregarded for purposes of this 10% limitation if the net proceeds are invested in properties or assets in similar or related lines of business of MEHCus and itsour Subsidiaries, including, without limitation, any of the lines of business in which MEHCwe or any of itsour Subsidiaries isare engaged on the date of such sale or disposition, and (2) MEHCwe may sell or otherwise dispose of consolidated properties and assets in excess of such 10% limitation if the net proceeds from such sales or dispositions, which are not reinvested as provided above, are retained by MEHCus as cash or Cash Equivalents or used to retire its Indebtedness for Borrowed Money of us (other than Indebtedness for Borrowed Money which is subordinated to the securities) and that of itsour Subsidiaries.
The covenant described immediately above includes a phrase relating to a conveyance, transfer or lease of our consolidated properties and assets “substantially as an entirety.” Although there is a limited body of case law interpreting the phrase “substantially as an entirety,” there is no precise established definition of the phrase under applicable law. Accordingly, the nature and extent of the restriction on our ability to convey, transfer or lease our consolidated properties or assets substantially as an entirety, and the protections provided to the holders of securities by such restriction, may be uncertain.
Purchase of Securities Upon a Change of Control
Upon the occurrence of a Change of Control, each holder of the securities will have the right to require that we repurchase all or any part of such holder’s securities at a purchase price in cash equal to 101% of the principal thereof on the date of purchase plus any accrued interest, if any, to the date of purchase.
The Change of Control provisions may not be waived by the trustee or by our board of directors, and any modification thereof must be approved by each holder. Nevertheless, the Change of Control provisions will not necessarily afford protection to holders, including protection against an adverse effect on the value of the securities of any series, including the notes,Notes of each series, in the event that we or our Subsidiaries incur additional Debt, whether through recapitalizations or otherwise.
Within 30 days following a Change of Control, we will mail a notice to each holder of the securities with a copy to the trustee, stating the following:
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| | (1) | that a Change of Control has occurred and that such holder has the right to require us to purchase such holder’s securities at the purchase price described above, (or the Changein principal amounts of $2,000 and integral multiples of $1,000 in excess thereof (the “Change of Control Offer);Offer”), provided that any unpurchased portion of a note must be in a principal amount equal to $2,000 or an integral of $1,000 in excess thereof; |
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| | (2) | the circumstances and relevant facts regarding such Change of Control (including information with respect to pro forma historical income, cash flow and capitalization after giving effect to such Change of Control); |
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| | (3) | the purchase date (which will not be not earlier than 30 days nor later than 60 days from the date such notice is mailed) (or the Purchase Date)(the “Purchase Date”); |
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| | (4) | that after the Purchase Date interest on such security will continue to accrue (except as provided in clause (5)); |
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| | (5) | that any security properly tendered pursuant to the Change of Control Offer will cease to accrue interest after the Purchase Date (assuming sufficient moneys for the purchase thereof are deposited with the trustee); |
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| | (6) | that holders electing to have a security purchased pursuant to a Change of Control Offer will be required to surrender the security, with the form entitled “Option of Holder To Elect Purchase” on the reverse of the security completed, to the paying agent at the address specified in the notice prior to the close of business on the fifth business day prior to the Purchase Date; |
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| | (7) | that a holder will be entitled to withdraw such holder’s election if the paying agent receives, not later than the close of business on the third business day (or such shorter periods as may be required by applicable law) preceding the Purchase Date, a telegram, telex, facsimile transmission or letter setting |
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| | forth the name of the holder, the principal amount of securities the holder delivered for purchase, and a statement that such holder is withdrawing his election to have such securities of such series purchased; and |
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| | (8) | that holders that elect to have their securities purchased only in part will be issued new securities having a principal amount equal to the portion of the securities that were surrendered but not tendered and purchased. |
On the Purchase Date, we will be required to (1) accept for payment all securities or portions thereof tendered pursuant to the Change of Control Offer, (2) deposit with the trustee money sufficient to pay the purchase price of all securities or portions thereof so tendered for purchase and (3) deliver or cause to be delivered to the trustee the securities properly tendered together with an officer’s certificate identifying the securities or portions thereof tendered to us for purchase. The trustee will promptly mail, to the holders of the securities properly tendered and purchased, payment in an amount equal to the purchase price, and promptly authenticate and mail to each holder a new security having a principal amount equal to any portion of such holder’s securities that were surrendered but not tendered and purchased. We will publicly announce the results of the Change of Control Offer on or as soon as practicable after the Purchase Date.
If we are prohibited by applicable law from making the Change of Control Offer or purchasing securities of any series, including the notes,Notes of each series, thereunder, we need not make a Change of Control Offer pursuant to this covenant for so long as such prohibition is in effect.
We will be required to comply with all applicable tender offer rules, including, without limitation,Rule 14e-1 under the Exchange Act, in connection with a Change of Control Offer.
An event of default with respect to the securities of any series, including the notes, will beNotes of each series, is defined in the indenture as being any one of the following events:
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| | (1) | default as to the payment of principal of, or premium, if any, on any security of that series or as to any payment required in connection with a Change of Control; |
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| | (2) | default as to the payment of interest on any security of that series for 30 days after payment is due; |
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| | (3) | failure to make a Change of Control Offer required under the covenants described under “Purchase of Securities Upon a Change of Control” above or a failure to purchase the securities of that series tendered in respect of such Change of Control Offer; |
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| | (4) | default by us in the performance, or breach, of any covenant, agreementof our covenants, agreements or warrantywarranties contained in the indenture and the securities of that series and such failure continues for 30 days after written notice is given to us by the trustee or to us and the trustee by the holders of at least a majority in aggregate principal amount outstanding of the securities of that series, as provided in the indenture; |
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| | (5) | default on any other Debt of MEHCours or any Significant Subsidiary (other than Debt that is Non-RecourseNon- Recourse to MEHC)us) if either (x) such default results from failure to pay principal of such Debt in excess of $100 million when due after any applicable grace period or (y) as a result of such default, the maturity of such Debt has been accelerated prior to its scheduled maturity and such default has not been cured within the applicable grace period, and such acceleration has not been rescinded, and the principal amount of such Debt, together with the principal amount of any other Debt of MEHCours and itsour Significant Subsidiaries (not including Debt that is Non-Recourse to MEHC)us) that is in default as to principal, or the maturity of which has been accelerated, aggregates $100 million or more; |
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| | (6) | the entry by a court of one or more judgments or orders against MEHCus or any Significant Subsidiary for the payment of money that in the aggregate exceeds $100 million (excluding (i) the amount thereof covered by insurance or by a bond written by a person other than an affiliate of MEHCours (other than, with respect to the series D notes, the series E, the series F, orthe series G bonds, the series H notes and the notes,Notes, Berkshire Hathaway or any of its affiliates that provide commercial insurance in the ordinary course |
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| | of their business) and (ii) judgments that are Non-Recourse to MEHC)us), which judgments or orders have not been vacated, discharged or satisfied or stayed pending appeal within 60 days from the entry thereof, provided that such a judgment or order will not be an event of default if such judgment or order does not require any payment by MEHC;us; and |
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| | (7) | certain events involving bankruptcy, insolvency or reorganization of MEHCus or any of itsour Significant Subsidiaries. |
The indenture provides that the trustee may withhold notice to the holders of any default (except in payment of principal of, premium, if any, or interest on any series of securities and any payment required in connection with a Change of Control) if the trustee considers it in the interest of holders to do so.
The indenture provides that if an event of default with respect to the securities of any series at the time outstanding, including the notesNotes of each series (other than an event of bankruptcy, insolvency or reorganization of MEHCus or a Significant Subsidiary) has occurred and is continuing, either the trustee or (i) in the case of any event of default described in clause (1) or (2) above, the holders of at least 33% in aggregate principal amount of the securities of that series then outstanding, or (ii) in the case of any other event of default, the holders of at least a majority in aggregate principal amount of the securities of that series then outstanding, may declare the principal of and any accrued interest on all securities of that series to be due and payable immediately, but upon certain conditions such declaration may be annulled and past defaults (except, unless theretofore cured, a default in payment of principal of, premium, if any, or interest on the securities of that series or any payment required in connection with a Change of Control) may be waived by the holders of a majority in principal amount of the securities of that series then outstanding. If an event of default due to the bankruptcy, insolvency or reorganization of MEHCus or a Significant Subsidiary occurs, the indenture provides that the entire principal amount of and any interest accrued on all securities will become immediately due and payable without any action by the trustee, the holders of securities or any other person.
The holders of a majority in principal amount of the securities of any series then outstanding, including the notes,Notes of each series, will have the right to direct the time, method and place of conducting any proceeding for any remedy available to the trustee under the indenture with respect to the securities of such series, subject to certain limitations specified in the indenture, provided that the holders of securities of such series must have offered to the trustee reasonable indemnity against expenses and liabilities.
The indenture requires the annual filing by MEHCus with the trustee of a written statement as to itsour knowledge of the existence of any default in the performance and observance of any of the covenants contained in the indenture.
Modification of the Indenture
The indenture contains provisions permitting us and the trustee, with the consent of the holders of not less than a majority in principal amount of the outstanding securities of each series affected by the modification, including the notes,Notes, to modify the indenture or the rights of the holders of such series, except that no such modification may (1) extend the stated maturity of the principal of or any installment of interest on the securities, reduce the principal amount thereof or the interest rate thereon, reduce any premium payable on redemption or purchase thereof, impair the right of any holder to institute suit for the enforcement of any such payment on or after the stated maturity thereof or make any change in the covenants regarding a Change of Control or the related definitions without the consent of the holder of each outstanding security so affected, or (2) reduce the percentage of any series of securities, the consent of the holders of which is required for any such modification, without the consent of the holders of all series of securities then outstanding.
The indenture provides that we will be deemed to have paid and will be discharged from any and all obligations in respect of the notesNotes of each series or any other series of securities issued thereunder on the 123rd day after the deposit referred to below has been made (or immediately if an opinion of counsel is delivered to the effect
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effect described in clause (B)(3)(y) below), and the provisions of the indenture will cease to be applicable with respect to the securities of such series (except for, among other matters, certain obligations to register the transfer or exchange of the securities of such series, to replace stolen, lost or mutilated securities of such series, to maintain paying agents and to hold monies for payment in trust) if, among other things:
(A) We have deposited with the trustee, in trust, money and/or U.S. Government Obligations that through the payment of interest and principal in respect thereof in accordance with their terms will provide money in an amount sufficient to pay the principal of, premium, if any, and accrued and unpaid interest on the applicable securities, on the respective stated maturities of the securities or, if we make arrangements satisfactory to the trustee for the redemption of the securities prior to their stated maturity, on any earlier redemption date in accordance with the terms of the indenture and the applicable securities;
(B) We have delivered to the trustee:
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| (A) | we have deposited with the trustee, in trust, moneyand/or U.S. Government Obligations that through the payment of interest and principal in respect thereof in accordance with their terms will provide money in an amount sufficient to pay the principal of, premium, if any, and accrued and unpaid interest on the applicable securities, on the respective stated maturities of the securities or, if we make arrangements satisfactory to the trustee for the redemption of the securities prior to their stated maturity, on any earlier redemption date in accordance with the terms of the indenture and the applicable securities; |
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| (B) | we have delivered to the trustee: |
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| | (1) | either (x) an opinion of counsel to the effect that holders of securities of such series will not recognize income, gain or loss for U.S. federal income tax purposes as a result of such deposit, defeasance and discharge and will be subject to U.S. federal income tax on the same amount and in the same manner and at the same times as would have been the case if such deposit, defeasance and discharge had not occurred and we had paid or redeemed such securities on the applicable stated maturity dates, which opinion of counsel must be based upon a ruling of the IRSU.S. Internal Revenue Service (the “IRS”) to the same effect or a change in applicable U.S. federal income tax law or related Treasury regulations after the date of the indenture, or (y) a ruling directed to the trustee or uswe received from the IRS to the same effect as the aforementioned opinion of counsel; |
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| | (2) | an opinion of counsel to the effect that the creation of the defeasance trust does not violate the U.S. Investment Company Act of 1940; and |
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| | (3) | an opinion of counsel to the effect that either (x) after the passage of 123 days following the deposit referred to in clause (A) above, the trust fund will not be subject to the effect of Section 547 or 548 of the U.S. Bankruptcy Code or Section 15 of the New York Debtor and Creditor Law or (y) based upon existing precedents, if the matter were properly briefed, a court should hold that the deposit of moneysand/or U.S. Government Obligations as provided in clause (A) above would not constitute a preference voidable under Section 547 or 548 of the U.S. Bankruptcy Code or Section 15 of the New York Debtor and Creditor Law; |
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| (C) | if at such time the securities are listed on a national securities exchange, we have delivered to the trustee an opinion of counsel to the effect that the securities will not be delisted as a result of such deposit, defeasance and discharge; and |
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| (D) | immediately after giving effect to such deposit referred to in clause (A) above on a pro forma basis, no event of default under the indenture, or event that after the giving of notice or lapse of time or both would become an event of default, will have occurred and be continuing on the date of such deposit or (unless an opinion of counsel is delivered to the effect described in clause (B)(3)(y) above) during the period ending on the 123rd day after the date of such deposit, and such deposit and discharge will not result in a breach or violation of, or constitute a default under, any other material agreement or instrument to which MEHC is a party or by which it is bound. |
(C) if at such time the securities are listed on a national securities exchange, we have delivered to the trustee an opinion of counsel to the effect that the securities will not be delisted as a result of such deposit, defeasance and discharge; and
(D) immediately after giving effect to such deposit referred to in clause (A) above on a pro forma basis, no event of default under the indenture, or event that after the giving of notice or lapse of time or both would become an event of default, will have occurred and be continuing on the date of such deposit or (unless an opinion of counsel is delivered to the effect described in clause (B)(3)(y) above) during the period ending on the 123rd day after the date of such deposit, and such deposit and discharge will not result in a breach or violation of, or constitute a default under, any other material agreement or instrument to which we are a party or by which we are bound.
Covenant Defeasance
The indenture further provides that the provisions of the covenants described herein under “— Covenants — “Covenants—Restrictions on Liens,” “—Consolidation, Merger, Conveyance, Sale or Lease” and “— Purchase“Purchase of Securities Upon a Change of Control,” clauses (3) and (4) under “Events of Default” with respect to such covenants, clause (2) under “Events of Default” with respect to offers to purchase upon a Change of Control as described above
and clauses (5) and (6) under “Events of Default” will cease to be applicable to us and our Subsidiaries upon the satisfaction of the provisions described in clauses (A), (B), (C) and (D) of the preceding paragraph; provided, however, that with respect to such covenant defeasance, the opinion of counsel described
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in clause (B)(1)(x) above need not be based upon any ruling of the IRS or change in applicable U.S. federal income tax law or related Treasury regulations.
Defeasance and Certain Other Events of Default
If we exercise our option to omit compliance with certain covenants and provisions of the indenture with respect to the securities of any series, including the notes,Notes of each series, as described in the immediately preceding paragraph and any series of securities is declared due and payable because of the occurrence of an event of default that remains applicable, the amount of moneyand/or U.S. Government Obligations on deposit with the trustee will be sufficient to pay amounts due on such securities at the time of their stated maturity or scheduled redemption, but may not be sufficient to pay amounts due on such securities at the time of acceleration resulting from such event of default. MEHCWe will remain liable for such payments.
The indenture and the securities will be governed by, and construed in accordance with, the law of the State of New York, includingSection 5-1401 of the New York General Obligations Law, but otherwise without regard to conflict of laws rules.
The Bank of New York Mellon Trust Company, N.A. is the trustee under the indenture. The Bank of New York Mellon Trust Company, N.A. (or one of its affiliates) currently serves, and may in the future serve, as trustee under indentures evidencing other indebtedness of MEHCours and itsour affiliates. The Bank of New York Mellon Trust Company, N.A. (or one of its affiliates) is also, and may in the future be, a lender under credit facilities for MEHCus and itsour affiliates.
The trustee will be under no obligation to exercise any of the rights or powers vested in it by the indenture at the request or direction of any of the holders pursuant to the indenture, unless such holders have offered to the trustee security or indemnity satisfactory to the trustee against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction.Definitions
Set forth below is a summary of certain of the defined terms used in the covenants and other provisions of the indenture. Reference is made to the indenture for the full definitions of all such terms as well as any other capitalized terms used herein for which no definition is provided.
“Attributable Value” means, as to a Capitalized Lease Obligation under which any person is at the time liable and at any date as of which the amount thereof is to be determined, the capitalized amount thereof that would appear on the face of a balance sheet of such person in accordance with GAAP.
“Berkshire Hathaway” means Berkshire Hathaway Inc. and any Subsidiary of Berkshire Hathaway Inc.
“Capital Stock” means, with respect to any person, any and all shares, interests, participations or other equivalents (however designated, whether voting or non-voting) in, or interests (however designated) in, the equity of such person that is outstanding or issued on or after the date of the indenture, including, without limitation, all common stock and preferred stock and partnership and joint venture interests in such person.
“Capitalized Lease” means, as applied to any person, any lease of any property of which the discounted present value of the rental obligations of such person as lessee, in conformity with GAAP, is required to be capitalized on the balance sheet of such person, and “Capitalized Lease Obligation” means the rental obligations, as aforesaid, under any such lease.
“Cash Equivalent” means any of the following:
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| | (1) | securities issued or directly and fully guaranteed or insured by the U.S.United States or any agency or instrumentality thereof (provided(provided that the full faith and credit of the U.S. is pledged in support thereof); |
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| | (2) | time deposits and certificates of deposit of any commercial bank organized in the U.S.United States having capital and surplus in excess of $500,000,000 or any commercial bank organized under the laws of |
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| | any other country having total assets in excess of $500,000,000 with a maturity date not more than two years from the date of acquisition; |
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| | (3) | repurchase obligations with a term of not more than 30 days for underlying securities of the types described in clauses (1) or (5) of this definition that were entered into with any bank meeting the qualifications set forth in clause (2) of this definition or another financial institution of national reputation; |
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| | (4) | direct obligations issued by any state or other jurisdiction of the U.S.United States or any other country or any political subdivision or public instrumentality thereof maturing, or subject to tender at the option of the holder thereof, within 90 days after the date of acquisition thereof and, at the time of acquisition, having a rating of at least A from S&P orA-2 from Moody’s (or, if at any time neither S&P nor Moody’s may be rating such obligations, then from another nationally recognized rating service acceptable to the trustee); |
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| | (5) | commercial paper issued by (a) the parent corporation of any commercial bank organized in the U.S.United States having capital and surplus in excess of $500,000,000 or any commercial bank organized under the laws of any other country having total assets in excess of $500,000,000, and (b) others having one of the two highest ratings obtainable from either S&P or Moody’s (or, if at any time neither S&P nor Moody’s may be rating such obligations, then from another nationally recognized rating service acceptable to the trustee) and in each case maturing within one year after the date of acquisition; |
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| | (6) | overnight bank deposits and bankers’ acceptances at any commercial bank organized in the U.S.United States having capital and surplus in excess of $500,000,000 or any commercial bank organized under the laws of any other country having total assets in excess of $500,000,000; |
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| | (7) | deposits available for withdrawal on demand with any commercial bank organized in the U.S.United States having capital and surplus in excess of $500,000,000 or any commercial bank organized under the laws of any other country having total assets in excess of $500,000,000; |
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| | (8) | investments in money market funds substantially all of whose assets comprise securities of the types described in clauses (1) through (6) and (9) of this definition; and |
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| | (9) | auction rate securities or money market preferred stock having one of the two highest ratings obtainable from either S&P or Moody’s (or, if at any time neither S&P nor Moody’s may be rating such obligations, then from another nationally recognized rating service acceptable to the trustee). |
“Change of Control” means the occurrence of one or more of the following events:
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| | (1) | a transaction pursuant to which Berkshire Hathaway ceases to own, on a diluted basis, at least a majority of theour issued and outstanding common stock of MEHC;stock; or |
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| | (2) | MEHCwe or itsour Subsidiaries sell, convey, assign, transfer, lease or otherwise dispose of all or substantially all the property of MEHCours and itsour Subsidiaries taken as a whole to any person or entity other than an entity at least a majority of the issued and outstanding common stock of which is owned by Berkshire Hathaway, calculated on a diluted basis as described above; |
provided that with respect to the foregoing subparagraphs (1) and (2), a Change of Control will not be deemed to have occurred unless and until a Rating Decline has occurred as well.
“Comparable Treasury Issue” means the U.S. Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of securities of any series to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of such securities.
“Comparable Treasury Price” means, with respect to any Redemption Date, (1) the average of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) on the third business day preceding such Redemption Date, as set forth in the daily statistical release
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(or any successor release) published by the Federal Reserve Bank of New York and designated “Composite 3:30 p.m. Quotations for U.S. Government Securities” or (2) if such release (or any successor release) is not published or does not contain such prices on such business day, the Reference Treasury Dealer Quotation for such Redemption Date.
“Consolidated Net Tangible Assets” means, as of the date of any determination thereof, the total amount of all of theour assets of MEHC determined on a consolidated basis in accordance with GAAP as of such date less the sum of (a) theour consolidated current liabilities of MEHC determined in accordance with GAAP and (b) assets properly classified as Intangible Assets.
“Currency Protection Agreement” means, with respect to any person, any foreign exchange contract, currency swap agreement or other similar agreement or arrangement intended to protect such person against fluctuations in currency values to or under which such person is a party or a beneficiary on the date of the indenture or becomes a party or a beneficiary thereafter.
“Debt” means, with respect to any person, at any date of determination (without duplication):
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| | (1) | all Indebtedness for Borrowed Money of such person; |
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| | (2) | all obligations of such person evidenced by notes, bonds, securities or other similar instruments; |
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| | (3) | all obligations of such person in respect of letters of credit, bankers’ acceptances, surety, bid, operating and performance bonds, performance guarantees or other similar instruments or obligations (or reimbursement obligations with respect thereto) (except, in each case, to the extent incurred in the ordinary course of business); |
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| | (4) | all obligations of such person to pay the deferred purchase price of property or services, except Trade Payables; |
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| | (5) | the Attributable Value of all obligations of such person as lessee under Capitalized Leases; |
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| | (6) | all Debt of others secured by a Lien on any Property of such person, whether or not such Debt is assumed by such person, provided that, for purposes of determining the amount of any Debt of the type described in this clause, if recourse with respect to such Debt is limited to such Property, the amount of such Debt will be limited to the lesser of the fair market value of such Property or the amount of such Debt; |
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| | (7) | all Debt of others Guaranteed by such person to the extent such Debt is Guaranteed by such person; |
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| | (8) | all Redeemable Stock valued at the greater of its voluntary or involuntary liquidation preference plus accrued and unpaid dividends; and |
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| | (9) | to the extent not otherwise included in this definition, all net obligations of such person under Currency Protection Agreements and Interest Rate Protection Agreements. |
For purposes of determining any particular amount of Debt that is or would be outstanding, Guarantees of, or obligations with respect to letters of credit or similar instruments supporting (to the extent the foregoing constitutes Debt), Debt otherwise included in the determination of such particular amount will not be included. For purposes of determining compliance with the indenture, in the event that an item of Debt meets the criteria of more than one of the types of Debt described in the above clauses, we, in our sole discretion, will classify such item of Debt and only be required to include the amount and type of such Debt in one of such clauses.
“Guarantee” means any obligation, contingent or otherwise, of any person directly or indirectly guaranteeing any Debt of any other person and, without limiting the generality of the foregoing, any Debt obligation, direct or indirect, contingent or otherwise, of such person (1) to purchase or pay (or advance or supply funds for the purchase or payment of) such Debt of such other person (whether arising by virtue of partnership arrangements (other than solely by reason of being a general partner of a partnership), or by agreement to keep-well, to purchase assets, goods, securities or services or totake-or-pay, or to maintain
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financial statement conditions or otherwise) or (2) entered into for purposes of assuring in any other manner the obligee of such Debt of the payment thereof or to protect such obligee against loss in respect thereof (in whole or in part), provided that the term “Guarantee” will not include endorsements for collection or deposit in the ordinary course of business or the grant of a lien in connection with any Non-Recourse Debt. The term “Guarantee” used as a verb has a corresponding meaning.
“Independent Investment Banker” means an independent investment banking institution of international standing appointed by us.
“Intangible Assets” means, as of the date of determination thereof, all assets of MEHCour assets properly classified as intangible assets determined on a consolidated basis in accordance with GAAP.
“Interest Rate Protection Agreement” means, with respect to any person, any interest rate protection agreement, interest rate future agreement, interest rate option agreement, interest rate swap agreement, interest rate cap agreement, interest rate collar agreement, interest rate hedge agreement or other similar agreement or arrangement intended to protect such person against fluctuations in interest rates to or under which such person or any of its Subsidiaries is a party or a beneficiary on the date of the indenture or becomes a party or a beneficiary thereafter.
“Joint Venture” means a joint venture, partnership or other similar arrangement, whether in corporate, partnership or other legal form.
“Lien” means, with respect to any Property, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect of such Property, but will not include any partnership, joint venture, shareholder, voting trust or similar governance agreement with respect to Capital Stock in a Subsidiary or Joint Venture. For purposes of the indenture, MEHCwe will be deemed to own subject to a Lien any Property that it haswe have acquired or holdshold subject to the interest of a vendor or lessor under any conditional sale agreement, capital lease or other title retention agreement relating to such Property.
“Non-Recourse” means any Debt or other obligation (or that portion of such Debt or other obligation) that is without recourse to MEHCus or any property or assets directly owned by MEHCus (other than a pledge of the equity interests in any of itsour Subsidiaries, to the extent recourse to MEHCus under such pledge is limited to such equity interests).
“Property” of any person means all types of real, personal, tangible or mixed property owned by such person whether or not included in the most recent consolidated balance sheet of such person under GAAP.
“Rating Agencies” means (1) Standard and Poor’s, a division of McGraw Hill Financial, Inc. (“S&P&P”), and (2) Moody’s Investors Service, Inc. (“Moody’s”) or (3) if S&P or Moody’s or both do not make a rating of the securities publicly available, a nationally recognized securities rating agency or agencies, as the case may be, selected by us, which will be substituted for S&P, or Moody’s or both, as the case may be.
“Rating Decline” means the occurrence of the following on, or within 90 days after, the earlier of (1) the occurrence of a Change of Control and (2) the earlier of (x) the date of public notice of the occurrence of a Change of Control or (y) the date of the public notice of our intention to effect a Change of Control (or the Rating Date)(the “Rating Date”), which period will be extended so long as the rating of the notesNotes is under publicly announced consideration for possible downgrading by any of the Rating Agencies: the rating of such securitiesNotes by both such Rating Agencies is reduced below BBB+, in the case of S&P, and Baa1, in the case of Moody’s.
“Redeemable Stock” means any class or series of Capital Stock of any person that by its terms or otherwise is (1) required to be redeemed prior to the stated maturity of any series of the securities, (2) redeemable at the option of the holder of such class or series of Capital Stock at any time prior to the stated maturity of any series of the securities or (3) convertible into or exchangeable for Capital Stock referred to in clause (1) or (2) above or Debt having a scheduled maturity prior to the stated maturity of any series of the securities, provided that any Capital Stock that would not constitute Redeemable Stock but for provisions thereof giving holders thereof the right to require MEHCus to purchase or redeem such Capital Stock upon the occurrence of a “change of control” occurring prior to the stated maturity of any series of the securities will not constitute Redeemable Stock if the “change of control” provisions applicable to such Capital Stock are no
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more favorable to the holders of such Capital Stock than the provisions contained in the covenants described under “Purchase of Securities Upon a Change of Control” above.
“Redemption Date” means any date on which we redeem all or any portion of the securities in accordance with the terms of the indenture.
“Reference Treasury Dealer” means a primary U.S. government securities dealer in New York City appointed by us.
“Reference Treasury Dealer Quotation” means, with respect to the Reference Treasury Dealer and any Redemption Date, the average, as determined by us, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount and quoted in writing to us by such Reference Treasury Dealer at 5:00 p.m. on the third business day preceding such Redemption Date).
“Significant Subsidiary” means a “significant subsidiary” as defined inRule 1-02(w) ofRegulation S-X under the Securities Act and the Exchange Act, substituting 20 percent for 10 percent each place it appears therein. Unless the context otherwise clearly requires, any reference to a “Significant Subsidiary” is a reference to a Significant Subsidiary of MEHC.
ours.“Subsidiary” means, with respect to any person, including, without limitation, uswe and our Subsidiaries, any corporation or other entity of which such person owns, directly or indirectly, a majority of the Capital Stock or other ownership interests and has ordinary voting power to elect a majority of the board of directors or other persons performing similar functions.
“Trade Payables” means, with respect to any person, any accounts payable or any other indebtedness or monetary obligation to trade creditors incurred, created, assumed or Guaranteed by such person or any of its Subsidiaries or Joint Ventures arising in the ordinary course of business.
“Treasury Yield” means, with respect to any Redemption Date, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date.
“U.S. Government Obligations” means any security that is (1) a direct obligation of the U.S.United States for the payment of which its full faith and credit is pledged or (2) an obligation of a person controlled or supervised by and acting as an agency or instrumentality of the U.S.,United States, the payment of which is unconditionally guaranteed as a full faith and credit obligation by the U.S.,United States, that, in the case of clause (1) or (2) is not callable or redeemable at the option of the issuer thereof, and will also include any depository receipt issued by a bank or trust company as custodian with respect to any such U.S. Government Obligations or a specific payment of interest on or principal of any such U.S. Government Obligation held by such custodian for the account of the holder of a depository receipt, provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depository receipt from any amount received by the custodian in respect of the U.S. Government Obligation or the specific payment of interest on or principal of the U.S. Government Obligation evidenced by such depository receipt.
“Voting Stock” means, with respect to any person, Capital Stock of any class or kind ordinarily having the power to vote for the election of directors (or persons fulfilling similar responsibilities) of such person.
Global Notes; Book-Entry System
The initial notesInitial Notes were, and the exchange notesExchange Notes will be, issued under a book-entry system in the form of one or more global notes (or, each,(each, a Global Note)“Global Note”). Each Global Note with respect to the initial notesInitial Notes was, and each Global Note with respect to the exchange notesExchange Notes will be, deposited with, or on behalf of, a depositary, which will be The Depository Trust Company, New York, New York (or the Depositary)(the “Depositary”). The Global Notes with respect to the initial notesInitial Notes were, and the Global Notes with respect to the exchange notesExchange Notes will be, registered in the name of the Depositary or its nominee.
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The initial notesInitial Notes were not issued in certificated form and, except under the limited circumstances described below, owners of beneficial interests in the Global Notes arewill not be entitled to physical delivery of the notesNotes in certificated form. The Global Notes may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any nominee to a successor of the Depositary or a nominee of such successor.
The Depositary is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Exchange Act. The Depositary holds securities that its participants (or (“Direct Participants)Participants”) deposit with the Depositary. The Depositary also facilitates the post-trade settlement among Direct Participants of securities transactions, such as transfers and pledges, in deposited securities through electronic computerized book-entry changes in Direct Participants’ accounts, thereby eliminating the need for physical movement of securities certificates. Direct Participants include securities
brokers and dealers, banks, trust companies, clearing corporations and certain other organizations, including Euroclear Bank S.A./N.V. as operator of the Euroclear System (or Euroclear)(“Euroclear”) and Clearstream Banking, societesociété anonyme (or Clearstream)(“Clearstream”). The Depositary is a wholly ownedwholly-owned subsidiary of The Depository Trust & Clearing Corporation (or DTCC)(“DTCC”). DTCC, in turn, is owned by a number of Direct Participants and Members of the National Securities Clearing Corporation, Government Securities Clearing Corporation, MBS Clearing Corporation and Emerging Markets Clearing Corporation, also subsidiaries of DTCC, as well as by the New York Stock Exchange, Inc., the American Stock Exchange LLC and the Financial Industry Regulatory Authority,National Association of Securities Dealers, Inc. Access to the Depositary system is also available to others such as securities brokers and dealers, banks and trust companies that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (or (“Indirect Participants)Participants”). The rules applicable to the Depositary and its Direct and Indirect Participants are on file with the SEC.
Purchases of the securities under the Depositary system must be made by or through Direct Participants, which will receive a credit for the securities on the Depositary’s records. The ownership interest of each actual purchaser of each security (or (“Beneficial Owner)Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from the Depositary of their purchase, but Beneficial Owners 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 Owner entered into the transaction. Transfers of ownership interests in the 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 securities, except in the event that use of the book-entry system for the securities is discontinued.
To facilitate subsequent transfers, all notesNotes deposited by Direct Participants with the Depositary arewill be registered in the name of the Depositary’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of the Depositary. The deposit of notesNotes with the Depositary and their registration in the name of Cede & Co. or such other nominee effect no change in beneficial ownership. The Depositary has no knowledge of the actual Beneficial Owners of the notes;Notes; the Depositary’s records reflect only the identity of the Direct Participants to whose accounts such notesNotes 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 the Depositary to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners arewill be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time.
Neither the Depositary nor Cede & Co. (nor any other nominee of the Depositary) will consent or vote with respect to the notesNotes unless authorized by a Direct Participant in accordance with the Depositary’s procedures. Under its usual procedures, the Depositary mails an Omnibus Proxy to us as soon as possible after
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the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts the securities are credited on the record date (identified in a listing attached to the Omnibus Proxy).
Principal (and premium, if any) and interest payments on the notesNotes and any redemption payments arewill be made to Cede & Co. (or such other nominee as may be requested by an authorized representative of the Depositary). The Depositary’s practice is to credit Direct Participants’ accounts upon the Depositary’s receipt of funds and corresponding detail information from us or the trustee on the payable date in accordance with their respective holdings shown on the Depositary’s 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 name,” and will be the responsibility of such Participant and not of the Depositary, the trustee or us, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal (and premium, if any), interest and any redemption proceeds to Cede & Co. (or
(or such other nominee as may be requested by an authorized representative of the Depositary) is theour responsibility, of MEHC, disbursements of such payments to Direct Participants shall be the responsibility of the Depositary, and disbursement of such payments to the Beneficial Owners shall be the responsibility of Direct and Indirect Participants.
The Depositary may discontinue providing its services as securities depositary with respect to the notesNotes at any time by giving reasonable notice to us or the trustee. Under such circumstances, in the event that a successor securities depositary is not obtained, certificated notesNotes are required to be printed and delivered. We may decide to discontinue use of the system of book-entry transfers through the Depositary (or a successor securities depositary). In that event, certificated notesNotes will be printed and delivered.
The information in this section concerning the Depositary and the Depositary’s book-entry system has been obtained from sources that we believe to be reliable but has not been independently verified by us, the initial purchasers or the trustee.
Prior to the expiration of the“40-day distribution compliance period” (within the meaning of Rule 903 of Regulation S), beneficial interests in anyA Global Note for notes sold outside the U.S. in reliance on Regulation S under the Securities Act may only be held through Euroclear or Clearstream, unless delivery is made pursuant to an exemption from registration under the Securities Act in accordance with the certification requirements of the indenture.
A Global Noteany series may not be transferred except as a whole by the Depositary to a nominee or successor of the Depositary or by a nominee of the Depositary to another nominee of the Depositary. A Global Note representing notesNotes is exchangeable, in whole but not in part, for notesNotes in definitive form of like tenor and terms if (1) the Depositary notifies us that it is unwilling or unable to continue as depositary for such Global Note or if at any time the Depositary is no longer eligible to be or in good standing as a “clearing agency” registered under the Exchange Act, and in either case, a successor depositary is not appointed by us within 120 days of receipt by us of such notice or of our becoming aware of such ineligibility, (2) while such Global Note is subject to the transfer restrictions described under “Transfer Restrictions,” the book-entry interests in such Global Note cease to be eligible for Depositary services because such notesNotes are neither (a) rated in one of the top four categories by a nationally recognized statistical rating organization nor (b) included within a Self-Regulatory Organization system approved by the SEC for the reporting of quotation and trade information of securities eligible for transfer pursuant to Rule 144A, under the Securities Act, or (3) we in our sole discretion (subject to the procedures of the Depositary) at any time determine not to have such notesNotes represented by a Global Note and notify the trustee thereof. A Global Note exchangeable pursuant to the preceding sentence shall be exchangeable for notesNotes registered in such names and in such authorized denominations as the Depositary shall direct.
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CERTAIN U.S. FEDERAL INCOME TAX CONSIDERATIONS
The following discussion summarizes the material U.S. federal income tax consequences of the exchange of Initial Notes for Exchange Notes. This discussion is based upon the U.S. Internal Revenue Code of 1986, as amended (the “Code”), the U.S. Treasury Regulations promulgated thereunder, administrative pronouncements, rulings and judicial decisions, all as in effect on the date hereof and all of which are subject to change or differing interpretations, possibly with retroactive effect. This summary addresses only the U.S. federal income tax consequences of the exchange of Exchange Notes that are acquired in this offering in exchange for Initial Notes originally acquired at their initial offering for an amount of cash equal to their issue price and held as “capital assets” within the meaning of Section 1221 of the Code.
This summary does not address all of the U.S. federal income tax considerations that may be relevant to a particular holder in light of the holder’s individual circumstances or to holders subject to special rules under U.S. federal income tax laws, such as banks and other financial institutions, insurance companies, real estate investment trusts, regulated investment companies, tax-exempt organizations, entities and arrangements classified as partnerships for U.S. federal income tax purposes and other pass-through entities, dealers in securities or currencies, traders in securities that elect to use a mark-to-market method of accounting, persons liable for U.S. federal alternative minimum tax, U.S. holders whose functional currency is not the U.S. dollar, U.S. expatriates, and persons holding notes as part of a “straddle,” “hedge,” “conversion transaction,” or other integrated investment. The discussion does not address any foreign, state, local or non-income tax consequences of the exchange of Initial Notes for Exchange Notes.
This discussion is for general information purposes only, and is not intended to be and should not be construed to be, legal or tax advice to any particular holder. Holders are urged to consult their own tax advisors regarding the application of the U.S. federal income tax laws to their particular situations, the consequences under federal estate or gift tax laws, as well as foreign, state, or local laws and tax treaties, and the possible effects of changes in tax laws.
U.S. Federal Income Tax Consequences of the Exchange Offer to Holders of Initial Notes
The exchange of initial notesInitial Notes for exchange notesExchange Notes pursuant to the exchange offerExchange Offer will not constitutebe a taxable eventexchange for U.S. federal income tax purposes. The exchange notes received by a holderHolders of initial notes should be treatedInitial Notes will not recognize any taxable gain or loss as a continuationresult of such holder’s investmentexchange and will have the same adjusted issue price, tax basis, and holding period in the initial notes; thus there should be no materialExchange Notes as they had in the Initial Notes immediately before the exchange. The U.S. federal income tax consequences of holding and disposing of the Exchange Notes will be the same as those applicable to holders exchangingthe Initial Notes.
CERTAIN ERISA CONSIDERATIONS
The following is a summary of certain considerations associated with the purchase and holding of the Exchange Notes by employee benefit plans that are subject to Title I of ERISA, plans, individual retirement accounts and other arrangements that are subject to Section 4975 of the Code or provisions under any other federal, state, local, non-U.S. or other laws, rules or regulations that are similar to such provisions of ERISA or the Code (collectively, “Similar Laws”), and entities whose underlying assets are considered to include “plan assets” of any such plan, account or arrangement (each, a “Plan”).
General Fiduciary Matters
ERISA and the Code impose certain duties on persons who are fiduciaries of a Plan subject to Title I of ERISA or Section 4975 of the Code (an “ERISA Plan”) and prohibit certain transactions involving the assets of an ERISA Plan and its fiduciaries or other interested parties. Under ERISA and the Code, any person who exercises any discretionary authority or control over the administration of such an ERISA Plan or the management or disposition of the assets of such an ERISA Plan, or who renders investment advice for a fee or other compensation to such an ERISA Plan, is generally considered to be a fiduciary of the ERISA Plan.
In considering an investment in the Exchange Notes of a portion of the assets of any Plan, a fiduciary should determine whether the investment is in accordance with the documents and instruments governing the Plan and the applicable provisions of ERISA, the Code or any Similar Law relating to a fiduciary’s duties to the Plan including, without limitation, the prudence, diversification, delegation of control and prohibited transaction provisions of ERISA, the Code and any other applicable Similar Laws.
Prohibited Transaction Issues
Section 406 of ERISA and Section 4975 of the Code prohibit ERISA Plans from engaging in specified transactions involving plan assets with persons or entities who are “parties in interest,” within the meaning of ERISA, or “disqualified persons,” within the meaning of Section 4975 of the Code, unless an exemption is available. A party in interest or disqualified person who engages in a non-exempt prohibited transaction may be subject to excise taxes and other penalties and liabilities under ERISA and the Code. In addition, the fiduciary of the ERISA Plan that engages in such a non-exempt prohibited transaction may be subject to penalties and liabilities under ERISA and the Code. The acquisition and/or holding of Exchange Notes by an ERISA Plan with respect to which the issuer, the initial notespurchasers or the guarantors are considered a party in interest or a disqualified person may constitute or result in a direct or indirect prohibited transaction under Section 406 of ERISA and/or Section 4975 of the Code, unless the investment is acquired and is held in accordance with an applicable statutory, class or individual prohibited transaction exemption.
In this regard, the U.S. Department of Labor has issued prohibited transaction class exemptions (“PTCEs”) that may apply to the acquisition and holding of the Exchange Notes. These class exemptions include, without limitation, PTCE 84-14 respecting transactions determined by independent qualified professional asset managers, PTCE 90-1 respecting insurance company pooled separate accounts, PTCE 91-38 respecting bank collective investment funds, PTCE 95-60 respecting life insurance company general accounts, and PTCE 96-23 respecting transactions determined by in-house asset managers. In addition, Section 408(b)(17) of ERISA and Section 4975(d)(20) of the Code provide relief from the prohibited transaction provisions of ERISA and Section 4975 of the Code for certain transactions, provided that neither the issuer of the securities nor any of its affiliates (directly or indirectly) have or exercise any discretionary authority or control or render any investment advice with respect to the assets of any ERISA Plan involved in the transaction and provided further that the ERISA Plan pays no more than adequate consideration in connection with the transaction. There can be no assurance that all of the conditions of any such exemptions will be satisfied.
Because of the foregoing, the Initial Notes should not be exchanged for Exchange Notes by any person investing “plan assets” of any Plan, unless such exchange notes. Aswill not constitute a result:
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| • | a holder of initial notes will not recognize taxable gain or loss as a result of the exchange of initial notes for exchange notes pursuant to the exchange offer; |
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| • | the holding period of the exchange notes will include the holding period of the initial notes surrendered in exchange therefor; and |
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| • | a holder’s adjusted tax basis in the exchange notes will be the same as such holder’s adjusted tax basis in the initial notes surrendered in exchange therefor. |
54non-exempt prohibited transaction under ERISA and the Code or similar violation of any applicable Similar Laws.
Representation
Accordingly, by acceptance of an Exchange Note, each purchaser and subsequent transferee will be deemed to have represented and warranted that either (i) no portion of the assets used by such purchaser or transferee to acquire or hold the Exchange Notes constitutes assets of any Plan or (ii) the exchange of the Initial Notes for the Exchange Notes or the holding of the Exchange Notes by such purchaser or transferee will not constitute a non-exempt prohibited transaction under Section 406 of ERISA, Section 4975 of the Code or a similar violation under any applicable Similar Laws.
The foregoing discussion is general in nature and is not intended to be all-inclusive. Due to the complexity of these rules and the penalties that may be imposed upon persons involved in non-exempt prohibited transactions, it is particularly important that fiduciaries, or other persons considering acquiring the Exchange Notes (and holding the Exchange Notes) on behalf of, or with the assets of, any Plan, consult with their counsel regarding the potential applicability of ERISA, Section 4975 of the Code and any Similar Laws to such transactions and whether an exemption would be applicable to the acquisition and holding of the Exchange Notes (and exchange for the Exchange Notes).Persons that acquire the Exchange Notes have the exclusive responsibility for ensuring that their acquisition and holding of the Exchange Notes complies with the fiduciary responsibility rules of ERISA and does not violate the prohibited transaction rules of ERISA, the Code or Similar Laws.
PLAN OF DISTRIBUTION
Based on existing interpretations of the Securities Act by the staff of the SEC set forth in several no-action letters to third parties, and subject to the immediately following sentence, we believe that the exchange notesExchange Notes that will be issued pursuant to the exchange offerExchange Offer may be offered for resale, resold and otherwise transferred by the holders thereof without further compliance with the registration and prospectus delivery provisions of the Securities Act. However, any purchaser of notesNotes who is an “affiliate” (within the meaning of the Securities Act) of ours or who intends to participate in the exchange offerExchange Offer for the purpose of distributing the exchange notesExchange Notes or a broker-dealer (within the meaning of the Securities Act) that acquired initial notesInitial Notes in a transaction other than as part of itsmarket-making or other trading activities and who has arranged or has an understanding with any person to participate in the distribution of the exchange notes:Exchange Notes: (1) will not be able to rely on the interpretations by the staff of the SEC set forth in theabove-mentioned no-action letters; (2) will not be able to tender its initial notesInitial Notes in the exchange offer;Exchange Offer; and (3) must comply with the registration and prospectus delivery requirements of the Securities Act in connection with any sale or transfer of the notesNotes unless such sale or transfer is made pursuant to an exemption from such requirements.
Each broker-dealer that receives exchange notesExchange Notes for its own account pursuant to the exchange offerExchange Offer must acknowledge that it will deliver a prospectus in connection with any resale of such exchange notes.Exchange Notes. This prospectus, as it may be amended or supplemented from time to time, may be used by a broker-dealer in connection with resales of exchange notesExchange Notes received in exchange for initial notesInitial Notes where such initial notesInitial Notes were acquired as a result ofmarket-marketing activities or other trading activities. We have agreed that, for a period of 120 days after the expiration date, we will make this prospectus, as amended or supplemented, available to any broker-dealer for use in connection with any such resale.
We will not receive any proceeds from any such sale of exchange notesExchange Notes by broker-dealers. Exchange notes received by broker-dealers for their own account pursuant to the exchange offerExchange Offer may be sold from time to time in one or more transactions in theover-the-counter market, in negotiated transactions, through the writing of options on the exchange notesExchange Notes or a combination of such methods of resale, at market prices prevailing at the time of resale, at prices related to such prevailing market prices or at negotiated prices. Any such resale may be made directly to purchasers or to or through brokers or dealers who may receive compensation in the form of commissions or concessions from any such broker-dealerand/or the purchasers of any such exchange notes.Exchange Notes. Any broker-dealer that resells exchange notesExchange Notes that were received by it for its own account pursuant to the exchange offerExchange Offer and any broker or dealer that participates in a distribution of such exchange notesExchange Notes may be deemed to be an “underwriter”“underwriter�� within the meaning of the Securities Act and any profit on any such resale of exchange notesExchange Notes and any commissions or concessions received by any such persons may be deemed to be underwriting compensation under the Securities Act. The letter of transmittal states that by acknowledging that it will deliver and by delivering a prospectus, a broker-dealer will not be deemed to admit that it is an “underwriter” within the meaning of the Securities Act.
For a period of 120 days after the expiration date we will promptly send additional copies of this prospectus and any amendment or supplement to this prospectus to any broker-dealer that requests such documents in the letter of transmittal. We have agreed to pay all expenses incident to the exchange offerExchange Offer (including the expenses of one counsel for the holders of the notes other than commissions or concessions of any brokers or dealers and will indemnify the holders of the notes (including any broker-dealers) against certain liabilities, including liabilities under the Securities Act.
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LEGAL MATTERS
Certain legal matters with respect to the exchange notesExchange Notes will be passed upon for us by Willkie FarrGibson, Dunn & GallagherCrutcher LLP, New York, New York.
EXPERTS
The consolidated financial statements and related financial statement schedules of MidAmerican Energy Holdings Company and its subsidiaries, as of December 31, 2008,2012 and 2011 and for each of the three years in the period ended December 31, 2012, incorporated intoin this prospectus by reference from our Annual Report onForm 10-K for the fiscal year ended December 31, 2008,2012, have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report, which is incorporated herein by reference. Such financial statements and financial statement schedules have been so included and incorporated by reference in reliance upon the report of such firm given upon their authority as experts in accounting and auditing.
With respect to the unaudited interim consolidated financial information of MidAmerican Energy Holdings Company and its subsidiaries for the periods ended March 31, 20092013 and 2008 and2012, June 30, 20092013 and 2008,2012 and September 30, 2013 and 2012, which are incorporated intoin this prospectus by reference, from our Quarterly Reports onForm 10-Q for the quarterly periods ended March 31, 2009 and June 30, 2009, Deloitte & Touche LLP, an independent registered public accounting firm, have applied limited procedures in accordance with the standards of the Public Company Accounting Oversight Board (United States) for a review of such information. However, as stated in their reports included in ourMidAmerican Energy Holdings Company’s Quarterly Reports onForm 10-Q for the quarterly periodsquarters ended March 31, 2009 and2013, June 30, 20092013 and September 30, 2013 and incorporated by reference herein, (which reports include an explanatory paragraph related to the adoption of SFAS No. 160,Noncontrolling Interests in Consolidated Financial Statements — an amendment of ARB No. 51), they did not audit and they do not express an opinion on that interim consolidated financial information. Accordingly, the degree of reliance on their reportsreport on such information should be restricted in light of the limited nature of the review procedures applied. Deloitte & Touche LLP are not subject to the liability provisions of Section 11 of the Securities Act of 1933 for their reports on the unaudited interim consolidated financial information because those reports are not “reports” or a “part” of the registration statementoffering memorandum prepared or certified by an accountant within the meaning of Sections 7 and 11 of thatthe Securities Act.
WHERE YOU CAN FIND MORE INFORMATION
MEHC filesWe, our subsidiaries, PacifiCorp, MidAmerican Funding, LLC and MidAmerican Energy Company (combined), Nevada Power Company and Sierra Pacific Power Company each file reports and information statements and other information with the SEC. SuchYou can inspect and copy reports proxy and information statements and other information filed by us, with the SEC can be inspectedPacifiCorp, MidAmerican Funding, LLC and copiedMidAmerican Energy Company (combined), Nevada Power Company and Sierra Pacific Power Company, respectively, at the Public Reference Section ofpublic reference facilities maintained by the SEC at Headquarters Office, 100 F Street, NE, Room 1580,N.E., Washington, D.C. 20549, and at the regional offices of20549. You can call the SEC located at Woolworth Building, 233 Broadway, New York, New York 10279 and 500 West Madison Street, Suite 1400, Chicago, Illinois 60661. Copies1-800-SEC-0330 for information regarding the operations of such material can be obtained from theits Public Reference Section of the SEC at 100 F Street, NE, Room 1580, and Washington, D.C. 20549 at prescribed rates.Room. The SEC also maintains a Web siteWebsite that contains reports, proxy and information statements and other materials that are filed through the SEC’s Electronic Data Gathering, Analysis, and Retrieval (or EDGAR)(EDGAR) system. This Web siteWebsite can be accessed athttp://www.sec.gov.
MEHC makeswww.sec.gov.We make available free of charge through itsour internet Web sitewebsite athttp://www.midamerican.com its annual report our Annual Reports onForm 10-K, quarterly reports Quarterly Reports onForm 10-Q and current reportsCurrent Reports onForm 8-K, and amendments to those reports filed or furnished pursuant toin compliance with the requirements of Section 13(a) or 15(d) of the Exchange Act, as soon as reasonably practicable after itwe electronically filesfile with, or furnishes themfurnish to, the SEC. Any information available on or through its Web siteour website is not part of this prospectus, and its Web addressexcept to the extent it is includedexpressly incorporated by reference herein as an inactive textual reference only.
56set forth under “Incorporation of Certain Documents by Reference” below.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The following documents filed with the SEC (FileNo. 011-14881)001-14881) are incorporated by reference into this prospectus:
| | |
| | (i) | MEHC’sour Annual Report onForm 10-K for the year ended December 31, 2008;2012; |
|
| | (ii) | MEHC’sour Quarterly Reports onForm 10-Q for the quarterly periods ended March 31, 2009 and2013, June 30, 2009;2013 and September 30, 2013; and |
|
| | (iii) | MEHC’sour Current Reports onForm 8-K, dated January 13, 2009, February 17, 2009, June 29, 2009May 30, 2013, July 25, 2013, November 8, 2013 (Items 2.03 and July 7, 2009.9.01) and December 19, 2013 (Items 2.01, 2.03, 3.02 and 9.01, and Item 8.01). |
All documents and other reports filed by us with the SEC subsequent to the date of this prospectus and prior to the completionconsummation of the exchange offerExchange Offer pursuant to Section 13 or 15(d) of the Exchange Act shall be deemed to be incorporated by reference into this prospectus and to be a part hereof from the date of filing of such documents and other reports.
Any statement contained in a document incorporated by reference herein shall be deemed to be modified or superseded for purposes of this prospectus to the extent that a statement contained herein, or in any other subsequently filed document which is also incorporated herein by reference, modifies or supersedes such statement. Any such statement so modified or superseded shall not be deemed to constitute a part of this prospectus except as so modified or superseded.
We hereby undertake to provide without charge to each person to whom a copy of this prospectus has been delivered, on the written or oral request of any such person, a copy of any or all of the documents referred to above which have been or may be incorporated into this prospectus by reference, other than exhibits to such documents. Requests for such copies should be directed to Vice President and Treasurer, MidAmerican Energy Holdings Company, 666 Grand Avenue, Suite 500, Des Moines, Iowa50309-2580, telephone number(515) 242-4300.
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All tendered initial notes,Initial Notes, executed letters of transmittal and other related documents should be directed to the exchange agent. Requests for assistance and for additional copies of this prospectus, the letter of transmittal and other related documents should be directed to the exchange agent.
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.
212-298-1915
732-667-9408
Confirm by telephone:
212-815-2742
315-414-3349
By Mail, Hand or Courier:
c/o The Bank of New York Mellon Corporation
Corporate Trust Operations
Operations—Reorganization Unit
101 Barclay Street
Floor 7 111 Sanders Creek Parkway
East
New York, Syracuse, NY 10286
13057Attn: Ms. Diane Amoroso
Dacia Brown-Jones
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
| |
| Item 20. | Indemnification of Directors and Officers. |
Insofar as indemnification for liabilities arising under the U.S. Securities Act of the 1933, as amended (or Securities Act), may be permitted to the registrant’s directors and officers pursuant to the following provisions or otherwise, the registrant has been advised that, although the validity and scope of the governing statute have not been tested in court, in the opinion of the SEC,U.S. Securities and Exchange Commission (or SEC), such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In addition, indemnification may be limited by state securities laws.
Sections 490.850-490.859
of the Iowa Business Corporation Act permit corporations organized thereunder to indemnify directors, officers, employees and agents against liability under certain circumstances. The Second Amended and Restated Articles of Incorporation (or Articles) and the Amended and Restated Bylaws (or Bylaws) of MidAmerican Energy Holdings Company provide for indemnification of directors, officers and employees to the full extent provided by the Iowa Business Corporation Act.
As permitted by Section 490.202 of the Iowa Business Corporation Act and Article VI of the Articles, no director shall be personally liable to MidAmerican Energy Holdings Company or its shareholders for money damages for any action taken, or any failure to take any action, as a director, except liability for any of the following: (1) the amount of a financial benefit received by a director to which the director is not entitled; (2) an intentional infliction of harm on the corporation or the shareholders; (3) a violation of Section 490.833 of the Iowa Business Corporation Act (relating to certain unlawful distributions to shareholders); (4) an intentional violation of criminal law; or (5) any other violation of Section 490.831 of the Iowa Business Corporation Act (Standards of Liability for Directors).
The Articles and Bylaws provide that if the proceeding for which indemnification is sought is by or in the right of the registrant, indemnification may be made only for reasonable expenses and may not be made in any proceeding in which the person is adjudged liable to the registrant. Further, any such person may not be indemnified in any proceeding that charges improper personal benefit to the person in which the person is adjudged to be liable.
The Articles and Bylaws allow the registrant to maintain liability insurance to protect itself and any director, officer, employee or agent against any expense, liability or loss whether or not the registrant would have the power to indemnify such person against such incurred expense, liability or loss. Pursuant to Section 490.857 of the Iowa Business Corporation Act, the Articles and Bylaws, the registrant maintains directors’ and officers’ liability insurance coverage.
The registrant may also enter into indemnification agreements with certain directors and officers to further assure such persons’ indemnification as permitted by Iowa law.
The rights to indemnification conferred on any person by the Articles and Bylaws are not exclusive of any right which any person may have or acquire under any statute, provision of the Articles, Bylaws, agreement or vote of shareholders or disinterested directors.
| |
| Item 21. | Exhibits and Financial Statement SchedulesSchedules. |
The exhibits listed on the accompanying Exhibit Index are filed as part of this prospectus.
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| |
| Item 22. | UndertakingsUndertakings. |
The undersigned registrant hereby undertakes:
(a) 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;
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(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 SECCommission pursuant to Rule 424(b) under the Securities Act if, in the aggregate, the changes in volume and price represent no more than a 20% 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.
statement;(b) That, for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initialbona fide offering thereof.
(c) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
The undersigned registrant hereby undertakes that, for the purposes of determining any liability under the Securities Act, each filing of the registrant’s annual report pursuant to Section 13(a) or 15(d) of the U.S. Securities Exchange Act of 1934, as amended (or Exchange Act) (and, where applicable, each filing of an employee benefit plan’s annual report pursuant to Section 15(d) of the Exchange Act) that is incorporated by reference into the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
Insofar as indemnification for liabilities arising under the Securities Act 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 SEC such indemnification is against public policy as expressed in the Securities Act 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 any 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 of whether or not such indemnification is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.
The undersigned registrant hereby undertakes that, for the purpose of determining liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Notwithstanding the foregoing, no statement made in a registration statement or prospectus that is 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
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purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement in any such document immediately prior to such date of first use.
The undersigned registrant hereby undertakes to respond to requests for information that is incorporated by reference into the prospectus pursuant to Items 4, 10(b), 11 or 13 of this Form, within one business day of receipt of such request, and to send the incorporated documents by first class mail or other equally prompt means. This includes information contained in documents filed subsequent to the effective date of the registration statement through the date of responding to the request.
The undersigned registrant hereby undertakes to supply by means of a post-effective amendment all information concerning a transaction, and the company being acquired involved therein, that was not the subject of and included in the registration statement when it became effective.
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Pursuant to the requirements of the
U.S. Securities Act of 1933, as amended, the registrant has duly caused this
registration statementRegistration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Des Moines, State of Iowa, on
this 12th day of August, 2009.January 13, 2014. |
| MidAmerican Energy Holdings Company |
|
/s/ Douglas L. Anderson |
| Douglas L. Anderson |
| Executive Vice President and General Counsel |
MIDAMERICAN ENERGY HOLDINGS COMPANY
Douglas L. Anderson
Senior Vice President and General Counsel
The undersigned officers and directors of MidAmerican Energy Holdings Company hereby severally constitute and appoint Douglas L. Anderson and Paul J. Leighton, and each of them, attorneys-in-fact for the undersigned, in any and all capacities, with the power of substitution, to sign any amendments to this registration statement (including post-effective amendments) and any subsequent registration statement for the same offering which may be filed under Rule 462(b) under the U.S. Securities Act of 1933, as amended, and to file the same with exhibits thereto and other documents in connection therewith, with the U.S. Securities and Exchange Commission, granting unto said attorneys-in-fact, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully and to all interests and purposes as he might or could do in person, hereby ratifying and confirming all that each said attorney-in-fact, or his substitute or substitutes, may do or cause to be done by virtue thereof.
Pursuant to the requirements of the U.S. Securities Act of 1933, as amended, this registration statement has been signed below by the following persons, in the capacities and on the dates indicated.
| | | | |
Signature | | Title | | | | Date |
Signature
| | Title
| | Date
|
|
| | | | |
/s/ David L. Sokol
David L. Sokol | | Chairman of the Board and Director | | August 12, 2009 |
| | | | |
Gregory E. Abel | | Chairman, President, Chief Executive Officer and Director (principal executive officer) | | August 12, 2009January 13, 2014 |
| | | | |
Patrick J. Goodman | | SeniorExecutive Vice President and
Chief Financial Officer (principal financial and accounting officer) | | August 12, 2009January 13, 2014 |
| | | | |
Walter Scott, Jr.Warren E. BuffettWarren E. Buffett | | Director | | August 12, 2009January 13, 2014 |
| | | | |
Warren E. BuffettWalter Scott, Jr.Walter Scott, Jr. | | Director | | August 12, 2009January 13, 2014 |
| | | | |
Marc D. Hamburg | | Director | | August 12, 2009January 13, 2014 |
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EXHIBIT INDEX
| | | | | |
Exhibit No. | | Description |
| |
| | 3 | .1 | | Second Amended and Restated Articles of Incorporation of MidAmerican Energy Holdings Company effective March 2, 2006 (incorporated by reference to Exhibit 3.1 to the MidAmerican Energy Holdings Company Annual Report onForm 10-K for the year ended December 31, 2005). |
| | 3 | .2 | | Amended and Restated Bylaws of MidAmerican Energy Holdings Company (incorporated by reference to Exhibit 3.2 to the MidAmerican Energy Holdings Company Annual Report onForm 10-K for the year ended December 31, 2005). |
| | 4 | .1 | | Indenture, dated as of October 4, 2002, by and between MidAmerican Energy Holdings Company and The Bank of New York, Trustee, relating to the 5.875% Senior Notes due 2012 (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Holdings Company Registration StatementNo. 333-101699 dated December 6, 2002). |
| | 4 | .2 | | First Supplemental Indenture, dated as of October 4, 2002, by and between MidAmerican Energy Holdings Company and The Bank of New York, Trustee, relating to the 5.875% Senior Notes due 2012 (incorporated by reference to Exhibit 4.2 to the MidAmerican Energy Holdings Company Registration StatementNo. 333-101699 dated December 6, 2002). |
| | 4 | .3 | | Second Supplemental Indenture, dated as of May 16, 2003, by and between MidAmerican Energy Holdings Company and The Bank of New York, Trustee, relating to the 3.50% Senior Notes due 2008 (incorporated by reference to Exhibit 4.3 to the MidAmerican Energy Holdings Company’s Registration StatementNo. 333-105690 dated May 23, 2003). |
| | 4 | .4 | | Third Supplemental Indenture, dated as of February 12, 2004, by and between MidAmerican Energy Holdings Company and The Bank of New York, Trustee, relating to the 5.00% Senior Notes due 2014 (incorporated by reference to Exhibit 4.4 to the MidAmerican Energy Holdings Company Registration StatementNo. 333-113022 dated February 23, 2004). |
| | 4 | .5 | | Fourth Supplemental Indenture, dated as of March 24, 2006, by and between MidAmerican Energy Holdings Company and The Bank of New York Trust Company, N.A., Trustee, relating to the 6.125% Senior Bonds due 2036 (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Holdings Company Current Report onForm 8-K dated March 28, 2006). |
| | 4 | .6 | | Fifth Supplemental Indenture, dated as of May 11, 2007, by and between MidAmerican Energy Holdings Company and The Bank of New York Trust Company, N.A., Trustee, relating to the 5.95% Senior Bonds due 2037 (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Holdings Company Current Report onForm 8-K dated May 11, 2007). |
| | 4 | .7 | | Sixth Supplemental Indenture, dated as of August 28, 2007, by and between MidAmerican Energy Holdings Company and The Bank of New York Trust Company, N.A., Trustee, relating to the 6.50% Senior Bonds due 2037 (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Holdings Company Current Report onForm 8-K dated August 28, 2007). |
| | 4 | .8 | | Seventh Supplemental Indenture, dated as of March 28, 2008, by and between MidAmerican Energy Holdings Company and The Bank of New York Trust Company, N.A., as Trustee, relating to the 5.75% Senior Notes due 2018 (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Holdings Company Current Report onForm 8-K dated March 28, 2008). |
| | 4 | .9 | | Eighth Supplemental Indenture, dated as of July 7, 2009, by and between MidAmerican Energy Holdings Company and The Bank of New York Mellon Trust Company, N.A., as Trustee, relating to the 3.15% Senior Notes due 2012 (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Holdings Company Current Report onForm 8-K dated July 7, 2009). |
| | 4 | .10 | | Registration Rights Agreement, dated July 7, 2009, by and among MidAmerican Energy Holdings Company and J.P. Morgan Securities Inc. as Representative of the several Initial Purchasers. |
| | 4 | .11 | | Indenture dated as of February 26, 1997, by and between MidAmerican Energy Holdings Company and the Bank of New York, Trustee relating to the 6.25% Convertible Junior Subordinated Debentures due 2012 (incorporated by reference to Exhibit 10.129 to the MidAmerican Energy Holdings Company Annual Report onForm 10-K for the year ended December 31, 1995). |
| | | | | |
Exhibit No. | | Description |
| |
| | 4 | .12 | | Indenture, dated as of October 15, 1997, by and between MidAmerican Energy Holdings Company and IBJ Schroder Bank & Trust Company, Trustee (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Holdings Company Current Report onForm 8-K dated October 23, 1997). |
| | 4 | .13 | | Form of Second Supplemental Indenture, dated as of September 22, 1998 by and between MidAmerican Energy Holdings Company and IBJ Schroder Bank & Trust Company, Trustee, relating to the 8.48% Senior Notes in the principal amount of $475,000,000 due 2028 (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Holdings Company Current Report onForm 8-K dated September 17, 1998). |
| | 4 | .14 | | Indenture, dated as of March 14, 2000, by and between MidAmerican Energy Holdings Company and the Bank of New York, Trustee (incorporated by reference to Exhibit 4.9 to the MidAmerican Energy Holdings Company Annual Report onForm 10-K/A for the year ended December 31, 1999). |
| | 4 | .15 | | Indenture, dated as of March 12, 2002, by and between MidAmerican Energy Holdings Company and the Bank of New York, Trustee (incorporated by reference to Exhibit 4.11 to the MidAmerican Energy Holdings Company Annual Report onForm 10-K for the year ended December 31, 2001). |
| | 4 | .16 | | Amended and Restated Declaration of Trust of MidAmerican Capital Trust III, dated as of August 16, 2002 (incorporated by reference to Exhibit 4.14 to the MidAmerican Energy Holdings Company Registration StatementNo. 333-101699 dated December 6, 2002). |
| | 4 | .17 | | Amended and Restated Declaration of Trust of MidAmerican Capital Trust II, dated as of March 12, 2002 (incorporated by reference to Exhibit 4.15 to the MidAmerican Energy Holdings Company Registration StatementNo. 333-101699 dated December 6, 2002). |
| | 4 | .18 | | Amended and Restated Declaration of Trust of MidAmerican Capital Trust I, dated as of March 14, 2000 (incorporated by reference to Exhibit 4.16 to the MidAmerican Energy Holdings Company Registration StatementNo. 333-101699 dated December 6, 2002). |
| | 4 | .19 | | Indenture, dated as of August 16, 2002, by and between MidAmerican Energy Holdings Company and the Bank of New York, Trustee (incorporated by reference to Exhibit 4.17 to the MidAmerican Energy Holdings Company Registration StatementNo. 333-101699 dated December 6, 2002). |
| | 4 | .20 | | Amended and Restated Credit Agreement, dated as of July 6, 2006, by and among MidAmerican Energy Holdings Company, as Borrower, The Banks and Other Financial Institutions Parties Hereto, as Banks, JPMorgan Chase Bank, N.A., as L/C Issuer, Union Bank of California, N.A., as Administrative Agent, The Royal Bank of Scotland PLC, as Syndication Agent, and ABN Amro Bank N.V., JPMorgan Chase Bank, N.A. and BNP Paribas as Co-Documentation Agents (incorporated by reference to Exhibit 99.1 to the MidAmerican Energy Holdings Company Quarterly Report onForm 10-Q for the quarter ended June 30, 2006). |
| | 4 | .21 | | First Amendment, dated as of April 15, 2009, to the Amended and Restated Credit Agreement, dated as of July 6, 2006, by and among MidAmerican Energy Holdings Company, as Borrower, The Banks and Other Financial Institutions party thereto, as Banks, JPMorgan Chase Bank, N.A., as L/C Issuer, Union Bank of California, N.A., as Administrative Agent, The Royal Bank of Scotland PLC, as Syndication Agent, and ABN Amro Bank N.V., JPMorgan Chase Bank, N.A. and BNP Paribas as Co-Documentation Agents (incorporated by reference to Exhibit 10.1 to the MidAmerican Energy Holdings Company Quarterly Report onForm 10-Q for the quarter ended March 31, 2009). |
| | 4 | .22 | | Trust Indenture, dated as of November 27, 1995, by and between CE Casecnan Water and Energy Company, Inc. and Chemical Trust Company of California, Trustee (incorporated by reference to Exhibit 4.1 to the CE Casecnan Water and Energy Company, Inc. Registration Statement onForm S-4 dated January 25, 1996). |
| | 4 | .23 | | Indenture and First Supplemental Indenture, dated March 11, 1999, by and between MidAmerican Funding, LLC and IBJ Whitehall Bank & Trust Company, Trustee, relating to the $700 million Senior Notes and Bonds (incorporated by reference to the MidAmerican Energy Holdings Company Annual Report onForm 10-K for the year ended December 31, 1998). |
| | | | | |
Exhibit No. | | Description |
| |
| | 4 | .24 | | Second Supplemental Indenture, dated as of March 1, 2001, by and between MidAmerican Funding, LLC and The Bank of New York, Trustee (incorporated by reference to Exhibit 4.4 to the MidAmerican Funding, LLC Registration Statement onForm S-3, RegistrationNo. 333-56624). |
| | 4 | .25 | | Indenture dated as of December 1, 1996, by and between MidAmerican Energy Company and the First National Bank of Chicago, Trustee (incorporated by reference to Exhibit 4(1) to the MidAmerican Energy Company Registration Statement onForm S-3, RegistrationNo. 333-15387). |
| | 4 | .26 | | First Supplemental Indenture, dated as of February 8, 2002, by and between MidAmerican Energy Company and The Bank of New York, Trustee (incorporated by reference to Exhibit 4.3 to the MidAmerican Energy Company Annual Report onForm 10-K for the year ended December 31, 2004, Commission FileNo. 333-15387). |
| | 4 | .27 | | Second Supplemental Indenture, dated as of January 14, 2003, by and between MidAmerican Energy Company and The Bank of New York, Trustee (incorporated by reference to Exhibit 4.2 to the MidAmerican Energy Company Annual Report onForm 10-K for the year ended December 31, 2004, Commission FileNo. 333-15387). |
| | 4 | .28 | | Third Supplemental Indenture, dated as of October 1, 2004, by and between MidAmerican Energy Company and The Bank of New York, Trustee (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Company Annual Report onForm 10-K for the year ended December 31, 2004, Commission FileNo. 333-15387). |
| | 4 | .29 | | Fourth Supplemental Indenture, dated November 1, 2005, by and between MidAmerican Energy Company and the Bank of New York Trust Company, NA, Trustee (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Company Annual Report onForm 10-K for the year ended December 31, 2005). |
| | 4 | .30 | | Fiscal Agency Agreement, dated as of October 15, 2002, by and between Northern Natural Gas Company and J.P. Morgan Trust Company, National Association, Fiscal Agent, relating to the $300,000,000 in principal amount of the 5.375% Senior Notes due 2012 (incorporated by reference to Exhibit 10.47 to the MidAmerican Energy Holdings Company Annual Report onForm 10-K for the year ended December 31, 2003). |
| | 4 | .31 | | Trust Indenture, dated as of August 13, 2001, among Kern River Funding Corporation, Kern River Gas Transmission Company and JPMorgan Chase Bank, Trustee, relating to the $510,000,000 in principal amount of the 6.676% Senior Notes due 2016 (incorporated by reference to Exhibit 10.48 to the MidAmerican Energy Holdings Company Annual Report onForm 10-K for the year ended December 31, 2003). |
| | 4 | .32 | | Third Supplemental Indenture, dated as of May 1, 2003, among Kern River Funding Corporation, Kern River Gas Transmission Company and JPMorgan Chase Bank, Trustee, relating to the $836,000,000 in principal amount of the 4.893% Senior Notes due 2018 (incorporated by reference to Exhibit 10.49 to the MidAmerican Energy Holdings Company Annual Report onForm 10-K for the year ended December 31, 2003). |
| | 4 | .33 | | Trust Deed, dated December 15, 1997 among CE Electric UK Funding Company, AMBAC Insurance UK Limited and The Law Debenture Trust Corporation, p.l.c., Trustee (incorporated by reference to Exhibit 99.1 to the MidAmerican Energy Holdings Company Current Report onForm 8-K dated March 30, 2004). |
| | 4 | .34 | | Insurance and Indemnity Agreement, dated December 15, 1997 by and between CE Electric UK Funding Company and AMBAC Insurance UK Limited (incorporated by reference to Exhibit 99.2 to the MidAmerican Energy Holdings Company Current Report onForm 8-K dated March 30, 2004). |
| | 4 | .35 | | Supplemental Agreement to Insurance and Indemnity Agreement, dated September 19, 2001, by and between CE Electric UK Funding Company and AMBAC Insurance UK Limited (incorporated by reference to Exhibit 99.3 to the MidAmerican Energy Holdings Company Current Report onForm 8-K dated March 30, 2004). |
| | | | | |
Exhibit No. | | Description |
| |
| | 4 | .36 | | Fiscal Agency Agreement, dated as of July 15, 2008, by and between Northern Natural Gas Company and The Bank of New York Mellon Trust Company, National Association, Fiscal Agent, relating to the $200,000,000 in principal amount of the 5.75% Senior Notes due 2018 (incorporated by reference to Exhibit 4.32 to the MidAmerican Energy Holdings Company Annual Report onForm 10-K for the year ended December 31, 2008). |
| | 4 | .37 | | Fiscal Agency Agreement, dated as of May 24, 1999, by and between Northern Natural Gas Company and Chase Bank of Texas, National Association, Fiscal Agent, relating to the $250,000,000 in principal amount of the 7.00% Senior Notes due 2011 (incorporated by reference to Exhibit 10.70 to the MidAmerican Energy Holdings Company Quarterly Report onForm 10-Q for the quarter ended March 31, 2004). |
| | 4 | .38 | | Trust Indenture, dated as of September 10, 1999, by and between Cordova Funding Corporation and Chase Manhattan Bank and Trust Company, National Association, Trustee, relating to the $225,000,000 in principal amount of the 8.75% Senior Secured Bonds due 2019 (incorporated by reference to Exhibit 10.71 to the MidAmerican Energy Holdings Company Quarterly Report onForm 10-Q for the quarter ended March 31, 2004). |
| | 4 | .39 | | Trust Deed, dated as of February 4, 1998 among Yorkshire Power Finance Limited, Yorkshire Power Group Limited and Bankers Trustee Company Limited, Trustee, relating to the £200,000,000 in principal amount of the 7.25% Guaranteed Bonds due 2028 (incorporated by reference to Exhibit 10.74 to the MidAmerican Energy Holdings Company Quarterly Report onForm 10-Q for the quarter ended March 31, 2004). |
| | 4 | .40 | | First Supplemental Trust Deed, dated as of October 1, 2001, among Yorkshire Power Finance Limited, Yorkshire Power Group Limited and Bankers Trustee Company Limited, Trustee, relating to the £200,000,000 in principal amount of the 7.25% Guaranteed Bonds due 2028 (incorporated by reference to Exhibit 10.75 to the MidAmerican Energy Holdings Company Quarterly Report onForm 10-Q for the quarter ended March 31, 2004). |
| | 4 | .41 | | Third Supplemental Trust Deed, dated as of October 1, 2001, among Yorkshire Electricity Distribution plc, Yorkshire Electricity Group plc and Bankers Trustee Company Limited, Trustee, relating to the £200,000,000 in principal amount of the 9.25% Bonds due 2020 (incorporated by reference to Exhibit 10.76 to the MidAmerican Energy Holdings Company Quarterly Report onForm 10-Q for the quarter ended March 31, 2004). |
| | 4 | .42 | | Indenture, dated as of February 1, 2000, among Yorkshire Power Finance 2 Limited, Yorkshire Power Group Limited and The Bank of New York, Trustee (incorporated by reference to Exhibit 10.78 to the MidAmerican Energy Holdings Company Quarterly Report onForm 10-Q for the quarter ended March 31, 2004). |
| | 4 | .43 | | First Supplemental Trust Deed, dated as of September 27, 2001, among Northern Electric Finance plc, Northern Electric plc, Northern Electric Distribution Limited and The Law Debenture Trust Corporation p.l.c., Trustee, relating to the £100,000,000 in principal amount of the 8.875% Guaranteed Bonds due 2020 (incorporated by reference to Exhibit 10.81 to the MidAmerican Energy Holdings Company Quarterly Report onForm 10-Q for the quarter ended March 31, 2004). |
| | 4 | .44 | | Trust Deed, dated as of January 17, 1995, by and between Yorkshire Electricity Group plc and Bankers Trustee Company Limited, Trustee, relating to the £200,000,000 in principal amount of the 9 1/4% Bonds due 2020 (incorporated by reference to Exhibit 10.83 to the MidAmerican Energy Holdings Company Quarterly Report onForm 10-Q for the quarter ended March 31, 2004). |
| | 4 | .45 | | Master Trust Deed, dated as of October 16, 1995, by and between Northern Electric Finance plc, Northern Electric plc and The Law Debenture Trust Corporation p.l.c., Trustee, relating to the £100,000,000 in principal amount of the 8.875% Guaranteed Bonds due 2020 (incorporated by reference to Exhibit 10.70 to the MidAmerican Energy Holdings Company Annual Report onForm 10-K for the year ended December 31, 2004). |
| | 4 | .46 | | Fiscal Agency Agreement, dated April 14, 2005, by and between Northern Natural Gas Company and J.P. Morgan Trust Company, National Association, Fiscal Agent, relating to the $100,000,000 in principal amount of the 5.125% Senior Notes due 2015 (incorporated by reference to Exhibit 99.1 to the MidAmerican Energy Holdings Company Current Report onForm 8-K dated April 18, 2005). |
| | | | | |
Exhibit No. | | Description |
| |
| | 4 | .47 | | £100,000,000 Facility Agreement, dated April 4, 2005 among CE Electric UK Funding Company, the subsidiaries of CE Electric UK Funding Company listed in Part 1 of Schedule 1, Lloyds TSB Bank plc and The Royal Bank of Scotland plc (incorporated by reference to Exhibit 99.1 to the MidAmerican Energy Holdings Company Current Report onForm 8-K dated April 20, 2005). |
| | 4 | .48 | | Trust Deed dated May 5, 2005 among Northern Electric Finance plc, Northern Electric Distribution Limited, Ambac Assurance UK Limited and HSBC Trustee (C.I.) Limited (incorporated by reference to Exhibit 99.1 to the MidAmerican Energy Holdings Company Quarterly Report onForm 10-Q for the quarter ended March 31, 2005). |
| | 4 | .49 | | Reimbursement and Indemnity Agreement dated May 5, 2005 among Northern Electric Finance plc, Northern Electric Distribution Limited and Ambac Assurance UK Limited (incorporated by reference to Exhibit 99.2 to the MidAmerican Energy Holdings Company Quarterly Report onForm 10-Q for the quarter ended March 31, 2005). |
| | 4 | .50 | | Trust Deed, dated May 5, 2005 among Yorkshire Electricity Distribution plc, Ambac Assurance UK Limited and HSBC Trustee (C.I.) Limited (incorporated by reference to Exhibit 99.3 to the MidAmerican Energy Holdings Company Quarterly Report onForm 10-Q for the quarter ended March 31, 2005). |
| | 4 | .51 | | Reimbursement and Indemnity Agreement, dated May 5, 2005 between Yorkshire Electricity Distribution plc and Ambac Assurance UK Limited (incorporated by reference to Exhibit 99.4 to the MidAmerican Energy Holdings Company Quarterly Report onForm 10-Q for the quarter ended March 31, 2005). |
| | 4 | .52 | | Supplemental Trust Deed, dated May 5, 2005 among CE Electric UK Funding Company, Ambac Assurance UK Limited and The Law Debenture Trust Corporation plc (incorporated by reference to Exhibit 99.5 to the MidAmerican Energy Holdings Company Quarterly Report onForm 10-Q for the quarter ended March 31, 2005). |
| | 4 | .53 | | Second Supplemental Agreement to Insurance and Indemnity Agreement, dated May 5, 2005 by and between CE Electric UK Funding Company and Ambac Assurance UK Limited (incorporated by reference to Exhibit 99.6 to the MidAmerican Energy Holdings Company Quarterly Report onForm 10-Q for the quarter ended March 31, 2005). |
| | 4 | .54 | | Amended and Restated Credit Agreement, dated as of July 6, 2006, among MidAmerican Energy Company, the Lending Institutions party thereto, as Banks, Union Bank of California, N.A., as Syndication Agent, JPMorgan Chase Bank, N.A., as Administrative Agent, and The Royal Bank of Scotland plc, ABN AMRO Bank N.V. and BNP Paribas as Co-Documentation Agents (incorporated by reference to Exhibit 10.1 to the MidAmerican Energy Company Quarterly Report onForm 10-Q for the quarter ended June 30, 2006). |
| | 4 | .55 | | First Amendment, dated as of April 15, 2009, to the Amended and Restated Credit Agreement, dated as of July 6, 2006, by and among MidAmerican Energy Company, the Lending Institutions party thereto, as banks, Union Bank of California, N.A., as Syndication Agent, JPMorgan Chase Bank, N.A., as Administrative Agent, and The Royal Bank of Scotland plc, ABN AMRO Bank N.V. and BNP Paribas as Co-Documentation Agents (incorporated by reference to Exhibit 10.1 to the MidAmerican Energy Company Quarterly Report onForm 10-Q for the quarter ended March 31, 2009). |
| | 4 | .56 | | Shareholders Agreement, dated as of March 14, 2000 (incorporated by reference to Exhibit 4.19 to the MidAmerican Energy Holdings Company Registration StatementNo. 333-101699 dated December 6, 2002). |
| | 4 | .57 | | Amendment No. 1 to Shareholders Agreement, dated December 7, 2005 (incorporated by reference to Exhibit 4.17 to the MidAmerican Energy Holdings Company Annual Report onForm 10-K for the year ended December 31, 2005). |
| | 4 | .58 | | Equity Commitment Agreement, dated as of March 1, 2006, by and between Berkshire Hathaway Inc. and MidAmerican Energy Holdings Company (incorporated by reference to Exhibit 10.72 to the MidAmerican Energy Holdings Company Annual Report onForm 10-K for the year ended December 31, 2005). |
| | | | | |
Exhibit No. | | Description |
| |
| | 4 | .59 | | Fiscal Agency Agreement, dated February 12, 2007, by and between Northern Natural Gas Company and Bank of New York Trust Company, N.A., Fiscal Agent, relating to the $150,000,000 in principal amount of the 5.80% Senior Bonds due 2037 (incorporated by reference to Exhibit 99.1 to the MidAmerican Energy Holdings Company Current Report onForm 8-K dated February 12, 2007). |
| | 4 | .60 | | Indenture, dated as of October 1, 2006, by and between MidAmerican Energy Company and the Bank of New York Trust Company, N.A., Trustee (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Company Quarterly Report onForm 10-Q for the quarter ended September 30, 2006). |
| | 4 | .61 | | First Supplemental Indenture, dated as of October 6, 2006, by and between MidAmerican Energy Company and the Bank of New York Trust Company, N.A., Trustee (incorporated by reference to Exhibit 4.2 to the MidAmerican Energy Company Quarterly Report onForm 10-Q for the quarter ended September 30, 2006). |
| | 4 | .62 | | Second Supplemental Indenture, dated June 29, 2007, by and between MidAmerican Energy Company and The Bank of New York Trust Company, N.A., Trustee (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Company Current Report onForm 8-K dated June 29, 2007). |
| | 4 | .63 | | Third Supplemental Indenture, dated March 25, 2008, by and between MidAmerican Energy Company and The Bank of New York Trust Company, N.A., Trustee, relating to the 5.3% Notes due 2018 (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Company Current Report onForm 8-K dated March 25, 2008). |
| | 4 | .64 | | Mortgage and Deed of Trust dated as of January 9, 1989, between PacifiCorp and The Bank of New York Mellon Trust Company, N.A., (formerly known as JP Morgan Chase Bank and The Chase Manhattan Bank), Trustee, incorporated by reference toExhibit 4-E to PacifiCorp’sForm 8-B, FileNo. 1-5152, as supplemented and modified by 23 Supplemental Indentures, each incorporated by reference, as follows: |
| | |
Exhibit
No. | | Description |
| |
| 2.1 | | Agreement and Plan of Merger, dated as of May 29, 2013, by and among MidAmerican Energy Holdings Company, Silver Merger Sub, Inc. and NV Energy, Inc. (incorporated by reference to Exhibit 2.1 to the MidAmerican Energy Holdings Company Current Report on Form 8-K dated May 30, 2013). |
| |
| 3.1 | | Second Amended and Restated Articles of Incorporation of MidAmerican Energy Holdings Company effective March 2, 2006 (incorporated by reference to Exhibit 3.1 to the MidAmerican Energy Holdings Company Annual Report on Form 10-K for the year ended December 31, 2005). |
Exhibit
| |
| 3.2 | | Amended and Restated Bylaws of MidAmerican Energy Holdings Company (incorporated by reference to Exhibit 3.2 to the MidAmerican Energy Holdings Company Annual ReportPacifiCorp
on Form 10-K for the year ended December 31, 2005). |
| |
| 4.1 | | Indenture, dated as of October 4, 2002, by and between MidAmerican Energy Holdings Company and The Bank of New York, Trustee, relating to the 5.875% Senior Notes due 2012 (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Holdings Company Registration Statement No. 333-101699 dated December 6, 2002). |
| |
| 4.2 | | Second Supplemental Indenture, dated as of May 16, 2003, by and between MidAmerican Energy Holdings Company and The Bank of New York, Trustee, relating to the 3.50% Senior Notes due 2008 (incorporated by reference to Exhibit 4.3 to the MidAmerican Energy Holdings Company Registration Statement No. 333-105690 dated May 23, 2003). |
Number | |
| 4.3 | | File TypeThird Supplemental Indenture, dated as of February 12, 2004, by and between MidAmerican Energy Holdings Company and The Bank of New York, Trustee, relating to the 5.00% Senior Notes due 2014 (incorporated by reference to Exhibit 4.4 to the MidAmerican Energy Holdings Company Registration Statement No. 333-113022 dated February 23, 2004). |
| |
| 4.4 | | File DateFourth Supplemental Indenture, dated as of March 24, 2006, by and between MidAmerican Energy Holdings Company and The Bank of New York Trust Company, N.A., Trustee, relating to the 6.125% Senior Bonds due 2036 (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Holdings Company Current Report on Form 8-K dated March 28, 2006). |
| |
| 4.5 | | File NumberFifth Supplemental Indenture, dated as of May 11, 2007, by and between MidAmerican Energy Holdings Company and The Bank of New York Trust Company, N.A., Trustee, relating to the 5.95% Senior Bonds due 2037 (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Holdings Company Current Report on Form 8-K dated May 11, 2007). |
| |
| 4.6 | | Sixth Supplemental Indenture, dated as of August 28, 2007, by and between MidAmerican Energy Holdings Company and The Bank of New York Trust Company, N.A., Trustee, relating to the 6.50% Senior Bonds due 2037 (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Holdings Company Current Report on Form 8-K dated August 28, 2007). |
| |
| 4.7 | | Seventh Supplemental Indenture, dated as of March 28, 2008, by and between MidAmerican Energy Holdings Company and The Bank of New York Trust Company, N.A., as Trustee, relating to the 5.75% Senior Notes due 2018 (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Holdings Company Current Report on Form 8-K dated March 28, 2008). |
| |
| 4.8 | | Ninth Supplemental Indenture, dated as of November 8, 2013, by and between MidAmerican Energy Holdings Company and The Bank of New York Mellon Trust Company, N.A., as Trustee, relating to the 1.100% Senior Notes due 2017, the 2.000% Senior Notes due 2018, the 3.750% Senior Notes due 2023 and the 5.150% Senior Notes due 2043 (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Holdings Company Current Report on Form 8-K dated November 8, 2013). |
| |
| 4.9 | | Registration Rights Agreement, dated November 8, 2013, by and among MidAmerican Energy Holdings Company and Barclays Capital Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and RBS Securities Inc., as Representatives of the several Initial Purchasers. |
| | |
Exhibit
No. | | Description |
| |
| 4.10 | | Indenture, dated as of October 15, 1997, by and between MidAmerican Energy Holdings Company and IBJ Schroder Bank & Trust Company, Trustee (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Holdings Company Current Report on Form 8-K dated October 23, 1997). |
| |
| 4.11 | | Form of Second Supplemental Indenture, dated as of September 22, 1998 by and between MidAmerican Energy Holdings Company and IBJ Schroder Bank & Trust Company, Trustee, relating to the 8.48% Senior Notes in the principal amount of $475,000,000 due 2028 (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Holdings Company Current Reporton Form 8-K dated September 17, 1998). |
| |
| 4.12 | | Indenture, dated as of March 12, 2002, by and between MidAmerican Energy Holdings Company and the Bank of New York, Trustee (incorporated by reference to Exhibit 4.11 to the MidAmerican Energy Holdings Company Annual Report on Form 10-K for the year ended December 31, 2001). |
| |
| 4.13 | | Indenture and First Supplemental Indenture, dated March 11, 1999, by and between MidAmerican Funding, LLC and IBJ Whitehall Bank & Trust Company, Trustee, relating to the $700 million Senior Notes and Bonds (incorporated by reference to the MidAmerican Energy Holdings Company Annual Report on Form 10-K for the year ended December 31, 1998). |
| |
| 4.14 | | Form of Indenture, by and between MidAmerican Energy Company and The Bank of New York, Trustee (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Company Registration Statement No. 333-59760 dated January 31, 2002). |
| |
| 4.15 | | First Supplemental Indenture, dated as of February 8, 2002, by and between MidAmerican Energy Company and The Bank of New York, Trustee (incorporated by reference to Exhibit 4.3 to the MidAmerican Energy Company Annual Report on Form 10-K for the year ended December 31, 2004, Commission File No. 333-15387). |
| |
| 4.16 | | Second Supplemental Indenture, dated as of January 14, 2003, by and between MidAmerican Energy Company and The Bank of New York, Trustee (incorporated by reference to Exhibit 4.2 to the MidAmerican Energy Company Annual Report on Form 10-K for the year ended December 31, 2004, Commission File No. 333-15387). |
| |
| 4.17 | | Third Supplemental Indenture, dated as of October 1, 2004, by and between MidAmerican Energy Company and The Bank of New York, Trustee (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Company Annual Report on Form 10-K for the year ended December 31, 2004, Commission File No. 333-15387). |
| |
| 4.18 | | Fourth Supplemental Indenture, dated November 1, 2005, by and between MidAmerican Energy Company and the Bank of New York Trust Company, NA, Trustee (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Company Annual Report on Form 10-K for the year ended December 31, 2005). |
| |
| 4.19 | | Indenture, dated as of September 9, 2013, between MidAmerican Energy Company and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Company Current Report on Form 8-K dated September 13, 2013). |
| |
| 4.20 | | First Supplemental Indenture, dated as of September 19, 2013, between MidAmerican Energy Company and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Company Current Report onForm 8-K dated September 19, 2013). |
| |
| 4.21 | | Specimen of 2.40% First Mortgage Bonds due 2019 (incorporated by reference to Exhibit 4.2 to the MidAmerican Energy Company Current Report on Form 8-K dated September 19, 2013). |
| |
| 4.22 | | Specimen of 3.70% First Mortgage Bonds due 2023 (incorporated by reference to Exhibit 4.3 to the MidAmerican Energy Company Current Report on Form 8-K dated September 19, 2013). |
| |
| 4.23 | | Specimen of 4.80% First Mortgage Bonds due 2043 (incorporated by reference to Exhibit 4.4 to the MidAmerican Energy Company Current Report on Form 8-K dated September 19, 2013). |
| | |
Exhibit
No. | | Description |
| |
| 4.24 | | Mortgage, Security Agreement, Fixture Filing and Financing Statement, dated as of September 9, 2013, from MidAmerican Energy Company to The Bank of New York Mellon Trust Company, N.A., as collateral trustee (incorporated by reference to Exhibit 4.2 to the MidAmerican Energy Company Current Report on Form 8-K dated September 13, 2013). |
| |
| 4.25 | | Intercreditor and Collateral Trust Agreement, dated as of September 9, 2013, among MidAmerican Energy Company, The Bank of New York Mellon Trust Company, N.A., as trustee, and The Bank of New York Mellon Trust Company, N.A., as collateral trustee (incorporated by reference to Exhibit 4.3 to the MidAmerican Energy Company Current Report on Form 8-K dated September 13, 2013). |
| |
| 4.26 | | Trust Indenture, dated as of August 13, 2001, among Kern River Funding Corporation, Kern River Gas Transmission Company and JPMorgan Chase Bank, Trustee, relating to the $510,000,000 in principal amount of the 6.676% Senior Notes due 2016 (incorporated by reference to Exhibit 10.48 to the MidAmerican Energy Holdings Company Annual Report on Form 10-K for the year ended December 31, 2003). |
| |
| 4.27 | | Third Supplemental Indenture, dated as of May 1, 2003, among Kern River Funding Corporation, Kern River Gas Transmission Company and JPMorgan Chase Bank, Trustee, relating to the $836,000,000 in principal amount of the 4.893% Senior Notes due 2018 (incorporated by reference to Exhibit 10.49 to the MidAmerican Energy Holdings Company Annual Report on Form 10-K for the year ended December 31, 2003). |
| |
| 4.28 | | Trust Deed, dated December 15, 1997 among CE Electric UK Funding Company, AMBAC Insurance UK Limited and The Law Debenture Trust Corporation, p.l.c., Trustee (incorporated by reference to Exhibit 99.1 to the MidAmerican Energy Holdings Company Current Report on Form 8-K dated March 30, 2004). |
| |
| 4.29 | | Insurance and Indemnity Agreement, dated December 15, 1997 by and between CE Electric UK Funding Company and AMBAC Insurance UK Limited (incorporated by reference to Exhibit 99.2 to the MidAmerican Energy Holdings Company Current Report on Form 8-K dated March 30, 2004). |
| |
| 4.30 | | Supplemental Agreement to Insurance and Indemnity Agreement, dated September 19, 2001, by and between CE Electric UK Funding Company and AMBAC Insurance UK Limited (incorporated by reference to Exhibit 99.3 to the MidAmerican Energy Holdings Company Current Reporton Form 8-K dated March 30, 2004). |
| |
| 4.31 | | Fiscal Agency Agreement, dated as of July 15, 2008, by and between Northern Natural Gas Company and The Bank of New York Mellon Trust Company, National Association, Fiscal Agent, relating to the $200,000,000 in principal amount of the 5.75% Senior Notes due 2018 (incorporated by reference to Exhibit 4.32 to the MidAmerican Energy Holdings Company Annual Report on Form 10-K for the year ended December 31, 2008). |
| |
| 4.32 | | Fiscal Agency Agreement, dated as of April 20, 2011, by and between Northern Natural Gas Company and The Bank of New York Mellon Trust Company, N.A., Fiscal Agent, relating to the $200,000,000 in principal amount of the 4.25% Senior Notes due 2021 (incorporated by reference to Exhibit 4.27 to the MidAmerican Energy Holdings Company Annual Report onForm 10-K for the year ended December 31, 2011). |
| |
| 4.33 | | Trust Indenture, dated as of September 10, 1999, by and between Cordova Funding Corporation and Chase Manhattan Bank and Trust Company, National Association, Trustee, relating to the $225,000,000 in principal amount of the 8.75% Senior Secured Bonds due 2019 (incorporated by reference to Exhibit 10.71 to the MidAmerican Energy Holdings Company Quarterly Report on Form 10-Q for the quarter ended March 31, 2004). |
| |
| 4.34 | | Trust Deed, dated as of February 4, 1998 among Yorkshire Power Finance Limited, Yorkshire Power Group Limited and Bankers Trustee Company Limited, Trustee, relating to the £200,000,000 in principal amount of the 7.25% Guaranteed Bonds due 2028 (incorporated by reference to Exhibit 10.74 to the MidAmerican Energy Holdings Company Quarterly Report on Form 10-Q for the quarter ended March 31, 2004). |
| | |
Exhibit
No. | | Description |
| |
| 4.35 | | First Supplemental Trust Deed, dated as of October 1, 2001, among Yorkshire Power Finance Limited, Yorkshire Power Group Limited and Bankers Trustee Company Limited, Trustee, relating to the £200,000,000 in principal amount of the 7.25% Guaranteed Bonds due 2028 (incorporated by reference to Exhibit 10.75 to the MidAmerican Energy Holdings Company Quarterly Report on Form 10-Q for the quarter ended March 31, 2004). |
| |
| 4.36 | | Third Supplemental Trust Deed, dated as of October 1, 2001, among Yorkshire Electricity Distribution plc, Yorkshire Electricity Group plc and Bankers Trustee Company Limited, Trustee, relating to the £200,000,000 in principal amount of the 9.25% Bonds due 2020 (incorporated by reference to Exhibit 10.76 to the MidAmerican Energy Holdings Company Quarterly Report on Form 10-Q for the quarter ended March 31, 2004). |
| |
| 4.37 | | Indenture, dated as of February 1, 2000, among Yorkshire Power Finance 2 Limited, Yorkshire Power Group Limited and The Bank of New York, Trustee (incorporated by reference to Exhibit 10.78 to the MidAmerican Energy Holdings Company Quarterly Report onForm 10-Q for the quarter ended March 31, 2004). |
| |
| 4.38 | | First Supplemental Trust Deed, dated as of September 27, 2001, among Northern Electric Finance plc, Northern Electric plc, Northern Electric Distribution Limited and The Law Debenture Trust Corporation p.l.c., Trustee, relating to the £100,000,000 in principal amount of the 8.875% Guaranteed Bonds due 2020 (incorporated by reference to Exhibit 10.81 to the MidAmerican Energy Holdings Company Quarterly Report on Form 10-Q for the quarter ended March 31, 2004). |
| |
| 4.39 | | Trust Deed, dated as of January 17, 1995, by and between Yorkshire Electricity Group plc and Bankers Trustee Company Limited, Trustee, relating to the £200,000,000 in principal amount of the 9 1/4% Bonds due 2020 (incorporated by reference to Exhibit 10.83 to the MidAmerican Energy Holdings Company Quarterly Report on Form 10-Q for the quarter ended March 31, 2004). |
| |
| 4.40 | | Master Trust Deed, dated as of October 16, 1995, by and between Northern Electric Finance plc, Northern Electric plc and The Law Debenture Trust Corporation p.l.c., Trustee, relating to the £100,000,000 in principal amount of the 8.875% Guaranteed Bonds due 2020 (incorporated by reference to Exhibit 10.70 to the MidAmerican Energy Holdings Company Annual Report on Form 10-K for the year ended December 31, 2004). |
| |
| 4.41 | | Fiscal Agency Agreement, dated April 14, 2005, by and between Northern Natural Gas Company and J.P. Morgan Trust Company, National Association, Fiscal Agent, relating to the $100,000,000 in principal amount of the 5.125% Senior Notes due 2015 (incorporated by reference to Exhibit 99.1 to the MidAmerican Energy Holdings Company Current Report on Form 8-K dated April 18, 2005). |
| |
| 4.42 | | Trust Deed dated May 5, 2005 among Northern Electric Finance plc, Northern Electric Distribution Limited, Ambac Assurance UK Limited and HSBC Trustee (C.I.) Limited (incorporated by reference to Exhibit 99.1 to the MidAmerican Energy Holdings Company Quarterly Report on Form 10-Q for the quarter ended March 31, 2005). |
| |
| 4.43 | | Reimbursement and Indemnity Agreement dated May 5, 2005 among Northern Electric Finance plc, Northern Electric Distribution Limited and Ambac Assurance UK Limited (incorporated by reference to Exhibit 99.2 to the MidAmerican Energy Holdings Company Quarterly Report on Form 10-Q for the quarter ended March 31, 2005). |
| |
| 4.44 | | Trust Deed, dated May 5, 2005 among Yorkshire Electricity Distribution plc, Ambac Assurance UK Limited and HSBC Trustee (C.I.) Limited (incorporated by reference to Exhibit 99.3 to the MidAmerican Energy Holdings Company Quarterly Report on Form 10-Q for the quarter ended March 31, 2005). |
| |
| 4.45 | | Reimbursement and Indemnity Agreement, dated May 5, 2005 between Yorkshire Electricity Distribution plc and Ambac Assurance UK Limited (incorporated by reference to Exhibit 99.4 to the MidAmerican Energy Holdings Company Quarterly Report on Form 10-Q for the quarter ended March 31, 2005). |
| | |
Exhibit
No. | | Description |
| |
| 4.46 | | Supplemental Trust Deed, dated May 5, 2005 among CE Electric UK Funding Company, Ambac Assurance UK Limited and The Law Debenture Trust Corporation plc (incorporated by reference to Exhibit 99.5 to the MidAmerican Energy Holdings Company Quarterly Report on Form 10-Q for the quarter ended March 31, 2005). |
| |
| 4.47 | | Second Supplemental Agreement to Insurance and Indemnity Agreement, dated May 5, 2005 by and between CE Electric UK Funding Company and Ambac Assurance UK Limited (incorporated by reference to Exhibit 99.6 to the MidAmerican Energy Holdings Company Quarterly Report on Form 10-Q for the quarter ended March 31, 2005). |
| |
| 4.48 | | Shareholders Agreement, dated as of March 14, 2000 (incorporated by reference to Exhibit 4.19 to the MidAmerican Energy Holdings Company Registration Statement No. 333-101699 dated December 6, 2002). |
| |
| 4.49 | | Amendment No. 1 to Shareholders Agreement, dated December 7, 2005 (incorporated by reference to Exhibit 4.17 to the MidAmerican Energy Holdings Company Annual Report on Form 10-K for the year ended December 31, 2005). |
| |
| 4.50 | | Equity Commitment Agreement, dated as of March 1, 2006, by and between Berkshire Hathaway Inc. and MidAmerican Energy Holdings Company (incorporated by reference to Exhibit 10.72 to the MidAmerican Energy Holdings Company Annual Report on Form 10-K for the year ended December 31, 2005). |
| |
| 4.51 | | Amendment No. 1 to Equity Commitment Agreement, dated March 23, 2010, by and between Berkshire Hathaway Inc. and MidAmerican Energy Holdings Company (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Holdings Company Current Report onForm 8-K dated March 23, 2010). |
| |
| 4.52 | | Fiscal Agency Agreement, dated February 12, 2007, by and between Northern Natural Gas Company and Bank of New York Trust Company, N.A., Fiscal Agent, relating to the $150,000,000 in principal amount of the 5.80% Senior Bonds due 2037 (incorporated by reference to Exhibit 99.1 to the MidAmerican Energy Holdings Company Current Report on Form 8-K dated February 12, 2007). |
| |
| 4.53 | | Indenture, dated as of October 1, 2006, by and between MidAmerican Energy Company and the Bank of New York Trust Company, N.A., Trustee (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Company Quarterly Report on Form 10-Q for the quarter ended September 30, 2006). |
| |
| 4.54 | | First Supplemental Indenture, dated as of October 6, 2006, by and between MidAmerican Energy Company and the Bank of New York Trust Company, N.A., Trustee (incorporated by reference to Exhibit 4.2 to the MidAmerican Energy Company Quarterly Report onForm 10-Q for the quarter ended September 30, 2006). |
| |
| 4.55 | | Second Supplemental Indenture, dated June 29, 2007, by and between MidAmerican Energy Company and The Bank of New York Trust Company, N.A., Trustee (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Company Current Report on Form 8-Kdated June 29, 2007). |
| |
| 4.56 | | Third Supplemental Indenture, dated March 25, 2008, by and between MidAmerican Energy Company and The Bank of New York Trust Company, N.A., Trustee, relating to the 5.3% Notes due 2018 (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Company Current Report on Form 8-K dated March 25, 2008). |
| |
| 4.57 | | £119,000,000 Finance Contract, dated July 2, 2010, by and between Northern Electric Distribution Limited and the European Investment Bank (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Holdings Company Quarterly Report on Form 10-Q for the quarter ended June 30, 2010). |
| |
| 4.58 | | Guarantee and Indemnity Agreement, dated July 2, 2010, by and between CE Electric UK Funding Company and the European Investment Bank (incorporated by reference to Exhibit 4.2 to the MidAmerican Energy Holdings Company Quarterly Report on Form 10-Q for the quarter ended June 30, 2010). |
| | |
Exhibit
No. | | Description |
| |
| 4.59 | | £151,000,000 Finance Contract, dated July 2, 2010, by and between Yorkshire Electricity Distribution plc and the European Investment Bank (incorporated by reference to Exhibit 4.3 to the MidAmerican Energy Holdings Company Quarterly Report on Form 10-Q for the quarter ended June 30, 2010). |
| |
| 4.60 | | Guarantee and Indemnity Agreement, dated July 2, 2010, by and between CE Electric UK Funding Company and the European Investment Bank (incorporated by reference to Exhibit 4.4 to the MidAmerican Energy Holdings Company Quarterly Report on Form 10-Q for the quarter ended June 30, 2010). |
| |
| 4.61 | | Indenture, dated as of February 24, 2012, by and between Topaz Solar Farms LLC and The Bank of New York Mellon Trust Company, N.A., as Trustee (incorporated by reference to Exhibit 4.52 to the MidAmerican Energy Holdings Company Annual Report on Form 10-K for the year ended December 31, 2012). |
| |
| 4.62 | | First Supplemental Indenture, dated as of April 15, 2013, between Topaz Solar Farms LLC, as Issuer, and The Bank of New York Mellon Trust Company, N.A., as Trustee, relating to the $250,000,000 in principal amounts of the 4.875% Series B Senior Secured Notes Due 2039 (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Holdings Company Quarterly Report on Form 10-Q for the quarter ended June 30, 2013). |
| |
| 4.63 | | Indenture, dated as of June 27, 2013, between Solar Star Funding, LLC, as Issuer, and Wells Fargo Bank, National Association, as Trustee, relating to the $1,000,000,000 in principal amounts of the 5.375% Series A Senior Secured Notes Due 2035 (incorporated by reference to Exhibit 4.2 to the MidAmerican Energy Holdings Company Quarterly Report on Form 10-Q for the quarter ended June 30, 2013). |
| |
| 4.64 | | Trust Deed, dated as of July 5, 2012, among Northern Powergrid (Yorkshire) plc and HSBC Corporate Trustee Company (UK) Limited, relating to £150,000,000 in principal amount of the 4.375% Bonds due 2032 (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Holdings Company Quarterly Report on Form 10-Q for the quarter ended June 30, 2012). |
| |
| 4.65 | | Fiscal Agency Agreement, dated August 27, 2012, by and between Northern Natural Gas Company and The Bank of New York Mellon Trust Company, N.A., Fiscal Agent, relating to the $250,000,000 in principal amount of the 4.10% Senior Bonds due 2042 (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Holdings Company Quarterly Report on Form 10-Q for the quarter ended September 30, 2012). |
| |
| 4.66 | | Indenture, dated as of December 19, 2013, by and between MidAmerican Energy Holdings Company and The Bank of New York Mellon Trust Company, N.A., as Trustee, relating to the Junior Subordinated Debentures due 2043 (including form of junior subordinated debenture) (incorporated by reference to Exhibit 4.1 to the MidAmerican Energy Holdings Company Current Report on Form 8-K dated December 19, 2013). |
| |
| 4.67 | | Mortgage and Deed of Trust dated as of January 9, 1989, between PacifiCorp and The Bank of New York Mellon Trust Company, N.A., (formerly known as JP Morgan Chase Bank and The Chase Manhattan Bank), Trustee, incorporated by reference to Exhibit 4-E to PacifiCorp’sForm 8-B, File No. 1-5152, as supplemented and modified by 26 Supplemental Indentures, each incorporated by reference, as follows: |
| | | | | | |
Exhibit
Number | | PacifiCorp
File Type | | File Date | | File Number |
| (4)(b) | | SE | | November 2, 1989 | | 33-31861 |
| (4)(a) | | 8-K | | January 9, 1990 | | 1-5152 |
| (4)(a) | | 8-K | | September 11, 1991 | | 1-5152 |
| 4(a) | | 8-K | | January 7, 1992 | | 1-5152 |
| 4(a) | | 10-Q | | Quarter ended March 31, 1992 | | 1-5152 |
| 4(a) | | 10-Q | | Quarter ended September 30, 1992 | | 1-5152 |
| | | | | | |
Exhibit
Number | | PacifiCorp
File Type | | File Date | | File Number |
| 4(a) | | 8-K | | April 1, 1993 | | 1-5152 |
| 4(a) | | 10-Q | | Quarter ended September 30, 1993 | | 1-5152 |
| (4)b | | 10-Q | | Quarter ended June 30, 1994 | | 1-5152 |
| (4)b | | 10-K | | Year ended December 31, 1994 | | 1-5152 |
| (4)b | | 10-K | | Year ended December 31, 1995 | | 1-5152 |
| (4)b | | 10-K | | Year ended December 31, 1996 | | 1-5152 |
| (4)b | | 10-K | | Year ended December 31, 1998 | | 1-5152 |
| 99(a) | | 8-K | | November 21, 2001 | | 1-5152 |
| 4.1 | | 10-Q | | Quarter ended June 30, 2003 | | 1-5152 |
| 99 | | 8-K | | September 8, 2003 | | 1-5152 |
| 4 | | 8-K | | August 24, 2004 | | 1-5152 |
| 4 | | 8-K | | June 13, 2005 | | 1-5152 |
| 4.2 | | 8-K | | August 14, 2006 | | 1-5152 |
| 4 | | 8-K | | March 14, 2007 | | 1-5152 |
| 4.1 | | 8-K | | October 3, 2007 | | 1-5152 |
| 4.1 | | 8-K | | July 17, 2008 | | 1-5152 |
| 4.1 | | 8-K | | January 8, 2009 | | 1-5152 |
| 4.1 | | 8-K | | May 12, 2011 | | 1-5152 |
| 4.1 | | 8-K | | January 6, 2012 | | 1-5152 |
| 4.1 | | 8-K | | June 6, 2013 | | 1-5152 |
| | | | | |
| Exhibit No. | | Description |
| |
| | 4 | .65 | | $700,000,000 Credit Agreement dated as of October 23, 2007 among PacifiCorp, The Banks party thereto, The Royal Bank of Scotland plc, as Syndication Agent, and Union Bank of California, N.A., as Administrative Agent (incorporated by reference to Exhibit 99 to the PacifiCorp Quarterly Report onForm 10-Q for the quarter ended September 30, 2007). |
| | 4 | .66 | | First Amendment, dated as of April 15, 2009, to the $700,000,000 Credit Agreement dated as of October 23, 2007 among PacifiCorp, The Banks party thereto, The Royal Bank of Scotland plc, as Syndication Agent, and Union Bank of California, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.1 to the PacifiCorp Quarterly Report onForm 10-Q for the quarter ended March 31, 2009) |
| | 4 | .67 | | $800,000,000 Amended and Restated Credit Agreement dated as of July 6, 2006 among PacifiCorp, The Banks party thereto, The Royal Bank of Scotland plc, as Syndication Agent, and JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated by reference to Exhibit 99 to the PacifiCorp Quarterly Report onForm 10-Q for the quarter ended June 30, 2006). |
| | 4 | .68 | | First Amendment, dated as of April 15, 2009, to the $800,000,000 Amended and Restated Credit Agreement dated as of July 6, 2006 among PacifiCorp, The Banks party thereto, The Royal Bank of Scotland plc, as Syndication Agent, and JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.2 to the PacifiCorp Quarterly Report onForm 10-Q for the quarter ended March 31, 2009). |
| | 5 | .1 | | Opinion of Willkie Farr & Gallagher LLP.* |
| | 8 | .1 | | Opinion of Willkie Farr & Gallagher LLP with respect to certain tax matters.* |
| | 10 | .1 | | Amended and Restated Employment Agreement, dated February 25, 2008, by and between MidAmerican Energy Holdings Company and David L. Sokol (incorporated by reference to Exhibit 10.1 to the MidAmerican Energy Holdings Company Annual Report onForm 10-K for the year ended December 31, 2007). |
| | 10 | .2 | | Non-Qualified Stock Option Agreements of David L. Sokol, dated March 14, 2000 (incorporated by reference to Exhibit 10.3 to the MidAmerican Energy Holdings Company Registration StatementNo. 333-101699 dated December 6, 2002) and the related 2000 Stock Option Plan attached as Exhibit A thereto (incorporated by reference to Exhibit 10.3 of MidAmerican Energy Holdings Company’s Registration StatementNo. 333-143286 dated May 25, 2007). |
| | 10 | .3 | | Incremental Profit Sharing Plan, dated February 16, 2009, by and between MidAmerican Energy Holdings Company and David L. Sokol (incorporated by reference to Exhibit 10.3 to the MidAmerican Energy Holdings Company Annual Report onForm 10-K for the year ended December 31, 2008). |
| | 10 | .4 | | Amended and Restated Employment Agreement, dated February 25, 2008, by and between MidAmerican Energy Holdings Company and Gregory E. Abel (incorporated by reference to Exhibit 10.3 to the MidAmerican Energy Holdings Company Annual Report onForm 10-K for the year ended December 31, 2007). |
| | 10 | .5 | | Non-Qualified Stock Option Agreements of Gregory E. Abel, dated March 14, 2000 (incorporated by reference to Exhibit 10.5 to the MidAmerican Energy Holdings Company Registration StatementNo. 333-101699 dated December 6, 2002) and the related 2000 Stock Option Plan attached as Exhibit A thereto (incorporated by reference to Exhibit 10.5 of MidAmerican Energy Holdings Company’s Registration StatementNo. 333-143286 dated May 25, 2007). |
| | 10 | .6 | | Incremental Profit Sharing Plan, dated February 10, 2009, by and between MidAmerican Energy Holdings Company and Gregory E. Abel (incorporated by reference to Exhibit 10.6 to the MidAmerican Energy Holdings Company Annual Report onForm 10-K for the year ended December 31, 2008). |
| | 10 | .7 | | Amended and Restated Employment Agreement, dated February 25, 2008, by and between MidAmerican Energy Holdings Company and Patrick J. Goodman (incorporated by reference to Exhibit 10.5 to the MidAmerican Energy Holdings Company Annual Report onForm 10-K for the year ended December 31, 2007). |
| | | | | |
| Exhibit No. | | Description |
| |
| | 10 | .8 | | Amended and Restated Casecnan Project Agreement, dated June 26, 1995, between the National Irrigation Administration and CE Casecnan Water and Energy Company Inc. (incorporated by reference to Exhibit 10.1 to the CE Casecnan Water and Energy Company, Inc. Registration Statement onForm S-4 dated January 25, 1996). |
| | 10 | .9 | | Supplemental Agreement, dated as of September 29, 2003, by and between CE Casecnan Water and Energy Company, Inc. and the Philippines National Irrigation Administration (incorporated by reference to Exhibit 98.1 to the MidAmerican Energy Holdings Company Current Report onForm 8-K dated October 15, 2003). |
| | 10 | .10 | | CalEnergy Company, Inc. Voluntary Deferred Compensation Plan, effective December 1, 1997, First Amendment, dated as of August 17, 1999, and Second Amendment effective March 14, 2000 (incorporated by reference to Exhibit 10.50 to the MidAmerican Energy Holdings Company Registration StatementNo. 333-101699 dated December 6, 2002). |
| | 10 | .11 | | MidAmerican Energy Holdings Company Executive Voluntary Deferred Compensation Plan restated effective as of January 1, 2007 (incorporated by reference to Exhibit 10.9 to the MidAmerican Energy Holdings Company Annual Report onForm 10-K for the year ended December 31, 2007). |
| | 10 | .12 | | MidAmerican Energy Company First Amended and Restated Supplemental Retirement Plan for Designated Officers dated as of May 10, 1999 amended on February 25, 2008 to be effective as of January 1, 2005 (incorporated by reference to Exhibit 10.10 to the MidAmerican Energy Holdings Company Annual Report onForm 10-K for the year ended December 31, 2007). |
| | 10 | .13 | | MidAmerican Energy Holdings Company Long-Term Incentive Partnership Plan as Amended and Restated January 1, 2007 (incorporated by reference to Exhibit 10.11 to the MidAmerican Energy Holdings Company Annual Report onForm 10-K for the year ended December 31, 2007). |
| | 10 | .14 | | Summary of Key Terms of Compensation Arrangements with MidAmerican Energy Holdings Company Named Executive Officers and Directors (incorporated by reference to Exhibit 10.14 to the MidAmerican Energy Holdings Company Annual Report onForm 10-K for the year ended December 31, 2008). |
| | 10 | .15 | | Termination Agreement, dated December 17, 2008, by and among MidAmerican Energy Holdings Company, MEHC Investment, Inc., MEHC Merger Sub, Inc., Constellation Energy Group, Inc., CER Generation II, LLC, Constellation Power Source Generation, Inc. and Electricité De France International, SA (incorporated by reference to Exhibit 2.1 to the MidAmerican Energy Holdings Company Current Report onForm 8-K dated December 17, 2008). |
| | 12 | .1 | | Computation of Ratios of Earnings to Fixed Charges. |
| | 14 | .1 | | MidAmerican Energy Holdings Company Code of Ethics for Chief Executive Officer, Chief Financial Officer and Other Covered Officers (incorporated by reference to Exhibit 14.1 to the MidAmerican Energy Holdings Company Annual Report onForm 10-K for the year ended December 31, 2003). |
| | 15 | .1 | | Awareness Letter of Deloitte & Touche LLP. |
| | 21 | .1 | | Subsidiaries of the Registrant (incorporated by reference to Exhibit 21.1 to the MidAmerican Energy Holdings Company Annual Report onForm 10-K for the year ended December 31, 2008). |
| | 23 | .1 | | Consent of Willkie Farr & Gallagher LLP (included in their opinions filed as Exhibits 5.1 and 8.1).* |
| | 23 | .2 | | Consent of Deloitte & Touche LLP. |
| | 24 | .1 | | Power of Attorney (included on signature page hereto). |
| | 25 | .1 | | Statement onForm T-1 of Eligibility of Trustee relating to the 3.15% Senior Notes due 2012. |
| | 99 | .1 | | Form of Letter of Transmittal relating to the 3.15% Senior Notes due 2012. |
| | 99 | .2 | | Form of Notice of Guaranteed Delivery relating to the 3.15% Senior Notes due 2012. |
| | 99 | .3 | | Form of Letter to Clients relating to the 3.15% Senior Notes due 2012. |
| | 99 | .4 | | Form of Letter to Nominees relating to the 3.15% Senior Notes due 2012. |
| | |
Exhibit
No. | | Description |
| |
| 4.68 | | Indenture, dated May 1, 2000, between NV Energy, Inc. (under its former name, Sierra Pacific Resources) and The Bank of New York, relating to the issuance of debt securities (incorporated by reference to Exhibit 4.1 to the NV Energy, Inc. Current Report on Form 8-K dated May 22, 2000). |
| |
| 4.69 | | Agreement of Resignation, Appointment and Acceptance, dated November 6, 2009, by and among NV Energy, Inc., The Bank of New York Mellon and The Bank of New York Trust Company, N.A. (incorporated by reference to Exhibit 4.1 to the NV Energy, Inc. Form 10-K for the year ended December 31, 2009). |
| |
| 4.70 | | Form of Officers’ Certificate establishing the terms of NV Energy, Inc.‘s 6.25% Senior Notes due 2020 (incorporated by reference to Exhibit 4.1 to the NV Energy, Inc. Current Report onForm 8-K dated November 19, 2010). |
| |
| 4.71 | | General and Refunding Mortgage Indenture, dated May 1, 2001, between Nevada Power Company and The Bank of New York, as Trustee (incorporated by reference to Exhibit 4.1(a) to the Nevada Power Company Quarterly Report on Form 10-Q for the quarter ended June 30, 2001). |
| |
| 4.72 | | Agreement of Resignation, Appointment and Acceptance, dated November 6, 2009, by and among Nevada Power Company d/b/a NV Energy, The Bank of New York Mellon and The Bank of New York Trust Company, N.A. (incorporated by reference to Exhibit 4.2 to the Nevada Power Company Annual Report on Form 10-K for the year ended December 31, 2009). |
| |
| 4.73 | | Officer’s Certificate establishing the terms of Nevada Power Company’s 5 7/8% General and Refunding Mortgage Notes, Series L, due 2015 (incorporated by reference to Exhibit 4(A) to the Nevada Power Company Annual Report on Form 10-K for the year ended December 31, 2004). |
| |
| 4.74 | | Form of Nevada Power Company’s 5 7/8% General and Refunding Mortgage Notes, Series L, due 2015 (incorporated by reference to Exhibit 4(B) to the Nevada Power Company Annual Report on Form 10-K for the year ended December 31, 2004). |
| |
| 4.75 | | Officer’s Certificate establishing the terms of Nevada Power Company’s 5.95% General and Refunding Mortgage Notes, Series M, due 2016 (incorporated by reference to Exhibit 4(A) to the Nevada Power Company Annual Report on Form 10-K for the year ended December 31, 2005). |
| | |
Exhibit
No. | | Description |
| |
| 4.76 | | Form of Nevada Power Company’s 5.95% General and Refunding Mortgage Notes, Series M, due 2016 (incorporated by reference to Exhibit 4(B) to the Nevada Power Company Quarterly Report onForm 10-K for the year ended December 31, 2005). |
| |
| 4.77 | | Officer’s Certificate establishing the terms of Nevada Power Company’s 6.650% General and Refunding Mortgage Notes, Series N, due 2036 (incorporated by reference to Exhibit 4.1 to the Nevada Power Company Quarterly Report on Form 10-Q for the quarter ended March 31, 2006). |
| |
| 4.78 | | Officer’s Certificate establishing the terms of Nevada Power Company’s 6.50% General and Refunding Mortgage Notes, Series O, due 2018 (incorporated by reference to Exhibit 4.7 to the Nevada Power Company Registration Statement No. 333-134801 dated June 7, 2006). |
| |
| 4.79 | | Officer’s Certificate establishing the terms of Nevada Power Company’s 6.750% General and Refunding Mortgage Notes, Series R, due 2037 (incorporated by reference to Exhibit 4.1 to the Nevada Power Company Current Report on Form 8-K dated June 27, 2007). |
| |
| 4.80 | | Officer’s Certificate establishing the terms of Nevada Power Company’s 6.50% General and Refunding Mortgage Notes, Series S, due 2018 (incorporated by reference to Exhibit 4.1 to the Nevada Power Company Current Report on Form 8-K dated July 28, 2008). |
| |
| 4.81 | | Officer’s Certificate establishing the terms of Nevada Power Company d/b/a NV Energy’s 7.125% General and Refunding Mortgage Notes, Series V, due 2019 (incorporated by reference to Exhibit 4.1 to the Nevada Power Company Current Report on Form 8-K dated February 26, 2009). |
| |
| 4.82 | | Officer’s Certificate establishing the terms of Nevada Power Company d/b/a NV Energy’s 5.375% General and Refunding Mortgage Notes, Series X, due 2040 (incorporated by reference to Exhibit 4.1 to the Nevada Power Company Current Report on Form 8-K dated September 10, 2010). |
| |
| 4.83 | | Officer’s Certificate establishing the terms of Nevada Power Company d/b/a NV Energy’s 5.45% General and Refunding Mortgage Notes, Series Y, due 2041 (incorporated by reference to Exhibit 4.1 to the Nevada Power Company Current Report on Form 8-K dated May 10, 2011). |
| |
| 4.84 | | General and Refunding Mortgage Indenture, dated as of May 1, 2001, between Sierra Pacific Power Company and The Bank of New York as Trustee (incorporated by reference to Exhibit 4.2(a) to the Sierra Pacific Power Company Quarterly Report on Form 10-Q for the quarter ended June 30, 2001). |
| |
| 4.85 | | Second Supplemental Indenture, dated as of October 30, 2006, to subject additional properties of Sierra Pacific Power Company located in the State of California to the lien of the General and Refunding Mortgage Indenture and to correct defects in the original Indenture (incorporated by reference to Exhibit 4(A) to the Sierra Pacific Power Company Annual Report onForm 10-K for the year ended December 31, 2006). |
| |
| 4.86 | | Agreement of Resignation, Appointment and Acceptance, dated November 6, 2009, by and among Sierra Pacific Power Company d/b/a NV Energy, The Bank of New York Mellon and The Bank of New York Trust Company, N.A. (incorporated by reference to Exhibit 4.3 to the Sierra Pacific Power Company Annual Report on Form 10-K for the year ended December 31, 2009). |
| |
| 4.87 | | Officer’s Certificate establishing the terms of Sierra Pacific Power Company’s 6% General and Refunding Mortgage Notes, Series M, due 2016 (incorporated by reference to Exhibit 4.4 to the Sierra Pacific Power Company Quarterly Report on Form 10-Q for the quarter ended March 31, 2006). |
| |
| 4.88 | | Form of First Supplemental Officer’s Certificate establishing the terms of Sierra Pacific Power Company’s 6% General and Refunding Mortgage Notes, Series M, due 2016 (incorporated by reference to Exhibit 4.2 to the Sierra Pacific Power Company Current Report onForm 8-K dated August 18, 2009). |
| |
| 4.89 | | Officer’s Certificate establishing the terms of Sierra Pacific Power Company’s 6.750% General and Refunding Mortgage Notes, Series P, due 2037 (incorporated by reference to Exhibit 4.2 to the Sierra Pacific Power Company Current Report on Form 8-K dated June 27, 2007). |
| | |
Exhibit
No. | | Description |
| |
| 4.90 | | Officer’s Certificate establishing the terms of Sierra Pacific Power Company’s 3.375% General and Refunding Mortgage Notes, Series T, due 2023 (incorporated by reference to Exhibit 4.1 to the Sierra Pacific Power Company Current Report on Form 8-K dated August 14, 2013). |
| |
| 5.1 | | Opinion of Gibson, Dunn & Crutcher LLP.* |
| |
| 5.2 | | Opinion of Paul J. Leighton.* |
| |
| 10.1 | | Amended and Restated Employment Agreement, dated February 25, 2008, by and between MidAmerican Energy Holdings Company and Gregory E. Abel (incorporated by reference to Exhibit 10.3 to the MidAmerican Energy Holdings Company Annual Report onForm 10-K for the year ended December 31, 2007). |
| |
| 10.2 | | Incremental Profit Sharing Plan, dated February 10, 2009, by and between MidAmerican Energy Holdings Company and Gregory E. Abel (incorporated by reference to Exhibit 10.6 to the MidAmerican Energy Holdings Company Annual Report on Form 10-K for the year ended December 31, 2008). |
| |
| 10.3 | | Amended and Restated Employment Agreement, dated February 25, 2008, by and between MidAmerican Energy Holdings Company and Patrick J. Goodman (incorporated by reference to Exhibit 10.5 to the MidAmerican Energy Holdings Company Annual Report onForm 10-K for the year ended December 31, 2007). |
| |
| 10.4 | | Amended and Restated Casecnan Project Agreement, dated June 26, 1995, between the National Irrigation Administration and CE Casecnan Water and Energy Company Inc. (incorporated by reference to Exhibit 10.1 to the CE Casecnan Water and Energy Company, Inc. Registration Statement on Form S-4 dated January 25, 1996). |
| |
| 10.5 | | Supplemental Agreement, dated as of September 29, 2003, by and between CE Casecnan Water and Energy Company, Inc. and the Philippines National Irrigation Administration (incorporated by reference to Exhibit 98.1 to the MidAmerican Energy Holdings Company Current Report onForm 8-K dated October 15, 2003). |
| |
| 10.6 | | CalEnergy Company, Inc. Voluntary Deferred Compensation Plan, effective December 1, 1997, First Amendment, dated as of August 17, 1999, and Second Amendment effective March 14, 2000 (incorporated by reference to Exhibit 10.50 to the MidAmerican Energy Holdings Company Registration Statement No. 333-101699 dated December 6, 2002). |
| |
| 10.7 | | MidAmerican Energy Holdings Company Executive Voluntary Deferred Compensation Plan restated effective as of January 1, 2007 (incorporated by reference to Exhibit 10.9 to the MidAmerican Energy Holdings Company Annual Report on Form 10-K for the year ended December 31, 2007). |
| |
| 10.8 | | MidAmerican Energy Company First Amended and Restated Supplemental Retirement Plan for Designated Officers dated as of May 10, 1999 amended on February 25, 2008 to be effective as of January 1, 2005 (incorporated by reference to Exhibit 10.10 to the MidAmerican Energy Holdings Company Annual Report on Form 10-K for the year ended December 31, 2007). |
| |
| 10.9 | | MidAmerican Energy Holdings Company Long-Term Incentive Partnership Plan as Amended and Restated January 1, 2007 (incorporated by reference to Exhibit 10.11 to the MidAmerican Energy Holdings Company Annual Report on Form 10-K for the year ended December 31, 2007). |
| |
| 10.10 | | Summary of Key Terms of Compensation Arrangements with MidAmerican Energy Holdings Company Named Executive Officers and Directors (incorporated by reference to Exhibit 10.17 to the MidAmerican Energy Holdings Company Annual Report on Form 10-K for the year ended December 31, 2012). |
| |
| 10.11 | | $600,000,000 Credit Agreement, dated as of June 28, 2012, among MidAmerican Energy Holdings Company, as Borrower, the Banks, Financial Institutions and Other Institutional Lenders, as Initial Lenders, Union Bank, N.A, as Administrative Agent and Swingline Lender, and the LC Issuing Banks (incorporated by reference to Exhibit 10.1 to the MidAmerican Energy Holdings Company Quarterly Report on Form 10-Q for the quarter ended June 30, 2012). |
| | |
Exhibit
No. | | Description |
| |
| 10.12 | | $600,000,000 Credit Agreement, dated as of June 28, 2012, among PacifiCorp, as Borrower, the Banks, Financial Institutions and Other Institutional Lenders, as Initial Lenders, JPMorgan Chase Bank, N.A., as Administrative Agent and Swingline Lender, and the LC Issuing Banks (incorporated by reference to Exhibit 10.1 to the PacifiCorp Quarterly Report on Form 10-Q for the quarter ended June 30, 2012). |
| |
| 10.13 | | $600,000,000 Credit Agreement, dated as of March 27, 2013, among PacifiCorp, as Borrower, the banks, financial institutions and other institutional lenders, as Initial Lenders, JPMorgan Chase Bank, N.A., as Administrative Agent and Swingline Lender, and the LC Issuing Banks (incorporated by reference to Exhibit 10.1 to the PacifiCorp Quarterly Report on Form 10-Q for the quarter ended March 31, 2013). |
| |
| 10.14 | | $600,000,000 Credit Agreement, dated as of March 27, 2013, among MidAmerican Energy Company, as Borrower, the banks, financial institutions and other institutional lenders, as Initial Lenders, JPMorgan Chase Bank, N.A., as Administrative Agent and Swingline Lender, and the LC Issuing Banks (incorporated by reference to Exhibit 10.1 to the MidAmerican Energy Company Quarterly Report on Form 10-Q for the quarter ended March 31, 2013). |
| |
| 10.15 | | £150,000,000 Facility Agreement, dated August 20, 2012, among Northern Powergrid Holdings Company, as Borrower, and Abbey National Treasury Services plc, Lloyds TSB Bank plc and The Royal Bank of Scotland plc, as Original Lenders (incorporated by reference to Exhibit 10.1 to the MidAmerican Energy Holdings Company Quarterly Report on Form 10-Q for the quarter ended September 30, 2012). |
| |
| 10.16 | | Equity Contribution Agreement, dated as of February 24, 2012, by and among MidAmerican Energy Holdings Company, as the Contributor, Topaz Solar Farms LLC, as the Company, and The Bank of New York Mellon Trust Company, N.A., as the Collateral Agent (incorporated by reference to Exhibit 10.21 to the MidAmerican Energy Holdings Company Annual Report on Form 10-K for the year ended December 31, 2012). |
| |
| 10.17 | | Equity Contribution Agreement (Financing Documents), dated as of June 27, 2013, among MidAmerican Energy Holdings Company, as the Contributor, Solar Star Funding, LLC, as the Company, SSC XIX, LLC, as the SS1 Company Owner, SSC XX, LLC, as the SS2 Company Owner, Solar Star California XIX, LLC and Solar Star California XX, LLC, as the Project Companies, and Wells Fargo Bank, National Association, as the Collateral Agent. |
| |
| 10.18 | | Term Loan Agreement, dated October 7, 2011, between NV Energy, Inc. and JP Morgan Chase Bank, N.A., as administrative agent (incorporated by reference to Exhibit 10.1 to the NV Energy, Inc. Quarterly Report on Form 10-Q for the quarter ended September 30, 2011). |
| |
| 10.19 | | Credit Agreement, dated March 23, 2012, between Nevada Power Company d/b/a NV Energy and Wells Fargo Bank, N.A., as administrative agent for the lenders (incorporated by reference to Exhibit 10.1 to the Nevada Power Company Quarterly Report on Form 10-Q for the quarter ended March 30, 2012). |
| |
| 10.20 | | Credit Agreement, dated March 23, 2012, between Sierra Pacific Power Company d/b/a NV Energy and Wells Fargo Bank, N.A., as administrative agent for the lenders (incorporated by reference to Exhibit 10.2 to the Sierra Pacific Power Company Quarterly Report on Form 10-Q for the quarter ended March 30, 2012). |
| |
| 12.1 | | Computation of Ratios of Earnings to Fixed Charges. |
| |
| 15.1 | | Awareness Letter of Deloitte & Touche LLP. |
| |
| 21.1 | | Subsidiaries of the Registrant. |
| |
| 23.1 | | Consent of Gibson, Dunn & Crutcher LLP (included in their opinion filed as Exhibit 5.1).* |
| |
| 23.2 | | Consent of Paul J. Leighton (included in the opinion filed as Exhibit 5.2).* |
| |
| 23.3 | | Consent of Deloitte & Touche LLP. |
| | |
Exhibit
No. | | Description |
| |
| 24.1 | | Power of Attorney (included on signature page hereto). |
| |
| 25.1 | | Statement on Form T-1 of Eligibility of Trustee relating to the 1.100% Senior Notes due 2017, the 2.000% Senior Notes due 2018, the 3.750% Senior Notes due 2023 and the 5.150% Senior Notes due 2043. |
| |
| 99.1 | | Form of Letter of Transmittal relating to the 1.100% Senior Notes due 2017, the 2.000% Senior Notes due 2018, the 3.750% Senior Notes due 2023 and the 5.150% Senior Notes due 2043. |
| |
| 99.2 | | Form of Notice of Guaranteed Delivery relating to the 1.100% Senior Notes due 2017, the 2.000% Senior Notes due 2018, the 3.750% Senior Notes due 2023 and the 5.150% Senior Notes due 2043. |
| |
| 99.3 | | Form of Letter to Clients relating to the 1.100% Senior Notes due 2017, the 2.000% Senior Notes due 2018, the 3.750% Senior Notes due 2023 and the 5.150% Senior Notes due 2043. |
| |
| 99.4 | | Form of Letter to Nominees relating to the 1.100% Senior Notes due 2017, the 2.000% Senior Notes due 2018, the 3.750% Senior Notes due 2023 and the 5.150% Senior Notes due 2043. |
| * | To be filed by amendment |
