<PAGE> 1
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON MAY 13, 1998.
REGISTRATION NO. 333-52571
================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------
AMENDMENT NO. 1
TO
FORM S-4
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
------------------------
THE BOEING COMPANY
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
<TABLE>
<S> <C> <C>
DELAWARE 3721 91-0425694
(STATE OR OTHER JURISDICTION OF (PRIMARY STANDARD INDUSTRIAL (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION) CLASSIFICATION CODE NUMBER) IDENTIFICATION NUMBER)
</TABLE>
7755 EAST MARGINAL WAY SOUTH
SEATTLE, WASHINGTON 98108
(206) 655-2121
(ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER, INCLUDING AREA CODE, OF
REGISTRANT'S PRINCIPAL EXECUTIVE OFFICES)
------------------------
THEODORE J. COLLINS
SENIOR VICE PRESIDENT AND GENERAL COUNSEL
THE BOEING COMPANY
7755 EAST MARGINAL WAY SOUTH
SEATTLE, WASHINGTON 98108
(206) 655-2121
(NAME, ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER, INCLUDING AREA CODE,
OF AGENT FOR SERVICE)
------------------------
COPIES TO:
ANDREW BOR
ALAN C. SMITH
PERKINS COIE LLP
1201 THIRD AVENUE, 40TH FLOOR
SEATTLE, WASHINGTON 98101-3099
(206) 583-8888
------------------------
Approximate date of commencement of proposed sale to the public:
AS SOON AS PRACTICABLE AFTER THIS REGISTRATION STATEMENT BECOMES EFFECTIVE.
If the securities being registered on this form are being offered in
connection with the formation of a holding company and there is compliance with
General Instruction G, check the following box. [ ]
If this form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, check the following box and
list the Securities Act registration statement number of the earlier effective
registration statement for the same offering. [ ]
- ---------------
If this form is a post-effective amendment filed pursuant to Rule 462(d)
under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for he same offering. [ ]
- ---------------
------------------------
CALCULATION OF REGISTRATION FEE
<TABLE>
<CAPTION>
=============================================================================================================================
PROPOSED PROPOSED
TITLE OF EACH CLASS OF AMOUNT TO MAXIMUM OFFERING MAXIMUM AGGREGATE AMOUNT OF
SECURITIES TO BE REGISTERED BE REGISTERED(1) PRICE PER DEBENTURE(2) OFFERING PRICE(2) REGISTRATION FEE
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
6 5/8% Debentures due
February 15, 2038.............. $300,000,000 100% $300,000,000 $88,500
=============================================================================================================================
</TABLE>
(1) Estimated solely for the purpose of calculating the registration fee
pursuant to Rule 457(f) under the Securities Act of 1933.
(2) Equals the aggregate principal amount of the securities being registered.
THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR
DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL
FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION
STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(a) OF
THE SECURITIES ACT OF 1933 OR UNTIL THIS REGISTRATION STATEMENT SHALL BECOME
EFFECTIVE ON SUCH DATE AS THE COMMISSION, ACTING PURSUANT TO SAID SECTION 8(a),
MAY DETERMINE.
================================================================================
<PAGE> 2
PROSPECTUS
THE BOEING COMPANY
OFFER TO EXCHANGE ITS
6 5/8% DEBENTURES DUE FEBRUARY 15, 2038
WHICH HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933
FOR ANY AND ALL OF ITS OUTSTANDING
6 5/8% DEBENTURES DUE FEBRUARY 15, 2038
WHICH WERE ISSUED AND SOLD IN A TRANSACTION EXEMPT FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933
------------------------
THE EXCHANGE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT 5:00 P.M., NEW YORK
CITY TIME, ON JULY 8, 1998, UNLESS EXTENDED.
The Boeing Company, a Delaware corporation (the "Company"), hereby offers,
upon the terms and subject to the conditions set forth in this Prospectus (as
the same may be amended or supplemented from time to time, this "Prospectus")
and in the accompanying Letter of Transmittal (which together constitute the
"Exchange Offer"), to exchange up to $300,000,000 aggregate principal amount of
its 6 5/8% Debentures due February 15, 2038 (the "Exchange Debentures") that
have been registered under the Securities Act of 1933, as amended (the
"Securities Act"), pursuant to a Registration Statement (as defined herein) of
which this Prospectus constitutes a part, for a like aggregate principal amount
of its outstanding 6 5/8% Debentures due February 15, 2038 (the "Original
Debentures"), of which $300,000,000 aggregate principal amount are issued and
outstanding. The Original Debentures and the Exchange Debentures are sometimes
collectively referred to herein as the "Debentures." See "The Exchange Offer"
and "Description of Exchange Debentures."
The terms of the Exchange Debentures are identical in all material respects
to the terms of the Original Debentures, except that the Exchange Debentures (i)
have been registered under the Securities Act and therefore will not be subject
to certain restrictions on transfer applicable to the Original Debentures and
(ii) will not provide for any increase in the interest rate thereon. See
"Description of Exchange Debentures." The Exchange Debentures are being offered
for exchange in order to satisfy certain obligations of the Company under the
Registration Rights Agreement dated as of February 19, 1998 (the "Registration
Rights Agreement") between the Company and the Initial Purchasers (as defined
herein).
(continued on the following page)
This Prospectus and the Letter of Transmittal are first being mailed to all
holders of the Original Debentures on June 2, 1998.
------------------------
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS
THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS.
ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
The date of this Prospectus is May 29, 1998
<PAGE> 3
The Exchange Debentures will be unsecured indebtedness of the Company, will
rank pari passu in right of payment with all other unsubordinated and unsecured
indebtedness of the Company and will mature on February 15, 2038. Interest on
the Exchange Debentures will accrue from February 24, 1998 and will be payable
in cash on each February 15 and August 15, commencing August 15, 1998. The
Exchange Debentures will be redeemable in whole or in part, at the option of the
Company at any time and from time to time, at a redemption price equal to the
greater of (i) 100% of the principal amount of the Exchange Debentures to be
redeemed and (ii) the sum of the present values of the Remaining Scheduled
Payments (as defined herein) discounted to the redemption date on a semiannual
basis at the Treasury Rate (as defined herein) plus 15 basis points, together in
either case with accrued interest to the date of redemption. See "Description of
Exchange Debentures -- Optional Redemption."
In the event that the Exchange Offer is consummated, any Original
Debentures that remain outstanding after consummation of the Exchange Offer and
the Exchange Debentures issued in the Exchange Offer will vote together as a
single class for purposes of determining whether holders of the requisite
percentage in outstanding principal amount thereof have taken certain actions or
exercised certain rights under the Indenture dated as of August 15, 1991 between
the Company and The Chase Manhattan Bank, as trustee (the "Trustee"), as amended
and supplemented from time to time (the "Indenture"), relating to the
Debentures.
The Company sold the Original Debentures in an offering exempt from the
registration requirements of the Securities Act, which was consummated on
February 24, 1998.
Each broker-dealer that receives Exchange Debentures for its own account
pursuant to the Exchange Offer must acknowledge that it will deliver a
prospectus in connection with any resale of such Exchange Debentures. The Letter
of Transmittal states that by so acknowledging and by delivering a prospectus, a
broker-dealer will not be deemed to admit that it is an "underwriter" within the
meaning of the Securities Act. This Prospectus, as it may be amended or
supplemented from time to time, may be used by a broker-dealer in connection
with resales of Exchange Debentures received in exchange for Original Debentures
acquired by such broker-dealer as a result of market-making activities or other
trading activities. The Company has agreed that, for a period ending on the
close of business on the 180th day following the Expiration Date (as defined
herein), it will make this Prospectus available to any broker-dealer for use in
connection with any such resale. See "Plan of Distribution." However, a
broker-dealer which acquired Original Debentures for its own account as a result
of market-making activities or other trading activities (a "Participating
Broker-Dealer"), and which intends to use this Prospectus in connection with the
resale of Exchange Debentures received in exchange for Original Debentures
pursuant to the Exchange Offer must notify the Company, or cause the Company to
be notified, on or prior to the Expiration Date, that it is a Participating
Broker-Dealer. Such notice may be given in the space provided for that purpose
in the Letter of Transmittal or may be delivered to the Exchange Agent (as
defined herein) at the addresses set forth herein under "The Exchange Offer --
Exchange Agent." Any Participating Broker-Dealer which acquired Original
Debentures directly from the Company or which is an "affiliate" of the Company
will not be permitted or entitled to tender such Original Debentures in the
Exchange Offer and must comply with the registration and prospectus delivery
requirements of the Securities Act in connection with any resale transaction.
See "The Exchange Offer -- Resales of Exchange Debentures."
In such regard, each Participating Broker-Dealer which surrenders Original
Debentures pursuant to the Exchange Offer will be deemed to have agreed, by
execution of the Letter of Transmittal, that upon receipt of notice from the
Company of the occurrence of (i) any event or the discovery of any fact that
makes any statement contained or incorporated by reference in this Prospectus
untrue in any material respect or that causes this Prospectus to omit to state a
material fact necessary in order to make the statements contained or
incorporated by reference herein, in light of the circumstances under which they
were made, not misleading or (ii) certain other events specified in the
Registration Rights Agreement, such Participating Broker-Dealer will suspend the
use of this Prospectus until the Company has amended or supplemented this
Prospectus to correct such misstatement or omission and has furnished copies of
the amended or supplemented Prospectus to such Participating Broker-Dealer, or
the Company has given notice that the use of this Prospectus may be resumed, as
the case may be. If the Company gives such notice to suspend the use of this
Prospectus, it shall extend the 180-day period referred to above during which
Participating Broker-Dealers are entitled to use this Prospectus
2
<PAGE> 4
in connection with the resale of Exchange Debentures by the number of days
during the period from and including the date of the giving of such notice to
and including the date when Participating Broker-Dealers shall have received
copies of the amended or supplemented Prospectus necessary to permit resales of
the Exchange Debentures or to and including the date on which the Company has
given notice that the use of this Prospectus may be resumed, as the case may be.
Prior to the Exchange Offer, there has been only a limited secondary market
and no public market for the Original Debentures. The Exchange Debentures will
be a new issue of securities for which there currently is no market. Although
Credit Suisse First Boston Corporation and Merrill Lynch, Pierce, Fenner & Smith
Incorporated, the initial purchasers of the Original Debentures (the "Initial
Purchasers"), have informed the Company that they currently intend to make a
market in the Exchange Debentures, they are not obligated to do so, and any such
market making may be discontinued at any time without notice. Accordingly, there
can be no assurance as to the development or liquidity of any market for the
Exchange Debentures. The Company currently does not intend to apply for listing
of the Exchange Debentures on any securities exchange or for quotation through
the National Association of Securities Dealers, Inc. ("NASD") Automated
Quotation System.
Any Original Debentures not tendered and accepted in the Exchange Offer
will remain outstanding and will be entitled to the same rights and will be
subject to the same limitations applicable thereto under the Indenture (except
for those rights that terminate upon consummation of the Exchange Offer).
Following consummation of the Exchange Offer, the holders of Original Debentures
will continue to be subject to all the existing restrictions upon transfer
thereof and the Company will have no further obligation to such holders (other
than under certain limited circumstances) to provide for registration under the
Securities Act of the Original Debentures held by them. To the extent that
Original Debentures are tendered and accepted in the Exchange Offer, a holder's
ability to sell untendered Original Debentures could be adversely affected.
THIS PROSPECTUS AND THE RELATED LETTER OF TRANSMITTAL CONTAIN IMPORTANT
INFORMATION. HOLDERS OF ORIGINAL DEBENTURES ARE URGED TO READ THIS PROSPECTUS
AND THE RELATED LETTER OF TRANSMITTAL CAREFULLY BEFORE DECIDING WHETHER TO
TENDER THEIR ORIGINAL DEBENTURES PURSUANT TO THE EXCHANGE OFFER.
Original Debentures may be tendered for exchange on or prior to 5:00 p.m.,
New York City time, on July 8, 1998 (such time on such date being hereinafter
called the "Expiration Date"), unless the Exchange Offer is extended by the
Company (in which case the term "Expiration Date" shall mean the latest date and
time to which the Exchange Offer is extended). Tenders of Original Debentures
may be withdrawn at any time on or prior to the Expiration Date. The Exchange
Offer is not conditioned upon any minimum principal amount of Original
Debentures being tendered for exchange. However, the Exchange Offer is subject
to certain events and conditions that may be waived by the Company and to the
terms and provisions of the Registration Rights Agreement. Original Debentures
may be tendered in whole or in part in integral multiples of $1,000 in aggregate
principal amount. The Company has agreed to pay all expenses of the Exchange
Offer. See "The Exchange Offer -- Fees and Expenses." Holders of the Original
Debentures whose Original Debentures are accepted for exchange will not receive
interest on such Original Debentures and will be deemed to have waived the right
to receive any interest on such Original Debentures accumulated from and after
February 24, 1998. Accordingly, holders of Exchange Debentures as of the record
date for the payment of interest on August 15, 1998 will be entitled to receive
interest accumulated from and after February 24, 1998. See "The Exchange
Offer -- Interest Payments on Exchange Debentures."
The Company will not receive any cash proceeds from the issuance of the
Exchange Debentures offered hereby. No dealer-manager is being used in
connection with the Exchange Offer. See "Use of Proceeds" and "Plan of
Distribution."
3
<PAGE> 5
DISCLOSURE REGARDING FORWARD-LOOKING INFORMATION
When used in this Prospectus, the words "estimate," "project," "intend" and
"expect" and similar expressions are intended to identify forward-looking
statements. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this Prospectus.
Such statements are subject to risks and uncertainties that could cause actual
results to differ materially from those contemplated in such forward-looking
statements. Such risks and uncertainties include, among others, those risks,
uncertainties and risk factors identified under the heading "Forward-Looking
Information Is Subject to Risk and Uncertainty" accompanying "Management's
Discussion and Analysis of Results of Operations, Financial Condition and
Business Environment" that is in the Company's 1997 Annual Report to
shareholders and that is incorporated by reference in the Company's Annual
Report on Form 10-K for the fiscal year ended December 31, 1997. The Company
does not undertake any obligation to publicly release any revisions to these
forward-looking statements to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events.
AVAILABLE INFORMATION
The Company is subject to the informational requirements of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), and in accordance
therewith files reports, proxy statements and other information with the
Securities and Exchange Commission (the "Commission"). Such reports, proxy
statements and other information may be inspected and copied at the public
reference facilities maintained by the Commission at Room 1024, Judiciary Plaza,
450 Fifth Street, N.W., Washington, D.C. 20549 and at the Commission's regional
offices at 7 World Trade Center, Suite 1300, New York, New York 10048 and
Citicorp Center, 500 West Madison Street, Suite 1400, Chicago, Illinois 60661.
Copies of such material may also be obtained from the Public Reference Section
of the Commission at 450 Fifth Street, N.W., Washington, D.C. 20549 at
prescribed rates. The Commission also maintains a World Wide Web site that
contains reports, proxy and information statements, and other information
regarding registrants (including the Company) that file electronically with the
Commission (http://www.sec.gov). The Company's common stock is listed on the New
York Stock Exchange, and reports, proxy statements and other information
relating to the Company can be inspected at the New York Stock Exchange, 20
Broad Street, New York, New York 10006.
Prior to the merger on August 1, 1997 (the "Merger") of West Acquisition
Corp., a wholly owned subsidiary of the Company, into McDonnell Douglas
Corporation ("McDonnell Douglas"), pursuant to which McDonnell Douglas became a
wholly owned subsidiary of the Company, McDonnell Douglas was subject to the
informational requirements of the Exchange Act, and the common stock of
McDonnell Douglas was listed on the New York Stock Exchange and the Pacific
Stock Exchange. Information regarding McDonnell Douglas, including its Annual
Report on Form 10-K for the fiscal year ended December 31, 1996, is available as
indicated in the preceding paragraph. In addition, such information can be
inspected at the Pacific Stock Exchange, 301 Pine Street, San Francisco,
California 94014.
The Company has filed with the Commission a Registration Statement on Form
S-4, of which this Prospectus forms a part (the "Registration Statement"), to
register the securities offered hereby. This Prospectus does not contain all the
information set forth in the Registration Statement, certain parts of which are
omitted from this Prospectus in accordance with the rules and regulations of the
Commission. Statements made in this Prospectus as to the contents of any
contract, agreement or other document do not purport to be complete. With
respect to each such contract, agreement or other document filed as an exhibit
to the Registration Statement, reference is made to the exhibit for a more
complete description of the matter involved, and each such statement shall be
deemed qualified in its entirety by such reference. Items omitted from this
Prospectus but contained in the Registration Statement may be inspected and
copied as described above.
4
<PAGE> 6
THIS PROSPECTUS INCORPORATES DOCUMENTS BY REFERENCE WHICH ARE NOT PRESENTED
HEREIN OR DELIVERED HEREWITH. THESE DOCUMENTS ARE AVAILABLE UPON REQUEST FROM
DATA SHIPPING DEPARTMENT, THE BOEING COMPANY, P.O. BOX 3707, MAIL STOP 3T-33,
SEATTLE, WASHINGTON 98124-2207. IN ORDER TO ENSURE TIMELY DELIVERY OF THE
DOCUMENTS, ANY REQUEST SHOULD BE MADE BY JUNE 15, 1998.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The following documents filed with the Commission are incorporated into
this Prospectus by reference:
1. The Company's Annual Report on Form 10-K for the year ended December 31,
1997 (File No. 1-442);
2. The Company's Quarterly Report on Form 10-Q for the quarter ended March
31, 1998 (File No. 1-442); and
3. The Company's Current Reports on Form 8-K filed with the Commission on
January 28, February 2 and April 10, 1998 (File No. 1-442).
All documents subsequently filed by the Company pursuant to Section 13(a),
13(c), 14 or 15(d) of the Exchange Act after the date of this Prospectus and
prior to the termination of any offering of securities made by this Prospectus
shall be deemed to be incorporated by reference into this Prospectus and to be a
part hereof from their respective dates of filing. Any statement made in this
Prospectus or in a document incorporated or deemed to be incorporated by
reference herein shall be deemed to be modified or superseded for purposes of
this Prospectus to the extent that another statement made in this Prospectus or
in any other subsequently filed document that also is or is deemed to be
incorporated by reference herein modifies or supersedes such statement. Any
modified or superseded statement shall not be deemed, except as so modified or
superseded, to constitute a part of this Prospectus.
As used herein, the terms "Prospectus" and "herein" mean this Prospectus,
including the documents incorporated or deemed to be incorporated herein by
reference, as the same may be amended, supplemented or otherwise modified from
time to time. Unless otherwise indicated, all references in this Prospectus to
documents "incorporated by reference" are to documents incorporated by reference
into this Prospectus. Statements contained in this Prospectus as to the contents
of any contract or other document referred to herein do not purport to be
complete, and where reference is made to the particular provisions of such
contract or other document, such provisions are qualified in all respects by
reference to all the provisions of such contract or other document. The Company
will provide without charge to any person to whom this Prospectus is delivered,
on such person's request, a copy of any or all of the documents incorporated by
reference (other than exhibits not specifically incorporated by reference into
the texts of such documents). Requests for such documents should be directed to
Data Shipping Department, The Boeing Company, P.O. Box 3707, Mail Stop 3T-33,
Seattle, Washington 98124-2207, telephone (206) 393-4964.
5
<PAGE> 7
PROSPECTUS SUMMARY
The following information is qualified in its entirety by the more detailed
information and consolidated financial statements, including the notes thereto,
appearing elsewhere in this Prospectus or incorporated by reference herein.
THE BOEING COMPANY
The Boeing Company, together with its subsidiaries (herein referred to as
the "Company"), is one of the world's major aerospace firms. The Company
operates in two principal industries: commercial aircraft, and information,
space and defense systems. Commercial aircraft operations -- conducted through
Boeing Commercial Airplane Group -- involve development, production and
marketing of commercial aircraft and providing related support services
principally to the commercial airline industry worldwide. The Company is a
leading producer of commercial aircraft and offers a family of commercial
jetliners designed to meet a broad spectrum of passenger and cargo requirements
of domestic and foreign airlines. This family of commercial jet aircraft
currently includes the 737, MD-80, MD-90 and 757 standard-body models and the
767, MD-11, 777 and 747 wide-body models. Information, space and defense systems
operations -- conducted through Boeing Information, Space, and Defense Systems
Group -- involve research, development, production, modification and support of
the following products and related systems: military aircraft, including
fighter, transport and attack aircraft; helicopters; space and missile systems;
satellite launching vehicles; rocket engines; and specialized information
services.
During 1997, approximately 59% of the Company's operating revenues were
attributable to the commercial aircraft segment, and approximately 40% of such
operating revenues were attributable to the information, space and defense
segment. An additional 1% of operating revenues were attributable to other
activities, including financial services. As of December 31, 1997, the Company
had shareholders' equity of approximately $13 billion and assets of
approximately $38 billion. As of January 1, 1998, the Company employed
approximately 239,000 employees.
The Company is subject to the informational requirements of the Exchange
Act, and in accordance therewith files reports, proxy statements and other
information with the Commission. For further information regarding the Company,
holders of Original Debentures may refer to such reports, proxy statements and
other information, which are available as described in "Available Information"
and "Incorporation of Certain Documents by Reference."
The mailing address and telephone number of the principal executive offices
of the Company are 7755 East Marginal Way South, Seattle, Washington 98108 and
(206) 655-2121. The Company was originally incorporated in Washington in 1916
and was reincorporated in Delaware in 1934.
THE EXCHANGE OFFER
The Exchange Offer........... The Company hereby offers up to $300,000,000
aggregate principal amount of Exchange Debentures
in exchange for a like aggregate principal amount
of Original Debentures. Original Debentures may
be tendered for exchange in whole or in part in
integral multiples of $1,000 in aggregate
principal amount. The Company is making the
Exchange Offer in order to satisfy its
obligations under the Registration Rights
Agreement relating to the Original Debentures.
For a description of the procedures for tendering
Original Debentures, see "The Exchange
Offer -- Procedures for Tendering Original
Debentures."
Expiration Date.............. 5:00 p.m., New York City time, on July 8, 1998,
unless the Exchange Offer is extended by the
Company (in which case the Expiration Date will
be the latest date and time to which the
6
<PAGE> 8
Exchange Offer is extended). See "The Exchange
Offer -- Terms of the Exchange Offer."
Conditions to the Exchange
Offer........................ The Exchange Offer is subject to certain
conditions, which may be waived by the Company in
its sole discretion. The Exchange Offer is not
conditioned upon any minimum principal amount of
Original Debentures being tendered. See "The
Exchange Offer -- Conditions to the Exchange
Offer."
Offer........................ The Company reserves the right in its sole and
absolute discretion, subject to applicable law,
at any time and from time to time, to (i) delay
the acceptance of the Original Debentures for
exchange, (ii) terminate the Exchange Offer if
certain specified conditions have not been
satisfied, (iii) extend the Expiration Date of
the Exchange Offer and retain all Original
Debentures tendered pursuant to the Exchange
Offer, subject, however, to the right of holders
of Original Debentures to withdraw their tendered
Original Debentures, or (iv) waive any condition
or otherwise amend the terms of the Exchange
Offer in any respect. See "The Exchange
Offer -- Terms of the Exchange Offer."
Withdrawal Rights............ Tenders of Original Debentures may be withdrawn
at any time on or prior to the Expiration Date by
delivering a written notice of such withdrawal to
the Exchange Agent in conformity with certain
procedures set forth below under "The Exchange
Offer -- Withdrawal Rights."
Procedures for Tendering
Original Debentures.......... Brokers, dealers, commercial banks, trust
companies and other nominees who hold Original
Debentures through The Depository Trust Company
(the "Depository" or "DTC") may effect tenders by
book-entry transfer in accordance with DTC's
Automated Tender Offer Program ("ATOP"). Holders
of such Original Debentures registered in the
name of a broker, dealer, commercial bank, trust
company or other nominee are urged to contact
such person promptly if they wish to tender
Original Debentures. In order for Original
Debentures to be tendered by a means other than
by book-entry transfer, a Letter of Transmittal
must be completed and signed in accordance with
the instructions contained therein. The Letter of
Transmittal and any other documents required by
the Letter of Transmittal must be delivered to
The Chase Manhattan Bank (the "Exchange Agent")
by mail, facsimile, hand delivery or overnight
courier and either such Original Debentures must
be delivered to the Exchange Agent or specified
procedures for guaranteed delivery must be
complied with. See "The Exchange
Offer -- Procedures for Tendering Original
Debentures."
Letters of Transmittal and certificates
representing Original Debentures should not be
sent to the Company. Such documents should be
sent only to the Exchange Agent.
Resales of Exchange
Debentures................... The Company is making the Exchange Offer in
reliance on the position of the staff of the
Division of Corporation Finance of the Commission
as set forth in certain interpretive letters
addressed to third parties in other transactions.
However, the Company has not sought its own
interpretive letter and there can be no assurance
that
7
<PAGE> 9
the staff of the Division of Corporation Finance
of the Commission would make a similar
determination with respect to the Exchange Offer
as it has in such interpretive letters to third
parties. Based on these interpretations by the
staff of the Division of Corporation Finance of
the Commission, and subject to the two
immediately following sentences, the Company
believes that Exchange Debentures issued pursuant
to the Exchange Offer in exchange for Original
Debentures may be offered for resale, resold and
otherwise transferred by a holder thereof (other
than a holder which is a broker-dealer) without
further compliance with the registration and
prospectus delivery requirements of the
Securities Act, provided that such Exchange
Debentures are acquired in the ordinary course of
such holder's business and that such holder is
not participating, and has no arrangement or
understanding with any person to participate, in
a distribution (within the meaning of the
Securities Act) of such Exchange Debentures.
However, any holder of Original Debentures who is
an "affiliate," as defined in Rule 405 under the
Securities Act, of the Company or who intends to
participate in the Exchange Offer for the purpose
of distributing Exchange Debentures, or any
broker-dealer which purchased the Original
Debentures from the Company to resell pursuant to
Rule 144A under the Securities Act ('Rule 144A")
or any other available exemption under the
Securities Act, (i) will not be able to rely on
the interpretations of the staff of the Division
of Corporation Finance of the Commission set
forth in the above-mentioned interpretive
letters, (ii) will not be permitted or entitled
to tender such Original Debentures in the
Exchange Offer, and (iii) must comply with the
registration and prospectus delivery requirements
of the Securities Act in connection with any sale
or other transfer of such Original Debentures
unless such sale is made pursuant to an exemption
from such requirements. In addition, as described
below, if any broker-dealer holds Original
Debentures acquired for its own account as a
result of market-making or other trading
activities and exchanges such Original Debentures
for Exchange Debentures, then such broker-dealer
must deliver a prospectus meeting the
requirements of the Securities Act in connection
with any resales of such Exchange Debentures.
Each holder of Original Debentures who wishes to
exchange Original Debentures for Exchange
Debentures in the Exchange Offer will be required
to represent that (i) it is not an "affiliate,"
as defined in Rule 405 under the Securities Act,
of the Company, (ii) any Exchange Debentures to
be received by it are being acquired in the
ordinary course of its business, (iii) it has no
arrangement or understanding with any person to
participate in a distribution (within the meaning
of the Securities Act) of such Exchange
Debentures, and (iv) if such holder is not a
broker-dealer, such holder is not engaged in, and
does not intend to engage in, a distribution
(within the meaning of the Securities Act) of
such Exchange Debentures. Each broker-dealer that
receives Exchange Debentures for its own account
in exchange for Original Debentures, where such
Original Debentures were acquired by such
broker-dealer as a result of market-making
activities or other trading activities, must
acknowledge that it will deliver a prospectus in
connection with any resale of such Exchange
8
<PAGE> 10
Debentures. See "Plan of Distribution." The
Letter of Transmittal states that, by so
acknowledging and by delivering a prospectus, a
broker-dealer will not be deemed to admit that it
is an "underwriter" within the meaning of the
Securities Act.
Based on the position taken by the staff of the
Division of Corporation Finance of the Commission
in the interpretive letters referred to above,
the Company believes that Participating
Broker-Dealers which acquired Original Debentures
for their own accounts as a result of
market-making activities or other trading
activities may fulfill their prospectus delivery
requirements with respect to the Exchange
Debentures received upon exchange of such
Original Debentures (other than Original
Debentures that represent an unsold allotment
from the initial sale of the Original Debentures)
with a prospectus meeting the requirements of the
Securities Act, which may be the prospectus
prepared for an exchange offer so long as it
contains a description of the plan of
distribution with respect to the resale of such
Exchange Debentures. Accordingly, this
Prospectus, as it may be amended or supplemented
from time to time, may be used by a Participating
Broker-Dealer in connection with resales of
Exchange Debentures received in exchange for
Original Debentures where such Original
Debentures were acquired by such Participating
Broker-Dealer for its own account as a result of
market-making or other trading activities.
Subject to certain provisions set forth in the
Registration Rights Agreement and to the
limitations described in "The Exchange
Offer -- Resales of Exchange Debentures," the
Company has agreed that this Prospectus, as it
may be amended or supplemented from time to time,
may be used by a Participating Broker-Dealer in
connection with resales of such Exchange
Debentures for a period ending 180 days after the
Expiration Date (subject to extension under
certain limited circumstances) or, if earlier,
when all such Exchange Debentures have been
disposed of by such Participating Broker-Dealer.
See "Plan of Distribution." Any Participating
Broker-Dealer which purchased Original Debentures
directly from the Company or which is an
"affiliate" of the Company may not rely on such
interpretive letters and must comply with the
registration and prospectus delivery requirements
of the Securities Act in connection with any
resale transaction. See "The Exchange
Offer -- Resales of Exchange Debentures."
Exchange Agent............... The exchange agent with respect to the Exchange
Offer is The Chase Manhattan Bank. The addresses,
and telephone and facsimile numbers, of the
Exchange Agent are set forth in "The Exchange
Offer -- Exchange Agent" and in the Letter of
Transmittal. The Chase Manhattan Bank also serves
as Trustee under the Indenture.
Use of Proceeds.............. The Company will not receive any cash proceeds
from the issuance of the Exchange Debentures
offered hereby. See "Use of Proceeds."
Certain Federal Income Tax
Consequences............... Holders of Original Debentures should review the
information set forth in "Certain Federal Income
Tax Consequences" prior to tendering Original
Debentures in the Exchange Offer.
9
<PAGE> 11
THE EXCHANGE DEBENTURES
Securities Offered........... Up to $300,000,000 aggregate principal amount of
the Company's Exchange Debentures that have been
registered under the Securities Act are being
offered in exchange for a like aggregate
principal amount of Original Debentures. The
Exchange Debentures will be issued and the
Original Debentures were issued under the
Indenture. The Exchange Debentures and any
Original Debentures that remain outstanding after
consummation of the Exchange Offer will vote
together as a single class for purposes of
determining whether holders of the requisite
percentage in outstanding principal amount
thereof have taken certain actions or exercised
certain rights under the Indenture. See
"Description of Exchange
Debentures -- Modification and Waiver." The terms
of the Exchange Debentures are identical in all
material respects to the terms of the Original
Debentures, except that the Exchange Debentures
have been registered under the Securities Act and
therefore will not be subject to certain
restrictions on transfer applicable to the
Original Debentures and will not provide for any
increase in the interest rate thereon. See "The
Exchange Offer -- Purpose of the Exchange Offer"
and "Description of Exchange Debentures."
Maturity Date................ February 15, 2038.
Interest..................... Interest on the Exchange Debentures is payable
semiannually on each February 15 and August 15,
commencing August 15, 1998.
Ranking...................... The Exchange Debentures will be unsecured
obligations of the Company and will rank pari
passu with all other unsecured and unsubordinated
indebtedness of the Company.
Redemption................... The Exchange Debentures will be redeemable in
whole or in part, at the option of the Company at
any time and from time to time, at a redemption
price equal to the greater of (i) 100% of the
principal amount of the Exchange Debentures to be
redeemed and (ii) the sum of the present values
of the Remaining Scheduled Payments discounted to
the redemption date on a semiannual basis at the
Treasury Rate plus 15 basis points, together in
either case with accrued interest to the date of
redemption. See "Description of Exchange
Debentures -- Optional Redemption."
Ratings...................... The Exchange Debentures are rated AA3 by Moody's
Investors Service, Inc. and AA+ by Standard &
Poor's Rating Services.
Book-Entry; Delivery and
Form......................... It is expected that delivery of the Exchange
Debentures will be made in book-entry or
certificated form. The Company expects that
Exchange Debentures exchanged for Original
Debentures currently represented by Global
Exchange Debentures (as herein defined) deposited
with, or on behalf of the Depository and
registered in the name of Cede & Co., its
nominee, will be represented by Global Exchange
Debentures and deposited upon issuance with the
Depository and registered in its name or the name
of its nominee. Beneficial interests in the
Global Exchange Debentures will be shown on, and
transfers thereof will be effected through,
records maintained by the Depository and its
participants.
10
<PAGE> 12
Transfer Restrictions........ The Exchange Debentures will be issued, and may
be transferred, only in minimum denominations of
not less than $1,000 principal amount. See "The
Exchange Offer -- Terms of the Exchange Offer."
Any such transfer of Exchange Debentures in
denominations of less than $1,000 principal
amount shall be deemed void and of no legal
effect whatsoever.
Absence of Market for the
Debentures................. The Exchange Debentures will be a new issue of
securities for which there currently is no
market. Although the Initial Purchasers have
informed the Company that they currently intend
to make a market in the Exchange Debentures, they
are not obligated to do so, and any such
market-making may be discontinued at any time
without notice. Accordingly, there can be no
assurance as to the development or liquidity of
any market for the Exchange Debentures. The
Company currently does not intend to apply for
listing of the Exchange Debentures on any
securities exchange or for quotation through the
NASD Automated Quotation System. See "Plan of
Distribution."
For additional information regarding the Exchange Debentures, see
"Description of Exchange Debentures" and "Certain Federal Income Tax
Considerations."
11
<PAGE> 13
USE OF PROCEEDS
The Exchange Offer is intended to satisfy certain obligations of the
Company under the Registration Rights Agreement. The Company will not receive
any cash proceeds from the issuance of the Exchange Debentures offered hereby
and has agreed to pay the expenses of the Exchange Offer. In consideration for
issuing the Exchange Debentures as contemplated in this Prospectus, the Company
will receive, in exchange, Original Debentures representing a like aggregate
principal amount at maturity. The form and terms of the Exchange Debentures are
identical in all material respects to the form and terms of the Original
Debentures, except as otherwise described in "The Exchange Offer -- Terms of the
Exchange Offer." The Original Debentures surrendered in the exchange for
Exchange Debentures will be retired and canceled and cannot be reissued.
Accordingly, issuance of the Exchange Debentures will not result in any increase
in the outstanding debt of the Company.
RATIOS OF EARNINGS TO FIXED CHARGES
The following table sets forth information with respect to the Company's
consolidated ratios of earnings to fixed charges for the periods indicated:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
----------------------------------------
1997 1996 1995 1994 1993
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Ratio of Earnings to Fixed Charges.................... (1) 5.8x (2) 5.0x 5.5x
</TABLE>
- ---------------
(1) For the year ended December 31, 1997, earnings available for fixed charges
totaling $312 million were insufficient to cover total fixed charges of $613
million.
(2) For the year ended December 31, 1995, earnings available for fixed charges
totaling $69 million were insufficient to cover total fixed charges of $492
million.
The ratio of earnings to fixed charges represents the number of times that
fixed charges were covered by earnings. In computing the ratio, earnings consist
of net earnings, plus federal taxes on income and fixed charges adjusted for the
capitalized interest and amortization of previously capitalized interest, less
earnings accounted for by the equity method and not distributed. Fixed charges
consist of interest on borrowings, both expensed and capitalized, and that
portion of rentals representative of an interest factor. As a result of the
Merger, each of the Company's ratios of earnings to fixed charges reflects the
combined operations of Boeing and McDonnell Douglas for the period indicated.
12
<PAGE> 14
SELECTED FINANCIAL DATA
The selected financial data presented below is derived from the financial
statements of the Company and its consolidated subsidiaries. The financial
statements of the Company and its subsidiaries as of December 31, 1997 and 1996,
and for each of the three years in the period ended December 31, 1997, are
incorporated herein by reference to the Company's Annual Report on Form 10-K for
the year ended December 31, 1997 and have been restated to include the combined
results of operations and financial position of the Company and McDonnell
Douglas, accounting for the Merger as a pooling of interests. Such restated
financial statements, except those of McDonnell Douglas and its consolidated
subsidiaries as of December 31, 1996 and for each of the two years then ended,
have been audited by Deloitte & Touche LLP, as stated in their reports dated
January 27, 1998 incorporated herein by reference. The consolidated financial
statements of McDonnell Douglas and subsidiaries as of December 31, 1996 and for
each of the two years then ended, consolidated with those of the Company, have
been audited by Ernst & Young LLP, as stated in their reports incorporated by
reference in this Prospectus and the Registration Statement. The information set
forth below should be read in conjunction with such consolidated financial
statements and the notes thereto. See "Incorporation of Certain Documents by
Reference." The selected financial data as of December 31, 1995, 1994 and 1993
and for each of the two years in the period ended December 31, 1994 are derived
from unaudited consolidated financial statements of the Company (including the
combined results of the Company and McDonnell Douglas) which, in the opinion of
management, include all adjustments, consisting only of normal recurring
adjustments, necessary for a fair presentation of such financial information.
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-------------------------------------------------------
1997 1996 1995 1994 1993
------- ------- ------- ------- -------
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
<S> <C> <C> <C> <C> <C>
OPERATIONS
Sales and other operating revenues
Commercial aircraft..................... $26,929 $19,916 $17,511 $19,778 $25,120
Information, space and defense
systems............................... 18,125 14,934 14,849 14,676 14,090
Customer and commercial financing,
other................................. 746 603 600 515 501
------- ------- ------- ------- -------
Total............................ $45,800 $35,453 $32,960 $34,969 $39,711
------- ------- ------- ------- -------
Net earnings (loss)....................... $ (178)(1) $ 1,818 $ (36)(2) $ 1,483 $ 1,640
Basic earnings per share(3)............. (.18) 1.88 (.04) 1.50 1.66
Diluted earnings per share(3)........... (.18) 1.85 (.04) 1.48 1.64
Cash dividends paid....................... $ 557 $ 480 $ 434 $ 395 $ 395
Per share............................... .56 .55 .50 .50 .50
</TABLE>
<TABLE>
<CAPTION>
AT DECEMBER 31,
-------------------------------------------------------
1997 1996 1995 1994 1993
------- ------- ------- ------- -------
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
<S> <C> <C> <C> <C> <C>
FINANCIAL POSITION
Total assets.............................. $38,024 $37,880 $31,877 $32,259 $31,199
Working capital........................... 5,111 7,783 7,490 6,299 5,108
Net plant and equipment................... 8,391 8,266 7,927 8,399 8,838
Cash and short-term investments........... 5,149 6,352 4,527 3,064 3,194
Total debt................................ 6,854 7,489 5,401 5,247 5,840
Shareholders' equity...................... 12,953 13,502 12,527 13,173 11,966
Per share............................... 13.31 13.96 12.80 13.37 12.12
</TABLE>
- ---------------
(1) Includes an after-tax charge of $876 million relating to the commercial
aircraft product lines of the former McDonnell Douglas. Such charge does not
include any costs that might be associated with future decisions regarding
facilities conversions or consolidations, which decisions will be based on
long-term business objectives. The Company is continuing to assess potential
opportunities for improved utilization and consolidation of facilities
across all parts of the Company.
(2) Includes after-tax charges of $1.125 billion relating to the revaluation of
the McDonnell Douglas MD-11 program inventory and an after-tax charge of
$390 million relating to a special retirement program.
(3) Per share computation excludes outstanding shares held by the ShareValue
Trust. The ShareValue Trust is a 14-year irrevocable trust that holds the
Company's common stock, receives dividends and distributes to employees
appreciation in value above a 3% per annum threshold rate of return.
13
<PAGE> 15
THE EXCHANGE OFFER
PURPOSE OF THE EXCHANGE OFFER
In connection with the sale of the Original Debentures, the Company entered
into the Registration Rights Agreement with the Initial Purchasers pursuant to
which the Company agreed to file and to use its best efforts to cause to become
effective with the Commission a registration statement with respect to the
exchange of the Original Debentures for debentures with terms identical in all
material respects to the terms of the Original Debentures. A copy of the
Registration Rights Agreement has been filed as an exhibit to the Registration
Statement.
The Exchange Offer is being made to satisfy the contractual obligations of
the Company under the Registration Rights Agreement. The form and terms of the
Exchange Debentures are the same as the form and terms of the Original
Debentures except that the Exchange Debentures have been registered under the
Securities Act and therefore will not be subject to certain restrictions on
transfer applicable to the Original Debentures and will not provide for any
increase in the interest rate thereon. In that regard, the Original Debentures
provide, among other things, that, if a registration statement relating to the
Exchange Offer has not been filed by June 24, 1998, or if the Exchange Offer is
not consummated by August 24, 1998, the interest rate borne by the Original
Debentures will increase by 0.25% per annum until such registration statement is
filed or the Exchange Offer is consummated, as the case may be. Upon
consummation of the Exchange Offer, holders of Original Debentures will not be
entitled to any increase in the interest rate thereon or any further
registration rights under the Registration Rights Agreement, except under
limited circumstances. See "Description of Exchange Debentures."
The Exchange Offer is not being made to, nor will the Company accept
tenders for exchange from, holders of Original Debentures in any jurisdiction in
which the Exchange Offer or the acceptance thereof would not be in compliance
with the securities or blue sky laws of such jurisdiction.
Each broker-dealer that receives Exchange Debentures for its own account in
exchange for Original Debentures, where such Original Debentures were acquired
by such broker-dealer as a result of market-making activities or other trading
activities, must acknowledge that it will deliver a prospectus in connection
with any resale of such Exchange Debentures. See "Plan of Distribution."
Unless the context requires otherwise, the term "holder" with respect to
the Exchange Offer means any person in whose name the Original Debentures are
registered on the books of the Company or any other person who has obtained a
properly completed bond power from the registered holder, or any person whose
Original Debentures are held of record by DTC who desires to deliver such
Original Debentures by book-entry transfer at DTC.
TERMS OF THE EXCHANGE OFFER
The Company hereby offers, upon the terms and subject to the conditions set
forth in this Prospectus and in the accompanying Letter of Transmittal, to
exchange up to $300,000,000 aggregate principal amount of Exchange Debentures
for a like aggregate principal amount of Original Debentures properly tendered
on or prior to the Expiration Date and not properly withdrawn in accordance with
the procedures described below. The Company will issue, promptly after the
Expiration Date, an aggregate principal amount of up to $300,000,000 of Exchange
Debentures in exchange for a like principal amount of outstanding Original
Debentures tendered and accepted in connection with the Exchange Offer. Holders
may tender their Original Debentures in whole or in part in integral multiples
of $1,000 in aggregate principal amount.
The Exchange Offer is not conditioned upon any minimum principal amount of
Original Debentures being tendered. As of the date of this Prospectus,
$300,000,000 aggregate principal amount of the Original Debentures is
outstanding.
Holders of Original Debentures do not have any appraisal or dissenters'
rights in connection with the Exchange Offer. Original Debentures that are not
tendered for or are tendered but not accepted in connection
14
<PAGE> 16
with the Exchange Offer will remain outstanding and will be entitled to the
benefits of the Indenture, but will not be entitled to any further registration
rights under the Registration Rights Agreement, except under limited
circumstances. See "Description of Exchange Debentures."
If any tendered Original Debentures are not accepted for exchange because
of an invalid tender, the occurrence of certain other events set forth herein or
any other reason, certificates for any such unaccepted Original Debentures will
be returned, without expense, to the tendering holder thereof promptly after the
Expiration Date.
Holders who tender Original Debentures in connection with the Exchange
Offer will not be required to pay brokerage commissions or fees or, subject to
the instructions in the Letter of Transmittal, transfer taxes with respect to
the exchange of Original Debentures in connection with the Exchange Offer. The
Company will pay all charges and expenses, other than certain applicable taxes
described below, in connection with the Exchange Offer. See "-- Fees and
Expenses."
NEITHER THE COMPANY NOR THE BOARD OF DIRECTORS OF THE COMPANY MAKES ANY
RECOMMENDATION TO HOLDERS OF ORIGINAL DEBENTURES AS TO WHETHER TO TENDER OR
REFRAIN FROM TENDERING ALL OR ANY PORTION OF THEIR ORIGINAL DEBENTURES PURSUANT
TO THE EXCHANGE OFFER. IN ADDITION, NO ONE HAS BEEN AUTHORIZED TO MAKE ANY SUCH
RECOMMENDATION. HOLDERS OF ORIGINAL DEBENTURES MUST MAKE THEIR OWN DECISIONS
BASED ON THEIR OWN FINANCIAL POSITION AND REQUIREMENTS WHETHER TO TENDER
PURSUANT TO THE EXCHANGE OFFER AND, IF SO, WHAT PORTION OF THE AGGREGATE AMOUNT
OF THEIR ORIGINAL DEBENTURES TO TENDER.
EXPIRATION DATE; EXTENSIONS; AMENDMENTS
The term "Expiration Date" means 5:00 p.m., New York City time, on July 8,
1998, unless the Exchange Offer is extended by the Company (in which case the
term "Expiration Date" shall mean the latest date and time to which the Exchange
Offer is extended).
The Company expressly reserves the right in its sole and absolute
discretion, subject to applicable law, at any time and from time to time, to (i)
delay the acceptance of the Original Debentures for exchange, (ii) terminate the
Exchange Offer (whether or not any Original Debentures have theretofore been
accepted for exchange) if the Company determines, in its sole and absolute
discretion, that any of the events or conditions referred to in "-- Conditions
to the Exchange Offer" have occurred or exist or have not been satisfied, (iii)
extend the Expiration Date of the Exchange Offer and retain all Original
Debentures tendered pursuant to the Exchange Offer, subject, however, to the
right of holders of Original Debentures to withdraw their tendered Original
Debentures as described in "-- Withdrawal Rights," and (iv) waive any condition
or otherwise amend the terms of the Exchange Offer in any respect.
If the Exchange Offer is amended in a manner determined by the Company to
constitute a material change, or if the Company waives a material condition of
the Exchange Offer, the Company will promptly disclose such amendment by means
of a Prospectus supplement that will be distributed to the holders of the
Original Debentures, and will extend the Exchange Offer to the extent required
by Rule 14e-1 under the Exchange Act.
Any such delay in acceptance, extension, termination or amendment will be
followed promptly by oral or written notice thereof to the Exchange Agent and by
making a public announcement thereof, and such announcement in the case of an
extension will be made no later than 9:00 a.m., New York City time, on the next
business day after the previously scheduled Expiration Date. Without limiting
the manner in which the Company may choose to make any public announcement and
subject to applicable law, the Company shall have no obligation to publish,
advertise or otherwise communicate any such public announcement other than by
issuing a release to an appropriate news agency.
15
<PAGE> 17
ACCEPTANCE FOR EXCHANGE AND ISSUANCE OF EXCHANGE DEBENTURES
Upon the terms and subject to the conditions of the Exchange Offer, the
Company will exchange Exchange Debentures for Original Debentures validly
tendered and not withdrawn (pursuant to the withdrawal rights described in
"-- Withdrawal Rights") promptly after the Expiration Date.
Subject to the conditions set forth in "-- Conditions to the Exchange
Offer," delivery of Exchange Debentures in exchange for Original Debentures
tendered and accepted for exchange pursuant to the Exchange Offer will be made
only after timely receipt by the Exchange Agent of (i) certificates for Original
Debentures or a book-entry confirmation of a book-entry transfer of Original
Debentures into the Exchange Agent's account at DTC, including an Agent's
Message (as defined herein) if the tendering holder does not deliver a Letter of
Transmittal, (ii) a completed and signed Letter of Transmittal (or facsimile
thereof), with any required signature guarantees or, in the case of a book-entry
transfer, an Agent's Message in lieu of the Letter of Transmittal, and (iii) any
other documents required by the Letter of Transmittal. Accordingly, the delivery
of Exchange Debentures might not be made to all tendering holders at the same
time, and will depend on when certificates for Original Debentures, book-entry
confirmations with respect to Original Debentures and other required documents
are received by the Exchange Agent.
The term "book-entry confirmation" means a timely confirmation of a
book-entry transfer of Original Debentures into the Exchange Agent's account at
DTC. See "-- Procedures for Tendering Original Debentures -- Book-Entry
Transfer." The term "Agent's Message" means a message transmitted by DTC to, and
received by, the Exchange Agent, which message forms part of a book-entry
confirmation stating that DTC has received an express acknowledgment from the
tendering participant that such participant has received and agrees to be bound
by the Letter of Transmittal and that the Company may enforce such Letter of
Transmittal against such participant.
Subject to the terms and conditions of the Exchange Offer, the Company will
be deemed to have accepted for exchange, and thereby have exchanged, Original
Debentures validly tendered and not withdrawn as, if and when the Company gives
oral or written notice to the Exchange Agent of the Company's acceptance of such
Original Debentures for exchange pursuant to the Exchange Offer. The Exchange
Agent will act as agent for the Company for the purpose of receiving tenders of
Original Debentures, Letters of Transmittal and related documents, and as agent
for tendering holders for the purpose of receiving Original Debentures, Letters
of Transmittal and related documents and transmitting to validly tendering
holders any Exchange Debentures that are not to be held in global form by DTC or
a nominee of DTC. Such exchange will be made promptly after the Expiration Date.
If for any reason whatsoever acceptance for exchange or the exchange of any
Original Debentures tendered pursuant to the Exchange Offer is delayed (whether
before or after the Company's acceptance for exchange of Original Debentures) or
the Company extends the Exchange Offer or is unable to accept for exchange or
exchange Original Debentures tendered pursuant to the Exchange Offer, then,
without prejudice to the Company's rights set forth herein, the Exchange Agent
may, nevertheless, on behalf of the Company and subject to Rule 14e-1(c) under
the Exchange Act, retain tendered Original Debentures, which Original Debentures
may not be withdrawn except to the extent tendering holders are entitled to
withdrawal rights as described in "-- Withdrawal Rights."
Pursuant to an Agent's Message or a Letter of Transmittal, a holder of
Original Debentures will represent, warrant and agree in the Letter of
Transmittal that it has full power and authority to tender, exchange, sell,
assign and transfer Original Debentures, that the Company will acquire good,
marketable and unencumbered title to the tendered Original Debentures, free and
clear of all liens, restrictions, charges and encumbrances, and the Original
Debentures tendered for exchange are not subject to any adverse claims or
proxies. The holder also will warrant and agree that it will, upon request,
execute and deliver any additional documents deemed by the Company or the
Exchange Agent to be necessary or desirable to complete the exchange, sale,
assignment and transfer of the Original Debentures tendered pursuant to the
Exchange Offer.
16
<PAGE> 18
PROCEDURES FOR TENDERING ORIGINAL DEBENTURES
VALID TENDER
Except as set forth below, in order for Original Debentures to be validly
tendered by book-entry transfer, an Agent's Message or a completed and signed
Letter of Transmittal (or facsimile thereof), with any required signature
guarantees, and in either case any other documents required by the Letter of
Transmittal, must be delivered to the Exchange Agent by mail, facsimile, hand
delivery or overnight courier at the Exchange Agent's address or facsimile
number set forth in "-- Exchange Agent" on or prior to the Expiration Date and
either (i) such Original Debentures must be tendered pursuant to the procedures
for book-entry transfer set forth below or (ii) the guaranteed delivery
procedures set forth below must be complied with.
Except as set forth below, in order for Original Debentures to be validly
tendered by a means other than book-entry transfer, a completed and signed
Letter of Transmittal (or facsimile thereof), with any required signature
guarantees, and any other documents required by the Letter of Transmittal must
be delivered to the Exchange Agent on or prior to the Expiration Date by mail,
facsimile, hand delivery or overnight courier at the Exchange Agent's address or
facsimile number set forth in "-- Exchange Agent" and either (i) such Original
Debentures must be delivered to the Exchange Agent on or prior to the Expiration
Date or (ii) the guaranteed delivery procedures set forth below must be complied
with.
If less than all Original Debentures are tendered, a tendering holder
should fill in the amount of Original Debentures being tendered in the
appropriate box on the Letter of Transmittal. The entire amount of Original
Debentures delivered to the Exchange Agent will be deemed to have been tendered
unless otherwise indicated.
THE METHOD OF DELIVERY OF CERTIFICATES, THE LETTER OF TRANSMITTAL AND ALL
OTHER REQUIRED DOCUMENTS IS AT THE OPTION AND SOLE RISK OF THE TENDERING HOLDER,
AND DELIVERY WILL BE DEEMED MADE ONLY WHEN ACTUALLY RECEIVED BY THE EXCHANGE
AGENT. IF DELIVERY IS TO BE BY MAIL, THE USE OF REGISTERED MAIL, RETURN RECEIPT
REQUESTED, PROPERLY INSURED, OR AN OVERNIGHT DELIVERY SERVICE IS RECOMMENDED. IN
ALL CASES, SUFFICIENT TIME SHOULD BE ALLOWED TO ENSURE TIMELY DELIVERY.
BOOK-ENTRY TRANSFER
The Exchange Agent and DTC have confirmed that any participant (as defined
herein) in DTC's book-entry transfer facility system may utilize DTC's ATOP
procedures to tender Original Debentures. The Exchange Agent will establish an
account with respect to the Original Debentures at DTC for purposes of the
Exchange Offer within two business days after the date of this Prospectus. Any
Participant may make a book-entry delivery of the Original Debentures by causing
DTC to transfer such Original Debentures into the Exchange Agent's account at
DTC in accordance with DTC's ATOP procedures for transfer. However, although
delivery of Original Debentures may be effected through book-entry transfer into
the Exchange Agent's account at DTC, an Agent's Message or a completed and
signed Letter of Transmittal (or facsimile thereof), with any required signature
guarantees and any other documents required by the Letter of Transmittal, must
in any case be delivered to and received by the Exchange Agent on or prior to
the Expiration Date at its address or facsimile number set forth in "-- Exchange
Agent," or the guaranteed delivery procedure set forth below must be complied
with.
DELIVERY OF DOCUMENTS TO DTC IN ACCORDANCE WITH DTC'S PROCEDURES DOES NOT
CONSTITUTE DELIVERY TO THE EXCHANGE AGENT.
SIGNATURE GUARANTEES
Certificates for the Original Debentures need not be endorsed and signature
guarantees on the Letter of Transmittal are unnecessary unless (i) a certificate
for the Original Debentures is registered in a name other than that of the
person surrendering the certificate or (ii) such holder completes the sections
entitled "Special Issuance Instructions" or "Special Delivery Instructions" in
the Letter of Transmittal. In the case of (i) or
17
<PAGE> 19
(ii) above, such certificates for Original Debentures must be duly endorsed or
accompanied by a properly executed bond power, with the endorsement or signature
on the bond power and on the Letter of Transmittal guaranteed by a firm or other
entity identified in Rule 17Ad-15 under the Exchange Act as an "eligible
guarantor institution," including (as such terms are defined therein): (i) a
bank; (ii) a broker, dealer, municipal securities broker or dealer or government
securities broker or dealer; (iii) a credit union; (iv) a national securities
exchange, registered securities association or clearing agency; or (v) a savings
association that is a participant in a Securities Transfer Association
recognized program (an "Eligible Institution"), unless surrendered on behalf of
such Eligible Institution. See Instruction 1 to the Letter of Transmittal.
GUARANTEED DELIVERY
If a holder desires to tender Original Debentures pursuant to the Exchange
Offer and the certificates for such Original Debentures are not immediately
available or time will not permit all required documents to reach the Exchange
Agent on or prior to the Expiration Date, or the procedure for book-entry
transfer cannot be completed on a timely basis, such Original Debentures may
nevertheless be tendered, provided that all the following guaranteed delivery
procedures are complied with:
(a) such tenders are made by or through an Eligible Institution;
(b) a properly completed and duly executed Notice of Guaranteed
Delivery, substantially in the form accompanying the Letter of Transmittal,
is received by the Exchange Agent, as provided below, on or prior to the
Expiration Date; and
(c) the certificates (or a book-entry confirmation) representing all
tendered Original Debentures, in proper form for transfer, together with a
properly completed and duly executed Letter of Transmittal (or facsimile
thereof), with any required signature guarantees and any other documents
required by the Letter of Transmittal, are received by the Exchange Agent
within three New York Stock Exchange trading days after the date of
execution of such Notice of Guaranteed Delivery.
The Notice of Guaranteed Delivery may be delivered by hand or transmitted
by facsimile or mail to the Exchange Agent and must include a guarantee by an
Eligible Institution in the form set forth in such notice.
Notwithstanding any other provision hereof, the delivery of Exchange
Debentures in exchange for Original Debentures tendered and accepted for
exchange pursuant to the Exchange Offer will in all cases be made only after
timely receipt by the Exchange Agent of Original Debentures, or of a book-entry
confirmation with respect to such Original Debentures, and a properly completed
and duly executed Letter of Transmittal (or facsimile thereof), together with
any required signature guarantees and any other documents required by the Letter
of Transmittal. Accordingly, the delivery of Exchange Debentures might not be
made to all tendering holders at the same time, and will depend upon when
Original Debentures, book-entry confirmations with respect to Original
Debentures and other required documents are received by the Exchange Agent.
The Company's acceptance for exchange of Original Debentures tendered
pursuant to any of the procedures described above will constitute a binding
agreement between the tendering holder and the Company upon the terms and
subject to the conditions of the Exchange Offer.
DETERMINATION OF VALIDITY
All questions as to the form of documents, validity, eligibility (including
time of receipt) and acceptance for exchange of any tendered Original Debentures
will be determined by the Company, in its sole discretion, which determination
shall be final and binding on all parties. The Company reserves the absolute
right, in its sole and absolute discretion, to reject any and all tenders that
it determines are not in proper form or that, in the opinion of counsel to the
Company, cannot be accepted, or exchanged for, without violating the law. The
Company also reserves the absolute right, subject to applicable law, to waive
any of the conditions of the Exchange Offer as set forth under "-- Conditions to
the Exchange Offer" or any condition or irregularity in any tender of Original
Debentures of any particular holder whether or not similar conditions or
irregularities are waived in the case of other holders.
18
<PAGE> 20
The interpretation by the Company of the terms and conditions of the
Exchange Offer (including the Letter of Transmittal and the instructions
thereto) will be final and binding. No tender of Original Debentures will be
deemed to have been validly made until all irregularities with respect to such
tender have been cured or waived. None of the Company, any affiliates or assigns
of the Company, the Exchange Agent or any other person shall be under any duty
to give any notification of any irregularities in tenders or incur any liability
for failure to give any such notification.
If any Letter of Transmittal, endorsement, bond power, power of attorney,
or any other document required by the Letter of Transmittal is signed by a
trustee, executor, administrator, guardian, attorney-in-fact, officer of a
corporation or other person acting in a fiduciary or representative capacity,
such person should so indicate when signing and, unless waived by the Company,
proper evidence satisfactory to the Company, in its sole discretion, of such
person's authority to so act must be submitted.
A beneficial owner of Original Debentures that are held by or registered in
the name of a broker, dealer, commercial bank, trust company or other nominee or
custodian is urged to contact such entity promptly if such beneficial holder
wishes to participate in the Exchange Offer.
RESALES OF EXCHANGE DEBENTURES
The Company is making the Exchange Offer in reliance on the position of the
staff of the Division of Corporation Finance of the Commission as set forth in
certain interpretive letters addressed to third parties in other transactions.
However, the Company has not sought its own interpretive letter and there can be
no assurance that the staff of the Division of Corporation Finance of the
Commission would make a similar determination with respect to the Exchange Offer
as it has in such interpretive letters to third parties. Based on these
interpretations by the staff of the Division of Corporation Finance of the
Commission, and subject to the two immediately following sentences, the Company
believes that Exchange Debentures issued pursuant to the Exchange Offer in
exchange for Original Debentures may be offered for resale, resold and otherwise
transferred by a holder thereof (other than a holder which is a broker-dealer)
without further compliance with the registration and prospectus delivery
requirements of the Securities Act, provided that such Exchange Debentures are
acquired in the ordinary course of such holder's business and that such holder
is not participating, and has no arrangement or understanding with any person to
participate, in a distribution (within the meaning of the Securities Act) of
such Exchange Debentures. However, any holder of Original Debentures who is an
"affiliate" of the Company or who intends to participate in the Exchange Offer
for the purpose of distributing Exchange Debentures, or any broker-dealer which
purchased Original Debentures from the Company to resell pursuant to Rule 144A
or any other available exemption under the Securities Act, (i) will not be able
to rely on the interpretations of the staff of the Division of Corporation
Finance of the Commission set forth in the above-mentioned interpretive letters,
(ii) will not be permitted or entitled to tender such Original Debentures in the
Exchange Offer, and (iii) must comply with the registration and prospectus
delivery requirements of the Securities Act in connection with any sale or other
transfer of such Original Debentures unless such sale is made pursuant to an
exemption from such requirements. In addition, as described below, if any
broker-dealer holds Original Debentures acquired for its own account as a result
of market-making or other trading activities and exchanges such Original
Debentures for Exchange Debentures, then such broker-dealer must deliver a
prospectus meeting the requirements of the Securities Act in connection with any
resales of such Exchange Debentures.
Each holder of Original Debentures who wishes to exchange Original
Debentures for Exchange Debentures in the Exchange Offer will be required to
represent that (i) it is not an "affiliate" of the Company, (ii) any Exchange
Debentures to be received by it are being acquired in the ordinary course of its
business, (iii) it has no arrangement or understanding with any person to
participate in a distribution (within the meaning of the Securities Act) of such
Exchange Debentures, and (iv) if such holder is not a broker-dealer, such holder
is not engaged in, and does not intend to engage in, a distribution (within the
meaning of the Securities Act) of such Exchange Debentures. In addition, the
Company may require such holder, as a condition to such holder's eligibility to
participate in the Exchange Offer, to furnish to the Company (or an agent
thereof) in writing information as to the number of "beneficial owners" (within
the meaning of Rule 13d-3 under the Exchange Act) on behalf of whom such holder
holds the Debentures to be exchanged in
19
<PAGE> 21
the Exchange Offer. Each broker-dealer that receives Exchange Debentures for its
own account pursuant to the Exchange Offer must acknowledge that it acquired the
Original Debentures for its own account as the result of market-making
activities or other trading activities and must agree that it will deliver a
prospectus meeting the requirements of the Securities Act in connection with any
resale of such Exchange Debentures. The Letter of Transmittal states that, by so
acknowledging and by delivering a prospectus, a broker-dealer will not be deemed
to admit that it is an "underwriter" within the meaning of the Securities Act.
Based on the position taken by the staff of the Division of Corporation Finance
of the Commission in the interpretive letters referred to above, the Company
believes that Participating Broker-Dealers which acquired Original Debentures
for their own accounts as a result of market-making activities or other trading
activities may fulfill their prospectus delivery requirements with respect to
the Exchange Debentures received upon exchange of such Original Debentures
(other than Original Debentures that represent an unsold allotment from the
initial sale of the Original Debentures) with a prospectus meeting the
requirements of the Securities Act, which may be the prospectus prepared for an
exchange offer so long as it contains a description of the plan of distribution
with respect to the resale of such Exchange Debentures. Accordingly, this
Prospectus, as it may be amended or supplemented from time to time, may be used
by a Participating Broker-Dealer during the period referred to below in
connection with resales of Exchange Debentures received in exchange for Original
Debentures where such Original Debentures were acquired by such Participating
Broker-Dealer for its own account as a result of market-making or other trading
activities. Subject to certain provisions set forth in the Registration Rights
Agreement, the Company has agreed that this Prospectus, as it may be amended or
supplemented from time to time, may be used by a Participating Broker-Dealer in
connection with resales of such Exchange Debentures for the earlier of: (i) a
period ending 180 days after the Expiration Date (subject to extension under
certain limited circumstances described below) and (ii) when all such Exchange
Debentures have been disposed of by such Participating Broker-Dealer. See "Plan
of Distribution."
However, a Participating Broker-Dealer which intends to use this Prospectus
in connection with the resale of Exchange Debentures received in exchange for
Original Debentures pursuant to the Exchange Offer must notify the Company, or
cause the Company to be notified, on or prior to the Expiration Date, that it is
a Participating Broker-Dealer. Such notice may be given in the space provided
for that purpose in the Letter of Transmittal or may be delivered to the
Exchange Agent at the address set forth in "-- Exchange Agent." Any
Participating Broker-Dealer which is an "affiliate" of the Company may not rely
on such interpretive letters and must comply with the registration and
prospectus delivery requirements of the Securities Act in connection with any
resale transaction.
In such regard, each Participating Broker-Dealer which surrenders Original
Debentures pursuant to the Exchange Offer will be deemed to have agreed, by
execution of the Letter of Transmittal, that upon receipt of notice from the
Company of the occurrence of (i) any event or the discovery of any fact that
makes any statement contained or incorporated by reference in this Prospectus
untrue in any material respect or that causes this Prospectus to omit to state a
material fact necessary in order to make the statements contained or
incorporated by reference herein, in light of the circumstances under which they
were made, not misleading or (ii) certain other events specified in the
Registration Rights Agreement, such Participating Broker-Dealer will suspend the
use of this Prospectus until the Company has amended or supplemented this
Prospectus to correct such misstatement or omission and has furnished copies of
the amended or supplemented Prospectus to such Participating Broker-Dealer, or
the Company has given notice that the use of this Prospectus may be resumed, as
the case may be. If the Company gives such notice to suspend the use of this
Prospectus, it shall extend the 180-day period referred to above during which
Participating Broker-Dealers are entitled to use this Prospectus in connection
with the resale of Exchange Debentures by the number of days during the period
from and including the date of the giving of such notice to and including the
date when Participating Broker-Dealers shall have received copies of the amended
or supplemented Prospectus necessary to permit resales of the Exchange
Debentures or to and including the date on which the Company has given notice
that the use of this Prospectus may be resumed, as the case may be.
20
<PAGE> 22
WITHDRAWAL RIGHTS
Except as otherwise provided herein, tenders of Original Debentures may be
withdrawn at any time on or prior to the Expiration Date. In order for a
withdrawal to be effective, a written, telegraphic, telex or facsimile
transmission of such notice of withdrawal must be timely received by the
Exchange Agent at the address or facsimile number set forth in "-- Exchange
Agent" on or prior to the Expiration Date. Any such notice of withdrawal must
specify the name of the person who tendered the Original Debentures to be
withdrawn, the aggregate principal amount of Original Debentures to be
withdrawn, and (if certificates for such Original Debentures have been tendered)
the name of the registered holder of the Original Debentures as set forth on the
Original Debentures, if different from that of the person who tendered such
Original Debentures. If Original Debentures have been delivered or otherwise
identified to the Exchange Agent, then, prior to the physical release of such
Original Debentures, the tendering holder must submit the serial numbers shown
on the particular Original Debentures to be withdrawn and the signature on the
notice of withdrawal must be guaranteed by an Eligible Institution, except in
the case of Original Debentures tendered for the account of an Eligible
Institution. If Original Debentures have been tendered pursuant to the
procedures for book-entry transfer set forth in "-- Procedures for Tendering
Original Debentures," the notice of withdrawal must specify the name and number
of the account at DTC to be credited with the withdrawal of Original Debentures,
in which case a notice of withdrawal will be effective if delivered to the
Exchange Agent by written, telegraphic, telex or facsimile transmission.
Withdrawals of tenders of Original Debentures may not be rescinded. Original
Debentures properly withdrawn will not be deemed validly tendered for purposes
of the Exchange Offer, but may be retendered at any subsequent time on or prior
to the Expiration Date by following any of the procedures described in
"-- Procedures for Tendering Original Debentures."
All questions as to the validity, form and eligibility (including time of
receipt) of such withdrawal notices will be determined by the Company, in its
sole discretion, which determination shall be final and binding on all parties.
None of the Company, any affiliates or assigns of the Company, the Exchange
Agent or any other person shall be under any duty to give any notification of
any irregularities in any notice of withdrawal or incur any liability for
failure to give any such notification. Any Original Debentures that have been
tendered but are withdrawn will be returned to the holder thereof promptly after
withdrawal.
INTEREST PAYMENTS ON EXCHANGE DEBENTURES
Holders of Original Debentures which are accepted for exchange will not
receive interest payments on such Original Debentures and will be deemed to have
waived the right to receive any interest payments on such Original Debentures
accumulated from and after February 24, 1998. Accordingly, holders of Exchange
Debentures as of the record date for the payment of interest on August 15, 1998
will be entitled to receive interest accumulated from and after February 24,
1998.
CONDITIONS TO THE EXCHANGE OFFER
Notwithstanding any other provisions of the Exchange Offer, or any
extension of the Exchange Offer, the Company will not be required to accept for
exchange, or to exchange, any Original Debentures for any Exchange Debentures,
and, as described below, may terminate the Exchange Offer (whether or not any
Original Debentures have theretofore been accepted for exchange) or may waive
any conditions to or amend the Exchange Offer, if any of the following
conditions has occurred or exist or has not been satisfied:
(a) there shall occur a change in the current interpretation by the
staff of the Commission which permits the Exchange Debentures issued
pursuant to the Exchange Offer in exchange for Original Debentures to be
offered for resale, resold and otherwise transferred by holders thereof
(other than broker-dealers and any such holder which is an "affiliate" of
the Company within the meaning of Rule 405 under the Securities Act)
without compliance with the registration and prospectus delivery provisions
of the Securities Act, provided that such Exchange Debentures are acquired
in the ordinary course of such holders' business and such holders have no
arrangement or understanding with any person to participate in the
distribution of such Exchange Debentures;
21
<PAGE> 23
(b) any law, statute, rule or regulation shall have been adopted or
enacted that, in the judgment of the Company, would reasonably be expected
to impair its ability to proceed with the Exchange Offer; or
(c) a stop order shall have been issued by the Commission or any state
securities authority suspending the effectiveness of the Registration
Statement, or proceedings shall have been initiated or, to the knowledge of
the Company, threatened for that purpose, or any governmental approval has
not been obtained, which approval the Company shall, in its sole
discretion, deem necessary for the consummation of the Exchange Offer as
contemplated hereby.
If the Company determines in its sole and absolute discretion that any of
the foregoing events or conditions has occurred or exists or has not been
satisfied, it may, subject to applicable law, terminate the Exchange Offer
(whether or not any Original Debentures have theretofore been accepted for
exchange) or may waive any such condition or otherwise amend the terms of the
Exchange Offer in any respect. If such waiver or amendment constitutes a
material change to the Exchange Offer, the Company will promptly disclose such
waiver or amendment by means of a Prospectus supplement that will be distributed
to the registered holders of the Original Debentures and will extend the
Exchange Offer to the extent required by Rule 14e-1 under the Exchange Act.
EXCHANGE AGENT
The Chase Manhattan Bank has been appointed as Exchange Agent for the
Exchange Offer. Questions and requests for assistance, requests for additional
copies of this Prospectus or of the Letter of Transmittal and requests for a
Notice of Guaranteed Delivery should be directed to the Exchange Agent addressed
as follows:
THE CHASE MANHATTAN BANK
<TABLE>
<S> <C>
By Mail, Hand or Overnight Delivery: By Facsimile Transmission:
The Chase Manhattan Bank (For Eligible Institutions Only)
55 Water Street (212) 638-7375
Room 234, North Building
New York, New York 10041 Confirm by Telephone:
Attention: Carlos Esteves Carlos Esteves (212) 638-0828
</TABLE>
Delivery to other than the above address or facsimile number will not
constitute a valid delivery.
The Chase Manhattan Bank also serves as Trustee under the Indenture.
FEES AND EXPENSES
The Company has agreed to pay the Exchange Agent reasonable and customary
fees for its services and will reimburse it for its reasonable out-of-pocket
expenses in connection therewith. The Company will also pay brokerage houses and
other custodians, nominees and fiduciaries the reasonable out-of-pocket expenses
incurred by them in forwarding copies of this Prospectus and related documents
to the beneficial owners of Original Debentures, and in handling or tendering
for their customers.
Holders who tender their Original Debentures for exchange will not be
obligated to pay any transfer taxes in connection therewith. If, however,
Exchange Debentures are to be delivered to, or are to be issued in the name of,
any person other than the registered holder of the Original Debentures tendered,
or if a transfer tax is imposed for any reason other than the exchange of
Original Debentures in connection with the Exchange Offer, then the amount of
any such transfer taxes (whether imposed on the registered holder or any other
persons) will be payable by the tendering holder. If satisfactory evidence of
payment of such taxes or exemption therefrom is not submitted with the Letter of
Transmittal, the amount of such transfer taxes will be billed directly to such
tendering holder.
The Company will not make any payment to brokers, dealers or other nominees
soliciting acceptances of the Exchange Offer.
22
<PAGE> 24
CONSEQUENCE OF FAILURE TO EXCHANGE
Participation in the Exchange Offer is voluntary. Holders of the Original
Debentures are urged to consult their financial and tax advisors in making their
own decisions on what action to take.
Original Debentures that are not exchanged for the Exchange Debentures
pursuant to the Exchange Offer will remain "restricted securities" within the
meaning of Rule 144(a)(3)(iv) of the Securities Act. Accordingly, such Original
Debentures may not be offered, sold, pledged or otherwise transferred except (i)
to a person whom the seller reasonably believes is a "qualified institutional
buyer" within the meaning of Rule 144A under the Securities Act in a transaction
meeting the requirements of Rule 144A, (ii) pursuant to an exemption from
registration under the Securities Act provided by Rule 144 thereunder (if
available), or (iii) pursuant to an effective registration statement under the
Securities Act, in each case in accordance with all other applicable securities
laws. The Company will not have any further obligation to holders of Original
Debentures (other than under certain limited circumstances) to provide for
registration under the Securities Act of the Original Debentures held by them.
To the extent that Original Debentures are tendered and accepted in the Exchange
Offer, a holder's ability to sell untendered Original Debentures could be
adversely affected. The Company may in the future seek to acquire untendered
Original Debentures in the open market or in privately negotiated transactions,
through subsequent exchange offers or otherwise. The Company has no present plan
to acquire any Original Debentures that are not tendered in the Exchange Offer.
ACCOUNTING TREATMENT
For accounting purposes, the Company will recognize no gain or loss as a
result of the Exchange Offer. The expenses of the Exchange Offer will be
amortized over the remaining term of the Debentures.
DESCRIPTION OF EXCHANGE DEBENTURES
The terms of the Exchange Debentures are identical in all material respects
to the Original Debentures, except that the Exchange Debentures (i) have been
registered under the Securities Act, are not subject to the same restrictions on
transfer and are not entitled to any rights under the Registration Rights
Agreement and (ii) will not provide for any increase in the interest rate
thereon. The Original Debentures provide that, in the event that, among other
things, (a) a registration statement relating to the Exchange Offer has not been
filed by June 24, 1998, (b) the Exchange Offer is not consummated by August 24,
1998, or (c) in certain limited circumstances, a shelf registration statement
with respect to the resale of the Original Debentures is not filed and declared
effective by the respective times required by the Registration Rights Agreement,
then liquidated damages will accrue at the rate of 0.25% per annum on the
principal amount of the Original Debentures for the period from the occurrence
of such event until such time as such registration statement has been filed or
declared effective or the Exchange Offer is consummated, as the case may be.
These rights will terminate upon consummation of the Exchange Offer, except in
limited circumstances. The Exchange Debentures are not, and upon consummation of
the Exchange Offer the Original Debentures will not be (except in certain
limited circumstances), entitled to any such additional interest.
GENERAL
The Exchange Debentures will be, and the Original Debentures were, issued
under an Indenture, dated as of August 15, 1991, between the Company and The
Chase Manhattan Bank, as Trustee, a copy of which is available upon request to
the Company. The following summary of certain provisions of the Indenture does
not purport to be complete and is subject to, and qualified in its entirety by
reference to, all provisions of the Indenture, including the definitions therein
of certain terms. The section references below are to provisions of the
Indenture. Capitalized terms used but not otherwise defined in this section of
the Prospectus are as defined in the Indenture, and certain capitalized terms
defined herein are more fully defined in the Indenture.
The Exchange Debentures will be limited to $300,000,000 aggregate principal
amount and will mature on February 15, 2038. Each Exchange Debenture will bear
interest at the rate of 6 5/8% per annum from February 24, 1998 or from the most
recent Interest Payment Date to which interest has been paid or duly
23
<PAGE> 25
provided for, payable on February 15 and August 15 of each year, commencing
August 15, 1998, to the person in whose name the Exchange Debenture (or any
predecessor Exchange Debenture) is registered at the close of business on the
February 1 or August 1, as the case may be, next preceding such Interest Payment
Date. Interest on the Exchange Debentures will be calculated on the basis of a
360-day year consisting of 12 months of 30 days each.
Principal of (and premium, if any) and interest, if any, on the Exchange
Debentures will be payable, and transfers of the Exchange Debentures will be
registrable, at the office of the Trustee in the Borough of Manhattan, City of
New York, provided that at the option of the Company payment of interest may be
made by mailing a check for such interest, payable to or upon the written order
of the Person entitled thereto, to the address of such Person as it appears in
the Security Register. (Sections 301, 305 and 1001)
The Exchange Debentures will be issued only in fully registered form
without coupons in denominations of $1,000 or any integral multiple thereof.
(Section 302) No service charge will be made for any registration of transfer or
exchange of Exchange Debentures, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith. (Section 305)
The Indenture does not limit the amount of unsecured debentures, notes or
other evidences of indebtedness that may be issued thereunder (such securities
issued under the Indenture being herein referred to as "Debt Securities"). The
Indenture provides that Debt Securities may be issued from time to time in one
or more series. All Debt Securities, including the Exchange Debentures and any
remaining Original Debentures, will be unsecured obligations of the Company.
OPTIONAL REDEMPTION
The Exchange Debentures are redeemable in whole or in part, at the option
of the Company at any time and from time to time, on not less than 30 or more
than 60 days' notice mailed to holders thereof, at a redemption price equal to
the greater of (i) 100% of the principal amount of the Exchange Debentures to be
redeemed and (ii) the sum of the present values of the Remaining Scheduled
Payments thereon discounted to the redemption date on a semiannual basis
(assuming a 360-day year consisting of twelve 30-day months) at the Treasury
Rate plus 15 basis points, together, in either case, with accrued interest on
the principal amount being redeemed to the date of redemption.
"Treasury Rate" means, with respect to any redemption date, the rate per
annum equal to the semiannual equivalent yield to maturity (computed as of the
second business day immediately preceding such redemption date) of the
Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue
(expressed as a percentage of its principal amount) equal to the Comparable
Treasury Price for such redemption date.
"Comparable Treasury Issue" means the United States Treasury security
selected by an Independent Investment Banker that would be utilized, at the time
of selection and in accordance with customary financial practice, in pricing new
issues of corporate debt securities of comparable maturity to the remaining term
of the Exchange Debentures. "Independent Investment Banker" means one of the
Reference Treasury Dealers appointed by the Company.
"Comparable Treasury Price" means, with respect to any redemption date, (i)
the average of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) on the third
business day preceding such redemption date, as set forth in the daily
statistical release (or any successor release) published by the Federal Reserve
Bank of New York and designated "Composite 3:30 p.m. Quotations for U.S.
Government Securities" or (ii) if such release (or any successor release) is not
published or does not contain such prices on such business day, (a) the average
of the Reference Treasury Dealer Quotations for such redemption date, after
excluding the highest and lowest of such Reference Treasury Dealer Quotations,
or (b) if the Trustee obtains fewer than four such Reference Treasury Dealer
Quotations, the average of all such Quotations. "Reference Treasury Dealer
Quotations" means, with respect to each Reference Treasury Dealer and any
redemption date, the average, as determined by the Trustee, of the bid and asked
prices for the Comparable Treasury Issue (expressed in each case as a percentage
of its
24
<PAGE> 26
principal amount) quoted in writing to the Trustee by such Reference Treasury
Dealer as of 3:30 p.m., New York time, on the third business day preceding such
redemption date.
"Reference Treasury Dealer" means each of Credit Suisse First Boston
Corporation and Merrill Lynch, Pierce, Fenner & Smith Incorporated and their
respective successors and three other nationally recognized investment banking
firms that are Primary Treasury Dealers specified from time to time by the
Company; provided, however, that if any of the foregoing shall cease to be a
primary U.S. Government securities dealer in New York City (a "Primary Treasury
Dealer"), the Company shall substitute therefor another nationally recognized
investment banking firm that is a Primary Treasury Dealer.
"Remaining Scheduled Payments" means, with respect to each Exchange
Debenture to be redeemed, the remaining scheduled payments of the principal
thereof and interest thereon that would be due after the related redemption date
but for such redemption; provided, however, that, if such redemption date is not
an interest payment date with respect to such Exchange Debenture, the amount of
the next succeeding scheduled interest payment thereon will be reduced by the
amount of interest accrued thereon to such redemption date.
On and after any redemption date, interest will cease to accrue on the
Exchange Debentures or any portion thereof called for redemption. On or before
any redemption date, the Company shall deposit with a paying agent (or the
Trustee) money sufficient to pay the redemption price of and accrued interest on
the Exchange Debentures to be redeemed on such date. If less than all the
Exchange Debentures are to be redeemed, the Exchange Debentures to be redeemed
shall be selected by the Trustee by such method as the Trustee shall deem fair
and appropriate in accordance with methods generally used at the time of
selection by fiduciaries in similar circumstances.
CERTAIN DEFINITIONS
"Subsidiary" of the Company means a corporation more than 50% of the
outstanding voting stock of which is owned by the Company and/or one or more
Subsidiaries. "Principal Property" means any manufacturing plant located within
the United States owned by the Company or a Subsidiary, excluding, however, (i)
certain types of personal property and equipment, (ii) property financed through
tax-exempt state or municipal securities, (iii) any real property held for
development or sale, and (iv) any property, the gross book value of which
(without deduction of depreciation reserves) is less than 15% of Consolidated
Net Tangible Assets or which the Board of Directors of the Company determines is
not material to the operation of the business of the Company and its
Subsidiaries taken as a whole. "Consolidated Net Tangible Assets" means the
aggregate amount at which assets of the Company and all Subsidiaries are
reflected on the asset side of the consolidated balance sheet after deducting
(a) all related depreciation, amortization and other valuation reserves, (b)
goodwill, trade names, trademarks, patents, unamortized debt discount and
expenses and other like intangibles, (c) capital lease property rights, and (d)
all current liabilities on the balance sheet. (Section 101)
LIMITATIONS ON LIENS
The Indenture provides that if the Company or any Subsidiary shall issue,
assume or guarantee any evidence of indebtedness for money borrowed
("Indebtedness") secured by a mortgage, security interest, pledge or lien
("Mortgage") on any Principal Property, or shares of stock or Indebtedness of
any Subsidiary, the Company will secure or cause such Subsidiary to secure the
Debt Securities equally and ratably with such secured Indebtedness, unless the
aggregate amount of all such secured Indebtedness, together with all
attributable debt (as defined in the Indenture) with respect to sale and
leaseback transactions involving Principal Properties (with the exception of
such transactions that are excluded as described in "-- Limitations on Sale and
Leaseback Transactions" below), would not at the time of such issuance,
assumption or guarantee of secured Indebtedness exceed 15% of Consolidated Net
Tangible Assets. (Section 1004)
Such limitation will not apply to Indebtedness secured by (i) Mortgages on
any property existing at the date of the Indenture or at the time of acquisition
by the Company or a Subsidiary (including acquisition through merger or
consolidation), (ii) Mortgages on property of any corporation existing at the
time such corporation becomes a Subsidiary, (iii) Mortgages securing
Indebtedness of a Subsidiary to the Company or
25
<PAGE> 27
to another Subsidiary, (iv) purchase money and construction Mortgages entered
into within specified time limits, (v) mechanics' liens, tax liens, liens in
favor of and to secure progress, advance or other payments or the acquisition of
real or personal property from any governmental body pursuant to contract or
provision of statute, any other liens, charges and encumbrances incidental to
construction, conduct of business or ownership of property of the Company or any
Subsidiary that were not incurred in connection with borrowing money, obtaining
advances or credits or the acquisition of property and in the aggregate do not
materially impair use of any Principal Property or that are being contested in
good faith, or (vi) any extension, renewal or replacement of any of the
aforementioned Mortgages not in excess of the principal amount of such
Indebtedness plus the fee incurred in connection with such transaction. (Section
1004)
LIMITATIONS ON SALE AND LEASEBACK TRANSACTIONS
The Indenture provides that neither the Company nor any Subsidiary may
enter into any sale and leaseback transaction involving any Principal Property
unless the aggregate amount of all attributable debt (as defined in the
Indenture) with respect to such transactions plus all Indebtedness secured by
Mortgages on Principal Properties (with the exception of secured Indebtedness
that is excluded as described in "-- Limitations on Liens" above) would not at
the time of such sale and leaseback transaction exceed 15% of Consolidated Net
Tangible Assets.
Such limitation will not apply to any sale and leaseback transaction if (i)
the lease is for a period of not more than three years, (ii) the purchaser's
commitment is obtained within a specified period after the acquisition,
construction or placing in service of the Principal Property, (iii) the rent
payable pursuant to such lease is to be reimbursed under a contract with the
United States Government or any instrumentality or agency thereof, (iv) the
transaction is between the Company and a Subsidiary or between Subsidiaries, (v)
the Company or such Subsidiary would be entitled, as described in
"-- Limitations on Liens" above, to mortgage such Principal Property without
equally and ratably securing the Debt Securities, or (vi) the Company or such
Subsidiary, within 180 days after the effective date of the transaction, applies
to the retirement of Debt Securities or other Indebtedness of the Company or a
Subsidiary an amount equal to (a) either (1) the lesser of the net proceeds of
the sale or transfer or the book value at the date of such sale or transfer of
the Principal Property leased, if the transaction is for cash, or (2) the fair
market value of the Principal Property leased, if the transaction is for other
than cash, minus (b) the amount equal to the principal amount of Debt Securities
delivered to the Trustee within such 180 days for cancellation and the principal
amount of Indebtedness voluntarily retired within such 180 days. (Section 1005)
DEFEASANCE
Defeasance and Discharge. The Indenture and the terms of the Debentures
provide that the Company will be discharged from any and all obligations in
respect of the Debentures (except for certain obligations to register the
transfer or exchange of Debentures, to replace stolen, lost or mutilated
Debentures, to maintain paying agencies and to hold monies for payment in trust)
upon the deposit with the Trustee, in trust, of money and/or U.S. Government
Obligations that through the payment of interest and principal in respect
thereof in accordance with their terms will provide money in an amount
sufficient to pay the principal of (and premium, if any) and each installment of
interest on the Debentures on the Stated Maturity of such payments in accordance
with the terms of the Indenture and the Debentures. In the event of any such
defeasance and discharge of the Debentures, holders of Debentures would be able
to look only to such trust fund for payment of principal of (and premium, if
any) and interest, if any, on their Debentures until maturity. Such defeasance
and discharge may be treated as a taxable exchange of the Debentures for an
issue of obligations of the trust or a direct interest in the cash and
securities held in the trust. In that case holders of the Debentures would
recognize gain or loss as if the trust obligations or the cash or securities
deposited, as the case may be, had actually been received by them in exchange
for their Debentures. Such holders thereafter might be required to include in
income a different amount than would be includable in the absence of defeasance
and discharge. Prospective investors are urged to consult their own tax advisors
as to the specific consequences of defeasance and discharge. (Sections 403 and
405)
26
<PAGE> 28
Defeasance of Certain Obligations. The Indenture and the terms of the
Debentures provide that the Company may omit to comply with the restrictive
covenants in Sections 1004 (Limitations on Liens) and 1005 (Limitations on Sale
and Leaseback Transactions) of the Indenture, and any such omission shall not be
an Event of Default with respect to the Debentures, upon the deposit with the
Trustee, in trust, of money and/or U.S. Government Obligations that through the
payment of interest and principal in respect thereof in accordance with their
terms will provide money in an amount sufficient to pay the principal of (and
premium, if any) and each installment of interest on the Debentures on the
Stated Maturity of such payments in accordance with the terms of the Indenture
and the Debentures. The obligations of the Company under the Indenture and the
Debentures other than with respect to the covenants referred to above and the
Events of Default other than the Event of Default referred to above shall remain
in full force and effect. Such a trust may only be established if, among other
things, the Company has delivered to the Trustee an Opinion of Counsel (who may
be an employee of or counsel for the Company) to the effect that the holders of
the Debentures will not recognize income, gain or loss for federal income tax
purposes as a result of such deposit and defeasance of certain obligations and
will be subject to federal income tax on the same amounts and in the same manner
and at the same times as would have been the case if such deposit and defeasance
had not occurred. (Sections 404 and 405)
Defeasance and Certain Other Events of Default. In the event the Company
exercises its option to omit compliance with certain covenants of the Indenture
with respect to the Debentures as described above and the Debentures are
declared due and payable because of the occurrence of any Event of Default other
than the Event of Default described in clause (iii) under "-- Events of Default"
below with respect to Sections 1004 and 1005, the amount of money and U.S.
Government Obligations on deposit with the Trustee will be sufficient to pay
amounts due on the Debentures at the time of their Stated Maturity but may not
be sufficient to pay amounts due on the Debentures at the time of the
acceleration resulting from such Event of Default. The Company shall, however,
remain liable for such payments.
EVENTS OF DEFAULT
The following are Events of Default under the Indenture with respect to the
Debentures: (i) failure to pay principal of (or premium, if any, on) any
Debenture when due; (ii) failure to pay any interest on any Debenture when due,
continued for 30 days; (iii) failure to perform any other covenant of the
Company in the Indenture (other than a covenant included in the Indenture solely
for the benefit of a series of Debt Securities other than the Debentures),
continued for 90 days after written notice as provided in the Indenture; and
(iv) certain events in bankruptcy, insolvency or reorganization. (Section 501)
If an Event of Default with respect to the Debentures occurs and is continuing,
either the Trustee or the holders of at least 25% in principal amount of the
Outstanding Debentures may declare the principal amount of all the Debentures to
be due and payable immediately. At any time after a declaration of acceleration
with respect to the Debentures has been made, but before a judgment or decree
based on acceleration has been obtained, the holders of a majority in principal
amount of the Outstanding Debentures may, under certain circumstances, rescind
and annul such acceleration. (Section 502)
The Indenture provides that the Trustee will be under no obligation,
subject to the duty of the Trustee during default to act with the required
standard of care, to exercise any of its rights or powers under the Indenture at
the request or direction of any of the holders of the Debentures, unless such
holders shall have offered to the Trustee reasonable indemnity. (Section 603)
Subject to such provisions for indemnification of the Trustee, the holders of a
majority in principal amount of the Outstanding Debentures will have the right
to direct the time, method and place of conducting any proceedings for any
remedy available to the Trustee, or exercising any trust or power conferred on
the Trustee with respect to the Debentures, provided that the direction does not
conflict with the law or the Indenture, does not unduly prejudice the rights of
holders not taking part in the direction and does not involve the Trustee in
personal liability. (Section 512)
The Company is required to furnish to the Trustee annually a statement as
to the performance by the Company of certain of its obligations under the
Indenture and as to any default in such performance. (Section 704)
27
<PAGE> 29
MODIFICATION AND WAIVER
Modifications and amendments of the Indenture may be made by the Company
and the Trustee with the consent of the holders of a majority in principal
amount of the Outstanding Debt Securities of each series affected by such
modification or amendment; provided, however, that no such modification or
amendment may, without the consent of the holder of each Outstanding Debt
Security affected thereby, (i) extend the stated maturity date of the principal
of (or premium, if any, on), or any installment of principal of or interest on,
any Debt Security, (ii) reduce the principal amount of (or the premium, if any),
or interest on, any Debt Security, (iii) reduce the amount of principal of an
Original Issue Discount Security payable upon acceleration of the Maturity
thereof, (iv) in the case of any Debt Security denominated in U.S. dollars,
change the place or currency of payment of principal (or premium, if any) or
interest on such Debt Security, (v) impair the right to institute suit for the
enforcement of any payment on or with respect to any Debt Security, or (vi)
reduce the percentage in principal amount of Outstanding Debt Securities of any
series, the consent of whose holders is required for modification or amendment
of the Indenture or for waiver of compliance with certain provisions of the
Indenture or for waiver of certain defaults. (Section 902)
The holders of a majority in principal amount of the Outstanding Debentures
may on behalf of the holders of all Debentures waive compliance by the Company
with certain restrictive provisions of the Indenture (including the restrictive
covenants in Sections 1004 and 1005). (Section 1006) The holders of a majority
in principal amount of the Outstanding Debentures may on behalf of the holders
of all Debentures waive any past default under the Indenture with respect to the
Debentures, except a default in the payment of the principal of (or premium, if
any) or interest on any Debenture or in respect of a provision that under the
Indenture cannot be modified or amended without the consent of the holder of
each Debenture affected. (Section 513)
CONSOLIDATION, MERGER AND TRANSFER OF ASSETS
The Company, without the consent of any holders of Outstanding Debentures,
may consolidate or merge with or into, or transfer or lease substantially all
its assets to, any corporation, provided that the Company is the surviving
corporation, or the successor corporation is organized under the laws of any
United States jurisdiction and assumes the Company's obligations on the
Debentures and under the Indenture, and that after giving effect to the
transaction no Event of Default, and no event that, after notice or lapse of
time or both, would become an Event of Default, shall have happened and be
continuing. (Section 801)
The covenants contained in the Indenture and the Debentures would not
necessarily afford holders of the Debentures protection in the event of a highly
leveraged or other transaction involving the Company that may adversely affect
such holders.
REGARDING THE TRUSTEE
The Trustee maintains an office at 1 Chase Manhattan Plaza, New York, New
York for the transfer, exchange, redemption and payment of principal of and
interest on the Exchange Debentures and the Original Debentures. The Trustee is
the indenture trustee for the Company's 8 3/4% Debentures Due 2021, 8 3/4%
Debentures Due 2031, 8.10% Debentures Due 2006, 8 5/8% Debentures Due 2031,
7.95% Debentures Due 2024, 7 7/8% Notes Due 2043, 6.35% Notes Due 2003, 7 1/4%
Notes Due 2025, 6 7/8% Notes Due 2043 and 7.50% Notes Due 2042. The Trustee is
also the indenture trustee for the following debt securities of Boeing North
American, Inc., a wholly owned subsidiary of the Company: 8 7/8% Notes Due 1999,
8 3/8% Notes Due 2001, 6 3/4% Notes Due 2002, 7 7/8% Notes Due 2005 and 6 5/8%
Notes Due 2005.
BOOK-ENTRY; DELIVERY AND FORM
The Exchange Debentures will be issued in fully registered form without
interest coupons. The Exchange Debentures will be represented by a permanent
global Exchange Debenture or Debentures in definitive, fully registered form
without interest coupons (the "Global Exchange Debentures") and will be
deposited with the Trustee as custodian for DTC and registered in the name of a
nominee of DTC. The Global Exchange
28
<PAGE> 30
Debentures will be subject to certain restrictions on transfer set forth therein
and will bear a legend regarding such restrictions.
Upon the issuance of the Global Exchange Debentures in exchange for the
Original Debentures pursuant to the Exchange Offer, DTC will credit, on its
internal system, the respective principal amounts of the individual beneficial
interests represented by such Global Exchange Debentures to the accounts of the
persons who surrendered Original Debentures for exchange. Ownership of
beneficial interests in the Global Exchange Debentures will be limited to
persons who have accounts with DTC ("participants") or persons who hold
interests through participants. Ownership of beneficial interests in the Global
Exchange Debentures will be shown on, and the transfer of that ownership will be
effected only through, records maintained by DTC or its nominee (with respect to
interests of participants) and the records of participants (with respect to
interests of persons other than participants). Investors may hold their
interests in the Global Exchange Debentures directly through DTC if they are
participants in such system, or indirectly through organizations which are
participants in such system.
So long as DTC, or its nominee, is the registered owner or holder of the
Global Exchange Debentures, DTC or such nominee, as the case may be, will be
considered the sole owner or holder of the Exchange Debentures represented by
such Global Exchange Debentures for all purposes under the Indenture and the
Exchange Debentures. No beneficial owner of an interest in the Global Exchange
Debentures will be able to transfer that interest except in accordance with
DTC's applicable procedures, in addition to those provided for under the
Indenture.
Payments of principal of, and interest on, the Global Exchange Debentures
will be made to DTC or its nominee, as the case may be, as the registered owner
thereof. None of the Company, the Trustee or any Paying Agent will have any
responsibility or liability for any aspect of the records relating to or
payments made on account of beneficial ownership interests in the Global
Exchange Debentures or for maintaining, supervising or reviewing any records
relating to such beneficiary ownership interests.
The Company expects that DTC or its nominee, upon receipt of any payment of
principal or interest in respect of the Global Exchange Debentures, will credit
participants' accounts with payments in amounts proportionate to their
respective beneficial interests in the principal amount of such Global Exchange
Debentures as shown on the records of DTC or its nominee. The Company also
expects that payments by participants to owners of beneficial interests in such
Global Exchange Debentures held through such participants will be governed by
standing instructions and customary practices, as is now the case with
securities held for the accounts of customers registered in the names of
nominees for such customers. Such payments will be the responsibility of such
participants.
Transfers between participants in DTC will be effected in the ordinary way
in accordance with DTC rules and will be settled in same-day funds.
DTC has advised the Company that it will take any action permitted to be
taken by a holder of Exchange Debentures (including the presentation of Exchange
Debentures for exchange as described below) only at the direction of one or more
participants to whose account the DTC interests in the Global Exchange
Debentures are credited and only in respect of such portion of the aggregate
principal amount of Exchange Debentures as to which such participant or
participants has or have given such direction. However, if there is an Event of
Default under the Exchange Debentures, DTC will exchange the Global Exchange
Debentures for certificated Exchange Debentures that it will distribute to its
participants.
DTC has advised the Company as follows: DTC is a limited purpose trust
company organized under the laws of the State of New York, a "banking
organization" within the meaning of New York Banking Law, a member of the
Federal Reserve System, a "clearing corporation" within the meaning of the
Uniform Commercial Code and a "Clearing Agency" registered pursuant to the
provisions of Section 17A of the Exchange Act. DTC was created to hold
securities for its participants and facilitate the clearance and settlement of
securities transactions between participants through electronic book-entry
changes in accounts of its participants, thereby eliminating the need for
physical movement of certificates. Participants include securities brokers and
dealers, banks, trust companies and clearing corporations and certain other
organiza-
29
<PAGE> 31
tions. Indirect access to the DTC system is available to others such as banks,
brokers, dealers and trust companies that clear through or maintain a custodial
relationship with a participant, either directly or indirectly ("indirect
participants").
Although DTC has agreed to the foregoing procedures in order to facilitate
transfers of interests in the Global Debentures among participants of DTC, DTC
is under no obligation to perform or continue to perform such procedures, and
such procedures may be discontinued at any time. Neither the Company nor the
Trustee will have any responsibility for the performance by DTC or its
participants or indirect participants of their respective obligations under the
rules and procedures governing their respective operations.
CERTIFICATED EXCHANGE DEBENTURES
If DTC is at any time unwilling or unable to continue as a depository for
the Global Exchange Debentures and a successor depository is not appointed by
the Company within 90 days, the Company will issue certificated Exchange
Debentures in exchange for the Global Exchange Debentures.
CERTAIN FEDERAL INCOME TAX CONSEQUENCES
The following discussion, which was prepared by Perkins Coie, special tax
counsel to the Company, summarizes the material U.S. federal income tax
consequences of the exchange of the Original Debentures for the Exchange
Debentures pursuant to the Exchange Offer. This discussion is based on
provisions of the Internal Revenue Code of 1986, as amended, its legislative
history, judicial authority, current administrative rulings and practice, and
existing and proposed Treasury Regulations, all as in effect and existing on the
date hereof. Legislative, judicial or administrative changes or interpretations
after the date hereof could alter or modify the validity of this discussion and
the conclusions set forth below. Any such changes or interpretations may be
retroactive and could adversely affect a holder of the Original Debentures or
the Exchange Debentures.
This discussion does not purport to deal with all aspects of U.S. federal
income taxation that might be relevant to particular holders in light of their
personal investment or tax circumstances or status, nor does it discuss the U.S.
federal income tax consequences to certain types of holders subject to special
treatment under the U.S. federal income tax laws, such as certain financial
institutions, insurance companies, dealers in securities or foreign currency,
tax-exempt organizations, foreign corporations or nonresident alien individuals,
or persons holding Original Debentures or Exchange Debentures that are a hedge
against, or that are hedged against, currency risk or that are part of a
straddle or conversion transaction, or persons whose functional currency is not
the United States dollar. Moreover, the effect of any state, local or foreign
tax laws is not discussed.
THE FOLLOWING DISCUSSION IS FOR GENERAL INFORMATION ONLY. EACH HOLDER OF AN
ORIGINAL DEBENTURE THAT IS PARTICIPATING IN THE EXCHANGE OFFER IS STRONGLY URGED
TO CONSULT WITH ITS OWN TAX ADVISORS TO DETERMINE THE IMPACT OF SUCH HOLDER'S
PARTICULAR TAX SITUATION ON THE ANTICIPATED TAX CONSEQUENCES, INCLUDING THE TAX
CONSEQUENCES UNDER STATE, LOCAL, FOREIGN OR OTHER TAX LAWS, OF THE EXCHANGE OF
THE ORIGINAL DEBENTURES FOR THE EXCHANGE DEBENTURES PURSUANT TO THE EXCHANGE
OFFER.
EXCHANGE OFFER
The exchange of the Original Debentures by any holder for the Exchange
Debentures pursuant to the Exchange Offer should not be treated as an "exchange"
for federal income tax purposes because the Exchange Debentures should not be
considered to differ materially in kind or extent from the Original Debentures.
Rather, the Exchange Debentures received by any holder should be treated as a
continuation of the Original Debentures in the hands of such holder. As a
result, there should be no federal income tax consequences to holders exchanging
the Original Debentures for the Exchange Debentures pursuant to the Exchange
Offer, and the federal income tax consequences of holding and disposing of the
Exchange Debentures should be the
30
<PAGE> 32
same as the federal income tax consequences of holding and disposing of the
Original Debentures. Accordingly, a holder's adjusted tax basis in the Exchange
Debentures will be the same as its adjusted tax basis in the Original Debentures
exchanged therefor and its holding period for the Original Debentures will be
included in its holding period for the Exchange Debentures. Thus, the
determination of gain on a sale or other disposition of the Exchange Debentures
will be the same as for the Original Debentures.
PLAN OF DISTRIBUTION
Each broker-dealer that receives Exchange Debentures for its own account
pursuant to the Exchange Offer must acknowledge that it will deliver a
prospectus in connection with any resale of such Exchange Debentures. This
Prospectus, as it may be amended or supplemented from time to time, may be used
by a broker-dealer in connection with resales of Exchange Debentures received in
exchange for Original Debentures where such Original Debentures were acquired by
such broker-dealer as a result of market-making activities or other trading
activities. The Company has agreed that, for a period starting on the Expiration
Date and ending on the close of business on the 180th day following the
Expiration Date, it will make this Prospectus, as amended or supplemented,
available to any broker-dealer for use in connection with any such resale. In
addition, until January 4, 1998, all dealers effecting transactions in the
Exchange Debentures may be required to deliver a prospectus.
The Company will not receive any proceeds from any sale of Exchange
Debentures by broker-dealers. Exchange Debentures received by broker-dealers for
their own account pursuant to the Exchange Offer may be sold from time to time
in one or more transactions, in the over-the-counter market, in negotiated
transactions, through the writing of options on the Exchange Debentures or a
combination of such methods of resale, at market prices prevailing at the time
of resale, at prices related to such prevailing market prices or at negotiated
prices. Any such resale may be made directly to purchasers or to or through
brokers or dealers who may receive compensation in the form of commissions or
concessions from any such broker-dealer and/or the purchasers of any such
Exchange Debentures. Any broker-dealer that resells Exchange Debentures that
were received by it for its own account pursuant to the Exchange Offer and any
broker or dealer that participates in a distribution of such Exchange Debentures
may be deemed to be an "underwriter" within the meaning of the Securities Act
and any profit of any such resale of Exchange Debentures and any commissions or
concessions received by any such persons may be deemed to be underwriting
compensation under the Securities Act. The Letter of Transmittal states that by
acknowledging that it will deliver and by delivering a prospectus, a broker-
dealer will not be deemed to admit that it is an "underwriter" within the
meaning of the Securities Act.
For a period of 180 days after the Expiration Date, the Company will
promptly send additional copies of this Prospectus and any amendment or
supplement to this Prospectus to any broker-dealer that requests such documents
in the Letter of Transmittal. The Company has agreed to pay all fees and
expenses incident to the Exchange Offer and will indemnify the holders of the
Debentures (including any broker-dealers) against certain liabilities, including
liabilities under the Securities Act.
LEGAL MATTERS
The validity of the Exchange Debentures will be passed upon for the Company
by Theodore J. Collins, Esq., Senior Vice President and General Counsel of the
Company, who will rely on Perkins Coie LLP, Seattle, Washington, as to certain
matters. As of May 12, 1998, Mr. Collins held 35,944 shares, and options to
acquire 178,870 shares, of common stock of the Company. Additionally, Mr.
Collins has the right, under certain circumstances, to receive 12,058.59 shares
of common stock of the Company pursuant to the Company's Incentive Compensation
Plan for Officers and Employees and, under certain circumstances, to receive
28,573 shares of common stock pursuant to the Company's 1997 Incentive Stock
Plan for Employees. Certain matters relating to U.S. federal income tax
considerations will be passed upon for the Company by Perkins Coie LLP, Seattle,
Washington.
31
<PAGE> 33
EXPERTS
The financial statements and related schedule of the Company and its
consolidated subsidiaries as of December 31, 1997 and 1996, and for each of the
three years in the period ended December 31, 1997, except those of McDonnell
Douglas and its consolidated subsidiaries as of December 31, 1996 and for each
of the two years then ended, incorporated by reference in this Prospectus and
the Registration Statement have been audited by Deloitte & Touche LLP as stated
in their reports dated January 27, 1998 included and incorporated by reference
in the Company's Annual Report on Form 10-K for the year ended December 31,
1997. The consolidated financial statements of McDonnell Douglas and
subsidiaries as of December 31, 1996 and for each of the two years then ended,
consolidated with those of the Company, have been audited by Ernst & Young LLP,
as stated in their reports incorporated by reference in this Prospectus and the
Registration Statement. Such financial statements of the Company and its
consolidated subsidiaries are incorporated by reference herein and in the
Registration Statement in reliance upon the respective reports of such firms
given upon their authority as experts in accounting and auditing. All of the
foregoing firms are independent auditors.
32
<PAGE> 34
======================================================
NO DEALER, SALESPERSON OR OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY
INFORMATION OR TO MAKE ANY REPRESENTATIONS OTHER THAN THOSE CONTAINED OR
INCORPORATED BY REFERENCE IN THIS PROSPECTUS IN CONNECTION WITH THE EXCHANGE
OFFER, AND, IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATIONS MUST NOT BE
RELIED UPON AS HAVING BEEN AUTHORIZED BY THE COMPANY. THIS PROSPECTUS DOES NOT
CONSTITUTE AN OFFER OF ANY SECURITIES OTHER THAN THOSE TO WHICH IT RELATES OR AN
OFFER OR A SOLICITATION BY ANYONE IN ANY JURISDICTION IN WHICH SUCH OFFER OR
SOLICITATION IS NOT AUTHORIZED OR IN WHICH THE PERSON MAKING SUCH OFFER OR
SOLICITATION IS NOT QUALIFIED TO DO SO OR TO ANYONE TO WHOM IT IS UNLAWFUL TO
MAKE SUCH OFFER OR SOLICITATION IN SUCH JURISDICTION. NEITHER THE DELIVERY OF
THIS PROSPECTUS NOR ANY SALE MADE HEREUNDER SHALL UNDER ANY CIRCUMSTANCE CREATE
AN IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE COMPANY SINCE
THE DATE HEREOF.
------------------------
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Disclosure Regarding Forward-Looking
Information......................... 4
Available Information................. 4
Incorporation of Certain Documents by
Reference........................... 5
Prospectus Summary.................... 6
Use of Proceeds....................... 12
Ratios of Earnings to Fixed Charges... 12
Selected Financial Data............... 13
The Exchange Offer.................... 14
Description of Exchange Debentures.... 23
Certain Federal Income Tax
Consequences........................ 30
Plan of Distribution.................. 31
Legal Matters......................... 31
Experts............................... 32
</TABLE>
------------------------
======================================================
======================================================
The Boeing Company
------------------------
OFFER TO EXCHANGE ITS
6 5/8% Debentures due February 15, 2038 which have been registered under the
Securities Act of 1933 for any and all of its outstanding 6 5/8% Debentures due
February 15, 2038 which were issued
and sold in a transaction exempt
from registration under the
Securities Act of 1933
--------------------
PROSPECTUS
--------------------
May 29, 1998
======================================================
<PAGE> 35
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 20. INDEMNIFICATION OF DIRECTORS AND OFFICERS
Section 145 of the Delaware General Corporation Law reads as follows:
INDEMNIFICATION OF OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS; INSURANCE.
(a) A corporation may indemnify any person who was or is a party or is
threatened to be made a party to any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, administrative or investigative
(other than an action by or in the right of the corporation) by reason of the
fact that he is or was a director, officer, employee or agent of the
corporation, or is or was serving at the request of the corporation as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, against expenses (including attorneys'
fees), judgments, fines and amounts paid in settlement actually and reasonably
incurred by him in connection with such action, suit or proceeding if he acted
in good faith and in a manner he reasonably believed to be in or not opposed to
the best interests of the corporation, and, with respect to any criminal action
or proceeding, had no reasonable cause to believe his conduct was unlawful. The
termination of any action, suit or proceeding by judgment, order, settlement,
conviction, or upon a plea of nolo contendere or its equivalent, shall not, of
itself, create a presumption that he did not act in good faith and in a manner
which he reasonably believed to be in or not opposed to the best interests of
the corporation, and, with respect to any criminal action or proceeding, had
reasonable cause to believe that his conduct was unlawful.
(b) A corporation may indemnify any person who was or is a party or is
threatened to be made a party to any threatened, pending or completed action or
suit by or in the right of the corporation to procure a judgment in its favor by
reason of the fact that he is or was a director, officer, employee or agent of
the corporation, or is or was serving at the request of the corporation as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise against expenses (including attorneys' fees)
actually and reasonably incurred by him in connection with the defense or
settlement of such action or suit if he acted in good faith and in a manner he
reasonably believed to be in or not opposed to the best interests of the
corporation and except that no indemnification shall be made in respect of any
claim, issue or matter as to which such person shall have been adjudged to be
liable to the corporation unless and only to the extent that the Court of
Chancery or the court in which such action or suit was brought shall determine
upon application that, despite the adjudication of liability but in view of all
the circumstances of the case, such person is fairly and reasonably entitled to
indemnity for such expenses which the Court of Chancery or such other court
shall deem proper.
(c) To the extent that a director, officer, employee or agent of a
corporation has been successful on the merits or otherwise in defense of any
action, suit or proceeding referred to in subsections (a) and (b) of this
section, or in defense of any claim, issue or matter therein, he shall be
indemnified against expenses (including attorneys' fees) actually and reasonably
incurred by him in connection therewith.
(d) Any indemnification under subsections (a) and (b) of this section
(unless ordered by a court) shall be made by the corporation only as authorized
in the specific case upon a determination that indemnification of the director,
officer, employee or agent is proper in the circumstances because he has met the
applicable standard of conduct set forth in subsections (a) and (b) of this
section. Such determination shall be made (1) by a majority vote of the
directors who are not parties to such action, suit or proceeding, even though
less than a quorum, or (2) if there are no such directors, or if such directors
so direct, by independent legal counsel in a written opinion, or (3) by the
stockholders.
(e) Expenses (including attorneys' fees) incurred by an officer or director
in defending any civil, criminal, administrative or investigative action, suit
or proceeding may be paid by the corporation in advance of the final disposition
of such action, suit or proceeding upon receipt of an undertaking by or on
behalf of such director or officer to repay such amount if it shall ultimately
be determined that he is not entitled to be indemnified by the corporation as
authorized in this section. Such expenses (including attorneys' fees)
II-1
<PAGE> 36
incurred by other employees and agents may be so paid upon such terms and
conditions, if any, as the board of directors deems appropriate.
(f) The indemnification and advancement of expenses provided by, or granted
pursuant to, the other subsections of this section shall not be deemed exclusive
of any other rights to which those seeking indemnification or advancement of
expenses may be entitled under any bylaw, agreement, vote of stockholders or
disinterested directors or otherwise, both as to action in his official capacity
and as to action in another capacity while holding such office.
(g) A corporation shall have the power to purchase and maintain insurance
on behalf of any person who is or was a director, officer, employee or agent of
the corporation, or is or was serving at the request of the corporation as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise against any liability asserted against him
and incurred by him in any such capacity, or arising out of his status as such,
whether or not the corporation would have the power to indemnify him against
such liability under this section.
(h) For purposes of this section, references to "the corporation" shall
include, in addition to the resulting corporation, any constituent corporation
(including any constituent of a constituent) absorbed in a consolidation or
merger which, if its separate existence had continued, would have had power and
authority to indemnify its directors, officers, and employees or agents, so that
any person who is or was a director, officer, employee or agent of such
constituent corporation, or is or was serving at the request of such constituent
corporation as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise, shall stand in the same
position under this section with respect to the resulting or surviving
corporation as he would have with respect to such constituent corporation if its
separate existence had continued.
(i) For purposes of this section, references to "other enterprises" shall
include employee benefit plans; references to "fines" shall include any excise
taxes assessed on a person with respect to any employee benefit plan; and
references to "serving at the request of the corporation" shall include any
service as a director, officer, employee or agent of the corporation which
imposes duties on, or involves services by, such director, officer, employee, or
agent with respect to an employee benefit plan, its participants or
beneficiaries; and a person who acted in good faith and in a manner he
reasonably believed to be in the interest of the participants and beneficiaries
of an employee benefit plan shall be deemed to have acted in a manner "not
opposed to the best interests of the corporation" as referred to in this
section.
(j) The indemnification and advancement of expenses provided by, or granted
pursuant to, this section shall, unless otherwise provided when authorized or
ratified, continue as to a person who has ceased to be a director, officer,
employee or agent and shall inure to the benefit of the heirs, executors and
administrators of such a person.
(k) The Court of Chancery is hereby vested with exclusive jurisdiction to
hear and determine all actions for advancement of expenses or indemnification
brought under this section or under any bylaw, agreement, vote of stockholders
or disinterested directors, or otherwise. The Court of Chancery may summarily
determine a corporation's obligation to advance expenses (including attorneys'
fees).
Article VII, Section 4 of the registrant's By-Laws provides as follows:
Section 4. Indemnification of Directors and Officers.
4.1 Right to Indemnification. Each person who was or is made a party or
is threatened to be made a party to or is otherwise involved (including, without
limitation, as a witness) in any actual or threatened action, suit, or
proceeding, whether civil, criminal, administrative, or investigative
(hereinafter a "proceeding"), by reason of the fact that he or she is or was a
director or officer of the Corporation or that, being or having been such a
director or officer or an employee of the Corporation, he or she is or was
serving at the request of an executive officer of the Corporation as a director,
officer, employee, or agent of another corporation or of a partnership, joint
venture, trust, or other enterprise, including service with respect to an
employee benefit plan (hereinafter an "indemnitee"), whether the basis of such
proceeding is alleged action in
II-2
<PAGE> 37
an official capacity as such a director, officer, employee, or agent or in any
other capacity while serving as such a director, officer, employee, or agent,
shall be indemnified and held harmless by the Corporation to the full extent
permitted by the Delaware General Corporation Law, as the same exists or may
hereafter be amended (but, in the case of any such amendment, only to the extent
that such amendment permits the Corporation to provide broader indemnification
rights than permitted prior thereto), or by other applicable law as then in
effect, against all expense, liability, and loss (including attorneys' fees,
judgments, fines, ERISA excise taxes or penalties, and amounts paid in
settlement) actually and reasonably incurred or suffered by such indemnitee in
connection therewith and such indemnification shall continue as to an indemnitee
who has ceased to be a director, officer, employee, or agent and shall inure to
the benefit of the indemnitee's heirs, executors, and administrators; provided,
however, that except as provided in Section 4.2 with respect to proceedings
seeking to enforce rights to indemnification, the Corporation shall indemnify
any such indemnitee in connection with a proceeding (or part thereof) initiated
by such indemnitee only if such proceeding (or part thereof) was authorized or
ratified by the Board of Directors of the Corporation. The right to
indemnification conferred in this Section 4.1 shall be a contract right and
shall include the right to be paid by the Corporation the expenses incurred in
defending any such proceeding in advance of its final disposition (hereinafter
an "advancement of expenses"); provided, however, that an advancement of
expenses incurred by an indemnitee in his or her capacity as a director or
officer (and not in any other capacity in which service was or is rendered by
such indemnitee, including, without limitation, service to an employee benefit
plan) shall be made only upon delivery to the Corporation of an undertaking
(hereinafter an "undertaking"), by or on behalf of such indemnitee, to repay all
amounts so advanced if it shall ultimately be determined by final judicial
decision from which there is no further right to appeal that such indemnitee is
not entitled to be indemnified for such expenses under this Section 4.1 or
otherwise; and provided, further, that an advancement of expenses shall not be
made if the Corporation's Board of Directors makes a good faith determination
that such payment would violate law or public policy.
4.2 Right of Indemnitee to Bring Suit. If a claim under Section 4.1 is
not paid in full by the Corporation within sixty days after a written claim has
been received by the Corporation, except in the case of a claim for an
advancement of expenses, in which case the applicable period shall be twenty
days, the indemnitee may at any time thereafter bring suit against the
Corporation to recover the unpaid amount of the claim. If successful in whole or
in part in any such suit, or in a suit brought by the Corporation to recover an
advancement of expenses pursuant to the terms of an undertaking, the indemnitee
shall also be entitled to be paid the expense of prosecuting or defending such
suit. The indemnitee shall be presumed to be entitled to indemnification under
this Section 4 upon submission of a written claim (and, in an action brought to
enforce a claim for an advancement of expenses, where the required undertaking
has been tendered to the Corporation), and thereafter the Corporation shall have
the burden of proof to overcome the presumption that the indemnitee is not so
entitled. Neither the failure of the Corporation (including its Board of
Directors, independent legal counsel, or its stockholders) to have made a
determination prior to the commencement of such suit that indemnification of the
indemnitee is proper in the circumstances, nor an actual determination by the
Corporation (including its Board of Directors, independent legal counsel, or its
stockholders) that the indemnitee is not entitled to indemnification shall be a
defense to the suit or create a presumption that the indemnitee is not so
entitled.
4.3 Nonexclusivity of Rights. The rights to indemnification and to the
advancement of expenses conferred in this Section 4 shall not be exclusive of
any other right which any person may have or hereafter acquire under any
statute, provisions of the Certificate of Incorporation, By-Laws, agreement,
vote of stockholders or disinterested directors, or otherwise. Notwithstanding
any amendment to or repeal of this Section 4, or of any of the procedures
established by the Board of Directors pursuant to Section 4.7, any indemnitee
shall be entitled to indemnification in accordance with the provisions hereof
and thereof with respect to any acts or omissions of such indemnitee occurring
prior to such amendment or repeal.
4.4 Insurance, Contracts, and Funding. The Corporation may maintain
insurance, at its expense, to protect itself and any director, officer,
employee, or agent of the Corporation or another corporation, partnership, joint
venture, trust, or other enterprise against any expense, liability, or loss,
whether or not the Corporation would have the power to indemnify such person
against such expense, liability, or loss under the
II-3
<PAGE> 38
Delaware General Corporation Law. The Corporation may, without further
stockholder approval, enter into contracts with any indemnitee in furtherance of
the provisions of this Section 4 and may create a trust fund, grant a security
interest, or use other means (including, without limitation, a letter of credit)
to ensure the payment of such amounts as may be necessary to effect
indemnification as provided in this Section 4.
4.5 Persons Serving Other Entities. Any person who is or was a director,
officer, or employee of the Corporation and who is or was serving (i) as a
director or officer of another corporation of which a majority of the shares
entitled to vote in the election of its directors is held by the Corporation or
(ii) in an executive or management capacity in a partnership, joint venture,
trust, or other enterprise of which the Corporation or a wholly owned subsidiary
of the Corporation is a general partner or has a majority ownership shall be
deemed to be so serving at the request of an executive officer of the
Corporation and entitled to indemnification and advancement of expenses under
Section 4.1.
4.6 Indemnification of Employees and Agents of the Corporation. The
Corporation may, by action of its Board of Directors, authorize one or more
executive officers to grant rights to advancement of expenses to employees or
agents of the Corporation on such terms and conditions as such officer or
officers deem appropriate under the circumstances. The Corporation may, by
action of its Board of Directors, grant rights to indemnification and
advancement of expenses to employees or agents or groups of employees or agents
of the Corporation with the same scope and effect as the provisions of this
Section 4 with respect to the indemnification and advancement of expenses of
directors and officers of the Corporation; provided, however, that an
undertaking shall be made by an employee or agent only if required by the Board
of Directors.
4.7 Procedures for the Submission of Claims. The Board of Directors may
establish reasonable procedures for the submission of claims for indemnification
pursuant to this Section 4, determination of the entitlement of any person
thereto, and review of any such determination. Such procedures shall be set
forth in an appendix to these By-Laws and shall be deemed for all purposes to be
a part thereof.
Officers and directors of the registrant are covered by insurance that
(with certain exceptions and within certain limitations) indemnifies them
against losses and liabilities arising from any breach of duty, neglect, error,
misstatement, misleading statement, act or omission by the directors or officers
in their respective capacities as such.
ITEM 21. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a) EXHIBITS
<TABLE>
<C> <S>
4.1 Indenture, dated as of August 15, 1991, between the
Registrant and The Chase Manhattan Bank, as Trustee
(incorporated by reference to Exhibit 4 to the registrant's
Current Report on Form 8-K (File No. 1-442) dated August 27,
1991)*
4.2 Form of 6 5/8% Exchange Debentures due February 15, 2038*
4.3 Registration Rights Agreement dated as of February 19, 1998,
between the registrant and Credit Suisse First Boston
Corporation and Merrill Lynch, Pierce, Fenner & Smith
Incorporated*
5.1 Opinion and Consent of Theodore J. Collins, Esq., Senior
Vice President and General Counsel to The Boeing Company, as
to legality of the Exchange Debentures issued by The Boeing
Company*
8.1 Opinion and Consent of Perkins Coie LLP, special tax
counsel, as to certain federal income tax matters*
12.1 Computation of ratio of earnings to fixed charges
(incorporated by reference to Exhibit 12 to the registrant's
Annual Report on Form 10-K (file No. 1-442) for the year
ended December 31, 1997)*
23.1 Consent of Deloitte & Touche LLP*
23.2 Consent of Ernst & Young LLP*
23.3 Consent of Theodore J. Collins, Esq. (included in Exhibit
5.1)*
</TABLE>
II-4
<PAGE> 39
<TABLE>
<C> <S>
23.4 Consent of Perkins Coie (included in Exhibit 8.1)*
24.1 Power of Attorney (contained on signature page)*
25.1 Form T-1 Statement of Eligibility of The Chase Manhattan
Bank to act as trustee under the Indenture*
99.1 Form of Letter of Transmittal
99.2 Form of Notice of Guaranteed Delivery*
99.3 Form of Exchange Agent Agreement*
</TABLE>
- ---------------
* Previously filed.
(b) FINANCIAL STATEMENT SCHEDULES
All schedules are omitted because they are inapplicable or the requested
information is shown in the consolidated financial statements of the registrant
or related notes thereto.
ITEM 22. UNDERTAKINGS
The undersigned registrant hereby undertakes that, for purposes of
determining any liability under the Securities Act of 1933, as amended (the
"Securities Act"), each filing of the registrant's annual report pursuant to
Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as
amended (the "Exchange Act") (and, where applicable, each filing of an employee
benefit plan's annual report pursuant to Section 15(d) of the Exchange Act),
that is incorporated by reference in this Registration Statement shall be deemed
to be a new registration statement relating to the securities offered herein,
and the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof.
Insofar as indemnification for liabilities arising under the Securities Act
may be permitted to directors, officers and controlling persons of the
registrant pursuant to the foregoing provisions, or otherwise, the registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Securities Act
and is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the registrant of expenses
incurred or paid by a director, officer or controlling person of the registrant
in the successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Securities Act and will be governed by the final
adjudication of such issue.
The undersigned registrant hereby undertakes to respond to requests for
information that is incorporated by reference into the prospectus pursuant to
Items 4, 10(b), 11, or 13 of this Form S-4, within one business day of receipt
of such request, and to send the incorporated documents by first class mail or
other equally prompt means. This includes information contained in documents
filed subsequent to the effective date of the registration statement through the
date of responding to the request.
The undersigned registrant hereby undertakes to supply by means of a
post-effective amendment all information concerning a transaction, and the
company being acquired involved therein, that was not the subject of and
included in the registration statement when it became effective.
II-5
<PAGE> 40
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, the
Registrant has duly caused this Amendment No. 1 to Registration Statement to be
signed on its behalf by the undersigned, thereunto duly authorized, in the City
of Seattle, State of Washington, on the 29th day of May, 1998.
THE BOEING COMPANY
By: /s/ BOYD E. GIVAN
------------------------------------
Boyd E. Givan, Senior Vice President
and Chief Financial Officer
Pursuant to the requirements of the Securities Act of 1933, as amended,
this Amendment No. 1 to Registration Statement has been signed by the following
persons in the capacities indicated below on the 29th day of May, 1998.
<TABLE>
<CAPTION>
SIGNATURE TITLE
--------- -----
<S> <C>
*PHILIP M. CONDIT Chairman of the Board and Chief Executive Officer
- --------------------------------------------------- (Principal Executive Officer)
Philip M. Condit
* HARRY C. STONECIPHER President, Chief Operating Officer, Director
- ---------------------------------------------------
Harry C. Stonecipher
/s/ BOYD E. GIVAN Senior Vice President and Chief Financial Officer
- --------------------------------------------------- (Principal Financial and Accounting Officer)
Boyd E. Givan
Director
- ---------------------------------------------------
John H. Biggs
* JOHN E. BRYSON Director
- ---------------------------------------------------
John E. Bryson
* KENNETH M. DUBERSTEIN Director
- ---------------------------------------------------
Kenneth M. Duberstein
</TABLE>
II-6
<PAGE> 41
<TABLE>
<CAPTION>
SIGNATURE TITLE
--------- -----
<S> <C>
* JOHN B. FERY Director
- ---------------------------------------------------
John B. Fery
* PAUL E. GRAY Director
- ---------------------------------------------------
Paul E. Gray
* JOHN F. MCDONNELL Director
- ---------------------------------------------------
John F. McDonnell
Director
- ---------------------------------------------------
William J. Perry
Director
- ---------------------------------------------------
Donald E. Peterson
Director
- ---------------------------------------------------
Charles M. Piggott
* ROZANNE L. RIDGWAY Director
- ---------------------------------------------------
Rozanne L. Ridgway
Director
- ---------------------------------------------------
George H. Weyerhauser
*By: /s/ BOYD E. GIVAN
---------------------------------------------
Boyd E. Givan
Attorney-in-Fact
</TABLE>
II-7
<PAGE> 42
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT DESCRIPTION
- ------- -----------
<C> <S> <C>
4.1 Indenture, dated as of August 15, 1991, between the
Registrant and The Chase Manhattan Bank, as Trustee
(incorporated by reference to Exhibit 4 to the registrant's
Current Report on Form 8-K (File No. 1-442) dated August 27,
1991)*
4.2 Form of 6 5/8% Exchange Debentures due February 15, 2038*
4.3 Registration Rights Agreement dated as of February 19, 1998,
between the registrant and Credit Suisse First Boston
Corporation and Merrill Lynch, Pierce, Fenner & Smith
Incorporated*
5.1 Opinion and Consent of Theodore J. Collins, Esq., Senior
Vice President and General Counsel to The Boeing Company, as
to legality of the Exchange Debentures issued by The Boeing
Company*
8.1 Opinion and Consent of Perkins Coie LLP, special tax
counsel, as to certain federal income tax matters*
12.1 Computation of ratio of earnings to fixed charges
(incorporated by reference to Exhibit 12 to the registrant's
Annual Report on Form 10-K (File No. 1-442) for the year
ended December 31, 1997)*
23.1 Consent of Deloitte & Touche LLP*
23.2 Consent of Ernst & Young LLP*
23.3 Consent of Theodore J. Collins, Esq. (included in Exhibit
5.1)*
23.4 Consent of Perkins Coie (included in Exhibit 8.1)*
24 Power of Attorney (contained on signature page)*
25.1 Form T-1 Statement of Eligibility of The Chase Manhattan
Bank to act as trustee under the Indenture*
99.1 Form of Letter of Transmittal
99.2 Form of Notice of Guaranteed Delivery*
99.3 Form of Exchange Agent Agreement*
</TABLE>
- ---------------
* Previously filed.
<PAGE> 1
LETTER OF TRANSMITTAL
THE BOEING COMPANY
OFFER TO EXCHANGE ITS
6 5/8% DEBENTURES DUE FEBRUARY 15, 2038
WHICH HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933
FOR ANY AND ALL OF ITS OUTSTANDING
6 5/8% DEBENTURES DUE FEBRUARY 15, 2038
AS DESCRIBED HEREIN BY
THE BOEING COMPANY
PURSUANT TO THE PROSPECTUS DATED MAY 29, 1998
THE EXCHANGE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT 5:00
P.M., NEW YORK CITY TIME, ON JULY 8, 1998, UNLESS THE OFFER IS
EXTENDED. TENDERS MAY BE WITHDRAWN PRIOR TO 5:00 P.M., NEW YORK CITY
TIME, ON THE EXPIRATION DATE.
The Exchange Agent for the Exchange Offer Is:
THE CHASE MANHATTAN BANK
<TABLE>
<S> <C>
By Mail, Hand or Overnight Delivery: By Facsimile Transmission:
The Chase Manhattan Bank (For Eligible Institutions Only)
55 Water Street
Room 234, North Building (212) 638-7375
New York, New York 10041
Attention: Carlos Esteves Confirm by Telephone:
Carlos Esteves (212) 638-0828
</TABLE>
DELIVERY OF THIS LETTER OF TRANSMITTAL TO AN ADDRESS OTHER THAN AS SET FORTH
ABOVE OR TRANSMISSION OF THIS LETTER OF TRANSMITTAL VIA A FACSIMILE NUMBER OTHER
THAN THE ONE LISTED ABOVE WILL NOT CONSTITUTE A VALID DELIVERY. THE INSTRUCTIONS
ACCOMPANYING THIS LETTER OF TRANSMITTAL SHOULD BE READ CAREFULLY BEFORE THIS
LETTER OF TRANSMITTAL IS COMPLETED.
Capitalized terms used but not defined herein shall have the same meanings
given them in the Prospectus (as defined below).
This Letter of Transmittal is to be completed by holders (which term, for
purposes of this Letter of Transmittal, shall include any participant in The
Depository Trust Company ("DTC")) either if (a) certificates are to be forwarded
herewith or (b) tenders are to be made pursuant to the procedures for tender by
book-entry transfer set forth under "The Exchange Offer -- Procedures for
Tendering Original Debentures" in the Prospectus and an Agent's Message (as
defined below) is not delivered. Certificates, or book-entry confirmation of a
book-entry transfer of such Original Debentures into the Exchange Agent's
account at DTC, as well as this Letter of Transmittal (or a facsimile thereof or
delivery of an Agent's Message in lieu thereof), properly completed and duly
executed, with any required signature guarantees, and any other documents
required by this Letter of Transmittal, must be received by the Exchange Agent
at its address set forth herein on or prior to the Expiration Date. Tenders by
book-entry transfer may also be made by delivering an Agent's Message in lieu of
this Letter of Transmittal. The term "book-entry confirmation" means a timely
confirmation of a book-entry transfer of Original Debentures into the Exchange
Agent's account at DTC. The term "Agent's Message" means a message, transmitted
by DTC to and received by the Exchange Agent and forming part of a book-entry
confirmation, that states that DTC has received an express acknowledgment from
the tendering participant, which acknowledgment states that such participant has
received and agrees to be bound by this Letter of Transmittal and that The
Boeing Company may enforce this Letter of Transmittal against such participant.
Holders of Original Debentures whose certificates (the "Certificates") for
such Original Debentures are not immediately available or who cannot deliver
their Certificates and all other required documents to the Exchange Agent on or
prior to the Expiration Date or who cannot complete the procedures for
book-entry transfer on or prior to the Expiration Date must tender their
Original Debentures according to the guaranteed delivery procedures set forth in
"The Exchange Offer -- Procedures for Tendering Original Debentures" in the
Prospectus.
<PAGE> 2
DELIVERY OF DOCUMENTS TO DTC DOES NOT CONSTITUTE DELIVERY TO THE EXCHANGE
AGENT.
NOTE: SIGNATURES MUST BE PROVIDED BELOW.
PLEASE READ THE ACCOMPANYING INSTRUCTIONS CAREFULLY.
THE UNDERSIGNED HAS COMPLETED THE APPROPRIATE BOXES BELOW AND SIGNED THIS
LETTER OF TRANSMITTAL TO INDICATE THE ACTION THE UNDERSIGNED DESIRES TO TAKE
WITH RESPECT TO THE EXCHANGE OFFER.
- --------------------------------------------------------------------------------
DESCRIPTION OF ORIGINAL DEBENTURES TENDERED
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
AGGREGATE PRINCIPAL PRINCIPAL AMOUNT
CERTIFICATE NUMBER(S)* AMOUNT OF ORIGINAL OF ORIGINAL
NAME(S) AND ADDRESS(ES) OF REGISTERED HOLDER (ATTACH ADDITIONAL LIST DEBENTURES REPRESENTED DEBENTURES TENDERED
(PLEASE FILL IN, IF BLANK) IF NECESSARY) BY EACH CERTIFICATE (IF LESS THAN ALL)**
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
$ $
- ---------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Total Amount
Tendered: $ $
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Need not be completed by book-entry holders. Such holders should check the
appropriate box below and provide the requested information.
** Need not be completed if tendering for exchange all Original Debentures
held. Original Debentures may be tendered in whole or in part in integral
multiples of $1,000 in aggregate principal amount. All Original Debentures
held shall be deemed tendered unless a lesser number is specified in this
column.
================================================================================
2
<PAGE> 3
(BOXES BELOW TO BE CHECKED BY ELIGIBLE INSTITUTIONS
(DEFINED IN INSTRUCTION 1) ONLY)
[ ] CHECK HERE IF TENDERED ORIGINAL DEBENTURES ARE BEING DELIVERED BY
BOOK-ENTRY TRANSFER MADE TO THE ACCOUNT MAINTAINED BY THE EXCHANGE AGENT
WITH DTC AND COMPLETE THE FOLLOWING:
Name of Tendering Institution
- --------------------------------------------------------------------------------
DTC Account Number
- --------------------------------------------------------------------------------
Transaction Code Number
- --------------------------------------------------------------------------------
By crediting the Original Debentures to the Exchange Agent's account at DTC
in accordance with DTC's Automated Tender Offer Program ("ATOP") and by
complying with applicable ATOP procedures with respect to the Exchange Offer,
including transmitting an Agent's Message to the Exchange Agent in which the
holder of the Original Debentures acknowledges and agrees to be bound by the
terms of this Letter of Transmittal, the participant in ATOP confirms on behalf
of itself and the beneficial owners of such Original Debentures all provisions
of this Letter of Transmittal applicable to it and such beneficial owners as
fully as if it had completed the information required herein and executed and
transmitted this Letter of Transmittal to the Exchange Agent.
[ ] CHECK HERE AND ENCLOSE A PHOTOCOPY OF THE NOTICE OF GUARANTEED DELIVERY IF
TENDERED ORIGINAL DEBENTURES ARE BEING DELIVERED PURSUANT TO A NOTICE OF
GUARANTEED DELIVERY PREVIOUSLY SENT TO THE EXCHANGE AGENT AND COMPLETE THE
FOLLOWING:
Name of Registered Holder
- --------------------------------------------------------------------------------
Window Ticket Number (if any)
- --------------------------------------------------------------------------------
Date of Execution of Notice of Guaranteed Delivery
- --------------------------------------------------------------------------------
Name of Institution Which Guaranteed Delivery
- --------------------------------------------------------------------------------
If Guaranteed Delivery is to be made by Book-Entry Transfer:
Name of Tendering Institution
- --------------------------------------------------------------------------------
DTC Account Number
- --------------------------------------------------------------------------------
Transaction Code Number
- --------------------------------------------------------------------------------
[ ] CHECK HERE IF TENDERED BY BOOK-ENTRY TRANSFER AND NON-EXCHANGED ORIGINAL
DEBENTURES ARE TO BE RETURNED BY CREDITING THE DTC ACCOUNT NUMBER SET FORTH
ABOVE.
[ ] CHECK HERE IF YOU ARE A BROKER-DEALER WHO ACQUIRED THE ORIGINAL DEBENTURES
FOR ITS OWN ACCOUNT AS A RESULT OF MARKET-MAKING OR OTHER TRADING
ACTIVITIES (A "PARTICIPATING BROKER-DEALER") AND WISH TO RECEIVE 10
ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR
SUPPLEMENTS THERETO.
Name:
- --------------------------------------------------------------------------------
Address:
- --------------------------------------------------------------------------------
Area Code and Telephone Number:
- --------------------------------------------------------------------------------
Contact Person:
- --------------------------------------------------------------------------------
3
<PAGE> 4
Ladies and Gentlemen:
The undersigned hereby tenders to The Boeing Company, a Delaware
corporation (the "Company"), the above-described aggregate principal amount of
its 6 5/8% Debentures due February 15, 2038 (the "Original Debentures") in
exchange for a like aggregate principal amount of 6 5/8% Debentures due February
15, 2038 (the "Exchange Debentures") that have been registered under the
Securities Act of 1933, as amended (the "Securities Act"), upon the terms and
subject to the conditions set forth in the Prospectus dated May 29, 1998 (as the
same may be amended or supplemented from time to time, the "Prospectus"),
receipt of which is hereby acknowledged, and in this Letter of Transmittal
(which, together with the Prospectus, constitutes the "Exchange Offer").
Subject to and effective upon the acceptance for exchange of all or any
portion of the Original Debentures tendered herewith in accordance with the
terms and conditions of the Exchange Offer (including, if the Exchange Offer is
extended or amended, the terms and conditions of any such extension or
amendment), the undersigned hereby sells, assigns and transfers to or upon the
order of the Company all right, title and interest in and to such Original
Debentures as are being tendered herewith. The undersigned hereby irrevocably
constitutes and appoints the Exchange Agent as its agent and attorney-in-fact
(with full knowledge that the Exchange Agent is also acting as agent of the
Company in connection with the Exchange Offer) with respect to the tendered
Original Debentures, with full power of substitution (such power of attorney
being deemed to be an irrevocable power coupled with an interest), subject only
to the right of withdrawal described in the Prospectus to (i) deliver
Certificates for Original Debentures to the Company together with all
accompanying evidences of transfer and authenticity to, or upon the order of,
the Company, upon receipt by the Exchange Agent, as the undersigned's agent, of
the Exchange Debentures to be issued in exchange for such Original Debentures,
(ii) present Certificates for such Original Debentures for registration of
transfer, and transfer the Original Debentures on the books of the Company, and
(iii) receive for the account of the Company all benefits and otherwise exercise
all rights of beneficial ownership of such Original Debentures, all in
accordance with the terms and conditions of the Exchange Offer.
THE UNDERSIGNED HEREBY REPRESENTS AND WARRANTS THAT THE UNDERSIGNED HAS
FULL POWER AND AUTHORITY TO TENDER, EXCHANGE, SELL, ASSIGN AND TRANSFER THE
ORIGINAL DEBENTURES TENDERED HEREBY AND THAT, WHEN THE SAME ARE ACCEPTED FOR
EXCHANGE, THE COMPANY WILL ACQUIRE GOOD, MARKETABLE AND UNENCUMBERED TITLE
THERETO, FREE AND CLEAR OF ALL LIENS, RESTRICTIONS, CHARGES AND ENCUMBRANCES,
AND THAT THE ORIGINAL DEBENTURES TENDERED HEREBY ARE NOT SUBJECT TO ANY ADVERSE
CLAIMS OR PROXIES. THE UNDERSIGNED WILL, UPON REQUEST, EXECUTE AND DELIVER ANY
ADDITIONAL DOCUMENTS DEEMED BY THE COMPANY OR THE EXCHANGE AGENT TO BE NECESSARY
OR DESIRABLE TO COMPLETE THE EXCHANGE, ASSIGNMENT AND TRANSFER OF THE ORIGINAL
DEBENTURES TENDERED HEREBY, AND THE UNDERSIGNED WILL COMPLY WITH ITS OBLIGATIONS
UNDER THE REGISTRATION RIGHTS AGREEMENT. THE UNDERSIGNED HAS READ AND AGREES TO
ALL OF THE TERMS OF THE EXCHANGE OFFER.
The name(s) and address(es) of the registered holder(s) (which term, for
the purposes of this Letter of Transmittal, shall include any participant in
DTC) of the Original Debentures tendered hereby should be printed above, if they
are not already set forth above, as they appear on the Certificates representing
such Original Debentures. The Certificate number(s) of the Original Debentures
that the undersigned wishes to tender should be indicated in the appropriate
boxes above.
If any tendered Original Debentures are not exchanged pursuant to the
Exchange Offer for any reason, or if Certificates are submitted for more
Original Debentures than are tendered or accepted for exchange, Certificates for
such nonexchanged or nontendered Original Debentures will be returned (or, in
the case of Original Debentures tendered by book-entry transfer, such Original
Debentures will be credited to an account maintained at DTC), without expense to
the tendering holder, promptly following the expiration or termination of the
Exchange Offer.
The undersigned understands that tenders of Original Debentures pursuant to
any one of the procedures described under "The Exchange Offer -- Procedures for
Tendering Original Debentures" in the Prospectus and in the instructions herein
will, upon the Company's acceptance for exchange of such tendered Original
Debentures, constitute a binding agreement between the undersigned and the
Company upon the terms and subject to the conditions of the Exchange
4
<PAGE> 5
Offer. The undersigned recognizes that, under certain circumstances set forth in
the Prospectus, the Company may not be required to accept for exchange any of
the Original Debentures tendered hereby.
Unless otherwise indicated herein in the box entitled "Special Issuance
Instructions" below, the undersigned hereby directs that the Exchange Debentures
be issued in the name of the undersigned or, in the case of a book-entry
transfer of Original Debentures, that such Exchange Debentures be credited to
the account indicated above maintained at DTC. If applicable, substitute
Certificates representing Original Debentures not exchanged or not accepted for
exchange will be issued to the undersigned or, in the case of a book-entry
transfer of Original Debentures, will be credited to the account indicated above
maintained at DTC. Similarly, unless otherwise indicated under "Special Delivery
Instructions" below, please deliver Exchange Debentures to the undersigned at
the address shown below the undersigned's signature.
BY TENDERING ORIGINAL DEBENTURES AND EXECUTING THIS LETTER OF TRANSMITTAL,
OR EFFECTING DELIVERY OF AN AGENT'S MESSAGE IN LIEU THEREOF, THE UNDERSIGNED
HEREBY REPRESENTS AND AGREES THAT (i) THE UNDERSIGNED IS NOT AN "AFFILIATE" OF
THE COMPANY WITHIN THE MEANING OF RULE 405 UNDER THE SECURITIES ACT, (ii) ANY
EXCHANGE DEBENTURES TO BE RECEIVED BY THE UNDERSIGNED ARE BEING ACQUIRED IN THE
ORDINARY COURSE OF ITS BUSINESS, (iii) THE UNDERSIGNED HAS NO ARRANGEMENT OR
UNDERSTANDING WITH ANY PERSON TO PARTICIPATE IN A DISTRIBUTION (WITHIN THE
MEANING OF THE SECURITIES ACT) OF EXCHANGE DEBENTURES TO BE RECEIVED IN THE
EXCHANGE OFFER, AND (iv) IF THE UNDERSIGNED IS NOT A BROKER-DEALER, THE
UNDERSIGNED IS NOT ENGAGED IN, AND DOES NOT INTEND TO ENGAGE IN, A DISTRIBUTION
(WITHIN THE MEANING OF THE SECURITIES ACT) OF SUCH EXCHANGE DEBENTURES. BY
TENDERING ORIGINAL DEBENTURES PURSUANT TO THE EXCHANGE OFFER AND EXECUTING THIS
LETTER OF TRANSMITTAL, OR EFFECTING DELIVERY OF AN AGENT'S MESSAGE IN LIEU
THEREOF, A HOLDER OF ORIGINAL DEBENTURES WHICH IS A BROKER-DEALER REPRESENTS AND
AGREES, CONSISTENT WITH CERTAIN INTERPRETIVE LETTERS ISSUED BY THE STAFF OF THE
DIVISION OF CORPORATION FINANCE OF THE SECURITIES AND EXCHANGE COMMISSION TO
THIRD PARTIES, THAT (A) SUCH ORIGINAL DEBENTURES HELD BY THE BROKER-DEALER ARE
HELD ONLY AS A NOMINEE OR (B) SUCH ORIGINAL DEBENTURES WERE ACQUIRED BY SUCH
BROKER-DEALER FOR ITS OWN ACCOUNT AS A RESULT OF MARKET-MAKING OR OTHER TRADING
ACTIVITIES AND IT WILL DELIVER THE PROSPECTUS (AS AMENDED OR SUPPLEMENTED FROM
TIME TO TIME) MEETING THE REQUIREMENTS OF THE SECURITIES ACT IN CONNECTION WITH
ANY RESALE OF SUCH EXCHANGE DEBENTURES (PROVIDED THAT, BY SO ACKNOWLEDGING AND
BY DELIVERING A PROSPECTUS, SUCH BROKER-DEALER WILL NOT BE DEEMED TO ADMIT THAT
IT IS AN "UNDERWRITER" WITHIN THE MEANING OF THE SECURITIES ACT).
THE COMPANY HAS AGREED THAT, SUBJECT TO THE PROVISIONS OF THE REGISTRATION
RIGHTS AGREEMENT, THE PROSPECTUS, AS IT MAY BE AMENDED OR SUPPLEMENTED FROM TIME
TO TIME, MAY BE USED BY A PARTICIPATING BROKER-DEALER IN CONNECTION WITH RESALES
OF EXCHANGE DEBENTURES RECEIVED IN EXCHANGE FOR ORIGINAL DEBENTURES, WHERE SUCH
ORIGINAL DEBENTURES WERE ACQUIRED BY SUCH PARTICIPATING BROKER-DEALER FOR ITS
OWN ACCOUNT AS A RESULT OF MARKET-MAKING OR OTHER TRADING ACTIVITIES, FOR A
PERIOD ENDING 180 DAYS AFTER THE EXPIRATION DATE (SUBJECT TO EXTENSION UNDER
CERTAIN LIMITED CIRCUMSTANCES DESCRIBED IN THE PROSPECTUS) OR, IF EARLIER, WHEN
ALL SUCH EXCHANGE DEBENTURES HAVE BEEN DISPOSED OF BY SUCH PARTICIPATING
BROKER-DEALER. IN THAT REGARD, EACH PARTICIPATING BROKER-DEALER, BY TENDERING
SUCH ORIGINAL DEBENTURES AND EXECUTING THIS LETTER OF TRANSMITTAL, OR EFFECTING
DELIVERY OF AN AGENT'S MESSAGE IN LIEU THEREOF, AGREES THAT, UPON RECEIPT OF
NOTICE FROM THE COMPANY OF THE OCCURRENCE OF ANY EVENT OR THE DISCOVERY OF ANY
FACT THAT MAKES ANY STATEMENT CONTAINED OR INCORPORATED BY REFERENCE IN THE
PROSPECTUS UNTRUE IN ANY MATERIAL RESPECT OR THAT CAUSES THE PROSPECTUS TO OMIT
TO STATE A MATERIAL FACT NECESSARY IN ORDER TO MAKE THE STATEMENTS CONTAINED OR
INCORPORATED BY REFERENCE THEREIN, IN LIGHT OF THE CIRCUMSTANCES UNDER WHICH
THEY WERE MADE, NOT MISLEADING, OR OF THE OCCUR-
5
<PAGE> 6
RENCE OF CERTAIN OTHER EVENTS SPECIFIED IN THE REGISTRATION RIGHTS AGREEMENT,
SUCH PARTICIPATING BROKER-DEALER WILL SUSPEND THE SALE OF EXCHANGE DEBENTURES
PURSUANT TO THE PROSPECTUS UNTIL THE COMPANY HAS AMENDED OR SUPPLEMENTED THE
PROSPECTUS TO CORRECT SUCH MISSTATEMENT OR OMISSION AND HAS FURNISHED COPIES OF
THE AMENDED OR SUPPLEMENTED PROSPECTUS TO THE PARTICIPATING BROKER-DEALER, OR
THE COMPANY HAS GIVEN NOTICE THAT THE SALE OF THE EXCHANGE DEBENTURES MAY BE
RESUMED, AS THE CASE MAY BE. IF THE COMPANY GIVES SUCH NOTICE TO SUSPEND THE USE
OF THE PROSPECTUS, IT SHALL EXTEND THE 180-DAY PERIOD REFERRED TO ABOVE DURING
WHICH PARTICIPATING BROKER-DEALERS ARE ENTITLED TO USE THE PROSPECTUS IN
CONNECTION WITH THE RESALE OF EXCHANGE DEBENTURES BY THE NUMBER OF DAYS DURING
THE PERIOD FROM AND INCLUDING THE DATE OF THE GIVING OF SUCH NOTICE TO AND
INCLUDING THE DATE WHEN PARTICIPATING BROKER-DEALERS SHALL HAVE RECEIVED COPIES
OF THE AMENDED OR SUPPLEMENTED PROSPECTUS NECESSARY TO PERMIT RESALES OF THE
EXCHANGE DEBENTURES OR TO AND INCLUDING THE DATE ON WHICH THE COMPANY HAS GIVEN
NOTICE THAT THE USE OF THE PROSPECTUS MAY BE RESUMED, AS THE CASE MAY BE.
AS A RESULT, A PARTICIPATING BROKER-DEALER WHO INTENDS TO USE THE
PROSPECTUS IN CONNECTION WITH RESALES OF EXCHANGE DEBENTURES RECEIVED IN
EXCHANGE FOR ORIGINAL DEBENTURES PURSUANT TO THE EXCHANGE OFFER MUST NOTIFY THE
COMPANY, OR CAUSE THE COMPANY TO BE NOTIFIED, ON OR PRIOR TO THE EXPIRATION
DATE, THAT IT IS A PARTICIPATING BROKER-DEALER. SUCH NOTICE MAY BE GIVEN IN THE
SPACE PROVIDED ABOVE OR MAY BE DELIVERED TO THE EXCHANGE AGENT AT THE ADDRESS
SET FORTH IN THE PROSPECTUS UNDER "THE EXCHANGE OFFER -- EXCHANGE AGENT."
Holders of Original Debentures which are accepted for exchange will not
receive interest payments on such Original Debentures, and the undersigned
waives the right to receive any interest payments on such Original Debentures
accumulated from and after February 24, 1998. Accordingly, holders of Exchange
Debentures as of the record date for the payment of interest on August 15, 1998
will be entitled to receive interest accumulated from and after February 24,
1998.
The undersigned agrees that acceptance of any tendered Original Debentures
and transfer of tendered Original Debentures in exchange therefor shall
constitute performance in full by the Company of its obligations under the
Registration Rights Agreement.
The undersigned will, upon request, execute and deliver any additional
documents deemed by the Company to be necessary or desirable to complete the
sale, assignment and transfer of the Original Debentures tendered hereby. All
authority herein conferred or agreed to be conferred in this Letter of
Transmittal shall survive the death or incapacity of the undersigned and any
obligation of the undersigned hereunder shall be binding upon the heirs,
executors, administrators, personal representatives, trustees in bankruptcy,
legal representatives, successors and assigns of the undersigned. Except as
stated in the Prospectus, this tender is irrevocable.
THE UNDERSIGNED, BY COMPLETING THE BOX ENTITLED "DESCRIPTION OF ORIGINAL
DEBENTURES" ABOVE AND SIGNING THIS LETTER OF TRANSMITTAL, WILL BE DEEMED TO HAVE
TENDERED THE ORIGINAL DEBENTURES AS SET FORTH IN SUCH BOX.
6
<PAGE> 7
HOLDERS SIGN HERE
(SEE INSTRUCTIONS 2, 5 AND 6)
(PLEASE COMPLETE SUBSTITUTE FORM W-9 CONTAINED HEREIN)
(NOTE: SIGNATURE(S) MUST BE GUARANTEED IF REQUIRED BY INSTRUCTION 2)
Must be signed by registered holder(s) (which term, for purposes of this
Letter of Transmittal, shall include any participant in DTC) exactly as name(s)
appear(s) on Certificate(s) for the Original Debentures hereby tendered or on
the register of holders maintained by the Company, or by any person authorized
to become the registered holder by endorsements and documents transmitted
herewith (including such opinions of counsel, certifications and other
information as may be required by the Company for the Original Debentures to
comply with the restrictions on transfer applicable to the Original Debentures).
If signature is by an attorney-in-fact, executor, administrator, trustee,
guardian, officer of a corporation or another acting in a fiduciary or
representative capacity, please set forth the signer's full title. See
Instruction 5.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(SIGNATURE OF HOLDER(S) OR AUTHORIZED SIGNATORY)
Date:
- --------------------------- , 1998
Name(s)
- --------------------------------------------------------------------------------
(PLEASE PRINT)
Capacity (full title)
- --------------------------------------------------------------------------------
Address
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(INCLUDE ZIP CODE)
Area Code and Telephone Number
- --------------------------------------------------------------------------------
Tax Identification or Social Security Number(s)
- --------------------------------------------------------------------------------
SIGNATURE(S) GUARANTEE
(IF REQUIRED -- SEE INSTRUCTIONS 2 AND 5)
---------------------------------------
(AUTHORIZED SIGNATURE)
Date:
- --------------------------- , 1998
Name of Eligible Institution Guaranteeing Signatures
- --------------------------------------------------------------
Capacity (full title)
- --------------------------------------------------------------------------------
(PLEASE PRINT)
Address
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(INCLUDE ZIP CODE)
Area Code and Telephone Number
- --------------------------------------------------------------------------------
7
<PAGE> 8
------------------------------------------------------------
SPECIAL ISSUANCE INSTRUCTIONS
(SEE INSTRUCTIONS 1, 5 AND 6)
To be completed ONLY if the Exchange Debentures or any Original
Debentures that are not tendered are to be issued in the name of someone
other than the registered holder of the Original Debentures whose name
appears above.
Issue
[ ] Exchange Debentures and/or
[ ] Original Debentures not tendered
to:
Name
---------------------------------------------------------------------
Address ------------------------------------------------------------
---------------------------------------------------------------------
(INCLUDE ZIP CODE)
Area Code
and Telephone Number
---------------------------------------------------------------------
Tax Identification or
Social Security Number
---------------------------------------------------------------------
==============================================================
SPECIAL DELIVERY INSTRUCTIONS
(SEE INSTRUCTIONS 1, 5 AND 6)
To be completed ONLY if the Exchange Debentures or any Original
Debentures that are not tendered are to be sent to someone other than the
registered holder of the Original Debentures whose name appears above, or
to such registered holder at an address other than that shown above.
Mail
[ ] Exchange Debentures and/or
[ ] Original Debentures not tendered
to:
Name
---------------------------------------------------------------------
Address ------------------------------------------------------------
---------------------------------------------------------------------
(INCLUDE ZIP CODE)
Area Code
and Telephone Number
---------------------------------------------------------------------
Tax Identification or
Social Security Number
---------------------------------------------------------------------
--------------------------------------------------------------
8
<PAGE> 9
INSTRUCTIONS
FORMING PART OF THE TERMS AND CONDITIONS OF THE EXCHANGE OFFER
1. DELIVERY OF LETTER OF TRANSMITTAL AND CERTIFICATES; GUARANTEED DELIVERY
PROCEDURES.
This Letter of Transmittal is to be completed either if (a) Certificates
are to be forwarded herewith or (b) tenders are to be made pursuant to the
procedures for tender by book-entry transfer set forth under "The Exchange
Offer -- Procedures for Tendering Original Debentures" in the Prospectus and an
Agent's Message is not delivered. Certificates, or book-entry confirmation of a
book-entry transfer of such Original Debentures into the Exchange Agent's
account at DTC, as well as this Letter of Transmittal (or facsimile thereof),
properly completed and duly executed, with any required signature guarantees, or
an Agent's Message in lieu thereof, and any other documents required by this
Letter of Transmittal, must be received by the Exchange Agent at its address set
forth herein on or prior to the Expiration Date. Original Debentures may be
tendered in whole or in part in integral multiples of $1,000 in aggregate
principal amount.
Holders who wish to tender their Original Debentures and (i) whose Original
Debentures are not immediately available or (ii) who cannot deliver their
Original Debentures, this Letter of Transmittal and all other required documents
to the Exchange Agent on or prior to the Expiration Date or (iii) who cannot
complete the procedures for delivery by book-entry transfer on or prior to the
Expiration Date, may tender their Original Debentures by properly completing and
duly executing a Notice of Guaranteed Delivery pursuant to the guaranteed
delivery procedures set forth under "The Exchange Offer -- Procedures for
Tendering Original Debentures" in the Prospectus. Pursuant to such procedures:
(a) such tender must be made by or through an Eligible Institution (as defined
below); (b) a properly completed and duly executed Notice of Guaranteed
Delivery, substantially in the form made available by the Company, must be
received by the Exchange Agent on or prior to the Expiration Date; and (c) the
Certificates (or a book-entry confirmation (as defined in the Prospectus))
representing all tendered Original Debentures, in proper form for transfer,
together with a Letter of Transmittal (or facsimile thereof or Agent's Message
in lieu thereof), properly completed and duly executed, with any required
signature guarantees and any other documents required by this Letter of
Transmittal, must be received by the Exchange Agent within three New York Stock
Exchange trading days after the date of execution of such Notice of Guaranteed
Delivery, all as provided in "The Exchange Offer -- Procedures for Tendering
Original Debentures" in the Prospectus.
The Notice of Guaranteed Delivery may be delivered by hand or transmitted
by facsimile or mail to the Exchange Agent and must include a guarantee by an
Eligible Institution in the form set forth in such Notice. For Original
Debentures to be properly tendered pursuant to the guaranteed delivery
procedure, the Exchange Agent must receive a Notice of Guaranteed Delivery on or
prior to the Expiration Date. As used herein and in the Prospectus, "Eligible
Institution" means a firm or other entity identified in Rule 17Ad-15 under the
Exchange Act as "an eligible guarantor institution," including (as such terms
are defined therein) (i) a bank; (ii) a broker, dealer, municipal securities
broker or dealer or government securities broker or dealer; (iii) a credit
union; (iv) a national securities exchange, registered securities association or
clearing agency; or (v) a savings association that is a participant in a
Securities Transfer Association recognized program.
THE METHOD OF DELIVERY OF CERTIFICATES, THIS LETTER OF TRANSMITTAL AND ALL
OTHER REQUIRED DOCUMENTS IS AT THE OPTION AND SOLE RISK OF THE TENDERING HOLDER,
AND THE DELIVERY WILL BE DEEMED MADE ONLY WHEN ACTUALLY RECEIVED BY THE EXCHANGE
AGENT. IF DELIVERY IS BY MAIL, REGISTERED MAIL, RETURN RECEIPT REQUESTED,
PROPERLY INSURED, OR AN OVERNIGHT DELIVERY SERVICE IS RECOMMENDED. IN ALL CASES,
SUFFICIENT TIME SHOULD BE ALLOWED TO ENSURE TIMELY DELIVERY ON OR PRIOR TO THE
EXPIRATION DATE. NO DOCUMENTS SHOULD BE SENT TO THE COMPANY. DELIVERY OF
DOCUMENTS TO DTC DOES NOT CONSTITUTE DELIVERY TO THE EXCHANGE AGENT.
The Company will not accept any alternative, conditional or contingent
tenders. Each tendering holder, by executing a Letter of Transmittal (or
facsimile thereof or Agent's Message in lieu thereof), waives any right to
receive any notice of the acceptance of such tender.
9
<PAGE> 10
2. GUARANTEE OF SIGNATURES.
No signature guarantee on this Letter of Transmittal is required if:
(i) this Letter of Transmittal is signed by the registered holder
(which term, for purposes of this Letter of Transmittal, shall include any
participant in DTC whose name appears on a security position listing as the
owner of the Original Debentures) of Original Debentures tendered herewith,
unless such holder has completed either the box entitled "Special Issuance
Instructions" or the box entitled "Special Delivery Instructions" above, or
(ii) such Original Debentures are tendered for the account of a firm
that is an Eligible Institution.
In all other cases, an Eligible Institution must guarantee the signature on
this Letter of Transmittal. See Instruction 5.
3. INADEQUATE SPACE.
If the space provided in the box captioned "Description of Original
Debentures" is inadequate, the Certificate numbers and/or the principal amount
of Original Debentures and any other required information should be listed on a
separate signed schedule that is attached to this Letter of Transmittal.
4. PARTIAL TENDERS AND WITHDRAWAL RIGHTS.
Tenders of Original Debentures will be accepted only in integral multiples
of $1,000 in aggregate principal amount. If less than all the Original
Debentures evidenced by any Certificate submitted are to be tendered, fill in
the principal amount of Original Debentures that are to be tendered in the box
entitled "Principal Amount of Original Debentures Tendered (If Less than All)."
In such case, a new Certificate for the remainder of the Original Debentures
that were evidenced by the old Certificate will be sent to the holder of the
Original Debentures promptly after the Expiration Date, unless the appropriate
boxes on this Letter of Transmittal are completed. All Original Debentures
represented by Certificates delivered to the Exchange Agent will be deemed to
have been tendered unless otherwise indicated.
Except as otherwise provided herein, tenders of Original Debentures may be
withdrawn at any time on or prior to the Expiration Date. In order for a
withdrawal to be effective on or prior to that time, a written or facsimile
transmission of such notice of withdrawal must be timely received by the
Exchange Agent at its address set forth above or in the Prospectus on or prior
to the Expiration Date. Any such notice of withdrawal must specify the name of
the person who tendered the Original Debentures to be withdrawn, the aggregate
liquidation amount of Original Debentures to be withdrawn, and (if Certificates
for Original Debentures have been tendered) the name of the registered holder of
the Original Debentures as set forth on the Certificate for the Original
Debentures, if different from that of the person who tendered such Original
Debentures. If Certificates for the Original Debentures have been delivered or
otherwise identified to the Exchange Agent, then prior to the physical release
of such Certificates for the Original Debentures, the tendering holder must
submit the serial numbers shown on the particular Certificates for the Original
Debentures to be withdrawn and the signature on the notice of withdrawal must be
guaranteed by an Eligible Institution, except in the case of Original Debentures
tendered for the account of an Eligible Institution. If Original Debentures have
been tendered pursuant to the procedures for book-entry transfer set forth under
"The Exchange Offer -- Procedures for Tendering Original Debentures," the notice
of withdrawal must specify the name and number of the account at DTC to be
credited with the withdrawal of Original Debentures, in which case a notice of
withdrawal will be effective if delivered to the Exchange Agent by written or
facsimile transmission on or prior to the Expiration Date. Withdrawals of
tenders of Original Debentures may not be rescinded. Original Debentures
properly withdrawn will not be deemed validly tendered for purposes of the
Exchange Offer, but may be retendered at any subsequent time on or prior to the
Expiration Date by following any of the procedures described in the Prospectus
under "The Exchange Offer -- Procedures for Tendering Original Debentures."
All questions as to the validity, form and eligibility (including time of
receipt) of such withdrawal notices will be determined by the Company, in its
sole discretion, which determination shall be final and binding on all parties.
None of the Company, any affiliates or assigns of the Company, the Exchange
Agent or any other person shall be under any duty to give any notification of
any irregularities in any notice of withdrawal or incur any liability for
failure to give any such notification. Any Original Debentures that have been
tendered but are withdrawn on or prior to the Expiration Date will be returned
to the holder thereof without cost to such holder promptly after withdrawal.
10
<PAGE> 11
5. SIGNATURES ON LETTER OF TRANSMITTAL, ASSIGNMENTS AND ENDORSEMENTS.
If this Letter of Transmittal is signed by the registered holder(s) of the
Original Debentures tendered hereby, the signature(s) must correspond exactly
with the name(s) as written on the face of the Certificate(s) or on a security
position listing without alteration, enlargement or any change whatsoever.
If any of the Original Debentures tendered hereby are owned of record by
two or more joint owners, all such owners must sign this Letter of Transmittal.
If any tendered Original Debentures are registered in different names on
several Certificates, it will be necessary to complete, sign and submit as many
separate Letters of Transmittal (or facsimiles thereof or Agent's Messages in
lieu thereof) as there are different registrations of Certificates.
If this Letter of Transmittal or any Certificates or bond powers are signed
by trustees, executors, administrators, guardians, attorneys-in-fact, officers
of corporations or others acting in a fiduciary or representative capacity, such
persons should so indicate when signing and must submit proper evidence
satisfactory to the Company, in its sole discretion, of such persons' authority
to so act.
When this Letter of Transmittal is signed by the registered owner of the
Original Debentures listed and transmitted hereby, no endorsement of
Certificates or separate bond powers are required unless Exchange Debentures are
to be issued in the name of a person other than the registered holder.
Signatures on such Certificates or bond powers must be guaranteed by an Eligible
Institution.
If this Letter of Transmittal is signed by a person other than the
registered owner of the Original Debentures listed, the Certificates must be
endorsed or accompanied by appropriate bond powers, signed exactly as the name
of the registered owner appears on the Certificates, and also must be
accompanied by such opinions of counsel, certifications and other information as
the Company or the Exchange Agent may require in accordance with the
restrictions on transfer applicable to the Original Debentures. Signatures on
such Certificates or bond powers must be guaranteed by an Eligible Institution.
6. SPECIAL ISSUANCE AND DELIVERY INSTRUCTIONS.
If Exchange Debentures are to be issued in the name of a person other than
the signer of this Letter of Transmittal, or if Exchange Debentures are to be
sent to someone other than the signer of this Letter of Transmittal or to an
address other than that shown above, the appropriate boxes on this Letter of
Transmittal should be completed. Certificates for Original Debentures not
exchanged will be returned by mail or, if tendered by book-entry transfer, by
crediting the account indicated above maintained at DTC unless the appropriate
boxes on this Letter of Transmittal are completed. See Instruction 4.
7. IRREGULARITIES.
The Company will determine, in its sole discretion, all questions as to the
form of documents, validity, eligibility (including time of receipt) and
acceptance for exchange of any tender of Original Debentures, which
determination shall be final and binding on all parties. The Company reserves
the absolute right to reject any and all tenders determined by it not to be in
proper form or the acceptance of which, or exchange for, may, in the view of
counsel to the Company, be unlawful. The Company also reserves the absolute
right, subject to applicable law, to waive any of the conditions of the Exchange
Offer set forth in the Prospectus under "The Exchange Offer -- Conditions to
Exchange Offer," or any conditions or irregularities in any tender of Original
Debentures of any particular holder whether or not similar conditions or
irregularities are waived in the case of other holders. The Company's
interpretation of the terms and conditions of the Exchange Offer (including this
Letter of Transmittal and the instructions hereto) will be final and binding. No
tender of Original Debentures will be deemed to have been validly made until all
irregularities with respect to such tender have been cured or waived. The
Company, any affiliates or assigns of the Company, the Exchange Agent, or any
other person shall not be under a duty to give notification of any
irregularities in tenders or incur any liability for failure to give such
notification.
11
<PAGE> 12
8. QUESTIONS, REQUESTS FOR ASSISTANCE AND ADDITIONAL COPIES.
Questions and requests for assistance may be directed to the Exchange Agent
at its address and telephone number set forth on the front of this Letter of
Transmittal. Additional copies of the Prospectus, the Notice of Guaranteed
Delivery and this Letter of Transmittal may be obtained from the Exchange Agent
or from the holder's broker, dealer, commercial bank, trust company or other
nominee.
9. LOST, DESTROYED OR STOLEN CERTIFICATES.
The holder should promptly notify the Exchange Agent if any Certificates
representing Original Debentures have been lost, destroyed or stolen. The holder
will then be instructed as to the steps that must be taken in order to replace
the Certificates. This Letter of Transmittal and related documents cannot be
processed until the procedures for replacing lost, destroyed or stolen
Certificates have been followed.
10. SECURITY TRANSFER TAXES.
Holders who tender their Original Debentures for exchange will not be
obligated to pay any transfer taxes in connection therewith. If, however,
Exchange Debentures are to be delivered to, or are to be issued in the name of,
any person other than the registered holder of the Original Debentures tendered,
or if a transfer tax is imposed for any reason other than the exchange of
Original Debentures in connection with the Exchange Offer, then the amount of
any such transfer tax (whether imposed on the registered holder or any other
persons) will be payable by the tendering holder. The amount of such transfer
taxes will be billed directly to such tendering holder if satisfactory evidence
of payment of such taxes or exemption therefrom is not submitted with this
Letter of Transmittal.
11. INCORPORATION OF LETTER OF TRANSMITTAL.
This Letter of Transmittal shall be deemed to be incorporated in and
acknowledged and accepted by any tender through the DTC's ATOP procedures by any
participant in DTC on behalf of itself and the beneficial owners of any Original
Debentures so tendered.
12. WAIVER OF CONDITIONS.
The Company reserves the absolute right to waive satisfaction of any or all
conditions enumerated in the Prospectus.
13. NO CONDITIONAL TENDERS.
No alternative, conditional or contingent tenders will be accepted. All
tendering holders of Original Debentures, by executing this Letter of
Transmittal, shall waive any right to receive notice of the acceptance of
Original Debentures for exchange.
None of the Company, the Exchange Agent or any other person is obligated to
give notice of any defect or irregularity with respect to any tender of Original
Debentures nor shall any of them incur any liability for failure to give any
such notice.
IMPORTANT: THIS LETTER OF TRANSMITTAL (OR FACSIMILE HEREOF OR AN AGENT'S
MESSAGE IN LIEU HEREOF) AND ALL OTHER REQUIRED DOCUMENTS MUST BE RECEIVED BY THE
EXCHANGE AGENT AT OR PRIOR TO 5:00 P.M., NEW YORK CITY TIME, ON THE EXPIRATION
DATE.
12
<PAGE> 13
IMPORTANT TAX INFORMATION
Under federal income tax law, a holder whose tendered Original Debentures
are accepted for exchange is required by law to provide the Exchange Agent with
such holder's correct taxpayer identification number ("TIN") on the Substitute
Form W-9 included herein or otherwise establish a basis for exemption from
backup withholding. If such holder is an individual, the TIN is his or her
social security number. If the Exchange Agent is not provided with the correct
TIN, the Internal Revenue Service may subject the holder or transferee to a $50
penalty. In addition, delivery of such holder's Exchange Debentures may be
subject to backup withholding. Failure to comply truthfully with the backup
withholding requirements also may result in the imposition of severe criminal
and/or civil fines and penalties.
Certain holders (including, among others, all corporations and certain
foreign persons) are not subject to these backup withholding and reporting
requirements. Exempt holders should furnish their TIN, write "Exempt" on the
face of the Substitute Form W-9, and sign, date and return the Substitute Form
W-9 to the Exchange Agent. A foreign person, including entities, may qualify as
an exempt recipient by submitting to the Exchange Agent a properly completed
Internal Revenue Service Form W-8, signed under penalties of perjury, attesting
to that holder's foreign status. See the enclosed "Guidelines for Certification
of Taxpayer Identification Number on Substitute Form W-9" for additional
instructions.
If backup withholding applies, the Exchange Agent is required to withhold
31% of any payments made to the holder or other transferee. Backup withholding
is not an additional federal income tax. Rather, the federal income tax
liability of persons subject to backup withholding will be reduced by the amount
of tax withheld. If withholding results in an overpayment of taxes, a refund may
be obtained from the Internal Revenue Service.
PURPOSE OF SUBSTITUTE FORM W-9
To prevent backup withholding on payments made with respect to Original
Debentures exchanged in the Exchange Offer, the holder is required to provide
the Exchange Agent with either: (i) the holder's correct TIN by completing the
form included herein, certifying that the TIN provided on Substitute Form W-9 is
correct (or that such holder is awaiting a TIN) and that (a) the holder has not
been notified by the Internal Revenue Service that the holder is subject to
backup withholding as a result of failure to report all interest or dividends or
(b) the Internal Revenue Service has notified the holder that the holder is no
longer subject to backup withholding; or (ii) an adequate basis for exemption.
The box in Part 2 of the Substitute Form W-9 may be checked if the
tendering holder has not been issued a TIN and has applied for a TIN or intends
to apply for a TIN in the near future. If the box in Part 2 is checked, the
holder or other payee must also complete the Certificate of Awaiting Taxpayer
Identification Number below in order to avoid backup withholding.
Notwithstanding that the box in Part 2 is checked and the Certificate of
Awaiting Taxpayer Identification Number is completed, the Exchange Agent will
withhold 31% of all payments made prior to the time a properly certified TIN is
provided to the Exchange Agent. The Exchange Agent will retain such amounts
withheld during the 60-day period following the date of the Substitute Form W-9.
If the holder furnishes the Exchange Agent with its TIN within 60 days after the
date of the Substitute Form W-9, the amounts retained during the 60-day period
will be remitted to the holder and no further amounts shall be retained or
withheld from payments made to the holder thereafter. If, however, the holder
has not provided the Exchange Agent with its TIN within such 60-day period,
amounts withheld will be remitted to the Internal Revenue Service as backup
withholding. In addition, 31% of all payments made thereafter will be withheld
and remitted to the Internal Revenue Service until a correct TIN is provided.
NUMBER TO GIVE THE EXCHANGE AGENT
The holder is required to give the Exchange Agent the TIN (e.g., social
security number or employer identification number) of the registered holder of
the Original Debentures or of the last transferee appearing on the transfers
attached to, or endorsed on, the Original Debentures. If the Original Debentures
are held in more than one name or are held not in the name of the actual owner,
consult the enclosed "Guidelines for Certification of Taxpayer Identification
Number on Substitute Form W-9" for additional guidance on which number to
report.
13
<PAGE> 14
TO BE COMPLETED BY ALL TENDERING SECURITYHOLDERS
PAYOR'S NAME: THE CHASE MANHATTAN BANK
<TABLE>
<S> <C> <C>
- --------------------------------------------------------------------------------------------------------
SUBSTITUTE PART 1 -- PLEASE Social Security
FORM W-9 PROVIDE YOUR TIN IN Number or
DEPARTMENT OF THE TREASURER INTERNAL REVENUE SERVICE THE BOX AT RIGHT AND Employer
CERTIFY BY SIGNING AND Identification Number
PAYER'S REQUEST FOR TAXPAYER DATING BELOW.
IDENTIFICATION NUMBER ("TIN") TIN:
--------------------
- --------------------------------------------------------------------------------------------------------
PART 2 -- Awaiting TIN [ ]
CERTIFICATION -- UNDER PENALTIES OF PERJURY, I CERTIFY THAT:
(1) The number shown on this form is my correct Taxpayer Identification Number (or am waiting for a
number to be issued to me) and
(2) I am not subject to backup withholding either because (i) I am exempt from backup withholding, (ii)
I have not been notified by the Internal Revenue Service (the "IRS") that I am subject to backup
withholding as a result of a failure to report all interest or dividends, (iii) or the IRS has
notified me that I am no longer subject to backup withholding.
(3) Any other information provided in this form is true and correct.
CERTIFICATION INSTRUCTIONS -- You must cross out item (2) above if you have been notified by the
IRS that you are currently subject to backup withholding because of underreporting interest or
dividends on your tax return. However, if after being notified by the IRS that you were subject to
backup withholding you received another notification from the IRS that you are no longer subject to
backup withholding, do not cross out such item (2).
- --------------------------------------------------------------------------------------------------------
SIGNATURE ------------------------------------------------------------- DATE
----------------------------------------
- --------------------------------------------------------------------------------------------------------
NOTE: FAILURE TO COMPLETE AND RETURN THIS SUBSTITUTE FORM W-9 MAY RESULT IN WITHHOLDING OF 31% OF ANY
PAYMENTS MADE TO YOU. PLEASE REVIEW THE GUIDELINES FOR CERTIFICATION OF TAXPAYER IDENTIFICATION
NUMBER ON FORM W-9 FOR ADDITIONAL DETAILS.
YOU MUST COMPLETE THE FOLLOWING CERTIFICATE IF YOU
CHECKED THE BOX IN PART 2 OF SUBSTITUTE FORM W-9.
- --------------------------------------------------------------------------------------------------------
CERTIFICATE OF AWAITING TAXPAYER IDENTIFICATION NUMBER
I certify under penalties of perjury that a taxpayer identification number has not been issued to
me, and either (a) I have mailed or delivered an application to receive a taxpayer identification
number to the appropriate Internal Revenue Service Center or Social Security Administration Office or
(b) I intend to mail or deliver an application in the near future. I understand that if I do not
provide a taxpayer identification number by the time of payment, 31% of all reportable payments made to
me will be withheld, but that such amounts will be refunded to me if I then provide a Taxpayer
Identification Number within 60 days.
-------------------------------------------------------------
------------------------------------------------------ , 1998
Signature Date
- --------------------------------------------------------------------------------------------------------
</TABLE>
14
<PAGE> 15
RE: THE BOEING COMPANY 6 5/8% ORIGINAL DEBENTURES DUE FEBRUARY 15, 2038 IN
EXCHANGE FOR THE BOEING COMPANY 6 5/8% EXCHANGE DEBENTURES DUE FEBRUARY
15, 2038
To: Brokers, Dealers, Commercial Banks,
Trust Companies and Other Nominees:
The Boeing Company (the "Company") is offering, upon and subject to the
terms and conditions set forth in a prospectus dated May 29, 1998 (the
"Prospectus"), and the enclosed letter of transmittal (the "Letter of
Transmittal"), to exchange (the "Exchange Offer") its 6 5/8% Debentures due
February 15, 2038 for its outstanding 6 5/8% Debentures due February 15, 2038
(the "Original Debentures"). The Exchange Offer is being made in order to
satisfy certain obligations of the Company contained in the Registration Rights
Agreement, dated as of February 19, 1998, between the Company and the initial
purchasers referred to therein. As set forth in the Prospectus, the terms of the
Exchange Debentures are identical in all material respects to the Original
Debentures, except that the Exchange Debentures have been registered under the
Securities Act of 1933, as amended, and therefore will not be subject to certain
restrictions on their transfer and will not be entitled to registration rights.
The Exchange Offer is subject to certain conditions that are described in the
Prospectus under "The Exchange Offer -- Conditions to the Exchange Offer."
We are requesting that you contact your clients for whom you hold Original
Debentures regarding the Exchange Offer. For your information and for forwarding
to your clients for whom you hold Original Debentures registered in your name or
in the name of your nominee, or who hold Original Debentures registered in their
own names, we are enclosing the following documents:
1. Prospectus dated May 29, 1998;
2. The Letter of Transmittal for your use and for the information (or
the use, where relevant) of your clients;
3. A Notice of Guaranteed Delivery to be used to accept the Exchange
Offer if certificates for Original Debentures are not immediately available
or time will not permit all required documents to reach the Exchange Agent
prior to the Expiration Date (as defined below) or if the procedure for
book-entry transfer cannot be completed on a timely basis;
4. A form of letter that may be sent to your clients for whose account
you hold Original Debentures registered in your name or the name of your
nominee, with space provided for obtaining such clients' instructions with
regard to the Exchange Offer;
5. Guidelines for Certification of Taxpayer Identification Number on
Substitute Form W-9; and
6. Return envelopes addressed to The Chase Manhattan Bank, the
Exchange Agent for the Original Debentures.
YOUR PROMPT ACTION IS REQUESTED. THE EXCHANGE OFFER WILL EXPIRE AT 5:00
P.M., NEW YORK CITY TIME, ON JULY 8, 1998, UNLESS EXTENDED BY THE COMPANY (THE
"EXPIRATION DATE"). THE ORIGINAL DEBENTURES TENDERED PURSUANT TO THE EXCHANGE
OFFER MAY BE WITHDRAWN AT ANY TIME BEFORE THE EXPIRATION DATE. PLEASE FURNISH
COPIES OF THE ENCLOSED MATERIALS TO THOSE OF YOUR CLIENTS FOR WHOM YOU HOLD
ORIGINAL DEBENTURES IN YOUR NAME OR IN THE NAME OF YOUR NOMINEE OR WHO HOLD
ORIGINAL DEBENTURES REGISTERED IN THEIR OWN NAMES AS QUICKLY AS POSSIBLE.
<PAGE> 16
To participate in the Exchange Offer, a duly executed and properly
completed Letter of Transmittal (or facsimile thereof or an Agent's Message (as
defined in the Prospectus) in lieu thereof), with any required signature
guarantees and any other required documents, should be sent to the Exchange
Agent and certificates representing the Original Debentures should be delivered
to the Exchange Agent, all in accordance with the instructions set forth in the
Letter of Transmittal and in the Prospectus under the heading "The Exchange
Offer -- Procedures for Tendering Original Debentures." The Exchange Offer is
not being made to, nor will tenders be accepted from or on behalf of, holders of
original Debentures residing in any jurisdiction in which the making of an
Exchange Offer or the acceptance hereof would not be in compliance with the laws
of such jurisdiction.
If holders of Original Debentures wish to tender, but it is impracticable
for them to forward their certificates for Original Debentures prior to the
expiration of the Exchange Offer or to comply with the book-entry transfer
procedures on a timely basis, a tender may be effected by following the
guaranteed delivery procedures described in the Prospectus under "The Exchange
Offer -- Procedures for Tendering Original Debentures -- Guaranteed Delivery."
The Company will, upon request, reimburse brokers, dealers, commercial
banks and trust companies for reasonable and necessary costs and expenses
incurred by them in forwarding the Prospectus and the related documents to the
beneficial owners of the Original Debentures held by them as nominee or in a
fiduciary capacity. The Company will pay or cause to be paid all stock transfer
taxes applicable to the exchange of Original Debentures pursuant to the Exchange
Offer, except as set forth in Instruction 10 of the Letter of Transmittal.
Any inquiries you may have with respect to the Exchange Offer, or requests
for additional copies of the enclosed materials, should be directed to The Chase
Manhattan Bank, the Exchange Agent for the Original Debentures, at its address
and telephone number set forth on the front of the Letter of Transmittal.
NOTHING HEREIN OR IN THE ENCLOSED DOCUMENTS SHALL CONSTITUTE YOU OR ANY
PERSON AS AN AGENT OF THE COMPANY OR THE EXCHANGE AGENT, OR AUTHORIZE YOU OR ANY
OTHER PERSON TO USE ANY DOCUMENT OR MAKE ANY STATEMENTS ON BEHALF OF EITHER OF
THEM WITH RESPECT TO THE EXCHANGE OFFER, EXCEPT FOR STATEMENTS EXPRESSLY MADE IN
THE PROSPECTUS OR THE LETTER OF TRANSMITTAL.
Very truly yours,
The Boeing Company
Enclosures
2
<PAGE> 17
RE: THE BOEING COMPANY 6 5/8% ORIGINAL DEBENTURES DUE FEBRUARY 15, 2038 IN
EXCHANGE FOR THE BOEING COMPANY 6 5/8% EXCHANGE DEBENTURES DUE FEBRUARY
15, 2038
To Our Clients:
Enclosed for your consideration is a prospectus dated May 29, 1998 (the
"Prospectus"), and the related letter of transmittal (the "Letter of
Transmittal"), relating to the offer (the "Exchange Offer") of The Boeing
Company (the "Company") to exchange its 6 5/8% Debentures due February 15, 2038
for its outstanding 6 5/8% Debentures due July 15, 2038 (the "Original
Debentures"), upon the terms and subject to the conditions described in the
Prospectus. The Exchange Offer is being made in order to satisfy certain
obligations of the Company contained in the Registration Rights Agreement, dated
as of February 19, 1998, between the Company and the initial purchasers referred
to therein.
This material is being forwarded to you as the beneficial owner of the
Original Debentures carried by us in your account but not registered in your
name. A TENDER OF SUCH ORIGINAL DEBENTURES MAY ONLY BE MADE BY US AS THE HOLDER
OF RECORD AND PURSUANT TO YOUR INSTRUCTIONS.
Accordingly, we request instructions as to whether you wish us to tender on
your behalf the Original Debentures held by us for your account, pursuant to the
terms and conditions set forth in the enclosed Prospectus and Letter of
Transmittal.
Your instructions should be forwarded to us as promptly as possible in
order to permit us to tender the Original Debentures on your behalf in
accordance with the provisions of the Exchange Offer. The Exchange Offer will
expire at 5:00 p.m., New York City time, on July 8, 1998, unless extended by the
Company. Any Original Debentures tendered pursuant to the Exchange Offer may be
withdrawn at any time before the Expiration Date.
Your attention is directed to the following:
1. The Exchange Offer is for any and all Original Debentures, of which
$300,000,000 aggregate principal amount was outstanding as of May 29, 1998.
2. The Exchange Offer is subject to certain conditions set forth in
the Prospectus in the section captioned "The Exchange Offer -- Conditions
to the Exchange Offer."
3. Any transfer taxes incident to the transfer of Original Debentures
from the holder to the Company will be paid by the Company, except as
otherwise provided in the Instructions in the Letter of Transmittal.
4. The Exchange Offer expires at 5:00 p.m., New York City time, on
July 8, 1998, unless extended by the Company.
5. The Exchange Offer is not being made to, nor will tenders be
accepted from or on behalf of, holders of Original Debentures residing in
any jurisdiction in which the making of the Exchange Offer or the
acceptance thereof would not be in compliance with the laws of such
jurisdiction.
If you wish to have us tender your Original Debentures, please so instruct
us by completing, executing and returning to us the instruction form on the back
of this letter. THE LETTER OF TRANSMITTAL IS FURNISHED TO YOU FOR INFORMATION
ONLY AND MAY NOT BE USED DIRECTLY BY YOU TO TENDER ORIGINAL DEBENTURES.
