Attached files
file | filename |
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8-K - 8-K - Copano Energy, L.L.C. | h80858e8vk.htm |
EX-99.1 - EX-99.1 - Copano Energy, L.L.C. | h80858exv99w1.htm |
EX-99.2 - EX-99.2 - Copano Energy, L.L.C. | h80858exv99w2.htm |
EX-99.3 - EX-99.3 - Copano Energy, L.L.C. | h80858exv99w3.htm |
Exhibit 1.1
Execution Version
Copano Energy, L.L.C.
Copano Energy Finance Corporation
and
The Guarantors Listed on Schedule 2
$360,000,000
7.125% Senior Notes due 2021
UNDERWRITING AGREEMENT
dated March 22, 2011
J.P. Morgan Securities LLC
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Deutsche Bank Securities Inc.
RBC Capital Markets, LLC
Wells Fargo Securities, LLC
Credit Suisse Securities (USA) LLC
BBVA Securities Inc.
BNP Paribas Securities Corp.
SunTrust Robinson Humphrey, Inc.
Comerica Securities, Inc.
U.S. Bancorp Investments, Inc.
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Deutsche Bank Securities Inc.
RBC Capital Markets, LLC
Wells Fargo Securities, LLC
Credit Suisse Securities (USA) LLC
BBVA Securities Inc.
BNP Paribas Securities Corp.
SunTrust Robinson Humphrey, Inc.
Comerica Securities, Inc.
U.S. Bancorp Investments, Inc.
UNDERWRITING AGREEMENT
March 22, 2011
J.P. Morgan Securities LLC
As representative of the several Underwriters listed on Schedule 1 hereto
c/o J.P. Morgan Securities LLC
383 Madison Avenue
New York, New York 10179
383 Madison Avenue
New York, New York 10179
Ladies and Gentlemen:
Copano Energy, L.L.C., a Delaware limited liability company (the Company), and Copano Energy
Finance Corporation, a Delaware corporation (FinCo), propose to issue and sell to the several
Underwriters listed in Schedule 1 hereto (the Underwriters), for whom you are acting as
representative (the Representative), $360,000,000 aggregate principal amount of their 7.125%
Senior Notes due 2021 (the Notes). The Company and FinCo are referred to collectively as the
Issuers. The Notes will be issued pursuant to an Indenture to be dated as of April 5, 2011 (the
Base Indenture) among the Company, FinCo, the guarantors listed in Schedule 2 hereto (the
Guarantors) and U.S. Bank National Association, as trustee (the Trustee), as supplemented by
the First Supplemental Indenture, to be dated as of April 5, 2011 (the Supplemental Indenture
and, together with the Base Indenture, the Indenture), and will be guaranteed on an unsecured
senior basis by each of the Guarantors (the Guarantees and, together with the Notes, the
Securities).
The Issuers and the Guarantors are referred to collectively as the Copano Parties. FinCo
and the Guarantors, together with Webb/Duval Gatherers, a Texas general partnership (Webb/Duval),
Southern Dome, LLC, a Delaware limited liability company (Southern Dome), Bighorn Gas Gathering,
L.L.C., a Delaware limited liability company (Bighorn), Fort Union Gas Gathering, L.L.C., a
Delaware limited liability company (Fort Union), Liberty Pipeline Group, LLC (Liberty
Pipeline), a Delaware limited liability company, and Eagle Ford Gathering LLC, a Delaware limited
liability company (Eagle Ford Gathering), are referred to collectively as the Subsidiaries.
The Copano Parties hereby confirm their agreement with the several Underwriters concerning the
purchase and sale of the Notes, as follows:
1. Registration Statement. The Issuers have prepared and filed with the Securities
and Exchange Commission (the Commission) under the Securities Act of 1933, as amended, and the
rules and regulations of the Commission thereunder (collectively, the Securities Act), a
registration statement on Form S-3 (File No. 333-162821), including a prospectus, relating to
securities to be issued from time to time by the Issuers, including the Securities. Such
registration statement, as amended at the time it became effective, including the information, if
any, deemed pursuant to Rule 430A, 430B or 430C under the Securities Act to be part of the
registration statement at the time of its effectiveness (Rule 430 Information), is referred to
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herein as the Registration Statement; and as used herein, the term Preliminary Prospectus
means any prospectus filed with the Commission pursuant to Rule 424(b) under the Securities Act and
the prospectus included in the Registration Statement at the time of its effectiveness that omits
Rule 430 Information, and the term Prospectus means the prospectus in the form first used (or
made available upon request of purchasers pursuant to Rule 173 under the Securities Act) in
connection with confirmation of sales of the Notes. If the Issuers have filed an abbreviated
registration statement pursuant to Rule 462(b) under the Securities Act (the Rule 462 Registration
Statement), then any reference herein to the term Registration Statement shall be deemed to
include such Rule 462 Registration Statement. Any reference in this Agreement to the Registration
Statement, any Preliminary Prospectus or the Prospectus shall be deemed to refer to and include the
documents incorporated by reference therein pursuant to Item 12 of Form S-3 under the Securities
Act, as of the effective date of the Registration Statement or the date of such Preliminary
Prospectus or the Prospectus, as the case may be, and any reference to amend, amendment or
supplement with respect to the Registration Statement, any Preliminary Prospectus or the
Prospectus shall be deemed to refer to and include any documents filed after such date under the
Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission
thereunder (collectively, the Exchange Act) that are deemed to be incorporated by reference
therein.
At or prior to the time when sales of the Notes were first made (the Time of Sale), the
following information shall have been prepared (collectively, the Time of Sale Information): a
Preliminary Prospectus dated March 22, 2011, and each free writing prospectus (as defined
pursuant to Rule 405 under the Securities Act) listed on Annex D hereto as constituting
part of the Time of Sale Information.
The Copano Parties acknowledge and agree that the Underwriters are acting solely in the
capacity of an arms length contractual counterparty to the Copano Parties with respect to the
offering of Securities contemplated hereby (including in connection with determining the terms of
the offering) and not as financial advisors or fiduciaries to, or agents of, the Copano Parties or
any other person. Additionally, neither the Representative nor any other Underwriter is advising
the Copano Parties or any other person as to any legal, tax, investment, accounting or regulatory
matters in any jurisdiction. The Copano Parties shall consult with their own advisors concerning
such matters and shall be responsible for making their own independent investigation and appraisal
of the transactions contemplated hereby, and neither the Representative nor any other Underwriters
shall have any responsibility or liability to the Copano Parties with respect thereto. Any review
by the Representative or any Underwriters of the Copano Parties and the transactions contemplated
hereby or other matters relating to such transactions will be performed solely for the benefit of
the Representative or such Underwriter, as the case may be, and shall not be on behalf of the
Copano Parties or any other person.
2. Purchase of the Notes by the Underwriters.
(a) The Issuers agree to issue and sell the Notes to the several Underwriters as provided in
this Agreement, and each Underwriter, on the basis of the representations, warranties and
agreements set forth herein and subject to the conditions set forth herein, agrees, severally and
not jointly, to purchase from the Issuers the respective principal amount of Notes set forth
opposite such Underwriters name in Schedule 1 hereto at a price equal to 98.00% of the
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principal amount thereof plus accrued interest, if any, from the Closing Date (as defined
below). The Issuers will not be obligated to deliver any of the Notes except upon payment for all
the Notes to be purchased as provided herein.
(b) The Issuers understand that the Underwriters intend to make a public offering of the Notes
as soon after the effectiveness of this Agreement as in the judgment of the Representative is
advisable, and initially to offer the Notes on the terms set forth in the Time of Sale Information.
(c) The Issuers acknowledge and agree that the Underwriters may offer and sell Notes to or
through any affiliate of an Underwriter and that any such affiliate may offer and sell Notes
purchased by it to or through any Underwriter.
(d) Payment for and delivery of the Notes will be made at the offices of Vinson & Elkins
L.L.P., First City Tower, 1001 Fannin, Suite 2500, Houston, Texas 77002 at 9:00 a.m., Houston time,
on April 5, 2011, or at such other time or place on the same or such other date, not later than the
fifth business day thereafter, as the Representative and the Issuers may agree upon in writing.
The time and date of such payment and delivery is referred to herein as the Closing Date.
(e) Payment for the Notes shall be made by wire transfer in immediately available funds to the
account(s) specified by the Issuers to the Representative against delivery to the nominee of The
Depository Trust Company, for the account of the Underwriters, of one or more global notes
representing the Notes (collectively, the Global Note), with any transfer taxes payable in
connection with the sale of the Notes duly paid by the Issuers. The Global Note will be made
available for inspection by the Representative or counsel for the Representative not later than
5:00 P.M., Houston time, on the business day prior to the Closing Date.
3. Representations and Warranties. Each of the Issuers and the Guarantors,
jointly and severally, hereby represents and warrants to each Underwriter as set forth below:
(a) Registration Statement. The Registration Statement is an automatic shelf
registration statement as defined under Rule 405 of the Securities Act that has been filed
with the Commission not earlier than the date that is three years prior to the Closing Date
(as defined in Section 2) and is effective under the Securities Act; and no notice of
objection of the Commission to the use of such registration statement or any post-effective
amendment thereto pursuant to Rule 401(g)(2) under the Securities Act has been received by
the Company. No stop order suspending the effectiveness of the Registration Statement is in
effect, and no proceedings for such purpose are pending before or, to the knowledge of the
Issuers, threatened by the Commission. As of the applicable effective date of the
Registration Statement and any amendment thereto, the Registration Statement complied and
will comply in all material respects with the Trust Indenture Act of 1939, as amended, and
the rules and regulations of the Commission thereunder (collectively, the Trust Indenture
Act).
(b) Status as Well-Known Seasoned Issuer. The Company was (i) at the time of filing
the Registration Statement, (ii) at the time of the most recent amendment
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thereto for the purposes of complying with Section 10(a)(3) of the Securities Act
(whether such amendment was by post-effective amendment, incorporated report filed pursuant
to Section 13 or 15(d) of the Exchange Act or form of prospectus) and (iii) at the time
either Issuer or any person acting on its behalf (within the meaning, for this clause only,
of Rule 163(c)) made any offer relating to the Notes in reliance on the exemption of Rule
163, a well-known seasoned issuer (as defined in Rule 405).
(c) No Omissions or Material Misstatements. (i) Each document, if any, filed pursuant
to the Exchange Act and incorporated by reference in any Preliminary Prospectus or the
Prospectus complied when so filed in all material respects with the Exchange Act, and did
not contain any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading; and any further documents so filed and incorporated by
reference in any Preliminary Prospectus or the Prospectus, when such documents are filed
with the Commission, will comply in all material respects with the Exchange Act, and will
not contain any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading; (ii) the Registration Statement, as of its effective
time, did not contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein not
misleading, (iii) each of the Registration Statement, when it became effective, and the
Prospectus, as of its date and as of the Closing Date (as defined in Section 2) as then
amended or supplemented, complied or will comply, as the case may be, in all material
respects with the Securities Act, (iv) the Preliminary Prospectus, at the time of filing
thereof, does not, and the Time of Sale Information, at the Time of Sale when the Prospectus
is not yet available to prospective purchasers, does not and will not contain an untrue
statement of a material fact or omit to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not
misleading, (v) each free writing prospectus (including, without limitation, any road show
that is a free writing prospectus under Rule 433 of the Securities Act) does not and at the
Closing Date will not include an untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, (vi) each broadly available road
show, if any, when considered together with the Preliminary Prospectus, does not contain any
untrue statement of a material fact or omit to state a material fact necessary in order to
make the statements therein, in the light of the circumstances under which they were made,
not misleading and (vii) the Prospectus will not, as of its date and as of the Closing Date,
contain an untrue statement of a material fact or omit to state a material fact necessary in
order to make the statements therein, in the light of the circumstances under which they
were made, not misleading, except that the representations and warranties set forth in this
paragraph do not apply to statements or omissions in the Registration Statement, the
Preliminary Prospectus, the Time of Sale Information, any free writing prospectus or the
Prospectus based upon information relating to any Underwriter furnished to the Issuers in
writing by or on behalf of such Underwriter through you expressly for use therein.
(d) Free Writing Prospectus. Neither Issuer is an ineligible issuer in
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connection with the offering pursuant to Rules 164, 405 and 433 under the Securities
Act. Any free writing prospectus that the Issuers are required to file pursuant to Rule
433(d) under the Securities Act has been, or will be, filed with the Commission in
accordance with the requirements of the Securities Act. Each free writing prospectus that
the Issuers have filed, or are required to file, pursuant to Rule 433(d) under the
Securities Act or any free writing prospectus that was prepared by or on behalf of or used
or referred to by the Issuers (an Issuer Free Writing Prospectus) complies or will comply
in all material respects with the requirements of the Securities Act. Except for the free
writing prospectuses, if any, identified in Annex D hereto forming part of the Time
of Sale Information, and electronic road shows, if any, each furnished to you before first
use, the Issuers have not prepared, used or referred to, and will not, without your prior
consent, prepare, use or refer to, any free writing prospectus.
(e) Formation and Qualification. Each of the Company and the Subsidiaries (except for
Webb/Duval with respect to good standing) has been duly formed and is validly existing in
good standing under the laws of its jurisdiction of formation, and is duly registered or
qualified to do business and is in good standing as a foreign corporation, limited liability
company, limited partnership or general partnership, as the case may be, in each
jurisdiction in which its ownership or lease of property or the conduct of its businesses
requires such registration or qualification, except where the failure so to register or
qualify would not, individually or in the aggregate, either (i) have a material adverse
effect on the business, properties, financial condition, results of operations or prospects
of the Company and the Subsidiaries taken as a whole or (ii) prevent or materially interfere
with the ability of the Copano Parties to consummate the transactions contemplated hereby
(the occurrence of any such effect or any such prevention or interference or any such result
described in the foregoing clauses (i) and (ii) being herein referred to as a Material
Adverse Effect). Each of the Company and the Subsidiaries has all corporate, limited
liability company, limited partnership or general partnership, as the case may be, power and
authority necessary to own or lease its properties currently owned or leased or to be owned
or leased at the Closing Date and to conduct its business as currently conducted or as to be
conducted at the Closing Date, in each case in all material respects as described in the
Registration Statement, the Preliminary Prospectus, the Time of Sale Information and the
Prospectus.
(f) Authority to Act as General Partner. Each of the Companys direct or indirect
subsidiaries set forth under the heading General Partner on Annex C attached
hereto has all necessary limited liability company power and authority to act as general
partner of each of the subsidiaries set forth opposite its name under the heading Limited
Partnerships on Annex C attached hereto.
(g) Ownership of Subsidiaries. The Company directly or indirectly owns 100% of the
issued and outstanding capital stock, membership interests or partnership interests, as the
case may be, of the Subsidiaries (excluding Webb/Duval, Southern Dome, Big Horn, Fort Union,
Liberty Pipeline and Eagle Ford Gathering, as to which the Company owns a 62.5% partnership
interest, a majority limited liability company interest, a 51% limited liability company
interest, a 37.04% limited liability company interest, a 50% limited liability company
interest and a 50% limited liability company
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interest, respectively), in each case free and clear of all liens, encumbrances,
security interests, equities, charges and other claims except for liens created pursuant to
(i) the Amended and Restated Credit Agreement dated as of January 12, 2007 among the
Company, as the Borrower, Bank of America, N.A., as Administrative Agent and L/C Issuer,
JPMorgan Chase Bank, N.A. and Wachovia Bank, National Association, as Co-Syndication Agents,
and the other lenders party thereto and Banc of America Securities LLC, as Sole Lead
Arranger and Sole Book Manager, as amended by the First Amendment to the Amended and
Restated Credit Agreement, dated as of October 19, 2007, and as further amended by the
Second Amendment to the Amended and Restated Credit Agreement, dated as of July 21, 2010 (as
so amended, the Credit Agreement). Such capital stock, limited liability company interests
or limited partnership interests, as the case may be, have been duly authorized and validly
issued and are fully paid (to the extent required under such Subsidiarys applicable
constituent documents) and non-assessable (except as such nonassessability may be affected
by: (A) Sections 18-607 and 18-804 of the Delaware Limited Liability Company Act (the
Delaware LLC Act), in the case of a Delaware limited liability company, (B) Sections
17-607 and 17-804 of the Delaware Revised Uniform Limited Partnership Act (the Delaware LP
Act), in the case of a Delaware limited partnership, (C) Sections 3.03, 5.02 and 6.07 of
the Texas Revised Uniform Limited Partnership Act (the Texas LP Act), in the case of a
Texas limited partnership, (D) Section 5.09 of the Texas Limited Liability Company Act (the
Texas LLC Act), in the case of a Texas limited liability company or (E) or Section 2031 of
the Oklahoma Limited Liability Company Act, in the case of an Oklahoma limited liability
company.
(h) No Other Subsidiaries. Other than its ownership interests in the Subsidiaries, the
Company does not own and at the Closing Date, will not own, directly or indirectly, any
equity or long-term debt securities of any corporation, partnership, limited liability
company, joint venture, association or other entity that, individually or in the aggregate,
would be deemed to be a significant subsidiary as such term is defined in Rule 405 of the
Securities Act.
(i) Capitalization. As of December 31, 2010, the Company had or would have had, on the
consolidated historical and as adjusted basis indicated in the Preliminary Prospectus, the
Time of Sale Information and the Prospectus, a capitalization as set forth therein under the
heading Capitalization.
(j) Authority and Authorization. The Copano Parties have full right, power and
authority to execute and deliver this Agreement, the Notes (including each Guarantee set
forth therein) and the Indenture and to perform their respective obligations hereunder and
thereunder; and all action required to be taken for the due and proper authorization,
execution and delivery of this Agreement, the Notes (including each Guarantee set forth
therein) and the Indenture and the consummation of the transactions contemplated hereby and
thereby has been duly and validly taken.
(k) The Notes. The Notes have been duly authorized by each of the Issuers and, when
duly executed by the Issuers in accordance with the terms of the Indenture, assuming due
authentication of the Notes by the Trustee in the manner provided for in the
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Indenture, upon delivery to the Underwriters against payment therefor in accordance
with the terms of this Agreement, will be validly issued and delivered, and will constitute
valid and binding obligations of the Issuers entitled to the benefits of the Indenture,
enforceable against each of them in accordance with their terms; provided that such
enforceability may be limited by (i) applicable bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium or similar laws relating to or affecting creditors rights
generally and by general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law) and (ii) public policy, applicable law
relating to fiduciary duties and indemnification and contribution and an implied covenant of
good faith and fair dealing.
(l) The Guarantees. The Guarantees have been duly authorized by each of the Guarantors
and, when the Notes have been duly executed by the Issuers and authenticated by the Trustee
in the manner provided for in the Indenture and delivered to and paid for by the
Underwriters in accordance with the terms of this Agreement, will constitute valid and
binding obligations of the Guarantors, enforceable against the Guarantors in accordance with
their terms; provided that such enforceability may be limited by (i) applicable
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or similar laws
relating to or affecting creditors rights generally and by general principles of equity
(regardless of whether such enforceability is considered in a proceeding in equity or at
law) and (ii) public policy, applicable law relating to fiduciary duties and indemnification
and contribution and an implied covenant of good faith and fair dealing.
(m) The Indenture. The Indenture has been duly authorized by each of the Copano
Parties and has been duly qualified under the Trust Indenture Act and, at the Closing Date,
will have been validly executed and delivered by each of the Copano Parties and, assuming
due authorization, execution and delivery by the Trustee, will constitute a valid and
binding agreement of each of the Copano Parties, enforceable against each of them in
accordance with its terms; provided that such enforceability may be limited by (i)
applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or
similar laws relating to or affecting creditors rights generally and by general principles
of equity (regardless of whether such enforceability is considered in a proceeding in equity
or at law) and (ii) public policy, applicable law relating to fiduciary duties and
indemnification and contribution and an implied covenant of good faith and fair dealing.
(n) Description of the Securities and the Indenture. The Securities, the Indenture and
this Agreement do or will, as applicable, conform in all material respects to the respective
statements relating thereto contained in the Registration Statement, the Time of Sale
Information and the Prospectus.
(o) Underwriting Agreement. This Agreement has been duly authorized and validly
executed and delivered by each of the Copano Parties and constitutes a valid and binding
agreement of each of the Copano Parties.
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(p) Limited Liability Company Agreement. Each of the Fourth Amended and Restated
Limited Liability Company Agreement of the Company and Amendment No. 1 thereto (as so
amended, the Limited Liability Company Agreement) has been duly authorized, executed and
delivered by the Company and is a valid and legally binding agreement of the Company,
enforceable against the Company in accordance with its terms; provided that the
enforceability thereof may be limited by (i) applicable bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium or similar laws relating to or affecting creditors
rights generally and by general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law) and (ii) public policy,
applicable law relating to fiduciary duties and indemnification and contribution and an
implied covenant of good faith and fair dealing.
(q) Operating Agreements. The limited liability company agreement (excluding the
Limited Liability Company Agreement), limited partnership agreement or other operating
agreement, as applicable, of each of the Copano Parties (collectively with the Limited
Liability Company Agreement, the Operating Agreements and collectively with the
certificates of incorporation, certificates of formation, other charter documents and bylaws
of the Copano Parties, the Operating Documents) have been duly authorized, executed and
delivered by the Copano Parties that are parties thereto, as applicable, and are valid and
legally binding agreements of the respective parties thereto, enforceable against the
respective parties thereto in accordance with their terms; provided that the
enforceability thereof may be limited by (i) applicable bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium or similar laws relating to or affecting creditors
rights generally and by general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law) and (ii) public policy,
applicable law relating to fiduciary duties and indemnification and contribution and an
implied covenant of good faith and fair dealing.
(r) No Conflicts. None of the offering, issuance and sale of the Notes and the
Guarantees by the Issuers and the Guarantors, respectively, the execution, delivery and
performance of the Notes, the Guarantees, the Indenture or this Agreement by the Copano
Parties or the consummation of the transactions contemplated hereby or thereby (i) conflicts
or will conflict with or constitutes or will constitute a violation of any of the Operating
Documents, (ii) conflicts or will conflict with or constitutes or will constitute a breach
or violation of, or a default (or an event which, with notice or lapse of time or both,
would constitute such a default) under, any indenture, mortgage, deed of trust, loan
agreement, lease or other agreement or instrument to which the Company or any of the
Subsidiaries is a party or by which any of them or any of their respective properties may be
bound, (iii) violates or will violate any statute, law or regulation or any order, judgment,
decree or injunction of any court or governmental agency or body having jurisdiction over
the Company or any of the Subsidiaries or any of their respective properties in a proceeding
to which any of them or their property is or was a party or (iv) results or will result in
the creation or imposition of any lien, charge or encumbrance upon any property or assets of
the Company or any of the Subsidiaries (other than liens created pursuant to the Credit
Agreement), which conflicts, breaches, violations, defaults or liens, in the case of clauses
(ii), (iii) or (iv), could reasonably be expected to have,
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individually or in the aggregate, a Material Adverse Effect.
(s) No Consents. Except for (i) such consents, approvals, authorizations, orders,
filings, registrations or qualifications as may be required under the Exchange Act and
applicable state securities or Blue Sky laws in connection with the purchase and
distribution of the Notes by the Underwriters, (ii) such consents that have been, or prior
to the Closing Date, will have been obtained and (iii) such consents that, if not obtained,
could not reasonably be expected to prevent or materially interfere with the ability of the
Copano Parties to consummate the transactions contemplated hereby, no consent, approval,
authorization or order of, or filing or registration with, any court or governmental agency
or body having jurisdiction over any of the Copano Parties or any of their respective
properties is required in connection with: (A) the offering, issuance and sale of the
Securities by the Copano Parties in the manner contemplated herein or in the Time of Sale
Information or the Prospectus, (B) the execution, delivery and performance of this
Agreement, the Indenture, the Notes and the Guarantees by the Copano Parties or (C) the
consummation by the Copano Parties of the transactions contemplated hereby or thereby.
(t) No Default. None of the Copano Parties (i) is in violation of its applicable
Operating Documents, (ii) is in default (and no event has occurred which, with notice or
lapse of time or both, would constitute such a default) in the due performance or observance
of any term, covenant or condition contained in any indenture, mortgage, deed of trust, loan
agreement or other agreement or instrument to which it is a party or by which it is bound or
to which any of its properties or assets is subject or (iii) is in violation of any law,
statute, ordinance, administrative or governmental rule or regulation applicable to it or of
any order, judgment, decree or injunction of any court or governmental agency or body having
jurisdiction over it, which default or violation in the case of clause (ii) or (iii), could
reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
To the knowledge of the Copano Parties without independent investigation, no third party to
any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to
which any of the Copano Parties is a party or by which any of them is bound or to which any
of their properties is subject, is in default under any such agreement, which default could,
if continued, reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect. For purposes of this representation, to the knowledge of the Copano
Parties is limited to matters within the actual knowledge of the Companys President and
Chief Executive Officer, Senior Vice President and Chief Financial Officer, Executive Vice
President, General Counsel and Secretary or Senior Vice President, Controller and Principal
Accounting Officer.
(u) No Material Adverse Change. Subsequent to the respective dates as of which
information is given in the Registration Statement, the Preliminary Prospectus, the Time of
Sale Information and the Prospectus, in each case excluding any amendments or supplements to
the foregoing made after the execution of this Agreement, there has not been (i) any
material adverse change, or any development involving a prospective material adverse change,
in the business, properties, management, financial condition or
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results of operations of the Copano Parties taken as a whole, (ii) any transaction that
is material to the Copano Parties taken as a whole, (iii) any obligation or liability,
direct or contingent (including any off-balance sheet obligations), incurred by any of the
Copano Parties that is material to the Copano Parties taken as a whole, (iv) any change in
the capital stock, membership or other equity interests or outstanding indebtedness of any
of the Copano Parties that is material to the Copano Parties taken as a whole or (v) any
dividend or distribution of any kind declared, paid or made on the capital stock of, or in
respect of membership or partnership interests in, the Copano Parties, except for dividends
or distributions made or paid to the Copano Parties.
(v) Preparation of the Financial Statements. The historical financial statements
(including the related notes and supporting schedules) included or incorporated by reference
in the Registration Statement, the Preliminary Prospectus, the Time of Sale Information and
the Prospectus (and any amendment or supplement thereto) present fairly in all material
respects the financial condition and results of operations of the entities purported to be
shown thereby on the basis stated therein, at the dates and for the periods indicated, and
have been prepared in conformity with U.S. generally accepted accounting principles applied
on a consistent basis throughout the periods involved. The summary historical financial and
operating information set forth or incorporated by reference in the Registration Statement,
the Preliminary Prospectus, the Time of Sale Information and the Prospectus (and any
amendment or supplement thereto) is presented fairly in all material respects and prepared
on a basis consistent with the audited and unaudited historical financial statements from
which it has been derived. The other financial and statistical data contained or
incorporated by reference in the Registration Statement, the Preliminary Prospectus, the
Time of Sale Information or the Prospectus (and any amendment or supplement thereto) are
accurately and fairly presented and prepared on a basis consistent with the financial
statements and books and records of the Company and its Subsidiaries. The Copano Parties do
not have any (i) off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of
Regulation S-K under the Exchange Act, or (ii) other liabilities or obligations, direct or
contingent, that are material to the Company and its Subsidiaries taken as a whole that are
not described in the Registration Statement, the Preliminary Prospectus, the Time of Sale
Information or the Prospectus; and all disclosures contained or incorporated by reference in
the Registration Statement, the Preliminary Prospectus, the Time of Sale Information or the
Prospectus regarding non-GAAP financial measures (as such term is defined by the rules and
regulations of the Commission) comply with Regulation G of the Exchange Act and Item 10 of
Regulation S-K under the Securities Act.
(w) Independent Registered Public Accounting Firms. Deloitte & Touche LLP, which
expressed its opinion with respect to certain financial statements of the Company included
or incorporated by reference in the Registration Statement, the Preliminary Prospectus, the
Time of Sale Information and the Prospectus (or any amendment or supplement thereto) is, or
was at the time of such opinion with respect to the financial statements, an independent
registered public accounting firm within the meaning of Regulation S-X under the Securities
Act and the Exchange Act and the rules of the Public Company Accounting Oversight Board.
10
(x) Title to Real Property. Each of the Copano Parties has good and marketable title
to all real property and good title to all personal property described in the Registration
Statement, the Preliminary Prospectus, the Time of Sale Information and the Prospectus as
owned by such Copano Party, free and clear of all (i) liens and security interests except
liens or security interests arising under or securing indebtedness incurred under the Credit
Agreement or (ii) other claims and other encumbrances (other than liens or security
interests) except, in each case, (1) as described, and subject to the limitations contained,
in the Registration Statement, the Preliminary Prospectus, the Time of Sale Information and
the Prospectus, (2) such as do not materially affect the value of such property taken as a
whole or (3) such as do not materially interfere with the use of such properties taken as a
whole as they have been used in the past and are proposed to be used in the future as
described in the Registration Statement, the Preliminary Prospectus, the Time of Sale
Information and the Prospectus; provided that, with respect to any real property and
buildings held under lease by any of the Copano Parties, such real property and buildings
are held under valid and subsisting and enforceable leases with such exceptions as do not
materially interfere with the use of the properties of the Copano Parties taken as a whole
as they have been used in the past as described in the Registration Statement, Preliminary
Prospectus and the Prospectus and are proposed to be used in the future as described in the
Registration Statement, the Preliminary Prospectus and the Prospectus.
(y) Insurance. The Copano Parties maintain insurance covering their properties,
operations, personnel and businesses against such losses and risks and in such amounts as is
reasonably adequate for the conduct of their respective businesses and the value of their
respective properties and as is customary for companies engaged in similar businesses in
similar industries. None of the Copano Parties has received notice from any insurer or
agent of such insurer that substantial capital improvements (relating to the Company and its
subsidiaries on a consolidated basis) or other substantial expenditures will have to be made
in order to continue such insurance, and all such insurance is outstanding and duly in force
on the date hereof and will be outstanding and duly in force on the Closing Date.
(z) Litigation. There are no actions, suits, claims, investigations or proceedings
pending or, to the knowledge of the Copano Parties, threatened or contemplated to which any
of the Copano Parties is or would be a party or of which any of their respective properties
is or would be subject at law or in equity, before or by any federal, state, local or
foreign governmental or regulatory commission, board, body, authority or agency, or before
or by any self-regulatory organization or other non-governmental regulatory authority
(including, without limitation, the NASDAQ Global Select Market (the NASDAQ)) that are
required to be described in the Registration Statement, the Preliminary Prospectus or the
Prospectus but are not described as required or that, if resolved adversely to any of the
Copano Parties, could reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect.
(aa) No Other Agreements. There are no agreements, contracts, indentures, leases or
other instruments that are required by the Securities Act to be (i) described in
11
the Registration Statement, the Preliminary Prospectus or the Prospectus or (ii) filed
as exhibits to the Registration Statement that have not been described or filed as required.
(bb) No Labor Disputes. No labor dispute with the employees of any of the Copano
Parties exists or, to the knowledge of the Copano Parties, is imminent or threatened that
could reasonably be expected to have, individually or in the aggregate, a Material Adverse
Effect.
(cc) Certain Relationships and Related Transactions. No relationship, direct or
indirect, exists between or among any of the Copano Parties, on the one hand, and the
directors, officers, members, partners, equityholders, customers or suppliers of any of the
Copano Parties, on the other hand, that is required by the Securities Act to be described in
the Registration Statement, the Preliminary Prospectus or the Prospectus that is not so
described. There are no outstanding loans, advances (except normal advances for business
expenses in the ordinary course of business) or guarantees of indebtedness by any of the
Copano Parties to or for the benefit of any of the officers or directors of any of the
Copano Parties or their respective family members, except as disclosed in the Registration
Statement, the Preliminary Prospectus or the Prospectus. None of the Copano Parties has, in
violation of the Sarbanes-Oxley Act of 2002, directly or indirectly, extended or maintained
credit, arranged for the extension of credit, or renewed an extension of credit, in the form
of a personal loan to or for any director or executive officer of any of the Copano Parties.
(dd) Sarbanes-Oxley Act of 2002. The Company and its officers and directors are in
compliance in all material respects with all applicable provisions of the Sarbanes-Oxley Act
of 2002 and the applicable rules and regulations thereunder.
(ee) Tax Returns. Each of the Copano Parties has filed (or has obtained extensions
with respect to) all material federal, state and local income and franchise tax returns
required to be filed through the date of this Agreement, which returns are correct and
complete in all material respects, and has timely paid all taxes due thereon, other than
those (i) that are being contested in good faith and for which adequate reserves have been
established in accordance with generally accepted accounting principles or (ii) that, if not
paid, could not reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect.
(ff) Books and Records. Each of the Copano Parties (i) makes and keeps books and
records which, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of assets and (ii) maintains internal accounting controls sufficient to provide
reasonable assurance that (A) transactions are executed in accordance with managements
general or specific authorization, (B) transactions are recorded as necessary to permit
preparation of its financial statements in conformity with generally accepted accounting
principles and to maintain accountability for its assets, (C) access to its assets is
permitted only in accordance with managements general or specific authorization and (D) the
reported accountability for its assets is compared with existing assets at reasonable
intervals and appropriate action is taken with respect to any
12
differences.
(gg) Disclosure Controls. The Company has established and maintains disclosure
controls and procedures (as such term is defined in Rule 13a-15 under the Exchange Act),
which (i) are designed to ensure that material information relating to the Company,
including its consolidated subsidiaries, is made known to the Companys principal executive
officer and its principal financial officer by others within those entities, particularly
during the periods in which the periodic reports required under the Exchange Act are being
prepared; (ii) have been evaluated for effectiveness as of the end of the period covered by
the Companys most recent annual report on Form 10-K filed with the Commission and (iii) are
effective in all material respects to perform the functions for which they were established.
(hh) Internal Controls. Since the end of the period covered by the Companys most
recent annual report on Form 10-K filed with the Commission, none of the Copano Parties have
been advised of (A) any significant deficiency in the design or operation of internal
controls that could adversely affect the Companys ability to record, process, summarize and
report financial data or any material weaknesses in internal controls or (B) any fraud,
whether or not material, that involves management or other employees who have a significant
role in the Companys internal controls and (ii) there have been no significant changes in
internal controls or in other factors that could significantly affect internal controls,
including any corrective actions with regard to significant deficiencies and material
weaknesses, except for improvements and new procedures implemented as part of the Companys
review of its internal controls.
(ii) Environmental Compliance. The Copano Parties (i) are in compliance with
applicable federal, state and local laws and regulations relating to the protection of human
health, safety, or the environment and natural resources or imposing liability or standards
of conduct concerning any generation, manufacture, processing, use, storage, treatment,
disposal, release, threatened release, discharge, or emission of Hazardous Materials (as
defined below) into the indoor or outdoor environment or any exposure to Hazardous Materials
(Environmental Laws), (ii) have received all permits required of them under applicable
Environmental Laws to conduct their respective businesses, (iii) are in compliance with all
terms and conditions of any such permits, and (iv) do not have any liability in connection
with the release into the environment of any Hazardous Material, except where such
noncompliance with Environmental Laws, failure to receive required permits, failure to
comply with the terms and conditions of such permits or liability could not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect. The term
Hazardous Material means (A) any hazardous substance as defined in the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended, (B) any
hazardous waste as defined in the Resource Conservation and Recovery Act, as amended, (C)
any petroleum or petroleum product, (D) any asbestos containing materials or polychlorinated
biphenyl and (E) any pollutant or contaminant or hazardous, dangerous or toxic chemical,
material, waste or substance regulated under or within the meaning of any other
Environmental Law.
13
(jj) Permits. Each of the Copano Parties has, and at the Closing Date, will have, such
permits, consents, licenses, franchises, certificates and authorizations of governmental or
regulatory authorities (permits) as are necessary to own its properties and to conduct its
business in the manner described in the Registration Statement, the Preliminary Prospectus
and the Prospectus, subject to such qualifications as may be set forth therein and except
for such permits which, if not obtained, could not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect. Except as set forth in the
Registration Statement, the Preliminary Prospectus and the Prospectus, each of the Copano
Parties has, and at the Closing Date will have, fulfilled and performed all its material
obligations with respect to such permits which are or will be due to have been fulfilled and
performed by such date and no event has occurred that would prevent the permits from being
renewed or reissued or which allows, or after notice or lapse of time would allow,
revocation or termination thereof or results in any impairment of the rights of the holder
of any such permit, except for such non-renewals, non-issues, revocations, terminations and
impairments that could not reasonably be expected to have, individually or in the aggregate,
a Material Adverse Effect. Except as described in the Registration Statement, the
Preliminary Prospectus and the Prospectus, none of such permits contains, or at the Closing
Date will contain, any restriction that is materially burdensome to the Copano Parties
considered as a whole.
(kk) No Distribution. The Copano Parties have not distributed and, prior to the later
to occur of (i) the Closing Date and (ii) completion of the distribution of the Notes, will
not distribute, any prospectus (as defined under the Securities Act) in connection with the
offering and sale of the Notes other than the Preliminary Prospectus, the Time of Sale
Information and the Prospectus, in each case as contemplated by this Agreement.
(ll) Investment Company. None of the Copano Parties is now, and after the sale of the
Notes to be sold by the Issuers hereunder and the application of the net proceeds from such
sale as described in the Preliminary Prospectus and the Prospectus under the caption Use of
Proceeds will be, an investment company or a company controlled by an investment
company within the meaning of the Investment Company Act of 1940, as amended.
(mm) No Stabilization Activities. None of the Copano Parties has taken, directly or
indirectly, any action designed to or that would constitute or that might reasonably be
expected to cause or result in, under the Exchange Act or otherwise, stabilization or
manipulation of the price of any security of either Issuer to facilitate the sale or resale
of the Notes.
(nn) Statistical and Market Data. Nothing has come to the attention of the Copano
Parties that has caused any of them to believe that the statistical and market-related data
included in the Registration Statement, the Preliminary Prospectus and the Prospectus is not
based on or derived from sources that are reliable and accurate in all material respects.
(oo) Anti-Corruption. None of the Company nor any of its Subsidiaries or
14
affiliates, nor any director, officer, or employee, nor, to the knowledge of the Copano
Parties, any agent or representative of the Company or of any of its Subsidiaries or
affiliates, has taken or will take any action in furtherance of an offer, payment, promise
to pay, or authorization or approval of the payment or giving of money, property, gifts or
anything else of value, directly or indirectly, to any government official (including any
officer or employee of a government or government-owned or controlled entity or of a public
international organization, or any person acting in an official capacity for or on behalf of
any of the foregoing, or any political party or party official or candidate for political
office) to influence official action or secure an improper advantage; and the Company and
its subsidiaries and affiliates have conducted their businesses in compliance with
applicable anti-corruption laws and have instituted and maintain and will continue to
maintain policies and procedures designed to promote and achieve compliance with such laws
and with the representation and warranty contained herein.
(pp) Compliance with Anti-Money Laundering Laws. The operations of the Copano Parties
are and have been conducted at all times in material compliance with all applicable
financial recordkeeping and reporting requirements, including those of the Bank Secrecy Act,
as amended by Title III of the Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act), and the
applicable anti-money laundering statutes of jurisdictions where the Copano Parties conduct
business, the rules and regulations thereunder and any related or similar rules, regulations
or guidelines, issued, administered or enforced by any governmental agency (collectively,
the Anti-Money Laundering Laws), and no action, suit or proceeding by or before any court
or governmental agency, authority or body or any arbitrator involving the Copano Parties
with respect to the Anti-Money Laundering Laws is pending or, to the knowledge of the Copano
Parties, threatened.
(qq) OFAC.
(i) Neither the Company nor any of its Subsidiaries or , to the knowledge of
the Copano Parties, any director, officer, employee, agent, affiliate or
representative of the Company and its Subsidiaries, is an individual or entity
(Person) that is, or is owned or controlled by a Person that is (A) the subject of
any sanctions administered or enforced by the U.S. Department of Treasurys Office
of Foreign Assets Control (OFAC) the United Nations Security Council, the European
Union, Her Majestys Treasury, or other relevant sanctions authority (collectively,
Sanctions), nor (B) located, organized or resident in a country or territory that
is the subject of Sanctions (including, without limitation, Burma/Myanmar, Cuba,
Iran, North Korea, Sudan and Syria).
(ii) The Copano Parties will not, directly or indirectly, use the proceeds of
the offering, or lend, contribute or otherwise make available such proceeds to any
subsidiary, joint venture partner or other Person (A) to fund or facilitate any
activities or business of or with any Person or in any country or territory that, at
the time of such funding or facilitation, is the subject of Sanctions; or (B) in any
other manner that will result in a violation of Sanctions
15
by any Person (including any Person participating in the offering, whether as
underwriter, advisor, investor or otherwise).
(iii) The Copano Parties have not knowingly engaged in, is not now knowingly
engaged in, and will not engage in, any dealings or transactions with any Person, or
in any country or territory, that at the time of the dealing or transaction is or
was the subject of Sanctions.
Any certificate signed by an officer of any of the Copano Parties and delivered to the
Underwriters or counsel to the Underwriters shall be deemed a representation and warranty by such
Copano Party to the Underwriters as to the matters set forth therein.
4. Further Agreements of the Copano Parties. The Copano Parties jointly and severally
covenant and agree with each Underwriter that:
(a) Required Filings. The Issuers will file the Prospectus with the Commission within
the time periods specified by Rule 424(b) and Rule 430A, 430B or 430C under the Securities
Act, will file any Issuer Free Writing Prospectus, including the Term Sheet substantially in
the form of Annex E hereto, to the extent required by Rule 433 under the Securities
Act; and will file promptly all reports and any definitive proxy or information statements
required to be filed by the Company with the Commission pursuant to Section 13(a), 13(c), 14
or 15(d) of the Exchange Act subsequent to the date of the Prospectus and for so long as the
delivery of a prospectus is required in connection with the offering or sale of the
Securities; and the Issuers will furnish copies of the Prospectus and each Issuer Free
Writing Prospectus (to the extent not previously delivered) to the Underwriters as soon as
practicable following the date of this Agreement in such quantities as the Representative
may reasonably request. The Company will pay the registration fees for this offering within
the time period required by Rule 456(b)(1)(i) under the Securities Act (without giving
effect to the proviso therein) and in any event prior to the Closing Date.
(b) Delivery of Copies. The Issuers will deliver, without charge, (i) to the
Representative, two signed copies of the Registration Statement as originally filed and each
amendment thereto, in each case including all exhibits and consents filed therewith; and
(ii) to each Underwriter (A) a conformed copy of the Registration Statement as originally
filed and each amendment thereto, in each case including all exhibits and consents filed
therewith and (B) during the Prospectus Delivery Period (as defined below), as many copies
of the Prospectus (including all amendments and supplements thereto) and each Issuer Free
Writing Prospectus as the Representative may reasonably request. As used herein, the term
Prospectus Delivery Period means such period of time after the first date of the public
offering of the Securities as in the opinion of counsel for the Underwriters a prospectus
relating to the Notes is required by law to be delivered (or required to be delivered but
for Rule 172 under the Securities Act) in connection with sales of the Notes by any
Underwriter or dealer.
(c) Amendments or Supplements; Issuer Free Writing Prospectuses. Before making,
preparing, using, authorizing, approving, referring to or filing any Issuer Free
16
Writing Prospectus, and before filing any amendment or supplement to the Registration
Statement or the Prospectus, the Issuers will furnish to the Representative and counsel for
the Underwriters a copy of the proposed Issuer Free Writing Prospectus, amendment or
supplement for review and will not make, prepare, use, authorize, approve, refer to or file
any such Issuer Free Writing Prospectus or file any such proposed amendment or supplement to
which the Representative reasonably objects.
(d) Notice to the Representative. The Issuers will advise the Representative promptly,
and confirm such advice in writing, (i) when any amendment to the Registration Statement has
been filed or becomes effective; (ii) when any supplement to the Prospectus or any amendment
to the Prospectus or any Issuer Free Writing Prospectus has been filed; (iii) of any request
by the Commission for any amendment to the Registration Statement or any amendment or
supplement to the Prospectus or the receipt of any comments from the Commission relating to
the Registration Statement or any other request by the Commission for any additional
information; (iv) of the issuance by the Commission of any order suspending the
effectiveness of the Registration Statement or preventing or suspending the use of any
Preliminary Prospectus or the Prospectus or the initiation or threatening of any proceeding
for that purpose or pursuant to Section 8A of the Securities Act; (v) of the occurrence of
any event within the Prospectus Delivery Period as a result of which the Prospectus, the
Time of Sale Information or any Issuer Free Writing Prospectus as then amended or
supplemented would include any untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, in the light of the
circumstances existing when the Prospectus, the Time of Sale Information or any such Issuer
Free Writing Prospectus is delivered to a purchaser, not misleading; (vi) of the receipt by
the Issuers of any notice of objection of the Commission to the use of the Registration
Statement or any post-effective amendment thereto pursuant to Rule 401(g)(2) under the
Securities Act; and (vii) of the receipt by the Issuers of any notice with respect to any
suspension of the qualification of the Securities for offer and sale in any jurisdiction or
the initiation or threatening of any proceeding for such purpose; and the Issuers will use
their reasonable best efforts to prevent the issuance of any such order suspending the
effectiveness of the Registration Statement, preventing or suspending the use of any
Preliminary Prospectus or the Prospectus or suspending any such qualification of the
Securities and, if any such order is issued, will obtain as soon as possible the withdrawal
thereof.
(e) Time of Sale Information. If at any time prior to the Closing Date (i) any event
shall occur or condition shall exist as a result of which any of the Time of Sale
Information as then amended or supplemented would include any untrue statement of a material
fact or omit to state any material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading or (ii) it is
necessary to amend or supplement any of the Time of Sale Information to comply with law, the
Issuers will immediately notify the Underwriters thereof and forthwith prepare and, subject
to paragraph (c) above, file with the Commission (to the extent required) and furnish to the
Underwriters and to such dealers as the Representative may designate, such amendments or
supplements to any of the Time of Sale Information (or any document to be filed with the
Commission and incorporated by reference therein) as
17
may be necessary so that the statements in any of the Time of Sale Information as so
amended or supplemented will not, in the light of the circumstances under which they were
made, be misleading or so that any of the Time of Sale Information will comply with law.
(f) Ongoing Compliance. If during the Prospectus Delivery Period (i) any event shall
occur or condition shall exist as a result of which the Prospectus as then amended or
supplemented would include any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements therein, in the light of the
circumstances existing when the Prospectus is delivered to a purchaser, not misleading or
(ii) it is necessary to amend or supplement the Prospectus to comply with law, the Issuers
will immediately notify the Underwriters thereof and forthwith prepare and, subject to
paragraph (c) above, file with the Commission and furnish to the Underwriters and to such
dealers as the Representative may designate, such amendments or supplements to the
Prospectus (or any document to be filed with the Commission and incorporated by reference
therein) as may be necessary so that the statements in the Prospectus as so amended or
supplemented will not, in the light of the circumstances existing when the Prospectus is
delivered to a purchaser, be misleading or so that the Prospectus will comply with law.
(g) Blue Sky Compliance. The Issuers will qualify the Securities for offer and sale
under the securities or Blue Sky laws of such jurisdictions as the Representative shall
reasonably request and will continue such qualifications in effect so long as required for
distribution of the Securities; provided that none of the Copano Parties shall be required
to (i) qualify as a foreign corporation or other entity or as a dealer in securities in any
such jurisdiction where it would not otherwise be required to so qualify, (ii) file any
general consent to service of process in any such jurisdiction or (iii) subject itself to
taxation in any such jurisdiction if it is not otherwise so subject.
(h) Earning Statement. Each Issuer will make generally available to its security
holders and the Representative as soon as practicable an earning statement that satisfies
the provisions of Section 11(a) of the Securities Act and Rule 158 of the Commission
promulgated thereunder covering a period of at least twelve months beginning with the first
fiscal quarter of the Company occurring after the effective date (as defined in Rule 158)
of the Registration Statement.
(i) Clear Market. During the period from the date hereof through and including the
date that is 60 days after the date hereof, none of the Copano Parties will, without the
prior written consent of the Representative, offer, sell, contract to sell or otherwise
dispose of any debt securities issued or guaranteed by any of the Copano Parties and having
a tenor of more than one year.
(j) Use of Proceeds. The Issuers will apply the net proceeds from the sale of the
Notes as described in each of the Registration Statement, the Time of Sale Information and
the Prospectus under the heading Use of Proceeds.
18
(k) No Stabilization. None of the Copano Parties will take, directly or indirectly,
any action designed to or that could reasonably be expected to cause or result in any
stabilization or manipulation of the price of the Notes.
(l) Record Retention. The Issuers will, pursuant to reasonable procedures developed in
good faith, retain copies of each Issuer Free Writing Prospectus that is not filed with the
Commission in accordance with Rule 433 under the Securities Act.
5. Certain Agreements of the Underwriters. Each Underwriter severally represents and
agrees that:
(a) It has not and will not use, authorize use of, refer to, or participate in the
planning for use of, any free writing prospectus, as defined in Rule 405 under the
Securities Act (which term includes use of any written information furnished to the
Commission by the Issuers and not incorporated by reference into the Registration Statement
and any press release issued by the Issuers) other than (i) a free writing prospectus that,
solely as a result of use by such Underwriter, would not trigger an obligation to file such
free writing prospectus with the Commission pursuant to Rule 433, (ii) any Issuer Free
Writing Prospectus listed on Annex D or prepared pursuant to Section 3(c) or Section
4(c) above (including any electronic road show), or (iii) any free writing prospectus
prepared by such Underwriter and approved by the Issuers in advance in writing (each such
free writing prospectus referred to in clauses (i) or (iii), an Underwriter Free Writing
Prospectus). Notwithstanding the foregoing, the Underwriters may use a term sheet
substantially in the form of Annex E hereto without the consent of the Company.
(b) It is not subject to any pending proceeding under Section 8A of the Securities Act
with respect to the offering (and will promptly notify the Issuers if any such proceeding
against it is initiated during the Prospectus Delivery Period).
6. Conditions of Underwriters Obligations. The obligation of each Underwriter to
purchase Securities on the Closing Date as provided herein is subject to the performance by the
Copano Parties of their respective covenants and other obligations hereunder and to the following
additional conditions:
(a) Registration Compliance; No Stop Order. No order suspending the effectiveness of
the Registration Statement shall be in effect, and no proceeding for such purpose shall be
pending before or threatened by the Commission; the Prospectus and each Issuer Free Writing
Prospectus shall have been timely filed with the Commission under the Securities Act (in the
case of an Issuer Free Writing Prospectus, to the extent required by Rule 433 under the
Securities Act) and in accordance with Section 4(a) hereof; and all requests by the
Commission for additional information shall have been complied with to the reasonable
satisfaction of the Representative.
(b) Representations and Warranties. The representations and warranties of
19
the Copano Parties contained herein shall be true and correct on the date hereof and on
and as of the Closing Date; and the statements of the Copano Parties and their respective
officers made in any certificates delivered pursuant to this Agreement shall be true and
correct on and as of the Closing Date.
(c) No Downgrade. Subsequent to the earlier of (A) the Time of Sale and (B) the
execution and delivery of this Agreement, (i) no downgrading shall have occurred in the
rating accorded the Company or any of its Subsidiaries, the Notes or any other debt or
preferred unit issued or guaranteed by the Company or any of its Subsidiaries by any
nationally recognized statistical rating organization, as such term is defined by the
Commission for purposes of Rule 3(a)(62) under the Exchange Act, and (ii) no such
organization shall have publicly announced that it has under surveillance or review, or has
changed its outlook with respect to, its rating of the Notes or of any other debt or
preferred unit issued or guaranteed by the Company or any of its Subsidiaries (other than an
announcement with positive implications of a possible upgrading).
(d) No Material Adverse Change. No event or condition of a type described in Section
3(u) hereof shall have occurred or shall exist, which event or condition is not described in
each of the Time of Sale Information (excluding any amendment or supplement thereto) and the
Prospectus (excluding any amendment or supplement thereto) the effect of which in the
judgment of the Representative makes it impracticable or inadvisable to proceed with the
offering, sale or delivery of the Securities on the terms and in the manner contemplated by
this Agreement, the Time of Sale Information and the Prospectus.
(e) Officers Certificate. The Representative shall have received on and as of the
Closing Date a certificate of an executive officer of each of the Copano Parties who has
specific knowledge of such Copano Partys financial matters and is satisfactory to the
Representative (i) confirming that such officer has carefully reviewed the Registration
Statement, the Time of Sale Information and the Prospectus and, to the knowledge of such
officer, the representations set forth in Sections 3(b) and 3(d) hereof are true and
correct, (ii) confirming that the other representations and warranties of the Copano Parties
in this Agreement are true and correct and that the Copano Parties have complied with all
agreements and satisfied all conditions on their part to be performed or satisfied hereunder
at or prior to the Closing Date and (iii) to the effect set forth in paragraphs (a), (c) and
(d) above.
(f) Comfort Letters. On the date of this Agreement and on the Closing Date, Deloitte &
Touche LLP shall have furnished to the Representative, at the request of the Issuers,
letters, dated the respective dates of delivery thereof and addressed to the Underwriters,
in form and substance reasonably satisfactory to the Representative, containing statements
and information of the type customarily included in accountants comfort letters to
underwriters with respect to the financial statements and certain financial information
contained or incorporated by reference in the Registration Statement, the Time of Sale
Information or the Prospectus; provided that the letter delivered on the Closing Date shall
use a cut-off date no more than three business days
20
prior to the Closing Date.
(g) Opinion of Counsel for the Issuers. Vinson & Elkins L.L.P., counsel for the
Issuers, shall have furnished to the Representative, at the request of the Issuers, their
written opinion, dated the Closing Date and addressed to the Underwriters, in form and
substance reasonably satisfactory to the Representative, to the effect set forth in
Annex A hereto.
(h) Opinion of General Counsel for the Company. Douglas L. Lawing, Executive Vice
President, General Counsel and Secretary of the Company, shall have furnished to the
Representative, at the request of the Issuers, his written opinion, dated the Closing Date
and addressed to the Underwriters, in form and substance reasonably satisfactory to the
Representative, to the effect set forth in Annex B hereto.
(i) Opinion of Counsel for the Underwriters. The Representative shall have received on
and as of the Closing Date an opinion of Baker Botts L.L.P., counsel for the Underwriters,
with respect to such matters as the Representative may reasonably request, and such counsel
shall have received such documents and information as they may reasonably request to enable
them to pass upon such matters.
(j) No Legal Impediment to Issuance. No action shall have been taken and no statute,
rule, regulation or order shall have been enacted, adopted or issued by any federal, state
or foreign governmental or regulatory authority that would, as of the Closing Date, prevent
the issuance or sale of the Notes or the issuance of the Guarantees; and no injunction or
order of any federal, state or foreign court shall have been issued that would, as of the
Closing Date, prevent the issuance or sale of the Notes or the issuance of the Guarantees.
(k) Good Standing. The Representative shall have received on and as of the Closing
Date satisfactory evidence of the good standing of the Company and its Subsidiaries in their
respective jurisdictions of organization and their good standing in such other jurisdictions
as the Representative may reasonably request, in each case in writing or any standard form
of telecommunication from the appropriate governmental authorities of such jurisdictions.
(l) Indenture; Notes; Guarantees. The Issuers, the Guarantors and the Trustee shall
have executed and delivered the Indenture, the Issuers shall have executed and delivered the
Notes and the Guarantors shall have issued the Guarantees.
(m) Additional Documents. On or prior to the Closing Date, the Copano Parties shall
have furnished to the Representative such further certificates and documents as the
Representative may reasonably request.
All opinions, letters, certificates and evidence mentioned above or elsewhere in this
Agreement shall be deemed to be in compliance with the provisions hereof only if they are in
form and substance reasonably satisfactory to counsel for the Underwriters.
21
7. Indemnification and Contribution.
(a) Indemnification of the Underwriters. The Copano Parties jointly and severally
agree to indemnify and hold harmless each Underwriter, its directors and officers, each
person, if any, who controls such Underwriter within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act and each affiliate of such Underwriter who
has, or who is alleged to have, participated in the distribution of Securities as an
Underwriter, from and against any and all losses, claims, damages and liabilities
(including, without limitation, legal fees and other expenses reasonably incurred in
connection with defending or investigating any such suit, action or proceeding or any claim
asserted, as such fees and expenses are incurred) that arise out of, or are based upon, (i)
any untrue statement or alleged untrue statement of a material fact contained in the
Registration Statement or any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein, not misleading,
(ii) or any untrue statement or alleged untrue statement of a material fact contained in the
Prospectus (or any amendment or supplement thereto), any Issuer Free Writing Prospectus or
any Time of Sale Information, or any omission or alleged omission to state therein a
material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, in each case except insofar as
such losses, claims, damages or liabilities arise out of, or are based upon, any untrue
statement or omission or alleged untrue statement or omission made in reliance upon and in
conformity with any information relating to any Underwriter furnished to the Issuers in
writing by such Underwriter through the Representative expressly for use therein.
(b) Indemnification of the Copano Parties Each Underwriter agrees, severally and not
jointly, to indemnify and hold harmless each of the Copano Parties, each of their respective
directors, each of their officers who signed the Registration Statement and each person, if
any, who controls any of the Copano Parties within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act to the same extent as the indemnity set
forth in paragraph (a) above, but only with respect to any losses, claims, damages and
liabilities that arise out of, or are based upon, any untrue statement or omission or
alleged untrue statement or omission made in reliance upon and in conformity with any
information relating to such Underwriter furnished to the Issuers in writing by such
Underwriter through the Representative expressly for use in the Registration Statement, the
Prospectus (or any amendment or supplement thereto), any Issuer Free Writing Prospectus or
any Time of Sale Information, it being understood and agreed that the only such information
consists of the following statements contained in the Preliminary Prospectus and the
Prospectus: (i) the sentence regarding delivery of the Notes on the cover page and (ii)
under the heading Underwriting, (A) the sentences related to concessions and (B) the
paragraph related to stabilization.
(c) Notice and Procedures. If any suit, action, proceeding (including any governmental
or regulatory investigation), claim or demand shall be brought or asserted against any
person in respect of which indemnification may be sought pursuant to either paragraph (a) or
(b) above, such person (the Indemnified Person) shall promptly notify the person against
whom such indemnification may be sought (the Indemnifying
22
Person) in writing; provided that the failure to notify the Indemnifying Person shall
not relieve it from any liability that it may have under paragraphs (a) and (b) above except
to the extent that it has been materially prejudiced (through the forfeiture of substantive
rights or defenses) by such failure; and provided, further, that the failure to notify the
Indemnifying Person shall not relieve it from any liability that it may have to an
Indemnified Person otherwise than under paragraphs (a) and (b) above. If any such
proceeding shall be brought or asserted against an Indemnified Person and it shall have
notified the Indemnifying Person thereof, the Indemnifying Person shall retain counsel
reasonably satisfactory to the Indemnified Person (who shall not, without the consent of the
Indemnified Person, be counsel to the Indemnifying Person) to represent the Indemnified
Person and any others entitled to indemnification pursuant to this Section 7 that the
Indemnifying Person may designate in such proceeding and shall pay the fees and expenses of
such proceeding and shall pay the fees and expenses of such counsel related to such
proceeding, as incurred. In any such proceeding, any Indemnified Person shall have the
right to retain its own counsel, but the fees and expenses of such counsel shall be at the
expense of such Indemnified Person unless (i) the Indemnifying Person and the Indemnified
Person shall have mutually agreed to the contrary; (ii) the Indemnifying Person has failed
within a reasonable time to retain counsel reasonably satisfactory to the Indemnified
Person; (iii) the Indemnified Person shall have reasonably concluded that there may be legal
defenses available to it that are different from or in addition to those available to the
Indemnifying Person; or (iv) the named parties in any such proceeding (including any
impleaded parties) include both the Indemnifying Person and the Indemnified Person and
representation of both parties by the same counsel would be inappropriate due to actual or
potential differing interests between them. It is understood and agreed that the
Indemnifying Person shall not, in connection with any proceeding or related proceeding in
the same jurisdiction, be liable for the fees and expenses of more than one separate firm
(in addition to any local counsel) for all Indemnified Persons, and that all such fees and
expenses shall be reimbursed as they are incurred. Any such separate firm for any
Underwriter, its affiliates, directors and officers and any control persons of such
Underwriter shall be designated in writing by J.P. Morgan Securities LLC and any such
separate firm for the Copano Parties, their respective directors and officers who signed the
Registration Statement and any control persons of the Copano Parties shall be designated in
writing by the Company. The Indemnifying Person shall not be liable for any settlement of
any proceeding effected without its written consent, but if settled with such consent or if
there be a final judgment for the plaintiff, the Indemnifying Person agrees to indemnify
each Indemnified Person from and against any loss or liability by reason of such settlement
or judgment. Notwithstanding the foregoing sentence, if at any time an Indemnified Person
shall have requested that an Indemnifying Person reimburse the Indemnified Person for fees
and expenses of counsel as contemplated by this paragraph, the Indemnifying Person shall be
liable for any settlement of any proceeding effected without its written consent if (i) such
settlement is entered into more than 30 days after receipt by the Indemnifying Person of
such request and (ii) the Indemnifying Person shall not have reimbursed the Indemnified
Person in accordance with such request prior to the date of such settlement. No
Indemnifying Person shall, without the written consent of the Indemnified Person, effect any
settlement of any pending or threatened proceeding in respect of which any Indemnified
Person is or
23
could have been a party and indemnification could have been sought hereunder by such
Indemnified Person, unless such settlement (x) includes an unconditional release of such
Indemnified Person, in form and substance reasonably satisfactory to such Indemnified
Person, from all liability on claims that are the subject matter of such proceeding and (y)
does not include any statement as to or any admission of fault, culpability or a failure to
act by or on behalf of any Indemnified Person.
(d) Contribution. If the indemnification provided for in paragraphs (a) and (b) above
is unavailable to an Indemnified Person or insufficient in respect of any losses, claims,
damages or liabilities referred to therein, then each Indemnifying Person under such
paragraph, in lieu of indemnifying such Indemnified Person thereunder, shall contribute to
the amount paid or payable by such Indemnified Person as a result of such losses, claims,
damages or liabilities (i) in such proportion as is appropriate to reflect the relative
benefits received by the Copano Parties on the one hand and the Underwriters on the other
from the offering of the Securities or (ii) if the allocation provided by clause (i) is not
permitted by applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) but also the relative fault of the Copano
Parties on the one hand and the Underwriters on the other in connection with the statements
or omissions that resulted in such losses, claims, damages or liabilities, as well as any
other relevant equitable considerations. The relative benefits received by the Copano
Parties on the one hand and the Underwriters on the other shall be deemed to be in the same
respective proportions as the net proceeds (before deducting expenses) received by the
Issuers from the sale of the Notes and the total underwriting discounts and commissions
received by the Underwriters in connection therewith, in each case as set forth in the table
on the cover of the Prospectus, bear to the aggregate offering price of the Notes. The
relative fault of the Copano Parties on the one hand and the Underwriters on the other shall
be determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a material fact
relates to information supplied by the Copano Parties or by the Underwriters and the
parties relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.
(e) Limitation on Liability. The Copano Parties and the Underwriters agree that it
would not be just and equitable if contribution pursuant to this Section 7 were determined
by pro rata allocation (even if the Underwriters were treated as one entity for such
purpose) or by any other method of allocation that does not take account of the equitable
considerations referred to in paragraph (d) above. The amount paid or payable by an
Indemnified Person as a result of the losses, claims, damages and liabilities referred to in
paragraph (d) above shall be deemed to include, subject to the limitations set forth above,
any legal or other expenses incurred by such Indemnified Person in connection with any such
action or claim. Notwithstanding the provisions of this Section 7, in no event shall an
Underwriter be required to contribute any amount in excess of the amount by which the total
underwriting discounts and commissions received by such Underwriter with respect to the
offering of the Securities exceeds the amount of any damages that such Underwriter has
otherwise been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission. No person guilty of fraudulent
24
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. The Underwriters obligations to contribute pursuant to this Section 7
are several in proportion to their respective purchase obligations hereunder and not joint.
(f) Non-Exclusive Remedies. The remedies provided for in this Section 7 are not
exclusive and shall not limit any rights or remedies that may otherwise be available to any
Indemnified Person at law or in equity.
8. Termination. This Agreement may be terminated in the absolute discretion of the
Representative, by notice to the Issuers, if after the execution and delivery of this Agreement and
on or prior to the Closing Date (i) trading generally shall have been suspended or materially
limited on the New York Stock Exchange or NASDAQ; (ii) trading of the Companys common units shall
have been suspended on any exchange; (iii) a general moratorium on commercial banking activities
shall have been declared by federal or New York State authorities; or (iv) there shall have
occurred any outbreak or escalation of hostilities or any change in financial markets or any
calamity or crisis, either within or outside the United States, that, in the judgment of the
Representative, is material and adverse and makes it impracticable or inadvisable to proceed with
the offering, sale or delivery of the Notes on the terms and in the manner contemplated by this
Agreement, the Time of Sale Information and the Prospectus.
9. Defaulting Underwriter.
(a) If, on the Closing Date, any Underwriter defaults on its obligation to purchase the
Notes that it has agreed to purchase hereunder, the non-defaulting Underwriters may in their
discretion arrange for the purchase of such Notes by other persons satisfactory to the
Issuers on the terms contained in this Agreement. If, within 36 hours after any such
default by any Underwriter, the non-defaulting Underwriters do not arrange for the purchase
of such Notes, then the Issuers shall be entitled to a further period of 36 hours within
which to procure other persons satisfactory to the non-defaulting Underwriters to purchase
such Notes on such terms. If other persons become obligated or agree to purchase the Notes
of a defaulting Underwriter, either the non-defaulting Underwriters or the Issuers may
postpone the Closing Date for up to five full business days in order to effect any changes
that in the opinion of counsel for the Issuers or counsel for the Underwriters may be
necessary in the Registration Statement and the Prospectus or in any other document or
arrangement, and the Issuers agree to promptly prepare any amendment or supplement to the
Registration Statement and the Prospectus that effects any such changes. As used in this
Agreement, the term Underwriter includes, for all purposes of this Agreement unless the
context otherwise requires, any person not listed in Schedule 1 hereto that,
pursuant to this Section 9, purchases Notes that a defaulting Underwriter agreed but failed
to purchase.
(b) If, after giving effect to any arrangements for the purchase of the Notes of a
defaulting Underwriter or Underwriters by the non-defaulting Underwriters and the Issuers as
provided in paragraph (a) above, the aggregate principal amount of such Notes that remains
unpurchased does not exceed one-eleventh of the aggregate principal amount of all the Notes,
then the Issuers shall have the right to require each non-
25
defaulting Underwriter to purchase the principal amount of Notes that such Underwriter
agreed to purchase hereunder plus such Underwriters pro rata share (based on the principal
amount of Notes that such Underwriter agreed to purchase hereunder) of the Notes of such
defaulting Underwriter or Underwriters for which such arrangements have not been made.
(c) If, after giving effect to any arrangements for the purchase of the Notes of a
defaulting Underwriter or Underwriters by the non-defaulting Underwriters and the Issuers as
provided in paragraph (a) above, the aggregate principal amount of such Notes that remains
unpurchased exceeds one-eleventh of the aggregate principal amount of all the Notes, or if
the Issuers shall not exercise the right described in paragraph (b) above, then this
Agreement shall terminate without liability on the part of the non-defaulting Underwriters.
Any termination of this Agreement pursuant to this Section 9 shall be without liability on
the part of the Copano Parties, except that the Copano Parties will continue to be liable
for the payment of expenses as set forth in Section 10 hereof and except that the provisions
of Section 7 hereof shall not terminate and shall remain in effect.
(d) Nothing contained herein shall relieve a defaulting Underwriter of any liability it
may have to the Copano Parties or any non-defaulting Underwriter for damages caused by its
default.
10. Payment of Expenses.
(a) Whether or not the transactions contemplated by this Agreement are consummated or
this Agreement is terminated, the Copano Parties jointly and severally agree to pay or
cause to be paid all costs and expenses incident to the performance of their respective
obligations hereunder, including without limitation, (i) the costs incident to the
authorization, issuance, sale, preparation and delivery of the Notes and any taxes payable
in that connection; (ii) the costs incident to the preparation, printing and filing under
the Securities Act of the Registration Statement, the Preliminary Prospectus, any Issuer
Free Writing Prospectus, any Time of Sale Information and the Prospectus (including all
exhibits, amendments and supplements thereto) and the distribution thereof; (iii) the costs
of reproducing and distributing this Agreement and the Indenture; (iv) the fees and expenses
of counsel for the Copano Parties and independent accountants for the Company; (v) the fees
and expenses incurred in connection with the registration or qualification and determination
of eligibility for investment of the Securities under the laws of such jurisdictions as the
Representative may designate and the preparation, printing and distribution of a Blue Sky
Memorandum (including the related fees and expenses of counsel for the Underwriters); (vi)
any fees charged by rating agencies for rating the Securities; (vii) the fees and expenses
of the Trustee and any paying agent (including related fees and expenses of any counsel to
such parties); (viii) all expenses and application fees incurred in connection with any
filing with, and clearance of the offering by, the Financial Industry Regulatory Authority;
(ix) all expenses incurred by the Copano Parties in connection with any road show
presentation to potential investors and (x) all other costs and expenses incident to the
performance of the obligations of the
26
Copano Parties hereunder for which provision is not otherwise made in this Section 10.
It is understood, however, that except as provided in this Section 10 or in Section 9, the
Underwriters will pay all of their costs and expenses, including fees and disbursements of
their counsel, transfer taxes payable on resale of any of the Notes by it and any
advertising expenses connected with any offers it may make.
(b) If this Agreement is terminated by the Underwriters because any condition to the
obligations of the Underwriters set forth in Section 6 is not satisfied, because of any
termination pursuant to Section 8(ii) hereof, or because of any failure, refusal or
inability on the part of the Copano Parties to comply with the terms or fulfill any of the
conditions of this Agreement other than by reason of a default of the Underwriters, then
each of the Copano Parties jointly and severally agrees to reimburse the Underwriters for
all reasonable out-of-pocket expenses (including fees and expenses of their counsel)
incurred by the Underwriters in connection herewith.
11. Research Analyst Independence. The Copano Parties acknowledge that the
Underwriters research analysts and research departments are required to be independent from their
respective investment banking divisions and are subject to certain regulations and internal
policies, and that such Underwriters research analysts may hold views and make statements or
investment recommendations and/or publish research reports with respect to the Issuers and/or the
offering that differ from the views of their respective investment banking divisions. The Copano
Parties hereby waive and release, to the fullest extent permitted by law, any claims that the
Copano Parties may have against the Underwriters with respect to any conflict of interest that may
arise from the fact that the views expressed by their independent research analysts and research
departments may be different from or inconsistent with the views or advice communicated to the
Copano Parties by such Underwriters investment banking divisions. The Copano Parties acknowledge
that each of the Underwriters is a full service securities firm and as such from time to time,
subject to applicable securities laws, may effect transactions for its own account or the account
of its customers and hold long or short positions in debt or equity securities of the companies
that may be the subject of the transactions contemplated by this Agreement.
12. Persons Entitled to Benefit of Agreement. This Agreement shall inure to the
benefit of and be binding upon the parties hereto and their respective successors and any
controlling persons referred to herein, and the affiliates, officers and directors of each
Underwriter referred to in Section 7 hereof. Nothing in this Agreement is intended or shall be
construed to give any other person any legal or equitable right, remedy or claim under or in
respect of this Agreement or any provision contained herein. No purchaser of Notes from any
Underwriter shall be deemed to be a successor merely by reason of such purchase.
13. Survival. The respective indemnities, rights of contribution, representations,
warranties and agreements of the Copano Parties and the Underwriters contained in this Agreement or
made by or on behalf of the Copano Parties or the Underwriters pursuant to this Agreement or any
certificate delivered pursuant hereto shall survive the delivery of and payment for the Notes and
shall remain in full force and effect, regardless of any termination of this Agreement or any
investigation made by or on behalf of the Copano Parties or the Underwriters.
27
14. Certain Defined Terms. For purposes of this Agreement, (a) except where otherwise
expressly provided, the term affiliate has the meaning set forth in Rule 405 under the Securities
Act; (b) the term business day means any day other than a day on which banks are permitted or
required to be closed in New York City; and (c) the term subsidiary has the meaning set forth in
Rule 405 under the Securities Act.
15. Miscellaneous.
(a) Authority of the Representative. Any action by the Underwriters hereunder may be
taken by J.P. Morgan Securities LLC on behalf of the Underwriters, and any such action taken
by J.P. Morgan Securities LLC shall be binding upon the Underwriters.
(b) Notices. All notices and other communications hereunder shall be in writing and
shall be deemed to have been duly given if mailed or transmitted and confirmed by any
standard form of telecommunication. Notices to the Underwriters shall be given to the
Representative c/o J.P. Morgan Securities LLC, 383 Madison Avenue, New York, New York 10179
(fax: 713-216-8870); Attention: Bob Mertensotto. Notices to the Copano Parties shall be
given to them at Copano Energy, L.L.C., 2727 Allen Parkway, Suite 1200, Houston, Texas 77019
(fax: 713-621-9545); Attention: Douglas Lawing.
(c) Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York.
(d) Counterparts. This Agreement may be signed in counterparts (which may include
counterparts delivered by any standard form of telecommunication), each of which shall be an
original and all of which together shall constitute one and the same instrument.
(e) Amendments or Waivers. No amendment or waiver of any provision of this Agreement,
nor any consent or approval to any departure therefrom, shall in any event be effective
unless the same shall be in writing and signed by the parties hereto.
(f) Headings. The headings herein are included for convenience of reference only and
are not intended to be part of, or to affect the meaning or interpretation of, this
Agreement.
[signature pages follow]
28
If the foregoing is in accordance with your understanding of our agreement, please indicate
your acceptance of this Agreement by signing in the space provided below.
Very truly yours, Copano Energy, L.L.C. |
||||
By | /s/ Carl A. Luna | |||
Carl A. Luna | ||||
Senior Vice President and Chief Financial Officer |
||||
Copano Energy Finance Corporation |
||||
By | /s/ Carl A. Luna | |||
Carl A. Luna | ||||
Senior Vice President and Chief Financial Officer |
||||
SIGNATURE PAGE TO UNDERWRITING AGREEMENT
Guarantors ACP Texas, L.L.C. Alamo Creek Properties, L.L.C. Cantera Gas Company LLC CMW Energy Services, L.L.C. Copano Eagle Ford LLC Copano Energy Services (Texas) GP, L.L.C. Copano Energy Services GP, L.L.C. Copano Energy/Mid-Continent, L.L.C. Copano Energy/Rocky Mountains, L.L.C. Copano Field Facilities/Rocky Mountains, LLC Copano Field Services GP, L.L.C. Copano Field Services/Central Gulf Coast GP, L.L.C. Copano Field Services/North Texas, L.L.C. Copano Field Services/Rocky Mountains, LLC Copano Liberty, LLC Copano Natural Gas/Rocky Mountains, LLC Copano NGL Services (Markham), L.L.C. Copano NGL Services GP, L.L.C. Copano Pipelines (Texas) GP, L.L.C. Copano Pipelines GP, L.L.C. Copano Pipelines/North Texas, L.L.C. Copano Pipelines/Rocky Mountains, LLC Copano Pipelines/Victoria, L.L.C. Copano Processing GP, L.L.C. Copano Processing/Louisiana, LLC Copano/Red River Gathering GP, L.L.C. Copano/Webb-Duval Pipeline GP, L.L.C. CPNO Services GP, L.L.C. Estes Cove Facilities, L.L.C. Greenwood Gathering, L.L.C. Nueces Gathering, L.L.C. River View Pipelines, L.L.C. ScissorTail Energy, LLC |
||||
By | /s/ Carl A. Luna | |||
Carl A. Luna | ||||
Senior Vice President and Chief Financial Officer |
||||
Copano Processing, L.P. |
||||
By | Copano Processing GP, L.L.C., | |||
General Partner | ||||
By | /s/ Carl A. Luna | |||
Carl A. Luna | ||||
Senior Vice President and Chief Financial Officer |
SIGNATURE PAGE TO UNDERWRITING AGREEMENT
Copano NGL Services, L.P. |
||||
By | Copano NGL Services GP, L.L.C., | |||
General Partner | ||||
By | /s/ Carl A. Luna | |||
Carl A. Luna | ||||
Senior Vice President and Chief Financial Officer |
||||
CHC LP Holdings, L.L.C. Copano Houston Central, L.L.C. Copano Pipelines Group, L.L.C. Copano/Red River Gathering LP Holdings, L.L.C. CPG LP Holdings, L.L.C. CPNO Services LP Holdings, L.L.C. CWDPL LP Holdings, L.L.C. |
||||
By | /s/ Carl A. Luna | |||
Carl A. Luna | ||||
Senior Vice President and Chief Financial Officer |
||||
Copano General Partners, Inc. |
||||
By | /s/ Carl A. Luna | |||
Carl A. Luna | ||||
Senior Vice President and Chief Financial Officer |
SIGNATURE PAGE TO UNDERWRITING AGREEMENT
Copano Field Services/Agua Dulce, L.P. Copano Field Services/Copano Bay, L.P. Copano Field Services/Karnes, L.P. Copano Field Services/Live Oak, L.P. Copano Field Services/South Texas, L.P. Copano Field Services/Upper Gulf Coast, L.P. |
||||
By | Copano Field Services GP, L.L.C., | |||
General Partner | ||||
By | /s/ Carl A. Luna | |||
Carl A. Luna | ||||
Senior Vice President and Chief Financial Officer |
||||
Copano Pipelines/Hebbronville, L.P. Copano Pipelines/South Texas, L.P. Copano Pipelines/Upper Gulf Coast, L.P. |
||||
By | Copano Pipelines GP, L.L.C., | |||
General Partner | ||||
By | /s/ Carl A. Luna | |||
Carl A. Luna | ||||
Senior Vice President and Chief Financial Officer |
||||
Copano Pipelines/Texas Gulf Coast, L.P. |
||||
By | Copano Pipelines (Texas) GP, L.L.C., | |||
General Partner | ||||
By | /s/ Carl A. Luna | |||
Carl A. Luna | ||||
Senior Vice President and Chief Financial Officer |
SIGNATURE PAGE TO UNDERWRITING AGREEMENT
Copano Field Services/Central Gulf Coast, L.P. |
||||
By | Copano Field Services/Central Gulf | |||
Coast GP, L.L.C., | ||||
General Partner | ||||
By | /s/ Carl A. Luna | |||
Carl A. Luna | ||||
Senior Vice President and Chief Financial Officer |
||||
Copano Energy Services/Upper Gulf Coast, L.P. |
||||
By | Copano Energy Services GP, L.L.C., | |||
General Partner | ||||
By | /s/ Carl A. Luna | |||
Carl A. Luna | ||||
Senior Vice President and Chief Financial Officer |
||||
Copano Energy Services/Texas Gulf Coast, L.P. | ||||
By | Copano Energy Services (Texas) GP, | |||
L.L.C., General Partner | ||||
By | /s/ Carl A. Luna | |||
Carl A. Luna | ||||
Senior Vice President and Chief Financial Officer |
||||
Copano/Webb-Duval Pipeline, L.P. |
||||
By | Copano/Webb Duval Pipeline GP, L.L.C., | |||
General Partner | ||||
By | /s/ Carl A. Luna | |||
Carl A. Luna | ||||
Senior Vice President and Chief Financial Officer |
SIGNATURE PAGE TO UNDERWRITING AGREEMENT
CPNO Services, L.P. Copano Risk Management, L.P. |
||||
By | CPNO Services GP, L.L.C., General | |||
Partner | ||||
By | /s/ Carl A. Luna | |||
Carl A. Luna | ||||
Senior Vice President and Chief Financial Officer |
||||
Cimmarron Gathering, LP |
||||
By | Copano/Red River Gathering GP, L.L.C., | |||
General Partner | ||||
By | /s/ Carl A. Luna | |||
Carl A. Luna | ||||
Senior Vice President and Chief Financial Officer |
SIGNATURE PAGE TO UNDERWRITING AGREEMENT
Accepted as of the date hereof J.P. MORGAN SECURITIES LLC |
||||
By | /s/ Robert C. Mertensotto | |||
Name: | Robert C. Mertensotto | |||
Title: | Managing Director | |||
For itself and on behalf of the several Underwriters
on Schedule 1 hereto
on Schedule 1 hereto
SIGNATURE PAGE TO UNDERWRITING AGREEMENT
SCHEDULE 1
Underwriter | Principal Amount | |||
J.P. Morgan Securities LLC |
$ | 90,000,000 | ||
Merrill Lynch, Pierce, Fenner & Smith
Incorporated |
50,400,000 | |||
Deutsche Bank Securities Inc. |
50,400,000 | |||
RBC Capital Markets, LLC |
50,400,000 | |||
Wells Fargo Securities, LLC |
50,400,000 | |||
Credit Suisse Securities (USA) LLC |
18,000,000 | |||
BBVA Securities Inc. |
10,800,000 | |||
BNP Paribas Securities Corp. |
10,800,000 | |||
SunTrust Robinson Humphrey, Inc. |
10,800,000 | |||
Comerica Securities, Inc. |
9,000,000 | |||
U.S. Bancorp Investments, Inc. |
9,000,000 | |||
Total |
$ | 360,000,000 |
Schedule 1 1
SCHEDULE 2
Guarantors
Jurisdiction of | ||
Name | Formation | |
ACP Texas, L.L.C.
|
Delaware | |
Alamo Creek Properties, L.L.C.
|
Delaware | |
Cantera Gas Company, LLC
|
Delaware | |
CHC LP Holdings, L.L.C.
|
Delaware | |
Cimmarron Gathering, LP
|
Texas | |
CMW Energy Services, L.L.C.
|
Delaware | |
Copano Eagle Ford LLC
|
Delaware | |
Copano Energy/Mid-Continent, L.L.C.
|
Delaware | |
Copano Energy/Rocky Mountains, L.L.C.
|
Delaware | |
Copano Energy Services GP, L.L.C.
|
Delaware | |
Copano Energy Services (Texas) GP, L.L.C.
|
Delaware | |
Copano Energy Services/Texas Gulf Coast, L.P.
|
Texas | |
Copano Energy Services/Upper Gulf Coast, L.P.
|
Texas | |
Copano Field Facilities/Rocky Mountains, LLC
|
Delaware | |
Copano Field Services/Agua Dulce, L.P.
|
Texas | |
Copano Field Services/Central Gulf Coast GP, L.L.C.
|
Delaware | |
Copano Field Services/Central Gulf Coast, L.P.
|
Texas | |
Copano Field Services/Copano Bay, L.P.
|
Texas | |
Copano Field Services GP, L.L.C.
|
Delaware | |
Copano Field Services/Karnes, L.P.
|
Texas | |
Copano Field Services/Live Oak, L.P.
|
Texas | |
Copano Field Services/North Texas, L.L.C.
|
Delaware | |
Copano Field Services/Rocky Mountains, LLC
|
Delaware | |
Copano Field Services/South Texas, L.P.
|
Texas | |
Copano Field Services/Upper Gulf Coast, L.P.
|
Texas | |
Copano Houston Central, L.L.C.
|
Delaware | |
Copano Liberty, LLC
|
Delaware | |
Copano General Partners, Inc.
|
Delaware | |
Copano Natural Gas/Rocky Mountains, LLC
|
Delaware | |
Copano NGL Services GP, L.L.C.
|
Delaware | |
Copano NGL Services, L.P.
|
Texas | |
Copano NGL Services (Markham), L.L.C.
|
Delaware | |
Copano Pipelines Group, L.L.C.
|
Delaware | |
Copano Pipelines GP, L.L.C.
|
Delaware | |
Copano Pipelines/Hebbronville, L.P.
|
Texas | |
Copano Pipelines/North Texas, L.L.C.
|
Delaware | |
Copano Pipelines/Rocky Mountains, LLC
|
Delaware | |
Copano Pipelines/South Texas, L.P.
|
Texas | |
Copano Pipelines (Texas) GP, L.L.C.
|
Delaware | |
Copano Pipelines/Texas Gulf Coast, L.P.
|
Texas |
Schedule 2 1
Jurisdiction of | ||
Name | Formation | |
Copano Pipelines/Upper Gulf Coast, L.P.
|
Texas | |
Copano Pipelines/Victoria, L.L.C.
|
Delaware | |
Copano Processing/Louisiana, LLC
|
Oklahoma | |
Copano Processing GP, L.L.C.
|
Delaware | |
Copano Processing, L.P.
|
Texas | |
Copano/Red River Gathering GP, L.L.C.
|
Delaware | |
Copano/Red River Gathering LP Holdings, L.L.C.
|
Delaware | |
Copano Risk Management, L.P.
|
Texas | |
Copano/Webb-Duval Pipeline GP, L.L.C.
|
Delaware | |
Copano/Webb-Duval Pipeline, L.P.
|
Delaware | |
CPG LP Holdings, L.L.C.
|
Delaware | |
CPNO Services GP, L.L.C.
|
Delaware | |
CPNO Services, L.P.
|
Texas | |
CPNO Services LP Holdings, L.L.C.
|
Delaware | |
CWDPL LP Holdings, L.L.C.
|
Delaware | |
Estes Cove Facilities, L.L.C.
|
Texas | |
Greenwood Gathering, L.L.C.
|
Delaware | |
Nueces Gathering, L.L.C.
|
Texas | |
River View Pipelines, L.L.C.
|
Delaware | |
ScissorTail Energy, LLC
|
Delaware |
Schedule 2 2
ANNEX A
Opinion of Vinson & Elkins L.L.P.
(a) Formation and Qualification of Copano Group. Each of (i) Copano Energy, L.L.C., a
Delaware limited liability company (the Company), (ii) Copano Energy Finance Corporation, a
Delaware corporation (FinCo), (iii) Copano Pipelines Group, L.L.C., a Delaware limited liability
company (CPG), (iv) Copano/Webb-Duval Pipeline GP, L.L.C., a Delaware limited liability company
(CWDPL), (v) CWDPL LP Holdings, L.L.C., a Delaware limited liability company (CWDPL Holdings),
(vi) Copano Houston Central, L.L.C., a Delaware limited liability company (CHC), (vii) Copano
Energy/Mid-Continent, L.L.C., a Delaware limited liability company (Mid-Continent), and (vii)
Copano Energy/Rocky Mountains, L.L.C., a Delaware limited liability company (Rocky Mountains)
(the Company, FinCo, CPG, CHC, CWDPL, CWDPL Holdings, Mid-Continent, and Rocky Mountains, the
Copano Group), has been duly formed and is validly existing as a limited liability company or
corporation in good standing under the laws of its jurisdiction of formation with all limited
liability company or corporate, as the case may be, power and authority necessary to own or lease
its properties and to conduct its business, in each case in all material respects as described in
the Registration Statement, the Time of Sale Information and the Prospectus. Each member of the
Copano Group is duly registered or qualified to do business and is in good standing as a foreign
limited liability company or corporation, as the case may be, in each jurisdiction set forth under
its name on Appendix 1 to this opinion letter.
(b) Ownership of the Copano Group. The Company owns (i) 100% of the capital stock of
FinCo and (ii) 100% of the limited liability company interests of each of CPG, CHC, CWDPL, CWDPL
Holdings, Mid-Continent and Rocky Mountains. All such limited liability company interests
(including the common units representing limited liability company interests in the Company) or
capital stock, as the case may be, have been duly authorized and validly issued in accordance with
any applicable limited liability company agreement (the Copano Group Operating Agreements) and
any applicable certificate of incorporation or organization, other charter documents or bylaws, as
the case may be (collectively with the Copano Group Operating Agreements, the Copano Group
Operating Documents) and are fully paid (to the extent required under the applicable Copano Group
Operating Agreements) and non-assessable (except as such non-assessability may be affected by
Sections 18-607 and 18-804 of the Delaware LLC Act); and all such interests are owned free and
clear of all liens, encumbrances (except restrictions on transferability as described in the
Registration Statement, the Time of Sale Information and the Prospectus), security interests,
equities, charges and other claims (other than those arising under the Credit Agreement) (i) in
respect of which a financing statement under the Uniform Commercial Code of the State of Delaware
naming the Company is on file as of a recent date in the office of the Secretary of State of the
State of Delaware or (ii) otherwise known to such counsel, without independent investigation, other
than those created by or arising under the Delaware General Corporation Law (the DGCL) or the
Delaware LLC Act.
(c) Authority. Each of the Copano Parties has full right, power and authority to
execute and deliver this Agreement, the Notes (including each Guarantee) and the Indenture and to
perform its obligations thereunder; and all action required to be taken by such Copano Party
Annex A 1
for the due and proper authorization, execution and delivery of this Agreement, the Notes
(including each Guarantee) and the Indenture and the consummation of the transactions contemplated
thereby has been duly and validly taken.
(d) Indenture. The Indenture has been duly authorized and validly executed and
delivered by each of the Copano Parties and (assuming the due authorization and valid execution and
delivery thereof by the Trustee) is a valid and legally binding agreement of each of the Copano
Parties, enforceable against each of them in accordance with its terms; provided that the
enforceability thereof may be limited by (A) applicable bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium or similar laws from time to time in effect relating to or
affecting creditors rights and remedies generally and by general principles of equity (regardless
of whether such principles are considered in a proceeding in equity or at law) and (B) public
policy, applicable law relating to fiduciary duties and indemnification and contribution and an
implied covenant of good faith and fair dealing; and the Indenture has been duly qualified under
the Trust Indenture Act.
(e) Notes; Guarantees. (i) The Notes have been duly authorized, executed and delivered
by each of the Issuers in accordance with the terms of the Indenture and, assuming due
authentication of the Notes by the Trustee in the manner provided for in the Indenture, upon
delivery to the Underwriters against payment therefor in accordance with the terms of this
Agreement, will constitute valid and binding obligations of the Issuers entitled to the benefits of
the Indenture, enforceable against each of them in accordance with their terms, except as
enforcement thereof may be limited by (A) applicable bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium or similar laws from time to time in effect relating to or affecting
creditors rights and remedies generally and by general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at law) and (B) public policy,
applicable law relating to fiduciary duties and indemnification and contribution and an implied
covenant of good faith and fair dealing; and (ii) the Guarantees have been duly authorized by each
of the Guarantors and, when the Notes have been duly executed by the Issuers and authenticated by
the Trustee in the manner provided for in the Indenture and delivered to and paid for by the
Underwriters in accordance with the terms of this Agreement, will constitute valid and binding
obligations of the Guarantors entitled to the benefits of the Indenture, enforceable against them
in accordance with their respective terms, except as enforcement thereof may be limited by (A)
applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or similar laws
from time to time in effect relating to or affecting creditors rights and remedies generally and
by general principles of equity (regardless of whether such enforceability is considered in a
proceeding in equity or at law) and (B) public policy, applicable law relating to fiduciary duties
and indemnification and contribution and an implied covenant of good faith and fair dealing.
(f) Authorization, Execution and Delivery of Agreement. This Agreement has been duly
authorized and validly executed and delivered by each of the Copano Parties.
(g) Enforceability of Copano Group Operating Agreements. Each of the Copano Group
Operating Agreements has been duly authorized, executed and delivered by the respective member of
the Copano Group that is a party thereto, as applicable, and is a valid and legally binding
agreement of the respective member of the Copano Group that is a party thereto,
Annex A 2
enforceable against the respective member of the Copano Group that is a party thereto in
accordance with their respective terms; provided that the enforceability thereof may be limited by
(i) applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or similar
laws from time-to-time in effect relating to or affecting creditors rights and remedies generally
and by general principles of equity (regardless of whether such principles are considered in a
proceeding in equity or at law) and (ii) public policy, applicable law relating to fiduciary
duties, indemnification and contribution and an implied covenant of good faith and fair dealing.
(h) Effectiveness of Registration Statement. The Registration Statement is an
automatic shelf registration statement (as defined in Rule 405 of the Rules and Regulations) that
has been filed with the Commission not earlier than three years prior to the date of such opinion,
has become effective under the Securities Act and, to the knowledge of such counsel, no stop order
proceedings with respect thereto are pending or threatened under the Securities Act, and any
required filing of the Prospectus and any supplement thereto pursuant to Rule 424 or Rule 430B
under the Securities Act has been made in the manner and within the time period required by such
Rule 424 and in compliance with Rule 430B under the Securities Act.
(i) Form of Documents. The Registration Statement, the Time of Sale Information and
the Prospectus (except as to the financial statements and the notes and schedules thereto, and
other financial data and statistical data derived from financial data, contained in the
Registration Statement, the Time of Sale Information and the Prospectus, as to which such counsel
expresses no opinion) appear on their face to comply as to form in all material respects with the
requirements of the Securities Act (including, in the case of the Prospectus, Section 10(a) of the
Securities Act). Each document incorporated by reference in the Time of Sale Information or the
Prospectus at the time such document was filed with the Commission or at the time such document
became effective, as applicable, appeared on its face to comply as to form in all material respects
with the requirements of the Exchange Act (except as to the financial statements and the notes and
schedules, and other financial data and statistical data derived from financial data, contained in
such document, as to which such counsel expresses no opinion).
(j) No Conflicts. None of the offering, issuance and sale of the Securities, the
execution, delivery and performance of the Securities, the Indenture and this Agreement or the
consummation of the transactions contemplated hereby or thereby will conflict with, result in a
breach or violation of, or a default (and no event has occurred that, with notice or lapse of time
or otherwise, would constitute such a default) under, or imposition of any lien, charge or
encumbrance upon any property or assets of the Copano Group pursuant to, (i) the Copano Group
Operating Documents, (ii) any other agreement, lease or other instrument filed as an exhibit to the
Registration Statement or to any document incorporated by reference in the Time of Sale Information
or the Prospectus or (iii) the Delaware LLC Act, the DGCL, the laws of the State of Texas or
federal law, which breaches, violations, defaults or liens, in the case of clause (ii) or (iii),
could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect;
provided that no opinion is expressed pursuant to this paragraph with respect to federal or state
securities laws or other anti-fraud laws.
(k) No Consents. No consent, approval, authorization or order of, or filing or
registration with, any court or governmental agency or body having jurisdiction over any
Annex A 3
member of the Copano Group or any of their respective properties is required in connection
with the offering, issuance and sale of the Securities in the manner contemplated in this Agreement
or in the Prospectus, the execution, delivery and performance of this Agreement and the Indenture
by the Copano Parties and the consummation by the Copano Parties of the transactions contemplated
hereby and thereby, except (i) for such consents required under the Securities Act, the Exchange
Act and state securities or Blue Sky laws, as to which such counsel need not express any opinion,
(ii) for such consents that have been obtained or made, (iii) for such consents which, if not
obtained, could not reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect or (iv) as disclosed in the Registration Statement (excluding exhibits thereto), the
Time of Sale Information and the Prospectus.
(l) Descriptions and Summaries. The statements and descriptions included or
incorporated by reference in the Registration Statement, the Time of Sale Information and the
Prospectus, as applicable, under the captions The offering (excluding Use of proceeds),
Description of notes, Certain United States federal income tax considerations,
BusinessRegulation and BusinessEnvironmental, Health and Safety Matters. insofar as such
statements or descriptions constitute descriptions of contracts or refer to statements of law or
legal conclusions, are accurate in all material respects.
(m) Legal Proceedings or Contracts to be Described or Filed. To the knowledge of such
counsel after due inquiry, except as described in the Registration Statement (excluding exhibits
thereto), the Time of Sale Information and the Prospectus, (i) there are no legal or governmental
proceedings pending or threatened to which any of the Copano Parties is a party, or to which any of
their respective properties is subject, that are required to be described in the Registration
Statement, the Time of Sale Information and the Prospectus but are not so described as required,
and (ii) there are no agreements, contracts, indentures, leases or other instruments that are
required to be described in the Registration Statement, the Final Prospectus and the Prospectus or
to be filed as exhibits to the Registration Statement by the Securities Act that are not described
or filed as required.
(n) Investment Company. None of the Copano Parties is or, after giving effect to the
offer and sale of the Securities and the application of the proceeds thereof as described in each
of the Time of Sale Information and the Prospectus will be, an investment company as such term is
defined in the Investment Company Act of 1940, as amended.
In addition, such counsel shall state that they have reviewed the Registration Statement, the
Time of Sale Information and the Prospectus and have participated in conferences with officers and
other representatives of the Copano Parties, representatives of the registered independent public
accounting firm of the Company and representatives of and counsel to the Underwriters at which the
contents of the Time of Sale Information and the Prospectus and related matters were discussed, and
although such counsel did not independently verify, is not passing upon and does not assume any
responsibility for the accuracy, completeness or fairness of the statements contained in the
Registration Statement, the Time of Sale Information or the Prospectus (except to the extent
specified in paragraph (l) above), on the basis of the foregoing, no facts have come to the
attention of such counsel that lead them to believe that (i) the Registration Statement, as of its
latest effective time, contained an untrue statement of a material fact or omitted to state a
material fact required to be stated therein or necessary to make the
Annex A 4
statements therein not misleading, (ii) the Time of Sale Information, as of the Time of Sale,
included or includes an untrue statement of a material fact or omitted or omits to state a material
fact necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading or (iii) the Prospectus, as of its date and as of the Closing
Date, included or includes an untrue statement of a material fact or omitted or omits to state a
material fact necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading (in each case other than (a) the financial statements
included therein, including the notes and schedules thereto and auditors reports thereon, and (b)
the other financial data and statistical data derived from financial data included therein, as to
which such counsel need express no belief).
In rendering such opinion, such counsel may (A) rely in respect of matters of fact upon
certificates of officers and employees of the Copano Parties and upon information obtained from
public officials, (B) assume that all documents submitted to them as originals are authentic, that
all copies submitted to them conform to the originals thereof, and that the signatures on all
documents examined by them are genuine, (C) state that their opinion is limited to federal laws,
the Delaware LLC Act, the DGCL and the laws of the States of Texas and New York, (D) with respect
to the opinions expressed in paragraph (a) above as to the due qualification or registration as a
foreign limited liability company or corporation, as the case may be, of the Copano Group, state
that such opinions are based upon certificates of foreign qualification or registration provided by
the Secretary of State of the states listed on Appendix 1 (each of which will be dated not
more than fourteen days prior to the Closing Date, and shall be provided to the Underwriters), (E)
state that they express no opinion with respect to any permits to own or operate any real or
personal property, (F) state that they express no opinion with respect to the accuracy or
descriptions of real or personal property and (G) state that they express no opinion with respect
to state or local taxes or tax statutes to which any of the Copano Parties may be subject.
[Insert Appendix 1 listing foreign qualifications of the Copano Group]
Annex A 5
ANNEX B
Opinion of Douglas L. Lawing
(a) Formation and Qualification of the Subsidiaries. Each of the Subsidiaries
(excluding the Copano Group and except for Webb/Duval with respect to good standing) has been duly
formed and is validly existing as a general partnership, limited partnership, limited liability
company or corporation, as the case may be, in good standing under the laws of its jurisdiction of
formation and with all general partnership, limited partnership, limited liability company or
corporate, as the case may be, power and authority necessary to own or lease its properties and to
conduct its business, in each case in all material respects as described in the Registration
Statement, the Time of Sale Information and the Prospectus. Each Subsidiary is duly registered or
qualified to do business and is in good standing as a foreign limited partnership, limited
liability company or corporation, as the case may be, in each jurisdiction set forth under its name
on Appendix 1 to this opinion letter.
(b) Ownership of the Subsidiaries. The Company directly or indirectly owns of record
100% of the limited liability company interests, partnership interests or capital stock, as the
case may be, of each of the Subsidiaries (excluding FinCo, CPG, CWDPL, CWDPL Holdings, CHC,
Mid-Continent and Rocky Mountains) except with respect to (i) Webb/Duval, as to which the Company
owns a 62.5% partnership interest, (ii) Southern Dome, as to which the Company owns a majority
limited liability company interest, (iii) Bighorn, as to which the Company owns a 51% limited
liability company interest, (iv) Fort Union, as to which the Company owns a 37.04% limited
liability company interest, (v) Liberty Pipeline, as to which the Company owns a 50% limited
liability company interest and (vi) Eagle Ford Gathering, as to which the Company owns a 50%
limited liability company interest). All such limited liability company interests, partnership
interests or capital stock, as the case may be, have been duly authorized and validly issued in
accordance with the limited liability company agreements, partnership agreements or articles of
incorporation and bylaws, as the case may be, of such entity and are fully paid (to the extent
required under their respective limited liability company agreements or partnership agreements) and
non-assessable (except as such nonassessability may be affected by: (A) Sections 18-607 and 18-804
of the Delaware LLC Act, in the case of a Delaware limited liability company, (B) Sections 17-607
and 17-804 of the Delaware LP Act, in the case of a Delaware limited partnership, (C) Sections
3.03, 5.02 and 6.07 of the Texas LP Act, in the case of a Texas limited partnership, (D) Section
5.09 of the Texas LLC Act, in the case of a Texas limited liability company or (E) Section 2031 of
the Oklahoma Limited Liability Company Act, in the case of an Oklahoma limited liability company);
and all such interests are owned free and clear of all liens, encumbrances (except restrictions on
transferability as described in the Registration Statement, the Time of Sale Information or the
Prospectus or, in the case of Webb/Duval, Southern Dome, Bighorn, Fort Union, Liberty Pipeline and
Eagle Ford Gathering, as set forth in its partnership agreement or limited liability agreement, as
the case may be), security interests, equities, charges and other claims (other than those arising
under the Credit Agreement).
(c) No Conflicts. None of the offering, issuance and sale of the Securities, the
execution, delivery and performance of the Securities, the Indenture and the Agreement or the
consummation of the transactions contemplated hereby or thereby will conflict with, result in a
Annex B 1
breach or violation of, or a default (and no event has occurred that, with notice or lapse of
time or otherwise, would constitute such a default) under, or imposition of any lien, charge or
encumbrance upon any property or assets of the Company or any of the Subsidiaries pursuant to, (i)
the applicable Operating Documents of any of the Subsidiaries (other than the Copano Group
Operating Documents) (ii) any agreement, lease or instrument known to such counsel to which the
Company or any of the Subsidiaries is a party or by which any of them or their respective
properties may be bound (other than the Copano Group Operating Documents or any agreement, lease or
other instrument filed as an exhibit to the Registration Statement or to any document incorporated
by reference in the Time of Sale Information or the Prospectus) or (iii) to the knowledge of such
counsel, any order, judgment, decree or injunction of any federal, Texas or Delaware court or
government agency or body having jurisdiction over the Company or any of the Subsidiaries or any of
their properties in a proceeding to which any of them or their property is a party, which breaches,
violations, defaults or liens, in the case of clause (ii) or (iii) could reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect; provided, however, that no
opinion is expressed pursuant to this paragraph (c) with respect to federal or state securities
laws or other anti-fraud laws.
In addition, such counsel shall state that he has reviewed the Registration Statement, the
Time of Sale Information and the Prospectus and has participated in conferences with officers and
other representatives of the Copano Parties, representatives of the independent registered public
accounting firm for the Company and representatives of and counsel for the Underwriters at which
the contents of the Time of Sale Information and the Prospectus and related matters were discussed,
and although such counsel did not independently verify, is not passing upon and does not assume any
responsibility for the accuracy, completeness or fairness of the statements contained in the
Registration Statement, the Time of Sale Information or the Prospectus, on the basis of the
foregoing, no facts have come to the attention of such counsel that lead him to believe that (i)
the Registration Statement, as of its latest effective time, contained an untrue statement of a
material fact or omitted to state a material fact required to be stated therein or necessary to
make the statements therein not misleading, (ii) the Time of Sale Information, as of the Time of
Sale, included or includes an untrue statement of a material fact or omitted or omits to state a
material fact necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading or (iii) the Prospectus, as of its date and as of the
Closing Date, included or includes an untrue statement of a material fact or omitted or omits to
state a material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading (in each case other than (i) the financial
statements included therein, including the notes and schedules thereto and auditors reports
thereon, and (ii) the other financial data and statistical data derived from financial data
included therein, as to which such counsel need express no belief).
In rendering such opinion, such counsel may (A) rely in respect of matters of fact upon
certificates of officers and employees of the Copano Parties and upon information obtained from
public officials, (B) assume that all documents submitted to him as originals are authentic, that
all copies submitted to him conform to the originals thereof, and that the signatures on all
documents examined by him are genuine, (C) state that his opinion is limited to federal laws, the
DGCL, the Delaware LP Act, the Delaware LLC Act, the Delaware General Corporation Law, the Texas LP
Act and the Texas LLC Act, and (D) state that he expresses no opinion with respect
Annex B 2
to state or local taxes or tax statutes to which any of the members of the Company or any of
the Copano Parties may be subject.
[Insert Appendix 1 listing foreign qualifications of Subsidiaries]
Annex B 3
ANNEX C
General Partner | Limited Partnerships | |
Copano/Webb-Duval Pipeline GP, L.L.C.
|
Copano/Webb-Duval Pipeline, L.P. | |
Copano Field Services/Central Gulf Coast
GP, L.L.C.
|
Copano Field Services/Central Gulf Coast, L.P. | |
Copano Field Services GP, L.L.C.
|
Copano Field Services/Copano Bay, L.P. Copano Field Services/South Texas, L.P. Copano Field Services/Agua Dulce, L.P. Copano Field Services/Upper Gulf Coast, L.P. Copano Field Services/Live Oak, L.P. Copano Field Services/Karnes, L.P. |
|
Copano Pipelines GP, L.L.C.
|
Copano Pipelines/South Texas, L.P. Copano Pipelines/Upper Gulf Coast, L.P. Copano Pipelines/Hebbronville, L.P. |
|
Copano Pipelines (Texas) GP, L.L.C.
|
Copano Pipelines/Texas Gulf Coast, L.P. | |
Copano Energy Services GP, L.L.C.
|
Copano Energy Services/Upper Gulf Coast, L.P. | |
Copano Energy Services (Texas) GP, L.L.C.
|
Copano Energy Services/Texas Gulf Coast, L.P. | |
Copano NGL Services GP, L.L.C.
|
Copano NGL Services, L.P. | |
Copano Processing GP, L.L.C.
|
Copano Processing, L.P. | |
Copano/Red River Gathering GP, L.L.C.
|
Cimmarron Gathering, LP | |
CPNO Services GP, L.L.C.
|
CPNO Services, L.P. Copano Risk Management, L.P. |
Annex C 1
ANNEX D
Time of Sale Information
Free Writing Prospectus of the Issuers, substantially in the form of Annex E hereto, as
filed with the Commission on March 22, 2011
Annex D 1
ANNEX E
COPANO ENERGY, L.L.C.
COPANO ENERGY FINANCE CORPORATION
COPANO ENERGY FINANCE CORPORATION
Pricing Term Sheet
7.125% Senior Notes due 2021
7.125% Senior Notes due 2021
Issuers:
|
Copano Energy, L.L.C. and Copano Energy Finance Corporation | |
Guarantees:
|
Unconditionally guaranteed by the existing wholly owned subsidiaries of Copano Energy, L.L.C. and certain future subsidiaries | |
Security Type:
|
Senior Unsecured Notes | |
Form:
|
SEC Registered | |
Size:
|
$360,000,000 | |
Maturity:
|
April 1, 2021 | |
Coupon:
|
7.125% | |
Public Offering Price:
|
100% of face amount | |
Yield to maturity:
|
7.125% | |
Spread to Benchmark Treasury:
|
+380 bps | |
Benchmark Treasury:
|
UST 3.625% due 2/15/21 | |
Interest Payment Dates:
|
April 1 and October 1, commencing October 1, 2011 | |
Redemption Provisions: |
||
First call date:
|
April 1, 2016 | |
Make-whole call:
|
Before the first call date at a discount rate of treasury plus 50 basis points | |
Redemption prices:
|
Commencing April 1, 2016: 103.563% Commencing April 1, 2017: 102.375% Commencing April 1, 2018: 101.188% Commencing April 1, 2019: 100.000% |
|
Redemption with proceeds of
equity offering:
|
Prior to April 1, 2014 up to 35% may be redeemed at 107.125% | |
Pricing Date:
|
March 22, 2011 | |
Settlement Date*:
|
T+10; April 5, 2011 | |
CUSIP/ISIN:
|
217203AE8/ US217203AE82 | |
Net Proceeds Before Expenses:
|
$352,800,000 | |
Joint Book-Running Managers:
|
J.P. Morgan Securities LLC Merrill Lynch, Pierce, Fenner & Smith Incorporated Deutsche Bank Securities Inc. RBC Capital Markets, LLC |
Annex E 1
Wells Fargo Securities, LLC | ||
Co-Managers:
|
Credit Suisse Securities (USA) LLC BBVA Securities Inc. BNP Paribas Securities Corp. SunTrust Robinson Humphrey, Inc. Comerica Securities, Inc. U.S. Bancorp Investments, Inc. |
* | We expect that delivery of the notes will be made against payment therefor on or about the expected settlement date specified above, which will be the tenth business day following the date of this term sheet. Under Rule 15c6-1 of the Securities and Exchange Commission under the Securities Exchange Act of 1934, trades in the secondary market generally are required to settle in three business days, unless the parties to any such trade expressly agree otherwise. Accordingly, purchasers who wish to trade the notes on the date of this term sheet or the following six business days will be required, by virtue of the fact that the notes initially will settle in T+10, to specify an alternate settlement cycle at the time of any such trade to prevent a failed settlement and should consult their own advisor. |
Other Information:
The following changes are made in the preliminary prospectus supplement:
Summary
The following disclosure under SummaryThe offering on page S-8 and each other location where it
appears in the preliminary prospectus supplement is amended to read as follows:
As of December 31, 2010, on as adjusted basis after giving effect to this offering and our use of
proceeds therefrom, we and our subsidiaries would have had approximately $619.5 million of senior
indebtedness outstanding (including the notes), $10.0 million of which would have been secured,
with approximately $370 million of available borrowing capacity under our revolving credit
facility.
Capitalization
The following disclosure under Capitalization on page S-19 and each other location where it
appears in the preliminary prospectus supplement is amended to read as follows:
At March 18, 2011, approximately $70 million of borrowings were outstanding under our revolving
credit facility, with approximately $310 million of available borrowing capacity.
The issuers have filed a registration statement (including a prospectus) with the SEC for the
offering to which this communication relates. Before you invest, you should read the prospectus in
that registration statement and other documents the issuers have filed with the SEC for more
complete information about the issuers and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuers, any underwriter or
any dealer participating in the offering will
Annex E 2
arrange to send you the prospectus if you request it by calling J.P. Morgan Securities LLC at
1-800-245-8812, Merrill Lynch, Pierce, Fenner & Smith Incorporated at 1-800-294-1322, Deutsche Bank
Securities Inc. at 1-800-503-4611, RBC Capital Markets, LLC at 1-877-280-1299 or Wells Fargo
Securities, LLC at 1-800-326-5897.
Annex E 3