As filed with the Securities and Exchange Commission on January 19, 2000
Registration No. 333-
================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------------
FORM S-4
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
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DELTA AIR LINES, INC.
(Exact name of Registrant as specified in its charter)
<TABLE>
<S> <C> <C>
Delaware 4512 58-0218548
(State or other jurisdiction of (Primary Standard Industrial (I.R.S. Employer
incorporation or organization) Classification Code Number) Identification No.)
Hartsfield Atlanta International Airport
Atlanta, Georgia 30320
(404) 715-2600
(Address, including zip code, and telephone number, including area code, of Registrant's principal
executive offices)
</TABLE>
Copies of all communications to:
Robert S. Harkey, Esq. John Fouhey, Esq.
Senior Vice President-General Counsel and Secretary Davis Polk & Wardwell
Delta Air Lines, Inc. 450 Lexington Avenue
Hartsfield Atlanta International Airport New York, New York 10017
Atlanta, Georgia 30320 (212) 450-4000
(404) 715-2387
(Name, address, including zip code, and telephone number, including area
code, of agent for service)
-----------------------
Approximate date of commencement of proposed sale to the public: From time
to time after the effective date of this Registration Statement.
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 the same offering. |_|
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CALCULATION OF REGISTRATION FEE
=======================================================================================================================
Proposed Proposed
Maximum Maximum Amount of
Title of Each Class of Amount to Be Aggregate Aggregate Registration Fee
Securities Being Registered Registered Price Per Unit Offering Price (1)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
7.70% notes due 2005............................ $ 500,000,000 100% $ 500,000,000 $132,000
7.90% notes due 2009............................ $ 500,000,000 100% $ 500,000,000 $132,000
8.30% notes due 2029............................ $1,000,000,000 100% $1,000,000,000 $264,000
=======================================================================================================================
</TABLE>
(1) Calculated pursuant to Rule 457(f)(2) of the rules and regulations under the
Securities Act of 1933.
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 the registration statement shall become
effective on such date as the Commission, acting pursuant to said Section 8(a),
may determine.
================================================================================
<PAGE>
The information in this prospectus is not complete and may be changed. We may
not sell these securities until the registration statement filed with the
Securities and Exchange Commission is effective. This prospectus is not an
offer to sell these securities and it is not soliciting an offer to buy these
securities in any state where the offer or sale is not permitted.
SUBJECT TO COMPLETION, DATED JANUARY 19, 2000
PROSPECTUS
DELTA AIR LINES, INC.
Offer to Exchange
$500,000,000 7.70% notes due 2005
$500,000,000 7.90% notes due 2009
$1,000,000,000 8.30% notes due 2029
-----------------------
TERMS OF THE EXCHANGE OFFER
We are offering to exchange up to:
o $500,000,000 of our new 7.70% exchange notes due 2005 for up to
$500,000,000 of our existing 7.70% notes due 2005;
o $500,000,000 of our new 7.90% exchange notes due 2009 for up to
$500,000,000 of our existing 7.90% notes due 2009; and
o $1,000,000,000 of our new 8.30% exchange notes due 2029 for up to
$1,000,000,000 of our existing 8.30% notes due 2029.
We are offering to issue the exchange notes to satisfy our obligations
contained in the registration rights agreement entered into when the old notes
were sold in transactions exempt from registration under the Securities Act.
The terms of the exchange notes will be substantially identical to the
terms of the related series of old notes, except that the exchange notes will
be registered and the transfer restrictions, registration rights and provisions
for additional interest relating to the old notes will not apply to the
exchange notes. There is no existing market for the exchange notes, and Delta
does not intend to apply for their listing on any securities exchange.
All old notes that are validly tendered and not validly withdrawn will be
exchanged.
The exchange of old notes will not be a taxable exchange for U.S. federal
income tax purposes.
To exchange your old notes for the related series of exchange notes:
o You must complete and send the letter of transmittal that accompanies
this prospectus to The Bank of New York, the exchange agent, by 5:00
p.m., New York time, on , 2000, unless the exchange offer is
extended.
o If your old notes are held in book-entry form at The Depository Trust
Company, you must instruct DTC, through your signed letter of
transmittal, that you wish to exchange your old notes for exchange
notes. When the exchange offer closes, your DTC account will be
changed to reflect your exchange of old notes for exchange notes.
o Tenders of old notes may be withdrawn at any time prior to the
expiration of the exchange offer.
o You should read the section called "The Exchange Offer" for
additional information on how to exchange your old notes for exchange
notes.
-----------------------
Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or determined that
this prospectus is truthful or complete. Any representation to the contrary is
a criminal offense.
The date of this prospectus is , 2000.
<PAGE>
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TABLE OF CONTENTS
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Page
----
Prospectus Summary.............................................................3
Description of Exchange Notes..................................................6
The Exchange Offer............................................................12
Material United States Tax Consequences of the Exchange Offer.................18
Plan of Distribution..........................................................18
Legal Matters.................................................................18
Independent Auditors..........................................................18
Where You Can Find More Information...........................................19
Forward-Looking Statements....................................................20
-----------------------
You should rely only on the information contained in this prospectus or
information contained in documents which you are referred to in this
prospectus. Delta has not authorized anyone to provide you with information
different from that contained in this prospectus. Delta is offering to sell the
exchange notes only in jurisdictions where offers and sales are permitted. The
information contained in this prospectus is accurate only as of the date on the
front cover, regardless of the time of delivery of this prospectus or any sale
of the exchange notes.
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<PAGE>
PROSPECTUS SUMMARY
The following summary contains basic information about this exchange
offer. It may not contain all the information that is important to you in
making your investment decision. Therefore, you should read the entire document
carefully before deciding to exchange the old notes.
The "Description of Exchange Notes" section of this prospectus contains
more detailed information regarding the terms and conditions of the exchange
notes. Unless the context indicates otherwise, the words "company," "we,"
"our," "ours," "us" and "Delta" refer to Delta Air Lines, Inc. and its
consolidated subsidiaries.
Delta Air Lines, Inc.
Delta is a major airline engaged in domestic and foreign air
transportation. We provide scheduled air transportation over a network of
routes throughout the United States and between the United States and various
foreign countries. Based on calendar year 1999 data, Delta is the largest U.S.
airline in terms of aircraft departures and passengers enplaned, and the
third-largest as measured by operating revenues and revenue passenger miles
flown. Delta is the leader across the North Atlantic, offering the most daily
flight departures, serving the largest number of nonstop markets and carrying
the most passengers of any U.S. airline.
As of January 1, 2000, Delta (including Atlantic Southeast Airlines, Inc.
and Comair, Inc.) served 201 cities in 46 states, the District of Columbia,
Puerto Rico and the U.S. Virgin Islands, as well as 40 cities in 28 foreign
countries. With our domestic and international code-sharing partners, Delta's
route network covers 219 cities in 48 states, and 137 cities in 59 other
countries.
We operate hubs at Atlanta, Cincinnati, Dallas/Fort Worth and Salt Lake
City. We also operate an international gateway at New York's Kennedy Airport
and a Pacific gateway in Portland, Oregon. Our principal executive offices are
located at Hartsfield Atlanta International Airport, Atlanta, Georgia 30320,
and our telephone number is (404) 715-2600. We are incorporated under the laws
of the State of Delaware.
Consolidated Ratios of Earnings to Fixed Charges
The following table sets forth the historical ratios of earnings to fixed
charges of Delta and its consolidated subsidiaries for the periods indicated:
Six Months
Ended
Year Ended June 30, December 31,
------------------------------------- ------------
1995 1996 1997 1998 1999 1998 1999
---- ---- ---- ---- ---- ---- ----
(unaudited)
------------
1.69 1.43 3.05 3.41 3.45 3.04 3.67
Earnings represent:
o income before income taxes, excluding the cumulative effect of accounting
changes;
plus
o fixed charges, excluding capitalized interest and interest offset on the
Guaranteed Serial ESOP Notes of the Delta Family-Care Savings Plan, which
are guaranteed by Delta.
Fixed charges include:
o interest, whether expensed or capitalized, including gross interest on the
Guaranteed Serial ESOP Notes;
o amortization of debt issuance costs; and
o one-half of rental expense, except for the years ended June 30, 1997,
1996 and 1995, where one-third of the rentals were included in fixed
charges. Management of Delta believes this is representative of the
interest factor in those periods.
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The Exchange Offer
Exchange Notes...................... o $500,000,000 in principal amount of 7.70%
exchange notes due 2005.
o $500,000,000 in principal amount of 7.90%
exchange notes due 2009.
o $1,000,000,000 in principal amount of
8.30% exchange notes due 2029.
The Exchange Offer.................. We are offering to issue the exchange notes
in exchange for a like principal amount of
the related series of outstanding 7.70%
notes due 2005, 7.90% notes due 2009 and
8.30% notes due 2029, issued by Delta in a
private placement on December 14, 1999. We
are offering to issue the exchange notes
to satisfy our obligations contained in
the registration rights agreement entered
into when the old notes were sold in
transactions exempt from registration
under the Securities Act. The terms of the
exchange notes will be substantially
identical to the terms of the related
series of old notes, except that the
exchange notes will be registered and the
transfer restrictions, registration rights
and provisions for additional interest
relating to the old notes will not apply
to the exchange notes.
Conditions to the Exchange Offer.... The exchange offer is subject to
conditions, some of which Delta may waive.
Such conditions are more fully described
later in this prospectus under "The
Exchange Offer--Certain Conditions to the
Exchange Offer".
Maturity Date....................... Each exchange note will mature on December
15th of its year of maturity.
Interest Payment Dates.............. June 15 and December 15, beginning on June
15, 2000.
Ranking............................. The exchange notes are not secured by any
of Delta's property or assets. The
exchange notes are not subordinated to any
of Delta's other debt obligations and
therefore they rank equally with all of
Delta's other unsecured and unsubordinated
indebtedness.
Absence of Restrictive Covenants.... The indenture governing the exchange notes
does not contain any promises by Delta as
to how it will operate its business, and
does not restrict Delta's ability to incur
debt or grant liens on its assets.
Use of Proceeds..................... We will not receive any proceeds from the
issuance of the exchange notes.
Absence of a Public Market for the
Exchange Notes................. Delta does not intend to apply for a
listing of the exchange notes on any
securities exchange. The initial
purchasers of the old notes have advised
Delta that they currently intend to make a
market in the exchange notes following the
exchange offer, but they are not obligated
to do so, and any market-making may be
stopped at any time without notice. Delta
does not know if an active public market
for the exchange notes will develop or, if
developed, will continue. If an active
public market does not develop or is
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<PAGE>
not maintained, the market price and
liquidity of the exchange notes may be
adversely affected. Delta cannot make any
assurances regarding the liquidity of the
market for such exchange notes, the
ability of holders to sell their exchange
notes or the price at which holders may
sell their exchange notes.
Tenders, Expiration Date,
Withdrawal..................... The exchange offer will expire at 5:00 p.m.
New York City time on ,
2000, unless it is extended. If you decide
to exchange your old notes for exchange
notes, you must acknowledge that you are
not engaging in, and do not intend to
engage in, a distribution of the exchange
notes. If you decide to tender your old
notes pursuant to the exchange offer, you
may withdraw them at any time prior to
, 2000. If we decide for any reason
not to accept any old notes for exchange,
your old notes will be returned to you at
our expense promptly after the expiration
or termination of the exchange offer.
Appraisal or Dissenters' Rights;
Failure to Tender Old Notes.... Holders of old notes do not have any
appraisal or dissenters' rights in
connection with the exchange offer. If you
do not tender your old notes or Delta does
not accept your tender because, among
other things, you invalidly tendered your
old notes, you will not be entitled to any
further registration rights under the
registration rights agreement, except
under limited circumstances. However, your
old notes will remain outstanding and
entitled to the benefits of the indenture.
Material United States Tax
Consequences................... Your exchange of old notes for exchange
notes pursuant to the exchange offer will
not result in any income, gain or loss to
you for United States federal income tax
purposes. See "Material United States Tax
Consequences of the Exchange Offer".
Exchange Agent...................... The Bank of New York is the exchange agent
for the exchange offer.
5
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DESCRIPTION OF EXCHANGE NOTES
General
The old notes were, and the exchange notes will be, issued under an
indenture dated as of December 14, 1999. The indenture is a contract between us
and The Bank of New York, which acts as trustee. The trustee has two main
roles. First, the trustee can enforce your rights against us if we default.
There are some limitations on the extent to which the trustee acts on your
behalf, described under "Events of Default -- Remedies if an Event of Default
Occurs". Second, the trustee performs administrative duties for us, such as
sending you interest payments, transferring your notes to a new buyer if you
sell and sending you notices. The indenture, the registration rights agreement
and your notes contain the full legal text of the matters described in this
section. The indenture, the registration rights agreement and the notes are
governed by New York law. A copy of the indenture and the registration rights
agreement may be obtained from Delta as described under "Where You Can Find
More Information".
The following description of the provisions of the indenture, the
registration rights agreement and the notes is a summary only. Because this
section is a summary, it does not describe every aspect of the exchange notes.
This summary is subject to and qualified in its entirety by reference to all
the provisions of the indenture, the registration rights agreement and the
notes, including definitions of certain terms used in such agreements. The
numerical references below are to provisions of the indenture.
The terms of the exchange notes will be substantially identical to the
terms of the related series of old notes, except that the exchange notes will
be registered and the transfer restrictions, registration rights and provisions
for additional interest relating to the old notes will not apply to the
exchange notes.
We use the term "notes" in this prospectus to refer to both the old notes
and the exchange notes.
Though the old notes were, and the exchange notes for each related series
of old notes will be, offered separately, all of the notes will be issued under
the indenture. As a result, except as described below, all of the provisions of
the indenture apply to the old notes and the related series of exchange notes
as if they had been issued as a single series under the indenture. In
particular, references to the percentage of the outstanding notes necessary for
the holders to take certain action under the indenture refer to a percentage of
the outstanding notes of all series collectively.
Principal, Maturity and Interest
The notes will be unsecured obligations of Delta. The 7.70% exchange notes
due 2005 will be limited to $500,000,000 aggregate principal amount, the 7.90%
exchange notes due 2009 will be limited to $500,000,000 aggregate principal
amount and the 8.30% exchange notes due 2029 will be limited to $1,000,000,000
aggregate principal amount. The notes will not be redeemable at the option of
Delta or repayable at the option of the holders prior to their stated maturity
dates and will not be entitled to the benefits of a sinking fund. Interest on
the notes will be payable semi-annually on June 15 and December 15 of each
year, beginning on June 15, 2000, and each note will mature on December 15th of
its year of maturity.
All of the notes will be held initially in the form of one or more global
notes. See "Legal Ownership -- Global Notes" below for a general description of
the global notes.
Ranking
The notes are not secured by any of Delta's property or assets.
Accordingly, your ownership of notes means you are one of Delta's unsecured
creditors. The notes are not subordinated to any of Delta's other debt
obligations and therefore they rank equally with all of Delta's other unsecured
and unsubordinated indebtedness.
Special Situations
Mergers and Similar Events
Delta is generally permitted to consolidate or merge with another person.
Delta is also permitted to sell or lease substantially all of its assets to
another person. However, Delta may not take any of these actions unless all of
the following conditions are met:
o Where Delta merges out of existence or sells or leases substantially all
of its assets, the other person must be a person organized under the laws
of a state or the District of Columbia or under federal law, and it must
agree to be legally responsible for the notes.
o The merger, sale of assets or other transaction must not cause a default
on the notes, and Delta must not already be in default (unless the merger
or other transaction would cure the default). For purposes of this
no-default test, a default would include an event of default that has
occurred and
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not been cured. A default for this purpose would also include any event
that would be an event of default if the requirements for giving Delta
default notice or Delta's default having to exist for a specific period of
time were disregarded.
(Section 801)
Modification and Waiver
There are three types of changes we can make to the indenture and the
notes.
Changes Requiring Your Approval. First, there are changes that cannot be
made to your notes without your specific approval. Following is a list of those
types of changes:
o change the stated maturity of the principal or interest on a note;
o reduce any amounts due on a note;
o reduce the amount of principal payable upon acceleration of the maturity of
a note following a default;
o change the place or currency of payment on a note;
o impair your right to sue for payment;
o reduce the percentage of the principal amount of notes the consent of whose
holders is needed to modify or amend the indenture;
o reduce the percentage of the principal amount of notes the consent of
whose holders is needed to waive compliance with certain provisions of the
indenture or to waive certain defaults; or
o modify any other aspect of the provisions dealing with modification and
waiver of the indenture. (Section 902)
Changes Requiring a Majority Vote. The second type of change to the
indenture and the notes is the kind that requires a vote in favor by the
holders of notes owning a majority of the principal amount of the notes. Most
changes not requiring your specific approval fall into this category, except
for clarifying changes and certain other changes that would not adversely
affect holders of the notes discussed in the next paragraph. See the second
paragraph under "Description of the Exchange Notes -- General" for the
consequences of all series of notes voting together as a single class.
(Sections 901 and 902) We may obtain a waiver of a past default from the
holders of notes owning a majority of the principal amount of the notes.
However, we cannot obtain a waiver of a payment default or any other aspect of
the indenture or the notes listed above under "-- Changes Requiring Your
Approval" unless Delta obtains an individual consent to the waiver from every
holder. (Section 513)
Changes Not Requiring Approval. The third type of change to the indenture
and the notes does not require any vote by holders of notes. This type is
limited to clarifications and certain other changes that would not adversely
affect holders of the notes in any material respect. (Section 901) Holders of
notes will also not be eligible to vote if the notes have been fully defeased
as described below under "Defeasance -- Full Defeasance". (Section 1102)
Delta will generally be entitled to set any day as a record date for the
purpose of determining the holders of outstanding notes that are entitled to
vote or take other action under the indenture. Delta, however, will not be
permitted to set a record date in order to determine the holders of outstanding
notes that are entitled to:
o give notices of defaults;
o accelerate the maturity of the notes;
o rescind a declaration of acceleration; or
o direct the trustee in taking actions under the
indenture. (Section 104)
Street name and other indirect holders should consult their banks, brokers
or other financial institutions for information on how approval may be granted
or denied if Delta seeks to change the indenture or the notes or request a
waiver.
Absence of Restrictive Covenants
The indenture does not contain any promises by Delta as to how it will
operate its business, and does not restrict Delta's ability to incur debt or
grant liens on its assets.
Defeasance
Delta may be completely released from its payment and other obligations on
the notes or may be released from certain events of default as described below.
Full Defeasance. If there is a change in federal tax law, as described
below, we can legally release ourselves from any payment or other obligations
on the notes, called full defeasance, if we put in place the following other
arrangements for you to be repaid:
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o Delta must deposit in trust for the benefit of all direct holders of the
notes a combination of money and U.S. government or U.S. government agency
notes or bonds that will generate enough cash to make interest, principal
and any other payments on the notes on their various due dates.
o there must be a change in current federal tax law or a ruling from the
Internal Revenue Service that lets us make the above deposit without
causing you to be taxed on the notes any differently than if we did not
make the deposit and just repaid the notes in accordance with their terms.
Under current federal tax law, the deposit and our legal release from the
notes would be treated as though we took back your notes and gave you your
share of the cash and notes or bonds deposited in trust. In that event,
you could recognize gain or loss on the notes you give back to Delta.
o Delta must deliver to the trustee a legal opinion of Delta's counsel
confirming the tax law change described above. (Section 1102)
If we are able to fully defease the notes, as described above, you would
have to rely solely on the trust deposit for repayment on the notes. You could
not look to Delta for repayment.
Covenant Defeasance. Under current federal tax law, Delta can make the
same type of deposit described above and the events described in the fourth and
fifth bullet points below under "Events of Default -- What Is an Event of
Default?" will no longer constitute an event of default. This is called
covenant defeasance. In that event, you would lose the protection of such event
of default but would gain the protection of having money and securities set
aside in trust to repay the notes. In order to achieve covenant defeasance,
Delta must do the following:
o Delta must deposit in trust for the benefit of all direct holders of the
notes a combination of money and U.S. government or U.S. government agency
notes or bonds that will generate enough cash to make interest, principal
and any other payments on the notes on their respective due dates; and
o Delta must deliver to the trustee a legal opinion of its counsel
confirming that under current federal income tax law Delta may make the
above deposit without causing you to be taxed on the notes any differently
than if Delta did not make the deposit and simply repaid the notes in
accordance with their terms.
If Delta accomplishes covenant defeasance, you can still look to Delta for
repayment of the notes if there was a shortfall in the trust deposit. In fact,
if one of the remaining events of default occurred and the notes become
immediately due and payable, there may be such a shortfall. (Sections 1102 and
1103)
Events of Default
You will have special rights if an event of default occurs and is not
cured, as described later in this subsection.
What Is an Event of Default? The term "Event of Default" means any of the
following:
o Delta does not pay the principal on a note within 5 business days of its
due date.
o Delta does not pay interest on a note within 30 days of its due date.
o Delta remains in breach of a covenant or warranty of the indenture for 60
days after it receives a notice of default stating it is in breach. The
notice must be sent by either the trustee or holders of 25% of the
outstanding principal amount of the notes.
o Delta or any restricted subsidiary fails to pay at the final stated
maturity any indebtedness for borrowed money totaling over $75,000,000 and
Delta or the restricted subsidiary does not repay the indebtedness within
10 days after Delta receives a notice of default from the trustee or
holders of 25% of the outstanding principal amount of the notes.
o Delta or any restricted subsidiary defaults on any indebtedness for
borrowed money totaling over $75,000,000 and Delta's or the restricted
subsidiary's obligation to repay such indebtedness is accelerated, and
this repayment obligation remains accelerated for 10 days after Delta
receives a notice of default by the trustee or holders of 25% of the
outstanding principal amount of the notes.
o Delta files for bankruptcy or certain other events in bankruptcy,
insolvency or reorganization occur. (Section 501)
Certain Definitions Relating to the Events of Default. The following are
terms that are important to your understanding of the events of default.
"Restricted subsidiary" means a subsidiary of Delta that:
o has its properties and operations principally in
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the United States; and
o owns an airplane, or an engine installed in an airplane, with 75 or more
passenger seats. (Section 101)
"Restricted subsidiary", however, does not include a subsidiary of Delta
which is primarily engaged in the business of a finance company.
(Section 101)
"Subsidiary" is a corporation more than 50% of the voting stock of which is
owned by Delta and/or one or more of its other subsidiaries. Voting stock is a
kind of stock that ordinarily votes for the election of directors. (Section 101)
Remedies if an Event of Default Occurs. If an event of default has
occurred and has not been cured, the trustee or the holders of at least 25% of
the outstanding principal amount of the notes may declare the entire principal
amount of the notes to be due and immediately payable. This is called a
declaration of acceleration of maturity. However, a declaration of acceleration
may be cancelled, but only before a judgment or decree based on the
acceleration has been obtained, by the holders of at least a majority of the
outstanding principal amount of the notes. (Section 502)
Except in cases of default, where the trustee has some special duties, the
trustee is not required to take any action under the indenture at the request
of any holders unless the holders offer the trustee reasonable protection from
expenses and liability, called an indemnity. (Section 603) If reasonable
indemnity is provided, the holders of a majority of the outstanding principal
amount of the notes may direct the time, method and place of conducting any
lawsuit or other formal legal action seeking any remedy available to the
trustee. These majority holders may also direct the trustee in performing any
other action under the indenture. (Section 512)
Before you bypass the trustee and bring your own lawsuit or other formal
legal action or take other steps to enforce your rights or protect your
interests relating to the notes, the following must occur:
o You must give the trustee written notice that an event of default has
occurred and remains uncured.
o The holders of 25% of the outstanding principal amount of all the notes
must make a written request that the trustee take action because of an
event of default, and must offer reasonable indemnity to the trustee
against the cost and other liabilities of taking that action.
o The trustee must have not taken action for 60 days after receipt of the
above written request and offer of indemnity and no directions
inconsistent with the above written request have been given to the trustee
during such period.
(Section 507)
However, you are entitled at any time to bring a lawsuit for the payment of
money due on your note on or after its due date. (Section 508)
Street name and other indirect holders should consult their banks, brokers
or other financial institutions for information on how to give notice or
direction to or make a request of the trustee and to make or cancel a
declaration of acceleration.
Delta will furnish to the trustee every year a written statement of
certain of its officers certifying that to their knowledge Delta is in
compliance with the indenture and the notes, or else specifying any default and
indicating the nature and status of the default. (Section 1004)
Our Relationship to the Trustee
The Bank of New York and certain of its affiliates are the trustees under
a number of other indentures to which Delta is a party; some of these
indentures relate to indebtedness which is secured. If an event of default
occurred under the indenture relating to the notes or one of these other
indentures, The Bank of New York may be deemed to have a conflicting interest
with respect to the notes for purposes of the Trust Indenture Act of 1939 and,
accordingly, may be required to resign as trustee.
Legal Ownership
Street Name and Other Indirect Holders
Investors who hold notes in accounts at banks or brokers will generally
not be recognized by us as legal holders of notes. This is called holding in
street name. Instead, Delta would recognize only the bank or broker, or the
financial institution the bank or broker uses to hold its notes. These
intermediary banks, brokers and other financial institutions pass along
principal, interest and other payments on the notes, either because they agree
to do so in their customer agreements or because they are legally required to.
If you hold notes in street name, you should check with your own institution to
find out:
o how it handles securities payments and notices;
o whether it imposes fees or charges;
o how it would handle voting if required; and
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o how it would pursue rights under the notes if there were a default or
other event triggering the need for holders to act to protect their
interests.
Direct Holders
Our obligations, as well as the obligations of the trustee and those of
any third parties employed by us or the trustee, extend only to persons who are
registered as holders of notes. As described above, we do not have any
obligations to you if you hold notes in street name or other indirect means
because the notes are issued in the form of global notes as described below.
For example, once we make a payment to the registered holder, we have no
further responsibility for the payment, even if that holder is legally required
to pass the payment along to you as a street name customer but does not do so.
Global Notes
o What is a Global Note? A global note is a special type of indirectly held
note, as described under "Legal Ownership -- Street Name and Other
Indirect Holders". Since Delta will issue the notes only in the form of
global notes, the ultimate beneficial owners can only be indirect holders.
Delta does this by requiring that the global notes be registered in the
name of a financial institution it selects and by requiring that the notes
included in the global notes not be transferred to the name of any other
direct holder unless the special circumstances described below occur. The
financial institution that acts as the sole direct holder of the global
note is called the depositary. Any person wishing to own a note must do so
indirectly by virtue of an account with a bank, broker or other financial
institution that in turn has an account with the depositary.
o Special Investor Considerations for Global Notes. As an indirect holder, an
investor's rights relating to the global notes will be governed by the
account rules of the investor's financial institution and of the
depositary, as well as general laws relating to securities transfers. We
do not recognize this type of investor as a holder of notes and instead
deal only with the depositary that holds the global notes.
If you are an investor, you should be aware that:
o You cannot get notes registered in your own name.
o You cannot receive physical certificates for your interest in the notes.
o You will be a street name holder and must look to your own bank or broker
for payments on the notes and protection of your legal rights relating to
the notes. See "Legal Ownership -- Street Name and Other Indirect
Holders".
o You may not be able to sell interests in the notes to some insurance
companies and other institutions that are required by law to own their
securities in the form of physical certificates.
o The depositary's policies will govern payments, transfers, exchange and
other matters relating to your interest in the global notes. Delta and the
trustee have no responsibility for any aspect of the depositary's actions
or for its records of ownership interest in the global notes. Delta and
the trustee also do not supervise the depositary in any way.
o Special Situations When Global Notes Will Be Terminated. In a few special
situations described in the next paragraph, the global notes will
terminate and interests in them will be exchanged for physical
certificates representing notes. After that exchange, the choice of
whether to hold notes directly or in street name will be up to you. You
must consult your own bank or broker to find out how to have your
interests in the notes transferred to your own name, so that you will be a
direct holder. The rights of street name investors and direct holders in
the notes have been previously described in the subsections entitled
"--Street Name and Other Indirect Holders" and "--Direct Holders".
The special situations for termination of the global notes are:
o When the depositary notifies Delta that it is unwilling, unable or no
longer qualified to continue as depositary.
o When Delta notifies the trustee that it wishes to terminate the global
notes.
o When an event of default on the notes has occurred and has not been cured,
disregarding for this purpose any requirement of notice or that the
default exists for a specified period of time.
(Default is discussed above under "Events of Default".)
Form, Exchange and Transfer
of Physical Notes
The following discussion only applies if the global notes are terminated
as described above under "Legal Ownership -- Special Situations When Global
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Notes Will Be Terminated" and the notes are issued in the form of physical
certificates.
The notes will be issued:
o only in registered form;
o without interest coupons; and
o in denominations that are even multiples of $1,000. (Section 302)
You may have your notes divided into more notes of smaller denominations
or combined into fewer notes of larger denominations, as long as the total
principal amount is not changed. (Section 305) This is called an exchange.
You may exchange or transfer notes at the office of the trustee. The
trustee acts as our agent for registering notes in the names of holders and
transferring notes. Delta may change this appointment to another entity or
perform these functions itself. The entity performing the role of maintaining
the list of registered holders is called the security registrar. It will also
perform transfers. (Section 305)
You will not be required to pay a service charge to transfer or exchange
the notes, but you may be required to pay for any tax or other governmental
charge associated with the exchange or transfer. The transfer or exchange will
only be made if the security registrar is satisfied with your proof of
ownership. (Section 305)
Delta may cancel the designation of any particular transfer agent. Delta
may also approve a change in the office through which any transfer agent acts.
(Section 1002)
Payment and Paying Agents
We will pay interest to direct holders of the notes listed in the
trustee's records semi-annually at the close of business on each June 1 and
December 1 prior to an interest payment date, even if the direct holder no
longer holds the notes on the interest payment date. This date is called the
"regular record date". (Section 307)
Holders buying and selling notes must work out between them how to
compensate for the fact that we will pay all the interest for an interest
period to the one who is the registered holder on the regular record date. The
most common manner is to adjust the sales price of the notes to pro-rate
interest fairly between buyer and seller. This pro-rated interest amount is
called "accrued interest".
Delta will pay interest, principal and any other money due on the notes at
the corporate trust office of the trustee in New York City.
Delta may also arrange for additional payment offices, and may cancel or
change these offices, including its use of the trustee's corporate trust
office. These offices are called payment agents. Delta may also choose to act
as its own paying agent. Delta must notify you of changes in the paying agents
for the notes. (Section 1002)
So long as the notes are in global form, we will make all payments on the
notes to DTC. As discussed above under "Legal Ownership -- Direct Holders",
once we pay DTC we have no further responsibilities.
Street name and other indirect holders should consult their banks, brokers or
other financial institutions for information on how they will receive payments.
Notices
Delta and the trustee will send notices regarding the notes only to direct
holders, using their addresses as listed in the trustee's records. (Sections
101 and 106)
Regardless of who acts as paying agent, all money paid by Delta to a
paying agent that remains unclaimed at the end of two years after the amount is
due to direct holders will be repaid to Delta. After that two-year period, you
may only look to Delta for payment and not to the trustee, any other paying
agent or anyone else. (Section 1003)
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THE EXCHANGE OFFER
General
Pursuant to a registration rights agreement between Delta and the initial
purchasers of the old notes, we agreed to use our reasonable efforts to cause
to become effective a registration statement with respect to the issue of
exchange notes substantially identical to the terms of the related series of
old notes, except that the exchange notes will be registered and the transfer
restrictions, registration rights and provisions for additional interest
relating to the old notes will not apply to the exchange notes. Further, upon
such registration statement becoming effective, we agreed to offer the holders
of the old notes the opportunity to exchange their old notes for the related
series of exchange notes. Under existing SEC interpretations set forth in
several no-action letters to third parties, the exchange notes are, in general,
freely transferable (other than by holders who are broker-dealers or by an
affiliate of Delta) after the exchange offer without further registration under
the Securities Act. In the event that due to a change in current
interpretations by the SEC, we are not permitted to effect such exchange offer,
it is contemplated that we will instead file a shelf registration statement
covering resales by the holders of the old notes and will use our reasonable
efforts to cause such shelf registration statement to become effective and to
keep such shelf registration statement effective for a period ending on the
earlier of the second anniversary of the closing date, which is the date we
delivered the old notes to the initial purchasers (or, if Rule 144(k) is
amended to provide a shorter restrictive period, such shorter period) or such
time as there are no longer outstanding any registrable securities, which we
define in the registration rights agreement.
Terms of the Exchange Offer;
Period for Tendering Old Notes
Upon the terms and subject to the conditions set forth in this prospectus
and in the accompanying letter of transmittal, we will:
o accept for exchange old notes, which are properly tendered on or prior to
the expiration date and not withdrawn as permitted below; and
o keep the exchange offer open for not less than 30 days (or longer if
required by applicable law) after the date notice of the exchange offer is
mailed to the holders of the old notes, ending no later than 45 business
days after the registration statement becomes effective.
The term "expiration date" means 5:00 p.m., New York City time, on
, 2000; provided, however, that if we, in our sole discretion, have
extended the period of time for which the exchange offer is open, the term
"expiration date" means the latest time and date to which the exchange offer is
extended.
As of the date of this prospectus, $500,000,000 in aggregate principal
amount of 7.70% notes due 2005, $500,000,000 in aggregate principal amount of
7.90% notes due 2009 and $1,000,000,000 in aggregate principal amount of 8.30%
notes due 2029, were outstanding. The exchange offer is not conditioned upon
any minimum principal amount of old notes being tendered. This prospectus,
together with the letter of transmittal, is first being sent on or about the
date set forth on the cover page to all holders of old notes at the addresses
set forth in the security register with respect to old notes maintained by the
trustee.
We expressly reserve the right:
o at any time or from time to time, to extend the period of time during
which the exchange offer is open, and thereby delay acceptance of any old
notes; and
o to amend or terminate the exchange offer, and not to accept for exchange
any old notes not previously accepted for exchange, upon the occurrence of
any of the conditions of the exchange offer specified below under "Certain
Conditions to the Exchange Offer".
We will give oral or written notice of any extension, amendment,
non-acceptance or termination to the holders of the old notes as promptly as
practicable, such notice in the case of any extension to be issued by means of
a press release or other public announcement 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 we may choose to make any public
announcement and subject to applicable law, we shall have no obligation to
publish, advertise or otherwise communicate any such public announcement other
than by issuing a release to the Dow Jones News Service.
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Holders of old notes do not have appraisal or dissenters' rights in
connection with the exchange offer. Old notes that are not tendered for
exchange or are tendered but not accepted in connection with the exchange offer
will remain outstanding and 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. We intend to conduct the
exchange offer in accordance with the applicable requirements of the Exchange
Act and the relevant rules and regulations of the SEC.
Procedures for Tendering Old Notes
The tender to us of old notes by a holder as set forth below and the
acceptance of the old notes by us will constitute a binding agreement between
the tendering holder and us upon the terms and subject to the conditions set
forth in this prospectus and in the accompanying letter of transmittal. Except
as set forth below, a holder who wishes to tender old notes for exchange
pursuant to the exchange offer must transmit a properly completed and duly
executed letter of transmittal, including all other documents required by such
letter of transmittal, to The Bank of New York, who is acting as our exchange
agent, at the address set forth below under "Exchange Agent" on or prior to the
expiration date. In addition:
o certificates for such old notes must be received by the exchange agent
along with the letter of transmittal; or
o a timely confirmation of a book-entry transfer of such old notes, if such
procedure is available, into the exchange agent's account at DTC pursuant
to the procedure for book-entry transfer described below, must be received
by the exchange agent prior to the expiration date; or
o the holder must comply with the guaranteed delivery procedures described
below.
The method of delivery of old notes, letters of transmittal and all other
required documents is at the election and risk of the holders. If such delivery
is by mail, we recommend that you use registered mail, properly insured, with
return receipt requested. In all cases, sufficient time should be allowed to
assure timely delivery. No letters of transmittal or old notes should be sent
to Delta.
Signatures on a letter of transmittal or a notice of withdrawal, as the
case may be, must be guaranteed unless the old notes surrendered for exchange
pursuant thereto are tendered:
o by a registered holder of the old notes who has not completed the box
entitled "Special Issuance Instructions" or "Special Delivery
Instructions" on the letter of transmittal; or
o for the account of an eligible institution.
If signatures on a letter of transmittal or a notice of withdrawal, as the
case may be, are required to be guaranteed, such guarantees must be by an
eligible institution, which is a firm that is a member of a registered national
securities exchange or a member of the National Association of Securities
Dealers, Inc., or a commercial bank or trust company having an office or
correspondent in the United States. If old notes are registered in the name of
a person other than the person signing the letter of transmittal, the old notes
surrendered for exchange must be endorsed by, or be accompanied by a written
instrument or instruments of transfer or exchange, in satisfactory form as
determined by us in our sole discretion, duly executed by the registered holder
with the signature thereon guaranteed by an eligible institution.
All questions as to the validity, form, eligibility (including time of
receipt) and acceptance of old notes tendered for exchange will be determined
by us in our sole discretion, and our determination will be final and binding
on all parties. We reserve the absolute right:
o to reject any and all tenders of any particular old notes not properly
tendered or to not accept any particular old notes which acceptance might,
in our judgment or the judgment of our counsel, be unlawful; and
o to waive any defects or irregularities or conditions of the exchange offer
as to any particular old notes either before or after the expiration date
(including the right to waive the ineligibility of any holder who seeks to
tender old notes in the exchange offer).
Unless waived, any defects or irregularities in connection with the tender
of old notes for exchange must be cured within such reasonable period of time
as we determine. Neither we, the exchange agent nor any other person will be
under any duty to give notification of any defect or irregularity with respect
to any tender of old notes for exchange, nor will we or any of them incur any
liability for failure to give such notification.
If the letter of transmittal is signed by a person or persons other than
the registered holder or holders of old notes, such old notes must be endorsed
or accompanied by appropriate powers of attorney, in either case signed exactly
as the name or names of the registered holder or holders that appear on the old
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notes.
If the letter of transmittal or any old notes or powers of attorney are
signed by trustees, executors, administrators, guardians, attorneys-in-fact,
officers or corporations or others acting in a fiduciary or representative
capacity, such person should so indicate when signing and, unless waived by us,
submit proper evidence satisfactory to us of its authority to so act.
By executing, or otherwise becoming bound by, a letter of transmittal,
each holder of the old notes (other than certain specified holders) will
represent that:
o it is not our affiliate;
o any exchange notes to be received by it were acquired in the ordinary
course of its business; and
o it has no arrangement with any person to participate in the distribution
(within the meaning of the Securities Act) of the exchange notes.
If the tendering holder is a broker-dealer that will receive exchange
notes for its own account in exchange for the related series of old notes that
were acquired as a result of market-making activities or other trading
activities, it will be required to acknowledge that it will deliver a
prospectus in connection with any resale of such exchange notes.
See "--Resale of the Exchange Notes".
Acceptance of Old Notes for Exchange;
Delivery of Exchange Notes
Upon satisfaction or waiver of all of the conditions to the exchange
offer, we will accept, promptly after the expiration date, all old notes
properly tendered and will issue the related series of exchange notes promptly
after acceptance of the old notes. See "Certain Conditions to the Exchange
Offer" below. For purposes of the exchange offer, we will be deemed to have
accepted properly tendered old notes for exchange if and when we have given
oral or written notice thereof to the exchange agent.
In all cases, issuance of exchange notes for the related series of old
notes that are accepted for exchange pursuant to the exchange offer will be
made only after timely receipt by the exchange agent of certificates for such
old notes or a timely book-entry confirmation of such old notes into the
exchange agent's account at DTC pursuant to the book-entry transfer procedures
described below, a properly completed and duly executed letter of transmittal
and all other required documents. If any tendered old notes are not accepted
for any reason set forth in the terms and conditions of the exchange offer or
if certificates representing old notes are submitted for a greater principal
amount than the holder desires to exchange, such unaccepted or non-exchanged
old notes will be returned without expense to the tendering holder thereof (or,
in the case of old notes tendered by book-entry transfer into the exchange
agent's account at DTC pursuant to the book-entry transfer procedures described
below, such non- exchanged old notes will be credited to an account maintained
with DTC) as promptly as practicable after the expiration or termination of the
exchange offer.
Book-Entry Transfer
Promptly after the date of this prospectus, the exchange agent will make a
request to establish an account with respect to the old notes at DTC for
purposes of the exchange offer. Any financial institution that is a participant
in DTC's systems may make book-entry delivery of old notes by causing DTC to
transfer such old notes into the exchange agent's account in accordance with
DTC's Automated Tender Offer Program ("ATOP"), procedures for transfer.
However, the exchange for the old notes so tendered will only be made after
timely confirmation of such book-entry transfer of old notes into the exchange
agent's account, and timely receipt by the exchange agent of an agent's message
and any other documents required by the letter of transmittal. The term
"agent's message" means a message, transmitted by DTC and received by the
exchange agent and forming a part of a book-entry confirmation, which states
that DTC has received an express acknowledgment from a participant tendering
old notes that are the subject of such book-entry confirmation, that such
participant has received and agrees to be bound by the terms of the letter of
transmittal, and that we may enforce such agreement against such participant.
Although delivery of old notes may be effected through book-entry transfer
into the exchange agent's account at DTC, the letter of transmittal (or
facsimile thereof), properly completed and duly executed, with any required
signature guarantees and any other required documents, must in any case be
delivered to and received by the exchange agent at its address set forth under
"--Exchange Agent" on or prior to the expiration date, or the guaranteed
delivery procedure
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set forth below must be complied with.
Delivery of documents to DTC in accordance with its procedures does not
constitute delivery to the exchange agent.
Guaranteed Delivery Procedures
If a registered holder of the old notes desires to tender such old notes
and (1) the old notes are not immediately available, (2) time will not permit
such holder's old notes or other required documents to reach the exchange agent
before the expiration date of the exchange offer, or (3) the procedure for
book-entry transfer cannot be completed on a timely basis, a tender may be
effected if:
o the tender is made through an eligible institution;
o prior to the expiration date of the exchange offer, the exchange agent
receives from such eligible institution a properly completed and duly
executed letter of transmittal (or a facsimile letter of transmittal) and
notice of guaranteed delivery, substantially in the form provided by us
(by telegram, telex, facsimile transmission, mail or hand delivery),
setting forth the name and address of the holder of old notes and the
amount of old notes tendered, stating that the tender is being made
thereby and guaranteeing that within five New York Stock Exchange trading
days after the date of execution of the notice of guaranteed delivery, the
certificates of all physically tendered old notes, in proper form for
transfer, or a book-entry confirmation, as the case may be, and any other
documents required by the letter of transmittal will be deposited by the
eligible institution with the exchange agent; and
o the certificates for all physically tendered old notes, in proper form for
transfer, or a book-entry confirmation, as the case may be, and all other
documents required by the letter of transmittal, are received by the
exchange agent within five New York Stock Exchange trading days after the
date of execution of the notice of guaranteed delivery.
Withdrawal Rights
Tenders of old notes may be withdrawn at any time prior to the expiration
date.
For a withdrawal to be effective, a written notice of withdrawal must be
received by the exchange agent at one of the addresses set forth below under
"Exchange Agent". Any such notice of withdrawal must specify:
o the name of the person having tendered the old notes to be withdrawn;
o the old notes to be withdrawn (including the principal amount of such old
notes); and
o where certificates for old notes have been transmitted, the name in which
such old notes are registered, if different from that of the withdrawing
holder.
If certificates for old notes have been delivered or otherwise identified
to the exchange agent, then, prior to the release of such certificates, the
withdrawing holder must also submit the serial numbers of the particular
certificates to be withdrawn and a signed notice of withdrawal with signatures
guaranteed by an eligible institution unless such holder is an eligible
institution. If old notes have been tendered pursuant to the procedure for
book-entry transfer described above, any notice of withdrawal must specify the
name and number of the account at DTC to be credited with the withdrawn old
notes and otherwise comply with the procedures of such facility. All questions
as to the validity, form and eligibility (including time of receipt) of such
notices will be determined by us in our sole discretion, and our determination
will be final and binding on all parties.
Any old notes so withdrawn will be deemed not to have been validly
tendered for exchange for purposes of the exchange offer. Any old notes which
have been tendered for exchange but which are not exchanged for any reason will
be returned to its holder without cost to such holder (or, in the case of old
notes tendered by book-entry transfer into the exchange agent's account at DTC
pursuant to the book-entry transfer procedures described above, such old notes
will be credited to an account maintained with DTC for the old notes) as soon
as practicable after withdrawal, rejection of tender or termination of the
exchange offer. Properly withdrawn old notes may be re-entered by following one
of the procedures described under "Procedures for Tendering Old Notes" above at
any time on or prior to the expiration date.
Certain Conditions to the Exchange Offer
Notwithstanding any other provisions of the exchange offer, we are not
required to accept for exchange, or to issue exchange notes in exchange for,
any related series of old notes, and we may terminate or amend the exchange
offer, if at any time before the acceptance of such old notes for exchange or
the exchange of the related series of exchange notes for
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such old notes, such acceptance or issuance would violate applicable law or any
interpretation of the SEC's staff.
The condition in the paragraph immediately above is for our sole benefit
and may be asserted by us regardless of the circumstances giving rise to such
condition. Our failure at any time to exercise the foregoing rights is not to
be deemed a waiver of any such right and each such right shall be deemed an
ongoing right which may be asserted at any time and from time to time.
In addition, we will not accept for exchange any old notes tendered, and
no exchange notes will be issued in exchange for any such old notes, if at such
time any stop order is threatened or in effect with respect to the registration
statement of which this prospectus constitutes a part or the qualification of
the indenture under the Trust Indenture Act.
Exchange Agent
The Bank of New York has been appointed as the exchange agent for the
exchange offer. All executed letters of transmittal should be directed to the
exchange agent at one of the addresses set forth below. Questions and requests
for assistance, requests for additional copies of this prospectus or of the
letter of transmittal and requests for notices of guaranteed delivery should be
directed to the exchange agent, addressed as follows:
Deliver To:
The Bank of New York, Exchange Agent
By Registered or Certified Mail:
101 Barclay Street
Reorganization Department- 7E
New York, New York 10286
Attn: Gertrude Jean-Pierre
By Overnight Delivery or Hand:
101 Barclay Street
Reorganization Department- 7E
New York, New York 10286
Attn: Gertrude Jean-Pierre
By Facsimile:
(212) 815-6339
To Confirm by Telephone or for Information:
(212) 815-5920
Delivery to an address other than as set forth above or transmission of
instructions via facsimile other than as set forth above does not constitute a
valid delivery.
Fees and Expenses
The principal solicitation is being made by mail; however, additional
solicitation may be made by telegraph, telecopy, telephone or in person by our
officers, regular employees, affiliates and agents. We will not pay any
additional compensation to any such officers and employees who engage in
soliciting tenders. We will not make any payment to brokers, dealers, or others
soliciting acceptances of the exchange offer. However, we will 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 estimated cash expenses to be incurred in connection with the exchange
offer will be paid by us and are estimated in the aggregate to be $130,000.
Accounting Treatment
The exchange notes will be recorded at the same carrying value as the
related series of old notes. Accordingly, Delta will not recognize any gain or
loss for accounting purposes. Delta intends to amortize the expenses of the
exchange offer and issuance of the old notes over the respective terms of each
series of the exchange notes.
Transfer Taxes
Holders who tender their old notes for exchange will not be obligated to
pay any transfer taxes in connection therewith, except that holders who
instruct us to register exchange notes in the name of, or request that old
notes not tendered or not accepted in the exchange offer to be returned to, a
person other than the registered tendering holder will be responsible for the
payment of any applicable transfer tax thereon.
Resale of the Exchange Notes
Under existing interpretations of the SEC's staff contained in several
no-action letters to third parties, the exchange notes would be freely
transferable after the exchange offer without further registration under the
Securities Act. However, any purchaser of old notes who is an "affiliate" of
ours or who intends to participate in the exchange offer for the purpose of
distributing the exchange notes:
o will not be able to rely on the interpretation of the SEC's staff;
o will not be able to tender its old notes in the
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exchange offer; and
o must comply with the registration and prospectus delivery requirements of
the Securities Act in connection with any sale or transfer of the old
notes unless such sale or transfer is made pursuant to an exemption from
such requirements.
By executing, or otherwise becoming bound by, the letter of transmittal
each holder of the old notes (other than certain specified holders) will
represent that:
o it is not our affiliate;
o any exchange notes to be received by it were acquired in the ordinary
course of its business; and
o it has no arrangement with any person to participate in the distribution
(within the meaning of the Securities Act) of the exchange notes.
In addition, in connection with any resales of exchange notes, any
participating broker-dealer who acquired the old notes for its own account as a
result of market-making or other trading activities must deliver a prospectus
meeting the requirements of the Securities Act. The SEC has taken the position
that participating broker-dealers may fulfill their prospectus delivery
requirements with respect to the exchange notes (other than a resale of an
unsold allotment from the original sale of the old notes) with the prospectus
contained in the exchange offer registration statement. Under the registration
rights agreement, we are required to allow participating broker-dealers and
other persons, if any, subject to similar prospectus delivery requirements to
use this prospectus as it may be amended or supplemented from time to time, in
connection with the resale of such exchange notes.
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MATERIAL UNITED STATES TAX CONSEQUENCES OF THE EXCHANGE OFFER
The exchange of old notes for the related series of exchange notes
pursuant to the exchange offer will not result in any United States federal
income tax consequences to holders. When a holder exchanges an old note for an
exchange note pursuant to the exchange offer, the holder will have the same
adjusted basis and holding period in the exchange note as in the old note
immediately before the exchange.
PLAN OF DISTRIBUTION
Each participating broker-dealer in connection with the exchange offer
must acknowledge that it will deliver a prospectus in connection with any
resale of exchange notes. 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 notes received in exchange for old notes where such
old notes were acquired as a result of market-making activities or other
trading activities. We have agreed that we will make this prospectus, as
amended or supplemented, available to any participating broker-dealer for use
in connection with any such resale and participating broker-dealers shall be
authorized to deliver this prospectus for a period ending upon the earlier of
the expiration of the 90th day after the exchange offer has been completed or
such time as such broker-dealers no longer own any registrable securities,
which we define in the registration rights agreement.
We will not receive any proceeds from any sales of the exchange notes by
participating broker-dealers. Exchange notes received by participating
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
notes or a combination of such methods of resale, at market prices prevailing
at the time of resale, at prices related to such prevailing market prices or at
negotiated prices. Any such resale may be made directly to purchasers or to or
through brokers or dealers who may receive compensation in the form of
commissions or concessions from any such participating broker-dealer that
resells the exchange notes that were received by it for its own account
pursuant to the exchange offer. Any broker or dealer that participates in a
distribution of such exchange notes may be deemed to be an "underwriter" within
the meaning of the Securities Act and any profit on any such resale of exchange
notes and any omissions 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 participating broker-dealer will not be deemed to admit that it
is an "underwriter" within the meaning of the Securities Act.
We will promptly send additional copies of this prospectus and any
amendment or supplement to this prospectus to any participating broker-dealer
that requests such documents in the letter of transmittal.
See "The Exchange Offer".
LEGAL MATTERS
The validity of the exchange notes offered hereby will be passed upon for
us by Davis Polk & Wardwell, New York, New York.
INDEPENDENT AUDITORS
The consolidated financial statements and schedules included or
incorporated by reference in our Annual Report on Form 10-K for the fiscal year
ended June 30, 1999 and incorporated by reference in this prospectus have been
audited by Arthur Andersen LLP, independent public auditors, as indicated in
their reports with respect thereto and are incorporated herein by reference in
reliance upon the authority of said firm as experts in accounting and auditing
in giving said reports.
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WHERE YOU CAN FIND MORE INFORMATION
We file annual, quarterly and special reports, proxy statements and other
information with the Securities and Exchange Commission. You may read and copy
any documents we file at the SEC's public reference room, 450 Fifth Street,
N.W., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further
information on the public reference room. Our SEC filings are also available to
the public on the SEC's web site at http://www.sec.gov and through the New York
Stock Exchange, 20 Broad Street, New York, New York 10005, on which our common
stock is listed.
The SEC allows us to "incorporate by reference" the information we file
with them, which means that we can disclose important information to you by
referring you to those documents. The information incorporated by reference is
considered to be part of this prospectus, and later information that we file
with the SEC will automatically update and supersede this information as well
as the information included in this prospectus. We incorporate by reference the
documents listed below and any future filings made with the SEC under Sections
13(a), 13(c), 14, or 15(d) of the Securities Exchange Act of 1934 until all of
the exchange notes are sold.
o Annual Report on Form 10-K for the fiscal year ended June 30, 1999;
o Quarterly Report on Form 10-Q for the quarter ended September 30, 1999; and
o Current Report on Form 8-K dated November 30, 1999.
We have agreed with the initial purchasers of the old notes that, if we
are no longer subject to the informational requirements of Section 13 or 15(d)
of the Securities Exchange Act of 1934, we will furnish to holders and
beneficial owners of the notes and to prospective purchasers designated by such
holders the information required to be delivered pursuant to Rule 144A(d)(4)
under the Securities Act to permit compliance with Rule 144A in connection with
resales of the notes.
Any party to whom this prospectus is delivered, including a holder in
street name, may request a copy of these filings (other than any exhibits
unless specifically incorporated by reference into this prospectus), at no
cost, by writing or telephoning us at the following address:
Delta Air Lines, Inc.
Investor Relations Department
(Dept. No. 829)
P.O. Box 20706
Atlanta, Georgia 30320
(404) 715-2600
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FORWARD-LOOKING STATEMENTS
This prospectus includes certain statements that are not purely historical
facts, including statements regarding our beliefs, expectations, intentions or
strategies for the future, which may be deemed "forward-looking statements" as
defined in the Private Securities Litigation Reform Act of 1995.
Any forward-looking statements involve a number of risks and uncertainties
that could cause actual results to differ materially from the plans, intentions
and expectations reflected in or suggested by the forward-looking statements.
Factors and events that could cause these differences include, but are not
limited to:
o general economic conditions, both in the United States and in our markets
outside the United States;
o competitive factors, such as the airline pricing environment,
international alliances, code- sharing programs and capacity decisions by
competitors;
o outcomes of negotiations on collective bargaining agreements;
o changes in aircraft fuel prices;
o fluctuations in foreign currency exchange rates;
o actions by the United States and foreign governments;
o the willingness of customers to travel generally and with us specifically,
which could be affected by such factors such as our on-time performance,
our baggage handling performance, how well we respond to customer
complaints and our and the industry's safety record;
o Year 2000 computer issues, including our ability to identify and remediate
all date-sensitive lines of computer code or to replace embedded computer
chips in affected systems or equipment, the availability of qualified
personnel and other information technology resources and the actions of
governmental agencies or other third parties with respect to year 2000
problems;
o unforeseen or unknown issues arising out of our acquisitions of ASA or
Comair; and
o the outcome of our litigation.
Forward-looking statements made by us are based on our knowledge of our
business and the environment in which we operate, but because of the factors
listed above, as well as other factors beyond our control, actual results may
differ, perhaps materially, from those anticipated in the forward- looking
statements.
All forward-looking statements attributable to us or persons acting on our
behalf are expressly qualified in their entirety by those cautionary
statements. We will not update these forward-looking statements even though our
situation will change in the future.
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PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 20. Indemnification of Directors and Officers.
Section 102 of the Delaware General Corporation Law ("DGCL") allows a
corporation to eliminate the personal liability of directors of a corporation
to the corporation or to any of its stockholders for monetary damages for a
breach of fiduciary duty as a director, except (i) for breach of the director's
duty of loyalty, (ii) for acts of omissions not in good faith or which involve
intentional misconduct or a knowing violation of law, (iii) for certain
unlawful dividends and stock repurchases or (iv) for any transaction from which
the director derived an improper personal benefit. Article Eighteenth of the
Certificate of Incorporation of Delta (the "Certificate") provides that no
director shall be personally liable to Delta or its stockholders for monetary
damages for any breach of his fiduciary duty as a director, except as provided
in Section 102 of the DGCL.
Section 145 of the DGCL provides that in the case of any action other than
one by or in the right of the corporation, a corporation may indemnify any
person who was or is a party or is threatened to be made a party to any action,
suit or proceeding, whether civil, criminal, administrative or investigative,
by reason of the fact that such person is or was a director, officer, employee
or agent of the corporation, or is or was serving at the request of the
corporation in such capacity on behalf of another corporation or enterprise,
against expenses (including attorneys' fees), judgments, fines and amounts paid
in settlement actually and reasonably incurred by him in connection with such
action 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.
Section 145 of the DGCL provides that in the case of an action by or in
the right of a corporation to procure a judgment in its favor, a corporation
may indemnify any person who was or is a party or is threatened to be made a
party to any action or suit by reason of the fact that such person is or was a
director, officer, employee or agent of the corporation, or is or was serving
at the request of the corporation in such capacity on behalf of another
corporation or enterprise, against expenses (including attorneys' fees)
actually and reasonably incurred by him in connection with the defense or
settlement or such action or suit if he acted under standards similar to those
set forth in the preceding paragraph, except that no indemnification may be
made in respect of any action or claim as to which such person shall have been
adjudged to be liable to the corporation unless a court determines that such
person is fairly and reasonably entitled to indemnification.
Article Tenth of Delta's Certificate provides that Delta shall to the
extent permitted by law indemnify any person for all liabilities incurred by or
imposed upon him as a result of any actual or threatened action, suit or
proceeding, whether civil, criminal, administrative or investigative, in which
he shall be involved by reason of the fact that he is or was serving as a
director, officer or employee of Delta, or that, at the request of Delta, he is
or was serving another corporation or enterprise in any capacity.
Delta has purchased and maintains at its expense on behalf of directors
and officers insurance, within certain limits, covering liabilities that may be
incurred by them in such capacities.
Item 21. Exhibits and Financial Statement Schedules
(a) Exhibits (see index to exhibits at E-1).
Item 22. Undertakings
The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made, a
post-effective amendment to this registration statement:
(i) To include any prospectus required by Section 10(a)(3) of the
Securities Act of 1933 ("Securities Act");
(ii) To reflect in the prospectus any facts or events arising after the
effective date of the registration statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate,
represent a fundamental change in the information set forth in the
registration statement; and
I-1
<PAGE>
(iii) To include any material information with respect to the plan of
distribution not previously disclosed in the registration statement or any
material change to such information in the registration statement;
provided, however, that paragraphs (1)(i) and (1)(ii) do not apply if the
information required to be included in a post-effective amendment by those
paragraphs is contained in periodic reports filed pursuant to Section 13
or Section 15(d) of the Securities Exchange Act of 1934 that are
incorporated by reference in the registration statement.
(2) That, for the purpose of determining any liability under the
Securities Act, each such post-effective amendment shall be deemed to be a new
registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial bona
fide offering thereof.
(3) To remove from registration by means of a post-effective amendment any
of the securities being registered which remain unsold at the termination of
the offering.
(4) That, for purposes of determining any liability under the Securities
Act, each filing of the registrant's annual report pursuant to Section 13(a) or
15(d) of the Securities Exchange Act of 1934 that is incorporated by reference
in the registration statement shall be deemed to be a new registration
statement relating to the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial bona fide offering
thereof.
Insofar as indemnification for liabilities arising under the Securities
Act may be permitted to directors, officers and controlling persons of the
registrant pursuant to the foregoing provisions, or otherwise, the registrant
has been advised that in the opinion of the 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 that the payment by the
registrant of expenses incurred or paid by a director, officer or controlling
person of such 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.
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SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant
certifies that it has reasonable grounds to believe that it meets all the
requirements for filing on Form S-4, and has duly caused this registration
statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Atlanta, and State of Georgia, on the 19th day of
January, 2000.
DELTA AIR LINES, INC.
By: /s/ EDWARD H. WEST
-----------------------------------
Edward H. West
Executive Vice President and
Chief Financial Officer
The registrant and each person whose signature appears below constitutes
and appoints each of Leo F. Mullin, Edward H. West and M. Michele Burns, or any
of them, each acting alone, his or her true and lawful attorney-in-fact and
agent, with full power of substitution and resubstitution, for him or her and
in his or her name, place and stead, in any and all capacities, to sign and
file any and all amendments (including post-effective amendments) to this
registration statement, with all exhibits thereto, and other documents in
connection therewith, with the Securities and Exchange Commission, granting
unto said attorney-in-fact and agent, full power and authority to do and
perform each and every act and thing requisite or necessary to be done in and
about the premises, as fully to all intents and purposes as he or she might or
could do in person, hereby ratifying and confirming all that said
attorney-in-fact and agent or his or her substitute or substitutes, may
lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, this
registration statement has been signed below by or on behalf of the following
persons in the capacities indicated on the 19th day of January, 2000.
Signature Title
--------- -----
/s/ LEO F. MULLIN Chairman of the Board, President and Chief
- ------------------------------ Executive Officer
Leo F. Mullin (Principal Executive Officer)
/s/ EDWIN L. ARTZT Director
- ------------------------------
Edwin L. Artzt
/s/ JAMES L. BROADHEAD Director
- ------------------------------
James L. Broadhead
/s/ EDWARD H. BUDD Director
- ------------------------------
Edward H. Budd
/s/ R. EUGENE CARTLEDGE Director
- ------------------------------
R. Eugene Cartledge
/s/ MARY JOHNSTON EVANS Director
- ------------------------------
Mary Johnston Evans
/s/ GEORGE M. C. FISHER Director
- ------------------------------
George M. C. Fisher
/s/ DAVID R. GOODE Director
- ------------------------------
David R. Goode
/s/ GERALD GRINSTEIN Director
- ------------------------------
Gerald Grinstein
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Signature Title
--------- -----
/s/ EDWARD H. WEST Executive Vice President and Chief Financial
- ------------------------------- Officer (Principal Financial Officer and
Edward H. West Principal Accounting Officer)
I-4
<PAGE>
EXHIBIT INDEX
Exhibit No. Document
- ---------- --------
4.1 Registration Rights Agreement dated as of December 14, 1999
between Delta Air Lines, Inc., Goldman, Sachs & Co., Chase
Securities Inc., Salomon Smith Barney Inc., ABN AMRO
Incorporated, Commerzbank Capital Markets Corporation, IBJ
International plc, SunTrust Equitable Securities Corporation,
Wachovia Securities, Inc., Banc One Capital Markets, Inc. and
Blaylock & Partners, L.P.
4.2 Indenture dated as of December 14, 1999 between Delta Air Lines,
Inc. and The Bank of New York, as trustee
4.3 Form of exchange notes (included in Exhibit 4.2)
5.1 Opinion of Davis Polk & Wardwell with respect to the exchange
notes
12.1 Computation of Ratio of Earnings to Fixed Charges
23.1 Consent of Davis Polk & Wardwell (contained in their opinion
filed as Exhibit 5.1)
23.2 Consent of Arthur Andersen LLP
24.1 Power of Attorney (included on the signature page of this
registration statement)
25.1 Statement of Eligibility of The Bank of New York on Form T-1
99.1 Form of Letter of Transmittal
99.2 Form of Notice of Guaranteed Delivery
99.3 Form of Letter to Clients
99.4 Form of Letter to Nominees
99.5 Form of Instructions to Registered Holder and/or Book-Entry
Transfer Participant from Owner
E-1
Exhibit 4.1
Delta Air Lines, Inc.
$500,000,000 7.70% Notes due 2005
$500,000,000 7.90% Notes due 2009
$1,000,000,000 8.30% Notes due 2029
-------------------
Registration Rights Agreement
December 14, 1999
Goldman, Sachs & Co.
As representative of the several Purchasers
named in Schedule I to the Purchase Agreement
c/o Goldman, Sachs & Co.
85 Broad Street
New York, New York 10004
Ladies and Gentlemen:
Delta Air Lines, Inc., a Delaware corporation (the "Company"), proposes
to issue and sell to the Purchasers (as defined herein) upon the terms set forth
in the Purchase Agreement (as defined herein) its 7.70% Notes due 2005, its
7.90% Notes due 2009 and its 8.30% Notes due 2029. As an inducement to the
Purchasers to enter into the Purchase Agreement and in satisfaction of a
condition to the obligations of the Purchasers thereunder, the Company agrees
with the Purchasers for the benefit of holders (as defined herein) from time to
time of the Registrable Securities (as defined herein) as follows:
1. Certain Definitions. For purposes of this Registration Rights
Agreement, the following terms shall have the following respective meanings:
"Additional Interest" shall have the meaning assigned thereto in
Section 2(c) hereof.
"Additional Interest Event" shall have the meaning assigned thereto in
Section 2(c) hereof.
The term "broker-dealer" shall mean any broker or dealer registered
with the Commission under the Exchange Act.
"Business Day" shall mean each Monday, Tuesday, Wednesday, Thursday and
Friday which is not a day on which banking institutions in New York City,
New York are authorized or obligated by law or executive order to close.
"Closing Date" shall mean the date on which the Securities are
initially issued.
"Commission" shall mean the United States Securities and Exchange
Commission, or any other federal agency at the time administering the
Exchange Act or the Securities Act, whichever is the relevant statute for
the particular purpose.
"Effective Time," in the case of (i) an Exchange Registration, shall
mean the time and date as of which the Commission declares the Exchange
Registration Statement effective or as of which the Exchange Registration
Statement otherwise becomes effective and (ii) a Shelf Registration, shall
mean the time and date as of which the Commission declares the Shelf
Registration Statement effective or as of which the Shelf Registration
Statement otherwise becomes effective.
"Electing Holder" shall mean any holder of Registrable Securities that
has returned a completed and signed Notice and Questionnaire to the Company
in accordance with Section 3(c)(ii) or 3(c)(iii) hereof.
"Exchange Act" shall mean the Securities Exchange Act of 1934, or any
successor thereto, as the same shall be amended from time to time.
"Exchange Offer" shall have the meaning assigned thereto in Section
2(a) hereof.
"Exchange Registration" shall have the meaning assigned thereto in
Section 3(b) hereof.
"Exchange Registration Statement" shall have the meaning assigned
thereto in Section 2(a) hereof.
"Exchange Securities" shall have the meaning assigned thereto in
Section 2(a) hereof.
"Exchange Series" shall have the meaning assigned thereto in Section
2(a) hereof.
The term "holder" shall mean each of the Purchasers and other persons
who acquire Registrable Securities from time to time (including any
successors or assigns), in each case for so long as such person owns any
Registrable Securities.
"Indenture" shall mean the Indenture, dated as of December 14, 1999,
between the Company and The Bank of New York, as Trustee, as the same shall
be amended from time to time.
"Notice and Questionnaire" means a Notice of Registration Statement and
Selling Securityholder Questionnaire substantially in the form of Exhibit A
hereto.
The term "person" shall mean a corporation, association, partnership,
organization, business, individual, government or political subdivision
thereof or governmental agency.
"Purchase Agreement" shall mean the Purchase Agreement, dated as of
December 7, 1999, between the Purchasers and the Company relating to the
Securities, as the same shall be amended from time to time.
"Purchasers" shall mean the Purchasers named in Schedule I to the
Purchase Agreement.
"Registrable Securities" shall mean the Securities; provided, however,
that a Security shall cease to be a Registrable Security when (i) in the
circumstances contemplated by Section 2(a) hereof, the Security has been
exchanged for an Exchange Security in an Exchange Offer as contemplated in
Section 2(a) hereof (provided that any Exchange Security that, pursuant to
the last two sentences of Section 2(a), is included in a prospectus for use
in connection with resales by broker-dealers shall be deemed to be a
Registrable Security until resale of such Registrable Security has been
effected within the 90-day period
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referred to in Section 2(a)); (ii) in the circumstances contemplated by
Section 2(b) hereof, a Shelf Registration Statement registering such
Security under the Securities Act has been declared or becomes effective
and such Security has been sold or otherwise transferred by the holder
thereof pursuant to and in a manner contemplated by such effective Shelf
Registration Statement; (iii) such Security is sold pursuant to Rule 144
under circumstances in which any legend borne by such Security relating to
restrictions on transferability thereof, under the Securities Act or
otherwise, is removed by the Company or pursuant to the Indenture; (iv)
such Security is eligible to be sold pursuant to paragraph (k) of Rule 144;
or (v) such Security shall cease to be outstanding.
"Registration Expenses" shall have the meaning assigned thereto in
Section 4 hereof.
"Resale Period" shall have the meaning assigned thereto in Section 2(a)
hereof.
"Restricted Holder" shall mean (i) a holder that is an affiliate of the
Company within the meaning of Rule 405, (ii) a holder who acquires Exchange
Securities outside the ordinary course of such holder's business, (iii) a
holder who has arrangements or understandings with any person to
participate in the Exchange Offer for the purpose of distributing Exchange
Securities and (iv) a holder that is a broker-dealer, but only with respect
to Exchange Securities received by such broker-dealer pursuant to the
Exchange Offer in exchange for Registrable Securities acquired by the
broker-dealer directly from the Company.
"Rule 144," "Rule 405" and "Rule 415" shall mean, in each case, such
rule promulgated under the Securities Act (or any successor provision), as
the same shall be amended from time to time.
"Rule 144(k) Holding Period" shall have the meaning assigned thereto in
Section 2(b) hereof.
"Securities" shall mean, collectively, the 7.70% Notes due 2005, 7.90%
Notes due 2009 and 8.30% Notes due 2029 of the Company to be issued and
sold to the Purchasers, and securities (other than Exchange Securities,
except as provided herein) issued in exchange therefor or in lieu thereof
pursuant to the Indenture.
"Securities Act" shall mean the Securities Act of 1933, or any
successor thereto, as the same shall be amended from time to time.
"Series" shall mean a series of the Securities or the Exchange
Securities, as the case may be.
"Shelf Registration" shall have the meaning assigned thereto in Section
2(b) hereof.
"Shelf Registration Statement" shall have the meaning assigned thereto
in Section 2(b) hereof.
"Trust Indenture Act" shall mean the Trust Indenture Act of 1939, or
any successor thereto, and the rules, regulations and forms promulgated
thereunder, all as the same shall be amended from time to time.
Unless the context otherwise requires, any reference herein to a
"Section" or "clause" refers to a Section or clause, as the case may be, of this
Registration Rights Agreement, and the
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words "herein," "hereof" and "hereunder" and other words of similar import
refer to this Registration Rights Agreement as a whole and not to any
particular Section or other subdivision.
2. Registration Under the Securities Act.
(a) Except as set forth in Section 2(b) below, the Company agrees to
use its reasonable efforts to file under the Securities Act, as soon as
practicable, but no later than 90 days after the Closing Date, a single
registration statement relating to an offer to exchange (such registration
statement, the "Exchange Registration Statement", and such offer, the
"Exchange Offer") any and all of the Securities of each Series for a like
aggregate principal amount of debt securities issued by the Company, which
debt securities will be substantially identical to the Securities of such
Series (and will be entitled to the benefits of a trust indenture which
will be substantially identical to the Indenture or is the Indenture and
which will be qualified under the Trust Indenture Act), except that such
new debt securities will have been registered pursuant to an effective
registration statement under the Securities Act, will not be subject to
transfer restrictions or registration rights and will not be entitled to
the benefit of provisions for the Additional Interest contemplated in
Section 2(c) below (such new debt securities hereinafter called "Exchange
Securities", and each Series thereof an "Exchange Series" or a "Series of
Exchange Securities"). The Company agrees to use its reasonable efforts to
cause the Exchange Registration Statement to become effective under the
Securities Act as soon as practicable, but no later than 180 days after
the Closing Date. The Exchange Offer will be registered under the
Securities Act on the appropriate form and will comply with all applicable
tender offer rules and regulations under the Exchange Act. The Company
further agrees to use its reasonable efforts to commence and complete the
Exchange Offer promptly, but no later than 45 Business Days after such
registration statement has become effective, hold the Exchange Offer open
for at least 30 days and exchange each Series of Exchange Securities for
all Registrable Securities of the same Series that have been properly
tendered and not withdrawn on or prior to the expiration of the Exchange
Offer. The Exchange Offer shall be deemed to have been completed upon the
earlier to occur of (i) the Company having exchanged Exchange Securities
for all outstanding Registrable Securities of the comparable Series
pursuant to the Exchange Offer and (ii) the Company having exchanged,
pursuant to the Exchange Offer, Exchange Securities for all Registrable
Securities of the comparable Series that have been properly tendered and
not withdrawn before the expiration of the Exchange Offer, which shall be
on a date that is at least 30 days following the commencement of the
Exchange Offer. The Company agrees (x) to include in the Exchange
Registration Statement a prospectus for use in any resales by any holder
of Exchange Securities that is a broker-dealer and (y) to keep such
Exchange Registration Statement effective for a period (the "Resale
Period") beginning when Exchange Securities are first issued in the
Exchange Offer and ending upon the earlier of the expiration of the 90th
day after the Exchange Offer has been completed or such time as such
broker-dealers no longer own any Registrable Securities. With respect to
such Exchange Registration Statement, such holders shall have the benefit
of the rights of indemnification and contribution set forth in Sections
5(a), (c), (d) and (e) hereof.
(b) If (i) the Company determines that the Exchange Registration
Statement is not available or the Exchange Offer may not be consummated
because it would violate applicable law or the applicable interpretations
of the staff of the Commission, (ii) the Exchange Offer has not been
completed within 180 days plus 45 Business Days following the Closing
Date, or (iii) in the opinion of counsel for the Purchasers, a
registration statement must be filed and a prospectus must be delivered by
the Purchasers in connection with any offering or sale of Registrable
Securities, the Company shall, in lieu of conducting the
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Exchange Offer contemplated by Section 2(a), use its reasonable efforts
to file under the Securities Act, as soon as practicable after the time
such obligation to file arises, a "shelf" registration statement providing
for the registration of, and the sale on a continuous or delayed basis by
the holders of, all of the Registrable Securities, pursuant to Rule 415 or
any similar rule that may be adopted by the Commission (such filing, the
"Shelf Registration" and such registration statement, the "Shelf
Registration Statement"). The Company agrees (x) to use its reasonable
efforts to cause the Shelf Registration Statement to become or be declared
effective and to keep such Shelf Registration Statement continuously
effective for a period ending on the earlier of the second anniversary of
the Closing Date or, if Rule 144(k) is amended to provide a shorter
restrictive period, such shorter period (the "Rule 144(k) Holding Period")
or such time as there are no longer any Registrable Securities outstanding,
provided, however, that no holder shall be entitled to be named as a
selling securityholder in the Shelf Registration Statement or to use the
prospectus forming a part thereof for resales of Registrable Securities
unless such holder is an Electing Holder, and (y) to take any action
reasonably necessary to enable a holder to use the prospectus forming a
part thereof for resales of Registrable Securities, including, without
limitation, any action necessary to identify such holder as a selling
securityholder in the Shelf Registration Statement, provided, however, that
nothing in this Clause (y) shall relieve any such holder of the obligation
to return a completed and signed Notice and Questionnaire to the Company in
accordance with Section 3(c)(iii) hereof. The Company further agrees to
supplement or make amendments to the Shelf Registration Statement, as and
when required by the rules, regulations or instructions applicable to the
registration form used by the Company for such Shelf Registration Statement
or by the Securities Act or rules and regulations thereunder for shelf
registration, and the Company agrees to furnish to each Electing Holder
copies of any such supplement or amendment promptly after its being used
following its filing with the Commission.
(c) The Company agrees to pay additional interest (the "Additional
Interest") upon the occurrence of any of the following events (each such
event an "Additional Interest Event"):
(i) If the Exchange Registration Statement or Shelf Registration
Statement is not filed within 90 days following the Closing Date,
then commencing on the 91st day after the Closing Date, Additional
Interest shall accrue on the Securities over and above the otherwise
applicable interest rate at a rate of .25% per year, or
(ii) If an Exchange Registration Statement or Shelf Registration
Statement is filed and is not declared effective within 180 days
following the Closing Date, then commencing on the 181st day after
the Closing Date, Additional Interest shall accrue on the Securities
over and above the otherwise applicable interest rate at a rate of
.25% per year, or
(iii) If either (A) the Company has not exchanged Exchange
Securities of any Series for all Securities of the same Series
validly tendered in accordance with the terms of the Exchange Offer
on or prior to 45 Business Days after the date on which the Exchange
Registration Statement was declared effective, or (B) the Shelf
Registration Statement has been declared effective but such Shelf
Registration Statement ceases to be effective at any time (I) prior
to the expiration of the Rule 144(k) Holding Period and (II) while
Registrable Securities are outstanding, then Additional Interest
shall accrue on the Securities over and above the otherwise
applicable interest rate at a rate of .25% per year commencing on the
(x) 46th
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Business Day after such effective date, in the case of (A) above, or
(y) the day the Shelf Registration Statement ceases to be effective,
in the case of (B) above;
provided, however, that the rate at which Additional Interest accrues
on the Securities shall never exceed .25% per year; and provided
further that Additional Interest on the Securities shall cease to
accrue upon the earlier of (i) when all Additional Interest Events
have been cured or (ii) upon the expiration of the Rule 144(k) Holding
Period. For purposes of clarifying the foregoing provisions,
Additional Interest shall not accrue at any time that there are no
Registrable Securities outstanding.
(d) The Company shall take all actions reasonably necessary or
advisable to be taken by it to ensure that the transactions contemplated
herein are effected as so contemplated.
(e) Any reference herein to a registration statement as of any time
shall be deemed to include any document incorporated, or deemed to be
incorporated, therein by reference as of such time and any reference
herein to any post-effective amendment to a registration statement as of
any time shall be deemed to include any document incorporated, or deemed
to be incorporated, therein by reference as of such time.
3. Registration Procedures.
If the Company files a registration statement pursuant to Section
2(a) or Section 2(b), the following provisions shall apply:
(a) At or before the Effective Time of the Exchange Registration or
the Shelf Registration, as the case may be, the Company shall qualify the
Indenture under the Trust Indenture Act.
(b) In connection with the Company's obligations with respect to the
registration of Exchange Securities as contemplated by Section 2(a) (the
"Exchange Registration"), if applicable, the Company shall, as soon as
practicable (or as otherwise specified):
(i) use its reasonable efforts to prepare and file with the
Commission, as soon as practicable but no later than 90 days after
the Closing Date, an Exchange Registration Statement on any form
which may be utilized by the Company and which shall permit the
Exchange Offer and resales of Exchange Securities by broker-dealers
during the Resale Period to be effected as contemplated by Section
2(a), and use its reasonable efforts to cause such Exchange
Registration Statement to become effective as soon as practicable
thereafter, but no later than 180 days following the Closing Date;
(ii) as soon as practicable prepare and file with the Commission
such amendments and supplements to such Exchange Registration
Statement and the prospectus included therein as may be necessary to
effect and maintain the effectiveness of such Exchange Registration
Statement for the periods and purposes contemplated in Section 2(a)
hereof and as may be required by the applicable rules and regulations
of the Commission and the instructions applicable to the form of such
Exchange Registration Statement, and promptly provide each
broker-dealer holding Exchange Securities with such number of copies
of the prospectus included therein (as then amended or supplemented),
in conformity in all material respects with the requirements of the
Securities Act and the Trust Indenture Act and the rules and
regulations of the Commission thereunder, as such broker-dealer
reasonably may
6
<PAGE>
request prior to the expiration of the Resale Period,
for use in connection with resales of Exchange Securities;
(iii) promptly notify each broker-dealer that has requested or
received copies of the prospectus included in such registration
statement, and, if requested by such broker-dealer, confirm such
advice in writing, (A) when such Exchange Registration Statement or
the prospectus included therein or any prospectus amendment or
supplement or post-effective amendment has been filed, and, with
respect to such Exchange Registration Statement or any post-effective
amendment, when the same has become effective, (B) of any request by
the Commission for amendments or supplements to such Exchange
Registration Statement or prospectus or for additional information,
(C) of the issuance by the Commission of any stop order suspending
the effectiveness of such Exchange Registration Statement or the
initiation or threatening of any proceedings for that purpose, (D) of
the receipt by the Company of any notification with respect to the
suspension of the qualification of the Exchange Securities for sale
in any jurisdiction or the initiation or threatening of any
proceeding for such purpose, or (E) if at any time during the Resale
Period when a prospectus is required to be delivered under the
Securities Act, that such Exchange Registration Statement,
prospectus, prospectus amendment or supplement or post-effective
amendment does not conform in all material respects to the applicable
requirements of the Securities Act and the Trust Indenture Act and
the rules and regulations of the Commission thereunder or contains an
untrue statement of a material fact or omits to state any material
fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances then
existing;
(iv) in the event that the Company would be required, pursuant
to Section 3(b)(iii)(E) above, to notify any broker-dealers holding
Exchange Securities, it will use its reasonable efforts to prepare
and furnish to each such holder a reasonable number of copies of a
prospectus supplemented or amended so that, as thereafter delivered
to purchasers of such Exchange Securities during the Resale Period,
such prospectus shall conform in all material respects to the
applicable requirements of the Securities Act and the Trust Indenture
Act and the rules and regulations of the Commission thereunder and
shall not contain an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to
make the statements therein not misleading in light of the
circumstances then existing. Each broker-dealer agrees that upon
receipt of any notice from the Company pursuant to Section
3(b)(iii)(E) hereof, such broker-dealer shall forthwith discontinue
the disposition of Exchange Securities pursuant to the Exchange
Registration Statement applicable to such Exchange Securities until
such broker-dealer shall have received copies of such amended or
supplemented prospectus, and if so directed by the Company, such
broker-dealer shall deliver to the Company (at the Company's expense)
all copies of the prospectus covering such Exchange Securities then
in such broker-dealers' possession for the purpose of making offers
of Exchange Securities;
(v) use its reasonable efforts to obtain the withdrawal of any
order suspending the effectiveness of such Exchange Registration
Statement or any post-effective amendment thereto at the earliest
practicable date;
7
<PAGE>
(vi) use its reasonable efforts to (A) register or qualify the
Exchange Securities under the securities laws or blue sky laws of
such jurisdictions as any holder of Exchange Securities shall
reasonably request in writing no later than the commencement of the
Exchange Offer, (B) keep such registrations or qualifications in
effect and comply with such laws so as to permit the continuance of
offers, sales and dealings therein in such jurisdictions until the
expiration of the Resale Period and (C) take any and all other
actions as may be reasonably necessary or advisable to enable each
broker-dealer holding Exchange Securities to consummate the
disposition thereof in such jurisdictions; provided, however, that
the Company shall not be required for any such purpose to (1) qualify
as a foreign corporation or as a dealer in securities in any
jurisdiction wherein it would not otherwise be required to qualify
but for the requirements of this Section 3(b)(vi), (2) consent to
general service of process in any such jurisdiction or subject itself
to taxation in any such jurisdiction if it is not already so subject,
or (3) make any changes to its certificate of incorporation or
by-laws or any agreement between it and its stockholders;
(vii) use its reasonable efforts to obtain the consent or
approval of each governmental agency or authority, whether federal,
state or local, which may be required to effect the Exchange
Registration, the Exchange Offer and the offering and sale of
Exchange Securities by broker-dealers during the Resale Period;
(viii) provide a CUSIP number for all Exchange Securities, not
later than the applicable Effective Time;
(ix) comply with all applicable rules and regulations of the
Commission, and make generally available to its securityholders as
soon as practicable but no later than eighteen months after the
effective date of such Exchange Registration Statement, an earning
statement of the Company and its subsidiaries complying with Section
11(a) of the Securities Act (including, at the option of the Company,
Rule 158 thereunder).
(c) In connection with the Company's obligations with respect to the
Shelf Registration, if applicable, the Company shall, as soon as
practicable (or as otherwise specified):
(i) use its reasonable efforts to prepare and file with the
Commission a Shelf Registration Statement on any form which may be
utilized by the Company and which shall register all of the
Registrable Securities for resale by the holders thereof in
accordance with such method or methods of disposition as may be
specified by such of the holders as, from time to time, may be
Electing Holders and use its reasonable efforts to cause such Shelf
Registration Statement to become effective;
(ii) not less than 30 days prior to the Effective Time of the
Shelf Registration Statement, mail the Notice and Questionnaire to
the holders of Registrable Securities; no holder shall be entitled to
be named as a selling securityholder in the Shelf Registration
Statement as of the Effective Time, and no holder shall be entitled
to use the prospectus forming a part thereof for resales of
Registrable Securities at any time, unless such holder has returned a
completed and signed Notice and Questionnaire to the Company by the
deadline for response set forth therein; provided, however, holders
of Registrable Securities shall have at least 28 days from the date
on which the Notice and Questionnaire is first mailed to such holders
to return a completed and signed Notice and Questionnaire to the
Company;
8
<PAGE>
(iii) after the Effective Time of the Shelf Registration
Statement, upon the request of any holder of Registrable Securities
that is not then an Electing Holder, promptly send a Notice and
Questionnaire to such holder; provided that the Company shall not be
required to take any action to name such holder as a selling
securityholder in the Shelf Registration Statement or to enable such
holder to use the prospectus forming a part thereof for resales of
Registrable Securities until such holder has returned a completed and
signed Notice and Questionnaire to the Company; and provided,
further, that the Company shall not be required to file an amendment
to such Shelf Registration Statement for the sole reason of naming
such holder as a selling securityholder in the Shelf Registration
Statement;
(iv) as soon as practicable prepare and file with the Commission
such amendments and supplements to such Shelf Registration Statement
and the prospectus included therein as may be necessary to effect and
maintain the effectiveness of such Shelf Registration Statement for
the period specified in Section 2(b) hereof and as may be required by
the applicable rules and regulations of the Commission and the
instructions applicable to the form of such Shelf Registration
Statement, and furnish to the Electing Holders copies of any such
supplement or amendment simultaneously with or prior to its being
used or filed with the Commission;
(v) comply with the provisions of the Securities Act with
respect to the disposition of all of the Registrable Securities
covered by such Shelf Registration Statement in accordance with the
intended methods of disposition by the Electing Holders provided for
in such Shelf Registration Statement;
(vi) provide (A) the Electing Holders, (B) the underwriters
(which term, for purposes of this Registration Rights Agreement,
shall include a person deemed to be an underwriter within the meaning
of Section 2(a)(11) of the Securities Act), if any, thereof, (C) any
sales or placement agent therefor, (D) counsel for any such
underwriter or agent and (E) not more than one counsel for all the
Electing Holders the opportunity to participate in the preparation of
such Shelf Registration Statement, each prospectus included therein
or filed with the Commission and each amendment or supplement
thereto;
(vii) for a reasonable period prior to the filing of such Shelf
Registration Statement, and throughout the period specified in
Section 2(b), make available at reasonable times at the Company's
principal place of business or such other reasonable place for
inspection by the persons referred to in Section 3(c)(vi) who shall
certify to the Company that they have a current intention to sell the
Registrable Securities pursuant to the Shelf Registration such
financial and other information and books and records of the Company,
and reasonably cause the officers, employees, counsel and independent
certified public accountants of the Company to respond to such
inquiries, as shall be reasonably necessary to conduct a reasonable
investigation within the meaning of Section 11 of the Securities Act;
provided, however, that each such party shall be required to maintain
in confidence and not to disclose to any other person any information
or records reasonably designated by the Company as being
confidential, until such time as (A) such information becomes a
matter of public record (whether by virtue of its inclusion in such
registration statement or otherwise), or (B) such person shall be
required so to disclose such information pursuant to a subpoena or
order of any court or other governmental
9
<PAGE>
agency or body having jurisdiction over the matter (subject to the
requirements of such order, and only after such person shall have
given the Company prompt prior written notice of such requirement),
or (C) such information is required to be set forth in such Shelf
Registration Statement or the prospectus included therein or in an
amendment to such Shelf Registration Statement or an amendment or
supplement to such prospectus in order that such Shelf Registration
Statement, prospectus, amendment or supplement, as the case may be,
complies with applicable requirements of the federal securities laws
and the rules and regulations of the Commission and does not contain
an untrue statement of a material fact or omit to state therein a
material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances then
existing;
(viii) promptly notify each of the Electing Holders, any sales
or placement agent therefor and any underwriter thereof (which
notification may be made through any managing underwriter that is a
representative of such underwriter for such purpose) and, if
requested by such Holders, agents or underwriters, confirm such
advice in writing, (A) when such Shelf Registration Statement or the
prospectus included therein or any prospectus amendment or supplement
or post-effective amendment has been filed, and, with respect to such
Shelf Registration Statement or any post-effective amendment, when
the same has become effective, (B) of any request by the Commission
for amendments or supplements to such Shelf Registration Statement or
prospectus or for additional information, (C) of the issuance by the
Commission of any stop order suspending the effectiveness of such
Shelf Registration Statement or the initiation or threatening of any
proceedings for that purpose, (D) of the receipt by the Company of
any notification with respect to the suspension of the qualification
of the Registrable Securities for sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose, or (E)
if at any time when a prospectus is required to be delivered under
the Securities Act, that such Shelf Registration Statement,
prospectus, prospectus amendment or supplement or post-effective
amendment does not conform in all material respects to the applicable
requirements of the Securities Act and the Trust Indenture Act and
the rules and regulations of the Commission thereunder or contains an
untrue statement of a material fact or omits to state any material
fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances then
existing;
(ix) use its reasonable efforts to obtain the withdrawal of any
order suspending the effectiveness of such registration statement or
any post-effective amendment thereto at the earliest practicable
date;
(x) if requested by any managing underwriter or underwriters,
any placement or sales agent or any Electing Holder, promptly
incorporate in a prospectus supplement or post-effective amendment
such information as is required by the applicable rules and
regulations of the Commission and as such managing underwriter or
underwriters, such agent or such Electing Holder may reasonably
propose should be included therein relating to the terms of the sale
of such Registrable Securities, including information with respect to
the principal amount of Registrable Securities being sold by such
Electing Holder or agent or to any underwriters, the name and
description of such Electing Holder, agent or underwriter, the
offering price of such Registrable Securities and any discount,
commission or other compensation payable in respect thereof, the
purchase price being paid therefor by such underwriters and
10
<PAGE>
with respect to any other terms of the offering of the Registrable
Securities to be sold by such Electing Holder or agent or to such
underwriters; and make all required filings of such prospectus
supplement or post-effective amendment promptly after notification of
the matters to be incorporated in such prospectus supplement or
post-effective amendment;
(xi) furnish to each Electing Holder, each placement or sales
agent, if any, therefor, each underwriter, if any, thereof and the
respective counsel referred to in Section 3(c)(vi) an executed copy
(or, in the case of an Electing Holder, a conformed copy) of such
Shelf Registration Statement, each such amendment and supplement
thereto (in each case including all exhibits thereto (in the case of
an Electing Holder of Registrable Securities, upon request) and
documents incorporated by reference therein) and such number of
copies of such Shelf Registration Statement (excluding exhibits
thereto and documents incorporated by reference therein unless
specifically so requested by such Electing Holder, agent or
underwriter, as the case may be) and of the prospectus included in
such Shelf Registration Statement (including each preliminary
prospectus and any summary prospectus), in conformity in all material
respects with the applicable requirements of the Securities Act and
the Trust Indenture Act and the rules and regulations of the
Commission thereunder, and such other documents, as such Electing
Holder, agent, if any, and underwriter, if any, may reasonably
request in order to facilitate the offering and disposition of the
Registrable Securities owned by such Electing Holder, offered or sold
by such agent or underwritten by such underwriter and to permit such
Electing Holder, agent and underwriter to satisfy the prospectus
delivery requirements of the Securities Act; and the Company hereby
consents to the use of such prospectus (including such preliminary
and summary prospectus) and any amendment or supplement thereto by
each such Electing Holder and by any such agent and underwriter, in
each case in the form most recently provided to such person by the
Company, in connection with the offering and sale of the Registrable
Securities covered by the prospectus (including such preliminary and
summary prospectus) or any supplement or amendment thereto;
(xii) use reasonable efforts to (A) register or qualify the
Registrable Securities to be included in such Shelf Registration
Statement under such securities laws or blue sky laws of such
jurisdictions as any Electing Holder and each placement or sales
agent, if any, therefor and underwriter, if any, thereof shall
reasonably request in writing, (B) keep such registrations or
qualifications in effect and comply with such laws so as to permit
the continuance of offers, sales and dealings therein in such
jurisdictions during the period the Shelf Registration is required to
remain effective under Section 2(b) above; and (C) take any and all
other actions as may be reasonably necessary or advisable to enable
each such Electing Holder, agent, if any, and underwriter, if any, to
consummate the disposition in such jurisdictions; provided, however,
that the Company shall not be required for any such purpose to (1)
qualify as a foreign corporation or as a dealer in securities in any
jurisdiction wherein it would not otherwise be required to qualify
but for the requirements of this Section 3(c)(xii), (2) consent to
general service of process in any such jurisdiction or subject itself
to taxation in any such jurisdiction if it is not so subject, or (3)
make any changes to its certificate of incorporation or by-laws or
any agreement between it and its stockholders;
11
<PAGE>
(xiii) use its reasonable efforts to obtain the consent or
approval of each governmental agency or authority, whether federal,
state or local, which may be required to effect the Shelf
Registration or the offering or sale in connection therewith or to
enable the selling holder or holders to offer, or to consummate the
disposition of, their Registrable Securities;
(xiv) unless any Registrable Securities shall be in book-entry
only form, cooperate with the Electing Holders and the managing
underwriters, if any, to facilitate the timely preparation and
delivery of certificates representing Registrable Securities to be
sold, which certificates, if so required by any securities exchange
upon which any Registrable Securities are listed, shall be penned,
lithographed or engraved, or produced by any combination of such
methods, on steel engraved borders, and which certificates shall not
bear any restrictive legends; and, in the case of an underwritten
offering, enable such Registrable Securities to be in such
denominations and registered in such names as the managing
underwriters may reasonably request at least two Business Days prior
to any sale of the Registrable Securities;
(xv) provide a CUSIP number for all Registrable Securities, not
later than the applicable Effective Time;
(xvi) enter into one or more customary underwriting agreements,
engagement letters, agency agreements, "best efforts" underwriting
agreements or similar agreements, as appropriate, including customary
provisions relating to indemnification and contribution, and take
such other actions in connection therewith as any Electing Holders
aggregating at least a majority in aggregate principal amount of the
Registrable Securities at the time outstanding (it being understood
for purposes of this Agreement that all holders of the Registrable
Securities shall vote on this and any other matter as a single class)
shall reasonably request in order to expedite or facilitate the
disposition of such Registrable Securities;
(xvii) whether or not an agreement of the type referred to in
Section 3(c)(xvi) hereof is entered into and whether or not any
portion of the offering contemplated by the Shelf Registration is an
underwritten offering or is made through a placement or sales agent
or any other entity; (A) make such representations and warranties to
the Electing Holders and the placement or sales agent, if any,
therefor and the underwriters, if any, thereof in form, substance and
scope as are customarily made in connection with an offering of debt
securities pursuant to any appropriate agreement or to a registration
statement filed on the form applicable to the Shelf Registration; (B)
obtain an opinion of counsel to the Company in customary form and
covering such matters, of the type customarily covered by such an
opinion, as the managing underwriters, if any, or as any Electing
Holders of at least a majority in aggregate principal amount of the
Registrable Securities at the time outstanding may reasonably
request, addressed to such Electing Holder or Electing Holders and
the placement or sales agent, if any, therefor and the underwriters,
if any, thereof and dated the effective date of such Shelf
Registration Statement (and if such Shelf Registration Statement
contemplates an underwritten offering of a part or all of the
Registrable Securities, dated the date of the closing under the
underwriting agreement relating thereto) covering the matters
customarily covered in opinions requested in underwritten offerings
(it being agreed that the matters to be covered by such opinion may
be subject to customary qualifications and exceptions, it being
12
<PAGE>
understood that opinions that are substantially the same as those
called for by the Purchase Agreement will be satisfactory for these
purposes); (C) obtain a "cold comfort" letter or letters from the
independent certified public accountants of the Company addressed to
the selling Electing Holders, the placement or sales agent, if any,
therefor or the underwriters, if any, thereof, dated (i) the
effective date of such Shelf Registration Statement and (ii) the
effective date of any prospectus supplement to the prospectus
included in such Shelf Registration Statement or post-effective
amendment to such Shelf Registration Statement which includes
unaudited or audited financial statements as of a date or for a
period subsequent to that of the latest such statements included in
such prospectus (and, if such Shelf Registration Statement
contemplates an underwritten offering pursuant to any prospectus
supplement to the prospectus included in such Shelf Registration
Statement or post-effective amendment to such Shelf Registration
Statement which includes unaudited or audited financial statements as
of a date or for a period subsequent to that of the latest such
statements included in such prospectus, dated the date of the closing
under the underwriting agreement relating thereto), such letter or
letters to be in customary form and covering such matters of the type
customarily covered by letters of such type; (D) deliver such
customary documents and certificates, including officers'
certificates, as may be reasonably requested by any Electing Holders
of at least a majority in aggregate principal amount of the
Registrable Securities at the time outstanding or the placement or
sales agent, if any, therefor and the managing underwriters, if any,
thereof to evidence the accuracy of the representations and
warranties made pursuant to clause (A) above and the compliance with
or satisfaction of any agreements or conditions contained in the
underwriting agreement or other agreement entered into by the
Company; and (E) undertake such obligations relating to expense
reimbursement, indemnification and contribution as are provided in
Section 5 hereof;
(xviii) notify in writing each holder of Registrable Securities
of any proposal by the Company to amend or waive any provision of
this Registration Rights Agreement pursuant to Section 8(h) hereof
and of any amendment or waiver effected pursuant thereto, each of
which notices shall contain the text of the amendment or waiver
proposed or effected, as the case may be;
(xix) in the event that any broker-dealer registered under the
Exchange Act shall underwrite any Registrable Securities or
participate as a member of an underwriting syndicate or selling group
or "assist in the distribution" (within the meaning of the Conduct
Rules (the "Conduct Rules") of the National Association of Securities
Dealers, Inc. ("NASD") or any successor thereto, as amended from time
to time) thereof, whether as a holder of such Registrable Securities
or as an underwriter, a placement or sales agent or a broker or
dealer in respect thereof, or otherwise, assist such broker-dealer in
complying with the requirements of such Conduct Rules, including by
(A) if such Conduct Rules shall so require, engaging a "qualified
independent underwriter" (as defined in such Conduct Rules) to
participate in the preparation of the Shelf Registration Statement
relating to such Registrable Securities, to exercise usual standards
of due diligence in respect thereto and, if any portion of the
offering contemplated by such Shelf Registration Statement is an
underwritten offering or is made through a placement or sales agent,
to recommend the yield of such Registrable Securities, (B)
indemnifying any such qualified independent underwriter to the extent
of the indemnification of underwriters provided in Section 5 hereof
(or to such other customary extent as may be requested by such
13
<PAGE>
underwriter), and (C) providing such information to such broker-dealer
as may be required in order for such broker-dealer to comply with the
requirements of the Conduct Rules; and
(xx) comply with all applicable rules and regulations of the
Commission, and make generally available to its securityholders as
soon as practicable but in any event not later than eighteen months
after the effective date of such Shelf Registration Statement, an
earning statement of the Company and its subsidiaries complying with
Section 11(a) of the Securities Act (including, at the option of the
Company, Rule 158 thereunder).
(d) In the event that the Company would be required, pursuant to
Section 3(c)(viii)(E) above, to notify the Electing Holders, the placement
or sales agent, if any, therefor and the managing underwriters, if any,
thereof, the Company shall without any unreasonable delay prepare and
furnish to each of the Electing Holders, to each placement or sales agent,
if any, and to each such underwriter, if any, a reasonable number of
copies of a prospectus supplemented or amended so that, as thereafter
delivered to purchasers of Registrable Securities, such prospectus shall
conform in all material respects to the applicable requirements of the
Securities Act and the Trust Indenture Act and the rules and regulations
of the Commission thereunder and shall not contain an untrue statement of
a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein not misleading in
light of the circumstances then existing. Each Electing Holder agrees that
upon receipt of any notice from the Company pursuant to Section
3(c)(viii)(E) hereof, such Electing Holder shall forthwith discontinue the
disposition of Registrable Securities pursuant to the Shelf Registration
Statement applicable to such Registrable Securities until such Electing
Holder shall have received copies of such amended or supplemented
prospectus, and if so directed by the Company, such Electing Holder shall
deliver to the Company (at the Company's expense) all copies of the
prospectus covering such Registrable Securities then in such Electing
Holder's possession for the purpose of making offers of the Registrable
Securities.
(e) In the event of a Shelf Registration, in addition to the
information required to be provided by each Electing Holder in its Notice
and Questionnaire, the Company may require such Electing Holder to furnish
to the Company such additional information regarding such Electing Holder
and such Electing Holder's intended method of distribution of Registrable
Securities as may be required in order to comply with the Securities Act.
Each such Electing Holder agrees to notify the Company as promptly as
practicable of any inaccuracy or change in information previously
furnished by such Electing Holder to the Company or of the occurrence of
any event in either case as a result of which any prospectus relating to
such Shelf Registration contains or would contain an untrue statement of a
material fact regarding such Electing Holder or such Electing Holder's
intended method of disposition of such Registrable Securities or omits to
state any material fact regarding such Electing Holder or such Electing
Holder's intended method of disposition of such Registrable Securities
required to be stated therein or necessary to make the statements therein
not misleading in light of the circumstances then existing, and promptly
to furnish to the Company any additional information required to correct
and update any previously furnished information or required so that such
prospectus shall not contain, with respect to such Electing Holder or the
disposition of such Registrable Securities, an untrue statement of a
material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein not misleading in
light of the circumstances then existing.
14
<PAGE>
(f) Until the expiration of the Rule 144(k) Holding Period, the
Company will not, and will use its reasonable efforts to cause its
"affiliates" (as defined in Rule 144) not to, resell any of the Securities
that have been reacquired by any of them except pursuant to an effective
registration statement under the Securities Act.
4. Registration Expenses.
The Company agrees to bear and to pay or cause to be paid promptly
all reasonable expenses incident to the Company's performance of or compliance
with this Registration Rights Agreement, including (a) all Commission and any
NASD registration, filing and review fees and expenses including fees and
disbursements of one counsel for the placement or sales agent or underwriters
as a group in connection with such registration, filing and review, (b) all
fees and expenses in connection with the qualification of the Securities for
offering and sale under the State securities and blue sky laws referred to in
Section 3(d)(xii) hereof and determination of their eligibility for investment
under the laws of such jurisdictions as any managing underwriters or the
Electing Holders may reasonably designate, including any fees and disbursements
of one counsel for the Electing Holders or underwriters as a group in
connection with such qualification and determination, (c) all expenses relating
to the preparation, printing, production, distribution and reproduction of each
registration statement required to be filed hereunder, each prospectus included
therein or prepared for distribution pursuant hereto, each amendment or
supplement to the foregoing, the expenses of preparing the Securities for
delivery and the expenses of printing or producing any underwriting agreements,
agreements among underwriters, selling agreements and blue sky or legal
investment memoranda and all other documents in connection with the offering,
sale or delivery of Securities to be disposed of (including certificates
representing the Securities), (d) messenger, telephone and delivery expenses
relating to the offering, sale or delivery of Securities and the preparation of
documents referred in clause (c) above, (e) fees and expenses of the Trustee
under the Indenture, any agent of the Trustee and any counsel for the Trustee
and of any collateral agent or custodian, (f) internal expenses (including all
salaries and expenses of the Company's officers and employees performing legal
or accounting duties), (g) fees, disbursements and expenses of counsel and
independent certified public accountants of the Company (including the expenses
of any opinions or "cold comfort" letters required by or incident to such
performance and compliance), (h) fees, disbursements and expenses of any
"qualified independent underwriter" engaged pursuant to Section 3(d)(xix)
hereof, (i) fees, disbursements and expenses of one counsel for the Electing
Holders retained in connection with a Shelf Registration, as selected by the
Electing Holders of at least a majority in aggregate principal amount of the
Registrable Securities held by Electing Holders (which counsel shall be
reasonably satisfactory to the Company), (j) any fees charged by securities
rating services for rating the Securities, and (k) fees, expenses and
disbursements of any other persons, including special experts, retained by the
Company in connection with such registration (collectively, the "Registration
Expenses"). To the extent that any Registration Expenses are reasonably
incurred, assumed or paid by any holder of Registrable Securities or any
placement or sales agent therefor or underwriter thereof, the Company shall
reimburse such person for the full amount of the Registration Expenses so
incurred, assumed or paid promptly after receipt of a request therefor.
Notwithstanding the foregoing, the holders of the Registrable Securities being
registered shall pay all agency fees and commissions, transfer taxes, if any,
and underwriting discounts and commissions attributable to the sale of such
Registrable Securities and the fees and disbursements of any counsel or other
advisors or experts retained by such holders (severally or jointly), other than
the counsel and experts specifically referred to above.
15
<PAGE>
5. Indemnification.
(a) Indemnification by the Company. The Company will indemnify and
hold harmless each of the holders of Registrable Securities included in an
Exchange Registration Statement, each of the Electing Holders of
Registrable Securities included in a Shelf Registration Statement and each
person who participates as a placement or sales agent or as an underwriter
in any offering or sale of such Registrable Securities against any losses,
claims, damages or liabilities, joint or several, to which such holder,
agent or underwriter may become subject under the Securities Act or
otherwise, insofar as such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of or are based upon an untrue
statement or alleged untrue statement of a material fact contained in any
Exchange Registration Statement or Shelf Registration Statement, as the
case may be, under which such Registrable Securities were registered under
the Securities Act, or any preliminary, final or summary prospectus
contained therein or furnished by the Company to any such holder, Electing
Holder, agent or underwriter, or any amendment or supplement thereto, or
arise out of or are based upon the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, and will reimburse such holder,
such Electing Holder, such agent and such underwriter for any legal or
other expenses reasonably incurred by them in connection with
investigating or defending any such action or claim as such expenses are
incurred; provided, however, that the Company shall not be liable to any
such person in any such case to the extent that any such loss, claim,
damage or liability arises out of or is based upon an untrue statement or
alleged untrue statement or omission or alleged omission made in such
registration statement, or preliminary, final or summary prospectus, or
amendment or supplement thereto, in reliance upon and in conformity with
written information furnished to the Company by such person expressly for
use therein; and provided, further, that the Company shall not be liable
to any such person, to the extent that any such losses, claims, damages or
liabilities arise out of or are based upon an untrue statement or alleged
untrue statement of a material fact or omission or alleged omission if
either (A)(i) such person was required by law to send or deliver, and
failed to send or deliver, a copy of the prospectus with or prior to
delivery of written confirmation of the sale by such person to the person
asserting the claims from which such losses, claims, damages or
liabilities arise and (ii) the prospectus previously delivered by the
Company to such person would have corrected such untrue statement or
alleged untrue statement or omission or alleged omission, (B)(x) such
untrue statement or alleged untrue statement or omission or alleged
omission is corrected in an amendment to the prospectus and (y) having
been previously furnished by or on behalf of the Company with copies of
the prospectus as so amended or supplemented, such person failed to send
or deliver a copy of such amendment to the prospectus with or prior to the
delivery of written confirmation of the sale of a Registrable Security to
the person asserting the claim from which such losses, claims, damages or
liabilities arise or (C)(i) such person disposed of Registrable Securities
to the person asserting the claim from which such losses, claims, damages
or liabilities arise pursuant to an Exchange Registration Statement or
Shelf Registration Statement and sent or delivered, or was required by law
to send or deliver, a prospectus to such person in connection with such
disposition, (ii) such person received a suspension notice as provided in
Sections 3(b)(iii)(C) through (E) and 3(c)(vii)(C) through (E) hereof in
writing at least four Business Days prior to the date of such disposition
and (iii) such untrue statement or alleged untrue statement or omission or
alleged omission was the reason for such suspension notice.
(b) Indemnification by the Holders and any Agents and Underwriters.
The Company may require, as a condition to including any Registrable
Securities in any registration
16
<PAGE>
statement filed pursuant to Section 2(b) hereof and to entering into any
underwriting agreement with respect thereto, that the Company shall have
received an undertaking reasonably satisfactory to it from the Electing
Holder of such Registrable Securities and from each underwriter named in
any such underwriting agreement, severally and not jointly, to (i)
indemnify and hold harmless the Company, and all other holders of
Registrable Securities, against any losses, claims, damages or liabilities
to which the Company or such other holders of Registrable Securities may
become subject, under the Securities Act or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon an untrue statement or alleged untrue
statement of a material fact contained in such registration statement, or
any preliminary, final or summary prospectus contained therein or
furnished by the Company to any such Electing Holder, agent or
underwriter, or any amendment or supplement thereto, or arise out of or
are based upon the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the
statements therein not misleading, in each case to the extent, but only to
the extent, that such untrue statement or alleged untrue statement or
omission or alleged omission was made in reliance upon and in conformity
with written information furnished to the Company by such Electing Holder
or underwriter expressly for use therein, and (ii) reimburse the Company
for any legal or other expenses reasonably incurred by the Company in
connection with investigating or defending any such action or claim as
such expenses are incurred; provided, however, that no such Electing
Holder shall be required to undertake liability to any person under this
Section 5(b) for any amounts in excess of the dollar amount of the
proceeds to be received by such Electing Holder from the sale of such
Electing Holder's Registrable Securities pursuant to such registration.
(c) Notices of Claims, Etc. Promptly after receipt by an indemnified
party under subsection (a) or (b) above of written notice of the
commencement of any action, such indemnified party shall, if a claim in
respect thereof is to be made against an indemnifying party pursuant to
the indemnification provisions of or contemplated by this Section 5,
notify such indemnifying party in writing of the commencement of such
action; but the omission so to notify the indemnifying party shall not
relieve it from any liability which it may have to any indemnified party
otherwise than under the indemnification provisions of or contemplated by
Section 5(a) or 5(b) hereof. In case any such action shall be brought
against any indemnified party and it shall notify an indemnifying party of
the commencement thereof, such indemnifying party shall be entitled to
participate therein and, to the extent that it shall wish, jointly with
any other indemnifying party similarly notified, to assume the defense
thereof, with counsel reasonably satisfactory to such indemnified party
(who shall not, except with the consent of the indemnified party, be
counsel to the indemnifying party), and, after notice from the
indemnifying party to such indemnified party of its election so to assume
the defense thereof, such indemnifying party shall not be liable to such
indemnified party for any legal expenses of other counsel or any other
expenses, in each case subsequently incurred by such indemnified party, in
connection with the defense thereof other than reasonable costs of
investigation. No indemnifying party shall, without the written consent of
the indemnified party, effect the settlement or compromise of, or consent
to the entry of any judgment with respect to, any pending or threatened
action or claim in respect of which indemnification or contribution may be
sought hereunder (whether or not the indemnified party is an actual or
potential party to such action or claim) unless such settlement,
compromise or judgment (i) includes an unconditional release of the
indemnified party from all liability arising out of such action or claim
and (ii) does not include a statement as to or an admission of fault,
culpability or a failure to act by or on behalf of any indemnified party.
17
<PAGE>
(d) Contribution. If for any reason the indemnification provisions
contemplated by Section 5(a) or Section 5(b) are unavailable to or
insufficient to hold harmless an indemnified party in respect of any
losses, claims, damages or liabilities (or actions in respect thereof)
referred to therein, then each indemnifying party shall contribute to the
amount paid or payable by such indemnified party as a result of such
losses, claims, damages or liabilities (or actions in respect thereof) in
such proportion as is appropriate to reflect the relative fault of the
indemnifying party and the indemnified party in connection with the
statements or omissions which resulted in such losses, claims, damages or
liabilities (or actions in respect thereof), as well as any other relevant
equitable considerations. The relative fault of such indemnifying party
and indemnified party shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact
or omission or alleged omission to state a material fact relates to
information supplied by such indemnifying party or by such indemnified
party, and the parties' relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission. The
parties hereto agree that it would not be just and equitable if
contributions pursuant to this Section 5(d) were determined by pro rata
allocation (even if the holders or any agents or underwriters or all of
them were treated as one entity for such purpose) or by any other method
of allocation which does not take account of the equitable considerations
referred to in this Section 5(d). The amount paid or payable by an
indemnified party as a result of the losses, claims, damages, or
liabilities (or actions in respect thereof) referred to above shall be
deemed to include any legal or other fees or expenses reasonably incurred
by such indemnified party in connection with investigating or defending
any such action or claim. Notwithstanding the provisions of this Section
5(d), no holder shall be required to contribute any amount in excess of
the amount by which the dollar amount of the proceeds received by such
holder from the sale of any Registrable Securities (after deducting any
fees, discounts and commissions applicable thereto) exceeds the amount of
any damages which such holder has otherwise been required to pay by reason
of such untrue or alleged untrue statement or omission or alleged
omission, and no underwriter shall be required to contribute any amount in
excess of the amount by which the total price at which the Registrable
Securities underwritten by it and distributed to the public were offered
to the public exceeds the amount of any damages which such underwriter has
otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities
Act) shall be entitled to contribution from any person who was not guilty
of such fraudulent misrepresentation. The holders' and any underwriters'
obligations in this Section 5(d) to contribute shall be several in
proportion to the principal amount of Registrable Securities registered or
underwritten, as the case may be, by them and not joint.
(e) The obligations of the Company under this Section 5 shall be in
addition to any liability which the Company may otherwise have and shall
extend, upon the same terms and conditions, to each officer, director and
partner of each holder, agent and underwriter and each person, if any, who
controls any holder, agent or underwriter within the meaning of the
Securities Act; and the obligations of the holders and any agents or
underwriters contemplated by this Section 5 shall be in addition to any
liability which the respective holder, agent or underwriter may otherwise
have and shall extend, upon the same terms and conditions, to each officer
and director of the Company (including any person who, with his consent,
is named in any registration statement as about to become a director of
the Company) and to each person, if any, who controls the Company within
the meaning of the Securities Act.
6. Underwritten Offerings.
18
<PAGE>
(a) Selection of Underwriters. If any of the Registrable Securities
covered by the Shelf Registration are to be sold pursuant to an
underwritten offering, the managing underwriter or underwriters thereof
shall be designated by Electing Holders holding at least a majority in
aggregate principal amount of the Registrable Securities to be included in
such offering, provided that such designated managing underwriter or
underwriters is or are reasonably acceptable to the Company.
(b) Participation by Holders. Each holder of Registrable Securities
hereby agrees with each other such holder that no such holder may
participate in any underwritten offering hereunder unless such holder (i)
agrees to sell such holder's Registrable Securities on the basis provided
in any underwriting arrangements approved by the persons entitled
hereunder to approve such arrangements and (ii) completes and executes all
questionnaires, powers of attorney, indemnities, underwriting agreements
and other documents reasonably required under the terms of such
underwriting arrangements.
7. Rule 144.
The Company covenants to the holders of Registrable Securities that
to the extent it shall be required to do so under the Exchange Act, the Company
shall timely file the reports required to be filed by it under the Exchange Act
or the Securities Act (including the reports under Section 13 and 15(d) of the
Exchange Act referred to in subparagraph (c)(1) of Rule 144 adopted by the
Commission under the Securities Act) and the rules and regulations adopted by
the Commission thereunder, and shall take such further action as any holder of
Registrable Securities may reasonably request, all to the extent required from
time to time to enable such holder to sell Registrable Securities without
registration under the Securities Act within the limitations of the exemption
provided by Rule 144 under the Securities Act, as such Rule may be amended from
time to time, or any similar or successor rule or regulation hereafter adopted
by the Commission. Upon the request of any holder of Registrable Securities in
connection with that holder's sale pursuant to Rule 144, the Company shall
deliver to such holder a written statement as to whether it has complied with
such requirements.
8. Miscellaneous.
(a) No Inconsistent Agreements. The Company represents, warrants,
covenants and agrees that it has not granted, and shall not grant,
registration rights with respect to Registrable Securities or any other
securities which would be inconsistent with the terms contained in this
Registration Rights Agreement.
(b) Specific Performance. The parties hereto acknowledge that there
would be no adequate remedy at law if the Company fails to perform any of
its obligations hereunder and that the Purchasers and the holders from
time to time of the Registrable Securities may be irreparably harmed by
any such failure, and accordingly agree that the Purchasers and such
holders, in addition to any other remedy to which they may be entitled at
law or in equity, shall be entitled to compel specific performance of the
obligations of the Company under this Registration Rights Agreement in
accordance with the terms and conditions of this Registration Rights
Agreement, in any court of the United States or any State thereof having
jurisdiction; provided that, in the case of any terms of this Registration
Rights Agreement for which Additional Interest pursuant to Section 2(c) is
expressly provided as a remedy of a violation of such terms, such
Additional Interest shall be the sole monetary damages for such violation.
19
<PAGE>
(c) Notices. All notices, requests, claims, demands, waivers and
other communications hereunder shall be in writing and shall be deemed to
have been duly given when delivered by hand, if delivered personally or by
courier, or three days after being deposited in the mail (registered or
certified mail, postage prepaid, return receipt requested) as follows: If
to the Company, 1030 Delta Blvd., Atlanta, Georgia 30320, Attention:
Treasurer (with a copy to the General Counsel), and if to a holder, to the
address of such holder set forth in the security register or other records
of the Company, or to such other address as the Company or any such holder
may have furnished to the other in writing in accordance herewith, except
that notices of change of address shall be effective only upon receipt.
(d) Parties in Interest. All the terms and provisions of this
Registration Rights Agreement shall be binding upon, shall inure to the
benefit of and shall be enforceable by the parties hereto and the holders
from time to time of the Registrable Securities and the respective
successors and assigns of the parties hereto and such holders. In the
event that any transferee of any holder of Registrable Securities shall
acquire Registrable Securities, in any manner, whether by gift, bequest,
purchase, operation of law or otherwise, such transferee shall, without
any further writing or action of any kind, be deemed a beneficiary hereof
for all purposes and such Registrable Securities shall be held subject to
all of the terms of this Registration Rights Agreement, and by taking and
holding such Registrable Securities such transferee shall be entitled to
receive the benefits of, and be conclusively deemed to have agreed to be
bound by all of the applicable terms and provisions of this Registration
Rights Agreement. If the Company shall so request, any such successor,
assign or transferee shall agree in writing to acquire and hold the
Registrable Securities subject to all of the applicable terms hereof.
(e) Survival. The respective indemnities, agreements,
representations, warranties and each other provision set forth in this
Registration Rights Agreement or made pursuant hereto shall remain in full
force and effect regardless of any investigation (or statement as to the
results thereof) made by or on behalf of any holder of Registrable
Securities, any director, officer or partner of such holder, any agent or
underwriter or any director, officer or partner thereof, or any
controlling person of any of the foregoing, and shall survive delivery of
and payment for the Registrable Securities pursuant to the Purchase
Agreement and the transfer and registration of Registrable Securities by
such holder and the consummation of an Exchange Offer.
(f) Governing Law. This Registration Rights Agreement shall be
governed by and construed in accordance with the laws of the State of New
York.
(g) Headings. The descriptive headings of the several Sections and
paragraphs of this Registration Rights Agreement are inserted for
convenience only, do not constitute a part of this Registration Rights
Agreement and shall not affect in any way the meaning or interpretation of
this Registration Rights Agreement.
(h) Entire Agreement; Amendments. This Registration Rights Agreement
and the other writings referred to herein (including the Indenture and the
form of Securities) or delivered pursuant hereto which form a part hereof
contain the entire understanding of the parties with respect to its
subject matter. This Registration Rights Agreement supersedes all prior
agreements and understandings between the parties with respect to its
subject matter. This Registration Rights Agreement may be amended and the
observance of any term of this Registration Rights Agreement may be waived
(either generally or in a particular instance and either retroactively or
prospectively) only by a written instrument duly executed by the
20
<PAGE>
Company and the holders of at least a majority in aggregate principal
amount of the Registrable Securities at the time outstanding (except with
respect to Section 2(c) hereof, which may be amended only with the consent
of each holder of Registrable Securities at the time outstanding). Each
holder of any Registrable Securities at the time or thereafter outstanding
shall be bound by any amendment or waiver effected pursuant to this Section
8(h), whether or not any notice, writing or marking indicating such
amendment or waiver appears on such Registrable Securities or is delivered
to such holder.
(i) Inspection. For so long as this Registration Rights Agreement
shall be in effect, this Registration Rights Agreement and a complete list
of the names and addresses of all the holders of Registrable Securities
shall be made available for inspection and copying on any Business Day at
reasonable times by any holder of Registrable Securities for proper
purposes only (which shall include any purpose related to the rights of
the holders of Registrable Securities under the Securities, the Indenture
and this Agreement) at the offices of the Company at the address thereof
set forth in Section 8(c) above and at the office of the Trustee under the
Indenture.
(j) Counterparts. This agreement may be executed by the parties in
counterparts, each of which shall be deemed to be an original, but all
such respective counterparts shall together constitute one and the same
instrument.
21
<PAGE>
If the foregoing is in accordance with your understanding, please sign
and return to us one for the Company and the Representative plus one for each
counsel counterparts hereof, and upon the acceptance hereof by you, on behalf of
each of the Purchasers, this letter and such acceptance hereof shall constitute
a binding agreement between each of the Purchasers and the Company. It is
understood that your acceptance of this letter on behalf of each of the
Purchasers is pursuant to the authority set forth in a form of Agreement among
Purchasers, the form of which shall be submitted to the Company for examination
upon request, but without warranty on your part as to the authority of the
signers thereof.
Very truly yours,
Delta Air Lines, Inc.
By: ....................................
Name:
Title:
Accepted as of the date hereof:
Goldman, Sachs & Co.
.................................................
(Goldman, Sachs & Co.)
22
<PAGE>
Exhibit A
Delta Air Lines, Inc.
INSTRUCTION TO DTC PARTICIPANTS
(Date of Mailing)
URGENT - IMMEDIATE ATTENTION REQUESTED
DEADLINE FOR RESPONSE: [DATE]*
The Depository Trust Company ("DTC") has identified you as a DTC Participant
through which beneficial interests in the 7.70% Notes due 2005, the 7.90% Notes
due 2009 and the 8.30% Notes due 2029 (the "Securities") of Delta Air Lines,
Inc. (the "Company") are held.
The Company is in the process of registering the Securities under the Securities
Act of 1933 for resale by the beneficial owners thereof. In order to have their
Securities included in the registration statement, beneficial owners must
complete and return the enclosed Notice of Registration Statement and Selling
Securityholder Questionnaire.
It is important that beneficial owners of the Securities receive a copy of the
enclosed materials as soon as possible as their rights to have the Securities
included in the registration statement depend upon their returning the Notice
and Questionnaire by [Deadline For Response]. Please forward a copy of the
enclosed documents to each beneficial owner that holds interests in the
Securities through you. If you require more copies of the enclosed materials or
have any questions pertaining to this matter, please contact Delta Air Lines,
Inc., 1030 Delta Boulevard, Atlanta, Georgia 30320.
- ----------
* Not less than 28 calendar days from date of mailing.
<PAGE>
Delta Air Lines, Inc.
Notice of Registration Statement
and
Selling Securityholder Questionnaire
(Date)
Reference is hereby made to the Registration Rights Agreement (the "Registration
Rights Agreement") between Delta Air Lines, Inc. (the "Company") and the
Purchasers named therein. Pursuant to the Registration Rights Agreement, the
Company has filed with the United States Securities and Exchange Commission (the
"Commission") a registration statement on Form S-3 (the "Shelf Registration
Statement") for the registration and resale under Rule 415 of the Securities Act
of 1933, as amended (the "Securities Act"), of the Company's 7.70% Notes due
2005, 7.90% Notes due December 15, 2009 and 8.30% Notes due December 15, 2029
(the "Securities"). A copy of the Registration Rights Agreement is attached
hereto. All capitalized terms not otherwise defined herein shall have the
meanings ascribed thereto in the Registration Rights Agreement.
Each beneficial owner of Registrable Securities (as defined below) is entitled
to have the Registrable Securities beneficially owned by it included in the
Shelf Registration Statement. In order to have Registrable Securities included
in the Shelf Registration Statement, this Notice of Registration Statement and
Selling Securityholder Questionnaire ("Notice and Questionnaire") must be
completed, executed and delivered to the Company's counsel at the address set
forth herein for receipt ON OR BEFORE [Deadline for Response]. Beneficial owners
of Registrable Securities who do not complete, execute and return this Notice
and Questionnaire by such date (i) will not be named as selling securityholders
in the Shelf Registration Statement and (ii) may not use the Prospectus forming
a part thereof for resales of Registrable Securities.
Certain legal consequences arise from being named as a selling securityholder in
the Shelf Registration Statement and related Prospectus. Accordingly, holders
and beneficial owners of Registrable Securities are advised to consult their own
securities law counsel regarding the consequences of being named or not being
named as a selling securityholder in the Shelf Registration Statement and
related Prospectus.
The term "Registrable Securities" is defined in the Registration Rights
Agreement.
A-2
<PAGE>
ELECTION
The undersigned holder (the "Selling Securityholder") of Registrable Securities
hereby elects to include in the Shelf Registration Statement the Registrable
Securities beneficially owned by it and listed below in Item (3). The
undersigned, by signing and returning this Notice and Questionnaire, agrees to
be bound with respect to such Registrable Securities by the terms and conditions
of this Notice and Questionnaire and the Registration Rights Agreement,
including, without limitation, Section 6 of the Registration Rights Agreement,
as if the undersigned Selling Securityholder were an original party thereto.
Upon any sale of Registrable Securities pursuant to the Shelf Registration
Statement, the Selling Securityholder will be required to deliver to the Company
and Trustee the Notice of Transfer set forth in Appendix A to the Prospectus and
as Exhibit B to the Registration Rights Agreement.
The Selling Securityholder hereby provides the following information to the
Company and represents and warrants that such information is accurate and
complete:
A-3
<PAGE>
QUESTIONNAIRE
(1) (a) Full Legal Name of Selling Securityholder:
_______________________________________________________________________
(b) Full Legal Name of Registered Holder (if not the same as in (a) above)
of Registrable Securities Listed in Item (3) below:
_______________________________________________________________________
(c) Full Legal Name of DTC Participant (if applicable and if not the
same as (b) above) Through Which Registrable Securities Listed in
Item (3) below are Held:
_______________________________________________________________________
(2) Address for Notices to Selling Securityholder:
______________________________
______________________________
______________________________
Telephone: ______________________________
Fax: ______________________________
Contact Person: ______________________________
(3) Beneficial Ownership of Securities:
Except as set forth below in this Item (3), the undersigned does not
beneficially own any Securities.
(a) Principal amount of Registrable Securities beneficially owned:_________
CUSIP No(s). of such Registrable Securities:___________________________
(b) Principal amount of Securities other than Registrable Securities
beneficially owned:
_______________________________________________________________________
CUSIP No(s). of such other Securities:_________________________________
(c) Principal amount of Registrable Securities which the
undersigned wishes to be included in the Shelf Registration
Statement:_____________________________________________________________
CUSIP No(s). of such Registrable Securities to be included in the
Shelf Registration Statement:__________________________________________
(4) Beneficial Ownership of Other Securities of the Company:
Except as set forth below in this Item (4), the undersigned Selling
Securityholder is not the beneficial or registered owner of any
other securities of the Company, other than the Securities listed
above in Item (3).
State any exceptions here:
A-4
<PAGE>
(5) Relationships with the Company:
Except as set forth below, neither the Selling Securityholder nor any
of its affiliates, officers, directors or principal equity holders
(5% or more) has held any position or office or has had any other
material relationship with the Company (or its predecessors or
affiliates) during the past three years.
State any exceptions here:
(6) Plan of Distribution:
Except as set forth below, the undersigned Selling Securityholder
intends to distribute the Registrable Securities listed above in
Item (3) only as follows (if at all): Such Registrable Securities
may be sold from time to time directly by the undersigned Selling
Securityholder or, alternatively, through underwriters,
broker-dealers or agents. Such Registrable Securities may be sold in
one or more transactions at fixed prices, at prevailing market
prices at the time of sale, at varying prices determined at the time
of sale, or at negotiated prices. Such sales may be effected in
transactions (which may involve crosses or block transactions) (i)
on any national securities exchange or quotation service on which
the Registered Securities may be listed or quoted at the time of
sale, (ii) in the over-the-counter market, (iii) in transactions
otherwise than on such exchanges or services or in the
over-the-counter market, or (iv) through the writing of options. In
connection with sales of the Registrable Securities or otherwise,
the Selling Securityholder may enter into hedging transactions with
broker-dealers, which may in turn engage in short sales of the
Registrable Securities in the course of hedging the positions they
assume. The Selling Securityholder may also sell Registrable
Securities short and deliver Registrable Securities to close out
such short positions, or loan or pledge Registrable Securities to
broker-dealers that in turn may sell such securities.
State any exceptions here:
By signing below, the Selling Securityholder acknowledges that it understands
its obligation to comply, and agrees that it will comply, with the provisions of
the Exchange Act and the rules and regulations thereunder, particularly
Regulation M.
In the event that the Selling Securityholder transfers all or any portion of the
Registrable Securities listed in Item (3) above after the date on which such
information is provided to the Company, the Selling Securityholder agrees to
notify the transferee(s) at the time of the transfer of its rights and
obligations under this Notice and Questionnaire and the Registration Rights
Agreement.
By signing below, the Selling Securityholder consents to the disclosure of the
information contained herein in its answers to Items (1) through (6) above and
the inclusion of such information in the Shelf Registration Statement and
related Prospectus. The Selling Securityholder understands that such information
will be relied upon by the Company in connection with the preparation of the
Shelf Registration Statement and related Prospectus.
A-5
<PAGE>
In accordance with the Selling Securityholder's obligation under Section 3(e) of
the Registration Rights Agreement to provide such information as may be required
by law for inclusion in the Shelf Registration Statement, the Selling
Securityholder agrees to promptly notify the Company of any inaccuracies or
changes in the information provided herein which may occur subsequent to the
date hereof at any time while the Shelf Registration Statement remains in
effect. All notices hereunder and pursuant to the Registration Rights Agreement
shall be made in writing, by hand-delivery, first-class mail, or air courier
guaranteeing overnight delivery as follows:
(i) To the Company:
-------------------------
-------------------------
-------------------------
-------------------------
-------------------------
(ii) With a copy to:
-------------------------
-------------------------
-------------------------
-------------------------
-------------------------
Once this Notice and Questionnaire is executed by the Selling Securityholder and
received by the Company's counsel, the terms of this Notice and Questionnaire,
and the representations and warranties contained herein, shall be binding on,
shall inure to the benefit of and shall be enforceable by the respective
successors, heirs, personal representatives, and assigns of the Company and the
Selling Securityholder (with respect to the Registrable Securities beneficially
owned by such Selling Securityholder and listed in Item (3) above. This
Agreement shall be governed in all respects by the laws of the State of New
York.
A-6
<PAGE>
IN WITNESS WHEREOF, the undersigned, by authority duly given, has caused this
Notice and Questionnaire to be executed and delivered either in person or by its
duly authorized agent.
Dated:_____________________
______________________________________________________________
Selling Securityholder
(Print/type full legal name of beneficial owner of Registrable
Securities)
By:___________________________________________________________
Name:
Title:
PLEASE RETURN THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE FOR RECEIPT ON
OR BEFORE [DEADLINE FOR RESPONSE] TO THE COMPANY'S COUNSEL AT:
-------------------------
-------------------------
-------------------------
-------------------------
-------------------------
A-7
<PAGE>
Exhibit B
NOTICE OF TRANSFER PURSUANT TO REGISTRATION STATEMENT
Delta Air Lines, Inc.
c/o The Bank of New York
101 Barclay Street
New York, New York 10286
Attention: Trust Officer
Re: Delta Air Lines, Inc. (the "Company")
7.70% Notes due 2005, 7.90% Notes due 2009 and 8.30% Notes due 2029
Dear Sirs:
Please be advised that ______________________________ has transferred $
aggregate principal amount of the above-referenced Notes pursuant to an
effective Registration Statement on Form S-3 (File No. 333-________) filed by
the Company.
We hereby certify that the prospectus delivery requirements, if any, of the
Securities Act of 1933, as amended, have been satisfied and that the above-named
beneficial owner of the Notes is named as a "Selling Holder" in the Prospectus
dated [date] or in supplements thereto, and that the aggregate principal amount
of the Notes transferred are the Notes listed in such Prospectus opposite such
owner's name.
Dated:
Very truly yours,
_________________________
(Name)
By:
_________________________
(Authorized Signature)
B-1
EXHIBIT 4.2
- -------------------------------------------------------------------------------
DELTA AIR LINES, INC.
TO
THE BANK OF NEW YORK
Trustee
----------------
Indenture
Dated as of December 14, 1999
----------------
$500,000,000 7.70% Notes due 2005
$500,000,000 7.90% Notes due 2009
$1,000,000,000 8.30% Notes due 2029
........................................
- -------------------------------------------------------------------------------
<PAGE>
.....................................
Certain Sections of this Indenture relating to
Sections 310 through 318 of the
Trust Indenture Act of 1939:
Trust Indenture Indenture
Act Section Section
- --------------- ---------
ss. 310(a)(1) ................................................. 609
(a)(2) ................................................. 609
(a)(3) ................................................. Not
Applicable
(a)(4) ................................................. Not
Applicable
(b) ................................................. 608
610
ss. 311 (a) ................................................. 613
(b) ................................................. 613
ss. 312 (a) ................................................. 701
702(a)
(b) ................................................. 702(b)
(c) ................................................. 702(c)
ss. 313 (a) ................................................. 703(a)
(a)(4) ................................................. 101
1004
(b) ................................................. 703(a)
(c) ................................................. 703(a)
(d) ................................................. 703(b)
ss. 314 (a) ................................................. 704
(b) ................................................. Not
Applicable
(c)(1) ................................................. 102
(c)(2) ................................................. 102
(c)(3) ................................................. Not
Applicable
(d) ................................................. Not
Applicable
(e) ................................................. 102
ss. 315 (a) ................................................. 601
(b) ................................................. 602
(c) ................................................. 601
(d) ................................................. 601
(e) ................................................. 514
<PAGE>
Trust Indenture Indenture
Act Section Section
- --------------- ---------
ss. 316 (a) ................................................. 101
(a)(1)(A) ................................................. 502
512
(a)(1)(B) ................................................. 513
(a)(2) ................................................. Not
Applicable
(b) ................................................. 508
(c) ................................................. 104(c)
ss. 317 (a)(1) ................................................. 503
(a)(2) ................................................. 504
(b) ................................................. 1003
ss. 318 (a) ................................................. 107
- --------------
Note: This reconciliation and tie shall not, for any purpose, be deemed to
be a part of the Indenture.
-ii-
<PAGE>
TABLE OF CONTENTS
Page
----
RECITALS OF THE COMPANY........................................................1
ARTICLE ONE
Definitions and Other Provisions
of General Application
SECTION 101. Definitions......................................................2
Act .............................................................3
Additional Interest .............................................3
Additional Interest Event .......................................3
Affiliate .......................................................3
Agent Member ....................................................3
Applicable Procedures ...........................................3
Authenticating Agent ............................................3
Board of Directors ..............................................4
Board Resolution ................................................4
Business Day ....................................................4
Cedel ...........................................................4
Closing Date ....................................................4
Commission ......................................................4
Company .........................................................4
Company Request .................................................4
Corporate Trust Office ..........................................5
Corporation .....................................................5
Covenant Defeasance .............................................5
Defaulted Interest ..............................................5
Depositary ......................................................5
DTC .............................................................5
Euroclear .......................................................5
Event of Default ................................................5
Exchange Act ....................................................5
Exchange Offer ..................................................5
Exchange Registration Statement .................................5
Exchange Securities .............................................6
Global Securities ...............................................6
Global Security Legend ..........................................6
Holder ..........................................................6
Indenture .......................................................6
Interest ........................................................6
- -----------
Note: This table of contents shall not, for any purpose,
be deemed to be a part of the Indenture.
-i-
<PAGE>
Page
----
Interest Payment Date ...........................................6
Maturity ........................................................7
Officers' Certificate ...........................................7
Opinion of Counsel ..............................................7
Original Six-Year Securities ....................................7
Original Ten-Year Securities ....................................7
Original Thirty-Year Securities .................................7
Outstanding .....................................................7
Paying Agent ....................................................8
Person ..........................................................9
Place of Payment ................................................9
Predecessor Security ............................................9
Principal Property ..............................................9
Purchase Agreement ..............................................9
Purchasers.......................................................9
QIB .............................................................9
Registered Securities ...........................................9
Registrable Securities .........................................10
Registration Rights Agreement ..................................10
Regular Record Date ............................................10
Regulation S ...................................................10
Regulation S Certificate .......................................10
Regulation S Global Securities .................................10
Regulation S Legend ............................................10
Regulation S Securities ........................................10
Restricted Global Securities ...................................10
Restricted Period ..............................................10
Restricted Securities ..........................................11
Restricted Securities Certificate ..............................11
Restricted Securities Legend ...................................11
Restricted Subsidiary ..........................................11
Rule 144 .......................................................11
Rule 144A ......................................................11
Rule 144(k) Holding Period .....................................11
Securities .....................................................11
Securities Act .................................................11
Securities Act Legend ..........................................12
Security Register and Security Registrar .......................12
Series .........................................................12
- -----------
Note: This table of contents shall not, for any purpose,
be deemed to be a part of the Indenture.
-ii-
<PAGE>
Page
----
Shelf Registration Statement ...................................12
Six-Year Exchange Security .....................................12
Six-Year Securities ............................................12
Special Record Date ............................................12
Stated Maturity ................................................12
Subsidiary .....................................................12
Successor Security..............................................13
Ten-Year Exchange Security .....................................13
Ten-Year Securities ............................................13
Thirty-Year Exchange Security ..................................13
Thirty-Year Securities .........................................13
Trustee ........................................................13
Trust Indenture Act ............................................13
Unrestricted Securities Certificate ............................14
Vice President .................................................14
SECTION 102. Compliance Certificates and Opinions............................14
SECTION 103. Form of Documents Delivered to
Trustee.......................................................15
SECTION 104. Acts of Holders; Record Dates...................................16
SECTION 105. Notices, Etc., to Trustee
and Company...................................................18
SECTION 106. Notice to Holders; Waiver.......................................18
SECTION 107. Conflict with Trust Indenture Act...............................19
SECTION 108. Effect of Headings and Table
of Contents...................................................19
SECTION 109. Successors and Assigns..........................................20
SECTION 110. Separability Clause.............................................20
SECTION 111. Benefits of Indenture...........................................20
SECTION 112. Governing Law...................................................20
- -----------
Note: This table of contents shall not, for any purpose,
be deemed to be a part of the Indenture.
-iii-
<PAGE>
Page
----
SECTION 113. Legal Holidays..................................................20
SECTION 114. No Separate Vote by Series......................................21
ARTICLE TWO
Security Forms
SECTION 201. Forms Generally.................................................21
SECTION 202. Form of Face of Security........................................22
SECTION 203. Form of Reverse of Security.....................................25
SECTION 204. Form of Legend for Global Securities............................29
SECTION 205. Form of Trustee's Certificate of
Authentication................................................30
ARTICLE THREE
The Securities
SECTION 301. Title and Terms.................................................30
SECTION 302. Denominations...................................................32
SECTION 303. Execution, Authentication, Delivery
and Dating....................................................32
SECTION 304. Temporary Securities............................................33
SECTION 305. Registration, Registration of
Transfer and Exchange; Certain
Transfers and Exchanges.......................................34
SECTION 306. Mutilated, Destroyed, Lost and
Stolen Securities.............................................42
- -----------
Note: This table of contents shall not, for any purpose,
be deemed to be a part of the Indenture.
-iv-
<PAGE>
Page
----
SECTION 307. Payment of Interest; Interest
Rights Preserved..............................................43
SECTION 308. Persons Deemed Owners...........................................45
SECTION 309. Cancellation....................................................45
SECTION 310. Computation of Interest.........................................46
ARTICLE FOUR
Satisfaction and Discharge
SECTION 401. Satisfaction and Discharge of
Indenture.....................................................46
SECTION 402. Application of Trust Money......................................48
ARTICLE FIVE
Remedies
SECTION 501. Events of Default...............................................48
SECTION 502. Acceleration of Maturity; Rescission
and Annulment.................................................51
SECTION 503. Collection of Indebtedness and Suits
for Enforcement by Trustee....................................52
SECTION 504. Trustee May File Proofs of Claim................................53
SECTION 505. Trustee May Enforce Claims
Without Possession of Securities..............................54
SECTION 506. Application of Money Collected..................................54
SECTION 507. Limitation on Suits.............................................55
- -----------
Note: This table of contents shall not, for any purpose,
be deemed to be a part of the Indenture.
-v-
<PAGE>
Page
----
SECTION 508. Unconditional Right of Holders to
Receive Principal and Interest................................56
SECTION 509. Restoration of Rights and Remedies..............................57
SECTION 510. Rights and Remedies Cumulative..................................57
SECTION 511. Delay or Omission Not Waiver....................................57
SECTION 512. Control by Holders..............................................58
SECTION 513. Waiver of Past Defaults.........................................58
SECTION 514. Undertaking for Costs...........................................59
SECTION 515. Waiver of Stay or Extension Laws................................59
ARTICLE SIX
The Trustee
SECTION 601. Certain Duties and Responsibilities.............................60
SECTION 602. Notice of Defaults..............................................60
SECTION 603. Certain Rights of Trustee.......................................60
SECTION 604. Not Responsible for Recitals
or Issuance of Securities.....................................62
SECTION 605. May Hold Securities.............................................63
SECTION 606. Money Held in Trust.............................................63
SECTION 607. Compensation and Reimbursement..................................63
SECTION 608. Disqualification; Conflicting
Interests.....................................................64
- -----------
Note: This table of contents shall not, for any purpose,
be deemed to be a part of the Indenture.
-vi-
<PAGE>
Page
----
SECTION 609. Corporate Trustee Required;
Eligibility...................................................65
SECTION 610. Resignation and Removal;
Appointment of Successor......................................65
SECTION 611. Acceptance of Appointment by
Successor.....................................................67
SECTION 612. Merger, Conversion, Consolidation
or Succession to Business.....................................68
SECTION 613. Preferential Collection
of Claims Against Company.....................................68
SECTION 614. Appointment of Authenticating Agent.............................68
ARTICLE SEVEN
Holders' Lists and Reports by Trustee and Company
SECTION 701. Company to Furnish Trustee
Names and Addresses of Holders................................71
SECTION 702. Preservation of Information;
Communications to Holders.....................................72
SECTION 703. Reports by Trustee..............................................72
SECTION 704. Reports by Company..............................................73
ARTICLE EIGHT
Consolidation, Merger, Conveyance, Transfer or Lease
SECTION 801. Company May Consolidate, Etc.,
Only on Certain Terms.........................................73
- -----------
Note: This table of contents shall not, for any purpose,
be deemed to be a part of the Indenture.
-vii-
<PAGE>
Page
----
SECTION 802. Successor Substituted...........................................75
ARTICLE NINE
Supplemental Indentures
SECTION 901. Supplemental Indentures
Without Consent of Holders....................................75
SECTION 902. Supplemental Indentures
with Consent of Holders.......................................76
SECTION 903. Execution of Supplemental Indentures............................78
SECTION 904. Effect of Supplemental Indentures...............................78
SECTION 905. Conformity with Trust Indenture Act.............................78
SECTION 906. Reference in Securities
to Supplemental Indentures....................................79
ARTICLE TEN
Covenants
SECTION 1001. Payment of Principal and Interest...............................79
SECTION 1002. Maintenance of Office or Agency.................................79
SECTION 1003. Money for Security
Payments to Be Held in Trust..................................80
SECTION 1004. Statement by Officers as to Default.............................82
SECTION 1005. Existence.......................................................82
SECTION 1006. Waiver of Certain Covenants.....................................82
- -----------
Note: This table of contents shall not, for any purpose,
be deemed to be a part of the Indenture.
-viii-
<PAGE>
Page
----
SECTION 1007. Officers' Certificate as to Additional
Interest........................................................83
ARTICLE ELEVEN
DEFEASANCE
Section 1101. Reserved........................................................83
Section 1102. Defeasance Upon Deposit of Moneys or U.S.
Government Obligations........................................83
Section 1103. Deposited Moneys and U.S. Government
Obligations to be Held in Trust...............................86
Section 1104. Repayment to Company............................................87
Section 1105. Reinstatement...................................................87
ARTICLE TWELVE
IMMUNITY
SECTION 1201. Personal Immunity of Incorporators,
Stockholders, Directors and
Officers......................................................88
ANNEX A......................................................................A-1
ANNEX B......................................................................B-1
ANNEX C......................................................................C-1
- -----------
Note: This table of contents shall not, for any purpose,
be deemed to be a part of the Indenture.
-ix-
<PAGE>
INDENTURE, dated as of December 14, 1999, between Delta Air Lines,
Inc., a corporation duly organized and existing under the laws of the State of
Delaware (herein called the "Company"), having its principal office at
Hartsfield Atlanta International Airport, Atlanta, Georgia 30320, and The Bank
of New York, a banking corporation duly organized and existing under the laws
of the State of New York, as Trustee (herein called the "Trustee").
RECITALS OF THE COMPANY
The Company has duly authorized the creation of the Securities (as
hereinafter defined), substantially of the tenor and amount hereinafter set
forth, and to provide therefor the Company has duly authorized the execution
and delivery of this Indenture.
All things necessary to make the Securities, when executed by the
Company and authenticated and delivered hereunder and duly issued by the
Company, the valid obliga tions of the Company, and to make this Indenture a
valid agreement of the Company, in accordance with their and its terms, have
been done.
NOW, THEREFORE, THIS INDENTURE WITNESSETH:
For and in consideration of the premises and the purchase of the
Securities by the Holders thereof, it is mutually agreed, for the equal and
proportionate benefit of all Holders of the Securities, as follows:
ARTICLE ONE
Definitions and Other Provisions
of General Application
SECTION 101. Definitions.
For all purposes of this Indenture, except as otherwise expressly
provided or unless the context otherwise requires:
(1) the terms defined in this Article have the meanings assigned to
them in this
<PAGE>
Article and include the plural as well as the singular;
(2) all other terms used herein which are defined in the Trust
Indenture Act, either directly or by reference therein, have the meanings
assigned to them therein;
(3) all accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with generally accepted accounting
principles, and, except as otherwise herein expressly provided, the term
"generally accepted accounting principles" with respect to any computation
required or permitted hereunder shall mean such accounting principles as
are generally accepted at the date of such computation;
(4) the words "Article" and "Section" refer to an Article or Section,
respectively, of this Indenture; and
(5) the words "herein", "hereof" and "hereunder" and other words of
similar import refer to this Indenture as a whole and not to any
particular Article, Section or other subdivision.
Certain terms, used principally in Article Eleven, are defined in
that Article.
"Act", when used with respect to any Holder, has the meaning
specified in Section 104.
"Additional Interest", which does not apply to the Exchange
Securities, has the meaning set forth on the Form of Reverse of Security in
Section 203.
"Additional Interest Event", which does not apply to the Exchange
Securities, has the meaning set forth on the Form of Reverse of Security in
Section 203.
"Affiliate" of any specified Person means any other Person directly
or indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this
-2-
<PAGE>
definition, "control" when used with respect to any specified Person means the
power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or
otherwise; and the terms "controlling" and "controlled" have meanings
correlative to the foregoing.
"Agent Member" means any member of, or participant in, the
Depositary.
"Applicable Procedures" means, with respect to any transfer or
transaction involving a Global Security or beneficial interest therein, the
rules and procedures of the Depositary for such Security, or Euroclear and
Cedel, in each case to the extent applicable to such transaction and as in
effect from time to time.
"Authenticating Agent" means any Person authorized by the Trustee
pursuant to Section 614 to act on behalf of the Trustee to authenticate
Securities.
"Board of Directors" means either the board of directors of the
Company or any duly authorized committee appointed by that board, which
committee may consist entirely of one or more members of the board of directors
of the Company, one or more non-members of the board, or a mixture of board and
non-board members.
"Board Resolution" means a copy of a resolution certified by the
Secretary or an Assistant Secretary of the Company to have been duly adopted by
the Board of Directors and to be in full force and effect on the date of such
certification, and delivered to the Trustee.
"Business Day" means each Monday, Tuesday, Wednesday, Thursday and
Friday which is not a day on which banking institutions in New York City, New
York are authorized or obligated by law or executive order to close.
"Cedel" means CedelBank, S.A. (or any successor securities clearing
agency).
"Closing Date" has the meaning set forth in the Registration Rights
Agreement.
"Commission" means the Securities and Exchange Commission, as from
time to time constituted, created under
-3-
<PAGE>
the Exchange Act, or, if at any time after the execution of this instrument
such Commission is not existing and performing the duties now assigned to it
under the Trust Indenture Act, then the body performing such duties at such
time.
"Company" means the Person named as the "Company" in the first
paragraph of this instrument until a successor Person shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter
"Company" shall mean such successor Person.
"Company Request" or "Company Order" means a written request or order
signed in the name of the Company by the Chairman of the Board, the Vice
Chairman of the Board, the Chief Executive Officer, the Chief Operating
Officer, the Chief Financial Officer, the President, or a Vice President of the
Company, and by the Treasurer, an Assistant Treasurer, the Controller, an
Assistant Controller, the Secretary or an Assistant Secretary of the Company,
and delivered to the Trustee.
"Corporate Trust Office" means the office of the Trustee at which at
any particular time this Indenture shall be administered, which office on the
date hereof is located at 10161 Centurion Parkway, Jacksonville, Florida 32256,
Attention: Corporate Trust Department.
The term "corporation" means a corporation, association, company,
joint-stock company or business trust.
The term "covenant defeasance" has the meaning specified in Section
1102.
"Defaulted Interest" has the meaning specified in Section 307.
"Depositary" means a clearing agency registered under the Exchange
Act that is designated to act as the depositary for the Securities.
"DTC" means The Depository Trust Company.
"Euroclear" means the Euroclear Clearance System (or any successor
securities clearing agency).
-4-
<PAGE>
"Event of Default" has the meaning specified in Section 501.
"Exchange Act" means the Securities Exchange Act of 1934 and any
statute successor thereto, in each case as amended from time to time.
"Exchange Offer" has the meaning set forth in the Registration Rights
Agreement.
"Exchange Registration Statement" has the meaning set forth in the
Registration Rights Agreement.
"Exchange Securities" means the Six-Year Exchange Securities, the
Ten-Year Exchange Securities and the Thirty- Year Exchange Securities, which
shall be substantially identical to the Original Six-Year Securities, Original
Ten- Year Securities and Original Thirty-Year Securities, as the case may be,
except that the Exchange Securities will have been registered pursuant to an
effective registration statement under the Securities Act, will not be subject
to transfer restrictions or registration rights and will not be entitled to the
benefit of provisions for Additional Interest.
"Global Securities" means the Restricted Global Securities and the
Regulation S Global Securities.
"Global Security Legend" means a legend substantially in the form of
the legend set forth in accordance with Section 204(c).
"Holder" means a Person in whose name a Security is registered in the
Security Register.
"Indenture" means this instrument as originally executed or as it may
from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof,
including, for all purposes of this instrument and any such supplemental
indenture, the provisions of the Trust Indenture Act that are deemed to be a
part of and govern this instrument and any such supplemental indenture,
respectively.
The term "interest", when used herein with respect to the Securities,
includes Additional Interest, if any,
-5-
<PAGE>
except (i) the rates per annum set forth in the first paragraph of the Form of
Face of Security in Section 202 and in Section 301 do not include Additional
Interest and (ii) as the context otherwise requires.
"Interest Payment Date" means the Stated Maturity of an instalment of
interest on the Securities.
"Maturity", when used with respect to a Security, means the date on
which the principal of the Security becomes due and payable as therein or
herein provided.
"Officers' Certificate" means a certificate signed by the Chairman of
the Board, a Vice Chairman of the Board, the Chief Executive Officer, the Chief
Operating Officer, the Chief Financial Officer, the President, or a Vice
President of the Company, and by the Controller, the Treasurer, an Assistant
Controller, an Assistant Treasurer, the Secretary or an Assistant Secretary, of
the Company, and delivered to the Trustee. One of the officers signing an
Officers' Certificate given pursuant to Sections 1004 or 1007 shall be the
principal executive, financial or accounting officer of the Company.
"Opinion of Counsel" means a written opinion of counsel, who may be
counsel for the Company, and who shall be reasonably acceptable to the Trustee.
"Original Six-Year Securities" means all Six-Year Securities other
than Six-Year Exchange Securities.
"Original Ten-Year Securities" means all Ten-Year Securities other
than Ten-Year Exchange Securities.
"Original Thirty-Year Securities" means all Thirty-Year Securities
other than Thirty-Year Exchange Securities.
"Outstanding", when used with respect to Securities, means, as of the
date of determination, all Securities theretofore authenticated and delivered
under this Indenture, except:
(1) Securities theretofore canceled by the Trustee or delivered to
the Trustee for cancellation;
-6-
<PAGE>
(2) Securities for whose payment money in the necessary amount has
been theretofore deposited with the Trustee or any Paying Agent (other
than the Company) in trust or set aside and segregated in trust by the
Company (if the Company shall act as its own Paying Agent) for the Holders
of such Securities;
(3) Securities which have been defeased pursuant to Section 1102; and
(4) Securities which have been paid pursuant to Section 306 or in
exchange for or in lieu of which other Securities have been authenticated
and delivered pursuant to this Indenture, other than any such Securities
in respect of which there shall have been presented to the Trustee proof
satisfactory to it that such Securities are held by a bona fide purchaser
in whose hands such Securities are valid obligations of the Company;
provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, Securities
owned by the Company or any other obligor upon the Securities or any Affiliate
of the Company or of such other obligor shall be disregarded and deemed not to
be Outstand ing, except that, in determining whether the Trustee shall be
protected in relying upon any such request, demand, authorization, direction,
notice, consent or waiver, only Securities which the Trustee has actual
knowledge to be so owned shall be so disregarded. Securities so owned which
have been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Trustee the pledgee's right so to act
with respect to such Securities and that the pledgee is not the Company or any
other obligor upon the Securities or any Affiliate of the Company or of such
other obligor.
"Paying Agent" means any Person authorized by the Company to pay the
principal of or interest on any Securities on behalf of the Company.
"Person" means any individual, corporation, partnership, joint
venture, trust, unincorporated
-7-
<PAGE>
organization or government or any agency or political subdivision thereof.
"Place of Payment", when used with respect to the Securities, means
the place or places where the principal of and interest on the Securities are
payable as specified by Section 301.
"Predecessor Security" of any particular Security means every
previous Security evidencing all or a portion of the same debt as that
evidenced by such particular Security; and, for the purposes of this
definition, any Security authenticated and delivered under Section 306 in
exchange for or in lieu of a mutilated, destroyed, lost or stolen Security
shall be deemed to evidence the same debt as the mutilated, destroyed, lost or
stolen Security.
"Principal Property" means any aircraft, and any aircraft engine
installed in any aircraft, that has 75 or more passenger seats, whether now
owned or hereafter acquired by the Company or any Restricted Subsidiary.
"Purchase Agreement" means the Purchase Agreement, dated as of
December 7, 1999, between the Company and Goldman, Sachs & Co., as
representative of the Purchasers, as the same shall be amended from time to
time.
"Purchasers" means Goldman, Sachs & Co., Chase Securities Inc.,
Salomon Smith Barney Inc., ABN AMRO Incorporated, Commerzbank Capital Markets
Corporation, IBJ International plc, SunTrust Equitable Securities Corporation,
Wachovia Securities, Inc., Banc One Capital Markets, Inc. and Blaylock &
Partners, L.P.
"QIB" means a "qualified institutional buyer" as defined in Rule
144A.
"Registered Securities" means the Exchange Securi ties and all other
Securities sold or otherwise disposed of pursuant to an effective registration
statement under the Securities Act, together with their respective Successor
Securities.
"Registrable Securities" has the meaning set forth in the
Registration Rights Agreement.
-8-
<PAGE>
"Registration Rights Agreement" means the Registration Rights
Agreement, dated as of December 14, 1999, between the Company and Goldman,
Sachs & Co., as representative of the Purchasers, as the same shall be amended
from time to time.
"Regular Record Date" for the interest payable on any Interest
Payment Date means the June 1st or December 1st of each year (whether or not a
Business Day), as the case may be, next preceding such Interest Payment Date.
"Regulation S" means Regulation S under the Securities Act (or any
successor provision), as it may be amended from time to time.
"Regulation S Certificate" means a certificate substantially in the
form set forth in Annex A.
"Regulation S Global Securities" has the meaning specified in Section
201.
"Regulation S Legend" means a legend substantially in the form of the
legend set forth in Section 204(b).
"Regulation S Securities" means any Securities sold by the Purchasers
in reliance on Regulation S and any Successor Securities thereto as long as
such Securities are required pursuant to Section 305(c) to bear any Regulation
S Legend.
"Restricted Global Securities" has the meaning specified in Section
201.
"Restricted Period" means the period of 41 consecutive days beginning
on and including the later of (i) the day on which Securities are first offered
to persons other than distributors (as defined in Regulation S) in reliance on
Regulation S and (ii) the original issuance date of the Securities.
"Restricted Securities" means any Securities sold by the Purchasers
in reliance on Rule 144A and any Successor Securities thereto as long as such
Securities are required pursuant to Section 305(c) to bear any Restricted
Securities Legend.
-9-
<PAGE>
"Restricted Securities Certificate" means a certificate substantially
in the form set forth in Annex B.
"Restricted Securities Legend" means a legend substantially in the
form of the legend set forth in Section 204(a).
"Restricted Subsidiary" means any Subsidiary (i) substantially all of
the property of which is located, and substantially all of the operations of
which are conducted in the United States of America, and (ii) which owns a
Principal Property, except a Subsidiary which is primarily engaged in the
business of a finance company.
"Rule 144" means Rule 144 under the Securities Act (or any successor
provision), as it may be amended from time to time.
"Rule 144A" means Rule 144A under the Securities Act (or any
successor provision), as it may be amended from time to time.
"Rule 144(k) Holding Period" has the meaning specified on the Form of
Reverse of Security in Section 203.
"Securities" means the Six-Year Securities, the Ten-Year Securities
and the Thirty-Year Securities.
"Securities Act" means the Securities Act of 1933 and any statute
successor thereto, in each case as amended from time to time.
"Securities Act Legend" means a Restricted Securities Legend or a
Regulation S Legend.
"Security Register" and "Security Registrar" have the respective
meanings specified in Section 305.
"Series" means each of the Six-Year Securities, the Ten-Year
Securities and the Thirty-Year Securities.
"Shelf Registration Statement" has the meaning set forth in the
Registration Rights Agreement.
"Six-Year Exchange Security" means any Security issued in exchange
for an Original Six-Year Security or Original Six-Year Securities pursuant to
the Exchange Offer
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or otherwise registered under the Securities Act and any Six-Year Security
with respect to which the next preceding Predecessor Six-Year Security of such
Six-Year Security was a Six-Year Exchange Security.
"Six-Year Securities" means the Original Six-Year Securities and the
Six-Year Exchange Securities.
"Special Record Date" for the payment of any Defaulted Interest means
a date fixed by the Trustee pursuant to Section 307.
"Stated Maturity", when used with respect to any Security or any
instalment of interest thereon, means the date specified in such Security as
the fixed date on which the principal of such Security or such instalment of
interest is due and payable.
"Subsidiary" means a corporation more than 50% of the outstanding
voting stock of which is owned, directly or indirectly, by the Company or by
one or more other Subsidiaries, or by the Company and one or more other
Subsidiaries. For the purposes of this definition, "voting stock" means stock
which ordinarily has voting power for the election of directors, whether at all
times or only so long as no senior class of stock has such voting power by
reason of any contingency.
"Successor Security" of any particular Security means every Security
issued after, and evidencing all or a portion of the same debt as that
evidenced by, such particular Security; and, for the purposes of this
definition, any Security authenticated and delivered under Section 306 in
exchange for or in lieu of a mutilated, destroyed, lost or stolen Security
shall be deemed to evidence the same debt as the mutilated destroyed, lost or
stolen Security.
"Ten-Year Exchange Security" means any Security issued in exchange
for an Original Ten-Year Security or Original Ten-Year Securities pursuant to
the Exchange Offer or otherwise registered under the Securities Act and any
Ten-Year Security with respect to which the next preceding Predecessor Ten-Year
Security of such Ten-Year Security was a Ten-Year Exchange Security.
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"Ten-Year Securities" means the Original Ten-Year Securities and the
Ten-Year Exchange Securities.
"Thirty-Year Exchange Security" means any Security issued in exchange
for an Original Thirty-Year Security or Original Thirty-Year Securities
pursuant to the Exchange Offer or otherwise registered under the Securities Act
and any Thirty-Year Security with respect to which the next preceding
Predecessor Thirty-Year Security of such Thirty- Year Security was a
Thirty-Year Exchange Security.
"Thirty-Year Securities" means the Original Thirty-Year Securities
and the Thirty-Year Exchange Securities.
"Trustee" means the Person named as the "Trustee" in the first
paragraph of this instrument until a successor Trustee shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter
"Trustee" shall mean such successor Trustee.
"Trust Indenture Act" means the Trust Indenture Act of 1939 as in
force at the date as of which this instru ment was executed; provided, however,
that in the event the Trust Indenture Act of 1939 is amended after such date,
"Trust Indenture Act" means, to the extent required by any such amendment, the
Trust Indenture Act of 1939 as so amended.
"Unrestricted Securities Certificate" means a certificate
substantially in the form set forth in Annex C.
"Vice President", when used with respect to the Company or the
Trustee, means any vice president, whether or not designated by a number or a
word or words added before or after the title "vice president".
SECTION 102. Compliance Certificates and Opinions.
Upon any application or request by the Company to the Trustee to take
any action under any provision of this Indenture, the Company shall furnish to
the Trustee such certificates and opinions as may be required under the Trust
Indenture Act. Each such certificate or opinion shall be given in the form of
an Officers' Certificate, if to be given by an officer of the Company, or an
Opinion of
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Counsel, if to be given by counsel, and shall comply with the requirements of
the Trust Indenture Act and any other requirement set forth in this Indenture.
Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture (except for the
certificate provided for in Section 1004) shall include
(1) a statement that each individual signing such certificate or
opinion has read such covenant or condition and the defini tions herein
relating thereto;
(2) a brief statement as to the nature and scope of the examination
or investigation upon which the statements or opinions contained in such
certificate or opinion are based;
(3) a statement that, in the opinion of each such individual, he has
made such examination or investigation as is necessary to enable him to
express an informed opinion as to whether or not such covenant or condi
tion has been complied with; and
(4) a statement as to whether, in the opinion of each such
individual, such condition or covenant has been complied with.
SECTION 103. Form of Documents Delivered to Trustee.
In any case where several matters are required to be certified by, or
covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.
Any certificate or opinion of an officer of the Company may be based,
insofar as it relates to legal
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matters, upon a certificate or opinion of, or representations by, counsel,
unless such officer knows, or in the exercise of reasonable care should know,
that the certificate or opinion or representations with respect to the matters
upon which his certificate or opinion is based are erroneous. Any such
certificate or opinion of counsel may be based, insofar as it relates to
factual matters, upon a certificate or opinion of, or representations by, an
officer or officers of the Company stating that the information with respect
to such factual matters is in the possession of the Company, unless such
counsel knows, or in the exercise of reasonable care should know, that the
certificate or opinion or representations with respect to such matters are
erroneous.
Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.
SECTION 104. Acts of Holders; Record Dates.
(a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided or permitted by this Indenture to be given or
taken by Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by agent duly
appointed in writing; and, except as herein otherwise expressly provided, such
action shall become effective when such instrument or instruments are delivered
to the Trustee and, where it is hereby expressly required, to the Company. Such
instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the "Act" of the Holders signing
such instrument or instruments. Proof of execution of any such instrument or of
a writing appointing any such agent shall be sufficient for any purpose of this
Indenture and (subject to Section 601) conclusive in favor of the Trustee and
the Company, if made in the manner provided in this Section.
Without limiting the generality of the foregoing, a Holder, including
a Depositary that is a Holder of a Global Security, may make, give or take, by
a proxy or proxies, duly appointed in writing, any request, demand,
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authorization, direction, notice, consent, waiver or other action provided in
this Indenture to be made, given or taken by Holders, and a Depositary that is
a Holder of a Global Security may provide its proxy or proxies to the
beneficial owners of interests in any such Global Security.
(b) The fact and date of the execution by any Person of any such
instrument or writing may be proved by the affidavit of a witness of such
execution or by a certificate of a notary public or other officer authorized
by law to take acknowledgments of deeds, certifying that the individual signing
such instrument or writing acknowledged to him the execution thereof. Where
such execution is by a signer acting in a capacity other than his individual
capacity, such certificate or affidavit shall also consti tute sufficient proof
of his authority. The fact and date of the execution of any such instrument or
writing, or the authority of the Person executing the same, may also be proved
in any other manner which the Trustee deems sufficient.
(c) The Company may fix any day as the record date for the purpose of
determining the Holders of Securities entitled to give or take any request,
demand, authorization, direction, notice, consent, waiver or other action
provided or permitted by this Indenture to be given or taken by Holders of
Securities other than any such action provided or permitted to be taken under
Section 501, 502 or 512. Such record date shall be not earlier than the 30th
day prior to the first solicitation of any Holder to give or take any such
action and not later than the date of such first solicitation. With regard to
any record date for action to be taken by the Holders of Securities, only the
Holders of Securities on such date (or their duly designated proxies) shall be
entitled to give or take the relevant action. The Company shall notify the
Trustee in writing of any such record date not later than the date of the first
solicitation of any Holder to give or take any action.
(d) The ownership of Securities shall be proved by the Security
Register.
(e) Any request, demand, authorization, direction, notice, consent,
waiver or other Act of the Holder of any Security shall bind every future
Holder of the same Security and the Holder of every Security issued upon the
registration of transfer thereof or in exchange therefor
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or in lieu thereof in respect of anything done, omitted or suffered to be done
by the Trustee or the Company in reliance thereon, whether or not notation of
such action is made upon such Security.
SECTION 105. Notices, Etc., to Trustee and Company.
Any request, demand, authorization, direction, notice, consent,
waiver or Act of Holders or other document provided or permitted by this
Indenture to be made upon, given or furnished to, or filed with,
(1) the Trustee by any Holder or by the Company shall be sufficient
for every purpose hereunder if made, given, furnished or filed in writing
to or with the Trustee at its Corporate Trust Office, Attention: Corporate
Trust Department, or
(2) the Company by the Trustee or by any Holder shall be sufficient
for every purpose hereunder (unless otherwise herein expressly provided)
if in writing and mailed, first-class postage prepaid, to the Company
addressed to it at the address of its principal office specified in the
first paragraph of this instrument, to the attention of its Treasurer,
with a separate copy to its General Counsel (provided that the failure of
any Holder to send a separate copy shall not affect the sufficiency of the
notice), or at any other address previously furnished in writing to the
Trustee by the Company.
SECTION 106. Notice to Holders; Waiver.
Where this Indenture provides for notice to Holders of any event,
such notice shall be sufficiently given (unless otherwise herein expressly
provided) if in writing and mailed, first-class postage prepaid, to each Holder
affected by such event, at his address as it appears in the Security Register,
not later than the latest date (if any), and not earlier than the earliest date
(if any), prescribed for the giving of such notice. In any case where
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notice to Holders is given by mail, neither the failure to mail such notice,
nor any defect in any notice so mailed, to any particular Holder shall affect
the sufficiency of such notice with respect to other Holders. Where this
Indenture provides for notice in any manner, such notice may be waived in
writing by the Person entitled to receive such notice, either before or after
the event, and such waiver shall be the equivalent of such notice. Waivers of
notice by Holders shall be filed with the Trustee, but such filing shall not
be a condition precedent to the validity of any action taken in reliance upon
such waiver.
In case by reason of the suspension of regular mail service or by
reason of any other cause it shall be impracticable to give such notice by
mail, then such notification as shall be made with the approval of the Trustee
shall constitute a sufficient notification for every purpose hereunder.
SECTION 107. Conflict with Trust Indenture Act.
If any provision hereof limits, qualifies or conflicts with a
provision of the Trust Indenture Act that is required under such Act to be a
part of and govern this Indenture, the latter provision shall control. If any
provision of this Indenture modifies or excludes any provi sion of the Trust
Indenture Act that may be so modified or excluded, the latter provision shall
be deemed to apply to this Indenture as so modified or to be excluded, as the
case may be.
SECTION 108. Effect of Headings and Table of Contents.
The Article and Section headings herein and the Table of Contents are
for convenience only and shall not affect the construction hereof.
SECTION 109. Successors and Assigns.
All covenants and agreements in this Indenture by the Company shall
bind its successors and assigns, whether so expressed or not.
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SECTION 110. Separability Clause.
In case any provision in this Indenture or in the Securities shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.
SECTION 111. Benefits of Indenture.
Nothing in this Indenture or in the Securities, express or implied,
shall give to any Person, other than the parties hereto and their successors
hereunder and the Holders of Securities, any benefit or any legal or equitable
right, remedy or claim under this Indenture.
SECTION 112. Governing Law.
This Indenture and the Securities shall be governed by and construed
in accordance with the laws of the State of New York.
SECTION 113. Legal Holidays.
In any case where any Interest Payment Date or Stated Maturity of any
Security shall not be a Business Day at any Place of Payment, then
(notwithstanding any other provision of this Indenture or of the Securities)
payment of interest or principal need not be made at such Place of Payment on
such date, but may be made on the next succeeding Business Day at such Place of
Payment with the same force and effect as if made on the Interest Payment Date
or at the Stated Maturity, provided that no interest shall accrue for the
period from and after such Interest Payment Date or Stated Maturity, as the
case may be.
SECTION 114. No Separate Vote by Series.
For purposes of any vote or any other taking of actions under this
Indenture, the Holders of all the Series shall vote collectively as a single
class.
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ARTICLE TWO
Security Forms
SECTION 201. Forms Generally.
The Securities and the Trustee's certificates of authentication shall
be in substantially the forms set forth in this Article, with such appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture, and may have such letters, numbers or other marks
of identification and such legends or endorsements placed thereon as may be
required to comply with the rules of any securities exchange or as may,
consistently herewith, be determined by the officers executing such Securities,
as evidenced by their execution of the Securities.
The definitive Securities shall be printed, lithographed or engraved
on steel engraved borders or may be produced in any other manner, all as
determined by the officers executing such Securities, as evidenced by their
execution of such Securities.
Upon their original issuance, the Restricted Securities shall be
issued in the form of one or more Global Securities registered in the name of
DTC, as Depositary, or its nominee and deposited with the Trustee, as custodian
for DTC, for credit by DTC to the respective accounts of beneficial owners of
the Securities represented thereby (or such other accounts as they may direct).
Such Global Securities, together with their Successor Securities which are
Global Securities other than the Regulation S Global Securities, are
collectively herein called the "Restricted Global Securities".
Upon their original issuance, initial Regulation S Securities shall
be issued in the form of one or more Global Securities registered in the name
of DTC, as Depositary, or its nominee and deposited with the Trustee, as
custodian for DTC, for credit by DTC to the respective accounts of beneficial
owners of the Securities represented thereby (or such other accounts as they
may direct), provided that upon such deposit all such Securities shall be
credited to or through accounts maintained at DTC by or on behalf of Euroclear
or Cedel and in accordance with Section 305(b)(iv). Such
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Global Securities, together with their Successor Securities which are Global
Securities other than the Restricted Global Securities, are collectively
herein called the "Regulation S Global Securities".
SECTION 202. Form of Face of Security.
Delta Air Lines, Inc.
[insert title of applicable Series]
----------------------------------------
No. __________ $________
Delta Air Lines, Inc., a corporation duly organized and existing
under the laws of the State of Delaware (herein called the "Company", which
term includes any successor Person under the Indenture hereinafter referred
to), for value received, hereby promises to pay to __________________, or
registered assigns, the principal sum of _____________________ Dollars on
December 15, _____*, and to pay interest thereon from December 14, 1999 or from
the most recent Interest Payment Date to which interest has been paid or duly
provided for, semi-annually on June 15 and December 15 in each year, commencing
June 15, 2000, at the rate of ___%** per annum, until the principal hereof is
paid or made available for payment.
The interest so payable [(including Additional Interest, if any,
provided for on the reverse hereof)]***, and punctually paid or duly provided
for, on any Interest Payment Date will, as provided in such Indenture, be paid
to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest, which shall be June 1 or December 1 (whether or not a
Business Day), as the case may be, next preceding such Interest
- --------
* Insert the Stated Maturity for the applicable Series.
** Insert the interest rate for the applicable Series.
*** Omitted from Exchange Securities.
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Payment Date. Any such interest not so punctually paid or duly provided for
will forthwith cease to be payable to the Holder on such Regular Record Date
and may either be paid to the Person in whose name this Security (or one or
more Predecessor Securities) is registered at the close of business on a
Special Record Date for the payment of such Defaulted Interest to be fixed by
the Trustee, notice whereof shall be given to Holders of Securities not less
than 10 days prior to such Special Record Date, or be paid at any time in any
other lawful manner not inconsistent with the requirements of any securities
exchange on which the Securities may be listed, and upon such notice as may be
required by such exchange, all as more fully provided in said Indenture.
Payment of the principal of and interest on this Security will be made at the
office or agency of the Company maintained for that purpose in New York, New
York, in such coin or currency of the United States of America as at the time
of payment is legal tender for payment of public and private debts; provided,
however, that at the option of the Company payment of interest may be made by
check mailed to the address of the Person entitled thereto as such address
shall appear in the Security Register.
Reference is hereby made to the further provisions of this Security
set forth on the reverse hereof, which further provisions shall for all
purposes have the same effect as if set forth at this place.
Unless the certificate of authentication hereon has been executed by
the Trustee referred to on the reverse
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hereof by manual signature, this Security shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.
IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.
Dated: ________________
Delta Air Lines, Inc.
By_______________________
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SECTION 203. Form of Reverse of Security.
This Security is one of a duly authorized issue of securities of the
Company, limited in aggregate principal amount to $2,000,000,000, issued and to
be issued under an Indenture, dated as of December 14, 1999 (herein called the
"Indenture"), between the Company and The Bank of New York, as Trustee (herein
called the "Trustee", which term includes any successor trustee under the
Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Company, the Trustee and the
Holders of the Securities and of the terms upon which the Securities are, and
are to be, authenticated and delivered. The Securities issued and to be issued
under the Indenture consist of three Series of Notes (the 7.70% Notes due 2005,
the 7.90% Notes due 2009 and the 8.30% Notes due 2029) and are hereinafter
called the "Securities".
[The Holder of this Security is entitled to the benefits of the
Registration Rights Agreement in accordance with its terms and conditions. The
Company agrees to pay additional interest (the "Additional Interest"), as
specified below, upon the occurrence of any of the following events (each such
event an "Additional Interest Event"): (i) if the Exchange Registration
Statement or Shelf Registration Statement is not filed within 90 days following
the Closing Date, then commencing on the 91st day after the Closing Date,
Additional Interest shall accrue on the Securities over and above the otherwise
applicable interest rate at a rate of 0.25% per annum, (ii) if the Exchange
Registration Statement or the Shelf Registration Statement is filed and is not
declared effective within 180 days following the Closing Date, then commencing
on the 181st day after the Closing Date, Additional Interest shall accrue on
the Securities over and above the otherwise applicable interest rate at a rate
of 0.25% per annum, or (iii) if either (A) the Company has not exchanged
Exchange Securities of any Series for all Securities of the same Series validly
tendered in accordance with the terms of the Exchange Offer on or prior to 45
Business Days after the date on which the Exchange Registration Statement was
declared effective, or (B) the Shelf Registration Statement has been declared
effective but such Shelf Registration Statement ceases to be effective at any
time (I) prior to the second anniversary of the Closing Date or, if Rule 144(k)
is amended to provide a
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shorter restrictive period, such shorter period (the "Rule 144(k) Holding
Period") and (II) while Registrable Securities are outstanding, then
Additional Interest shall accrue on the Securities over and above the
otherwise applicable interest rate at a rate of 0.25% per annum commencing on
the (x) 46th Business Day after such effective date, in the case of (A) above,
or (y) the day the Shelf Registration Statement ceases to be effective, in the
case of (B) above; provided, however, that the rate at which Additional
Interest accrues on the Securities shall never exceed 0.25% per annum; and
provided further that Additional Interest shall cease to accrue upon the
earlier of (X) when all Additional Interest Events have been cured or (Y) upon
the expiration of the Rule 144(k) Holding Period. For purposes of clarifying
the foregoing provisions, Additional Interest shall not accrue at any time
that there are no Registrable Securities outstanding.]*
If an Event of Default shall occur and be continuing, the principal
of all the Securities may be declared due and payable in the manner and with
the effect provided in the Indenture.
The Indenture contains provision for defeasance at any time of (1)
the entire indebtedness of this Security or (2) certain Events of Default with
respect to this Security, in each case upon compliance with certain conditions
set forth in the Indenture.
The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities under the Indenture at
any time by the Company and the Trustee with the consent of a majority in
aggregate principal amount of the Securities at the time Outstanding. The
Indenture also contains provisions permitting the Holders of specified
percentages in aggregate principal amount of the Securities at the time
Outstanding, on behalf of the Holders of all the Securities, to waive
compliance by the Company with certain provisions of the Indenture and certain
past defaults under the Indenture and their consequences. Any such consent or
waiver by the Holder of this Security shall be conclusive and binding upon such
Holder and upon all future Holders of
- --------
* Omitted from Exchange Securities.
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this Security and of any Security issued upon the registration of transfer
hereof or in exchange herefor or in lieu hereof, whether or not notation of
such consent or waiver is made upon this Security.
As set forth in, and subject to, the provisions of the Indenture, no
Holder of any Security will have any right to institute any proceeding with
respect to the Indenture or for any remedy thereunder, unless such Holder shall
have previously given to the Trustee written notice of a continuing Event of
Default, the Holders of not less than 25% in principal amount of the
Outstanding Securities shall have made written request, and offered reasonable
indemnity, to the Trustee to institute such proceeding as trustee, and the
Trustee shall not have received from the Holders of a majority in principal
amount of the Outstanding Securities a direction inconsistent with such request
and shall have failed to institute such proceedings within 60 days; provided,
however, that such limitations do not apply to a suit instituted by the Holder
hereof for the enforcement of payment of the principal of or any interest on
this Security on or after the respective due dates expressed herein.
No reference herein to the Indenture and no provision of this
Security or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of and
interest on this Security at the times, place and rate, and in the coin or
currency, herein prescribed.
As provided in the Indenture and subject to certain limitations
therein set forth, the transfer of this Security is registrable in the Security
Register, upon surrender of this Security for registration of transfer at the
office or agency of the Company in New York City, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Securities
of this Series and of like tenor, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.
The Securities are issuable only in registered form without coupons
in denominations of $1,000 and any integral multiple thereof. As provided in
the Indenture and
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subject to certain limitations therein set forth, Securities of this Series
are exchangeable for a like aggregate principal amount of Securities of this
Series of a different authorized denomination, as requested by the Holder
surrendering the same.
No service charge shall be made for any such registration of transfer
or exchange, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge payable in connection therewith.
Prior to due presentment of this Security for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Security is registered as the owner
hereof for all purposes, whether or not this Security be overdue, and neither
the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.
All terms used in this Security which are defined in the Indenture
shall have the meanings assigned to them in the Indenture.
SECTION 204. Form of Legend for Global Securities.
(a) Each Restricted Security shall bear the following legend: THE
NOTE EVIDENCED HEREBY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933 (THE "SECURITIES ACT") AND MAY NOT BE OFFERED, SOLD,
PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (1) TO A PERSON WHO THE SELLER
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF
RULE 144A UNDER THE SECURITIES ACT PURCHASING FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A, (2) IN AN OFFSHORE TRANSACTION COMPLYING WITH RULE
903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (3) PURSUANT TO AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144
THEREUNDER (IF AVAILABLE), OR (4) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT, IN EACH CASE, IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF
THE STATES OF THE UNITED STATES.
(b) Each Regulation S Security shall bear the following legend: THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933
(THE "SECURITIES
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ACT") AND MAY NOT BE OFFERED, SOLD, OR DELIVERED IN THE UNITED STATES OR TO,
OR FOR THE ACCOUNT OR BENEFIT OF, ANY UNITED STATES PERSON, UNLESS THIS NOTE
IS REGISTERED UNDER THE SECURITIES ACT OR AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS THEREOF IS AVAILABLE.
(c) Each Global Security shall bear the following legend: THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF.
THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY
REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE
REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE
THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER
OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
SECTION 205. Form of Trustee's Certificate of
Authentication.
The Trustee's certificates of authentication shall be in
substantially the following form:
This is one of the Securities referred to in the within-mentioned
Indenture.
The Bank of New York,
as Trustee
By _____________________________
Authorized Agent
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ARTICLE THREE
The Securities
SECTION 301. Title and Terms.
The aggregate principal amount of Six-Year Securities which may be
authenticated and delivered under this Indenture is limited to $500,000,000
Original Six-Year Securities and $500,000,000 Six-Year Exchange Securities,
except for Six-Year Securities authenticated and delivered upon registration of
transfer of, or in exchange for, or in lieu of, other Securities pursuant to
Section 304, 305, 306 or 906.
The Six-Year Securities shall be known and designated as the "7.70%
Notes due 2005" of the Company. Their Stated Maturity shall be December 15,
2005, and they shall bear interest at the rate of 7.70% per annum, from
December 14, 1999 or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, as the case may be, payable
semi-annually on June 15 and December 15, commencing June 15, 2000, until the
principal thereof is paid or made available for payment.
The aggregate principal amount of Ten-Year Securities which may be
authenticated and delivered under this Indenture is limited to $500,000,000
Original Ten-Year Securities and $500,000,000 Ten-Year Exchange Securities,
except for Ten-Year Securities authenticated and delivered upon registration of
transfer of, or in exchange for, or in lieu of, other Securities pursuant to
Section 304, 305, 306 or 906.
The Ten-Year Securities shall be known and designated as the "7.90%
Notes due 2009" of the Company. Their Stated Maturity shall be December 15,
2009, and they shall bear interest at the rate of 7.90% per annum, from
December 14, 1999 or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, as the case may be, payable
semi-annually on June 15 and December 15, commencing June 15, 2000, until the
principal thereof is paid or made available for payment.
The aggregate principal amount of Thirty-Year Securities which may be
authenticated and delivered under
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this Indenture is limited to $1,000,000,000 Original Thirty-Year Securities
and $1,000,000,000 Thirty-Year Exchange Securities, except for Thirty-Year
Securities authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Securities pursuant to Section 304, 305,
306 or 906.
The Thirty-Year Securities shall be known and designated as the
"8.30% Notes Due 2029" of the Company. Their Stated Maturity shall be December
15, 2029, and they shall bear interest at the rate of 8.30% per annum, from
December 14, 1999 or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, as the case may be, payable
semi-annually on June 15 and December 15, commencing June 15, 2000, until the
principal thereof is paid or made available for payment.
The principal of and interest on the Securities shall be payable at
the office or agency of the Company in New York, New York maintained for such
purpose and at any other office or agency maintained by the Company for such
purpose; provided, however, that at the option of the Company payment of
interest may be made by check mailed to the address of the Person entitled
thereto as such address shall appear in the Security Register.
SECTION 302. Denominations.
The Securities shall be issuable only in registered form without
coupons and only in denominations of $1,000 and any integral multiple thereof.
SECTION 303. Execution, Authentication, Delivery
and Dating.
The Securities shall be executed on behalf of the Company by its
Chairman of the Board, its Vice Chairman of the Board, its President or one of
its Vice Presidents. The signature of any of these officers on the Securities
may be manual or facsimile.
Securities bearing the manual or facsimile signatures of individuals
who were at any time the proper officers of the Company shall bind the Company,
notwithstanding that such individuals or any of them have ceased to
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hold such offices prior to the authentication and delivery of such Securities
or did not hold such offices at the date of such Securities.
At any time and from time to time after the execution and delivery of
this Indenture, the Company may deliver Securities executed by the Company to
the Trustee for authentication, together with a Company Order for the
authentication and delivery of such Securities; and the Trustee in accordance
with such Company Order shall authenticate and deliver such Securities as in
this Indenture provided and not otherwise.
Each Security shall be dated the date of its authentication.
No Security shall be entitled to any benefit under this Indenture or
be valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein
executed by the Trustee by manual signature, and such certificate upon any
Security shall be conclusive evidence, and the only evidence, that such
Security has been duly authenticated and delivered hereunder.
SECTION 304. Temporary Securities.
Pending the preparation of definitive Securities, the Company may
execute, and upon Company Order the Trustee shall authenticate and deliver,
temporary Securities which are printed, lithographed, typewritten, mimeographed
or otherwise produced, in any authorized denomination, substantially of the
tenor of the definitive Securities of the same Series in lieu of which they are
issued and with such appropriate insertions, omissions, substitutions and other
variations as the officers executing such Securities may determine, as
evidenced by their execution of such Securities.
If temporary Securities are issued, the Company will cause definitive
Securities to be prepared without unreasonable delay. After the preparation of
definitive Securities, the temporary Securities shall be exchangeable for
definitive Securities of the same Series upon surrender of the temporary
Securities at any office or agency of the Company designated pursuant to
Section 1002, without charge
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to the Holder. Upon surrender for cancellation of any one or more temporary
Securities, the Company shall execute and the Trustee shall authenticate and
deliver in exchange therefor a like principal amount of definitive Securities
of the same Series of authorized denominations. Until so exchanged the
temporary Securities shall in all respects be entitled to the same benefits
under this Indenture as definitive Securities of the same Series.
SECTION 305. Registration, Registration of Transfer and
Exchange; Certain Transfers and Exchanges.
(a) Registration, Registration of Transfer and Exchange Generally.
The Company shall cause to be kept at the Corporate Trust Office of the Trustee
a register (the register maintained in such office and in any other office or
agency designated pursuant to Section 1002 herein sometimes collectively
referred to as the "Security Register") in which, subject to such reasonable
regulations as it may prescribe, the Company shall provide for the registration
of Securities and of transfers of Securities. The Trustee is hereby appointed
"Security Registrar" for the purpose of registering Securities and transfers of
Securities as herein provided; provided that the Company may, from time to
time, designate (or change any designation of) any other Person or Persons to
act as Security Registrar or co-Security Registrars with respect to the
Securities, with notice to the Trustee and as provided in Section 106 to the
Holders. At all reasonable times the Security Register shall be open for
inspection by the Company. In the event that the Trustee shall not be the
Security Registrar, it shall have the right to examine the Security Register at
all reasonable times.
Upon surrender for registration of transfer of any Security at an
office or agency of the Company designated pursuant to Section 1002, the
Company shall execute, and the Trustee shall authenticate and deliver, in the
name of the designated transferee or transferees, one or more new Securities of
the same Series and of like tenor of any authorized denominations and of a like
aggregate principal amount.
At the option of the Holder, Securities may be exchanged for other
Securities of the same Series and of like tenor of any authorized denominations
and of a like
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aggregate principal amount, upon surrender of the Securities to be exchanged
at such office or agency. Whenever any Securities are so surrendered for
exchange, the Company shall execute, and the Trustee shall authenticate and
deliver, the Securities of the same Series and of like tenor which the Holder
making the exchange is entitled to receive.
All Securities issued upon any registration of transfer or exchange
of Securities of the same Series and of like tenor shall be the valid
obligations of the Company, evidencing the same debt, and entitled to the same
benefits under this Indenture, as the Securities surrendered upon such
registration of transfer or exchange.
Every Security presented or surrendered for registration of transfer
or for exchange shall (if so required by the Company or the Trustee) be duly
endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed, by the
Holder thereof or his attorney duly authorized in writing.
No service charge shall be made for any registration of transfer or
exchange of Securities, but the Company may require payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
with any registration of transfer or exchange of Securities, other than
exchanges pursuant to Section 304 or 906 not involving any transfer.
The provisions of Clauses (1), (2), (3) and (4) below shall apply
only to Global Securities:
(1) Each Global Security authenticated under this Indenture shall be
registered in the name of the Depositary designated for such Global
Security or a nominee thereof and delivered to such Depositary or a
nominee thereof or custodian therefor, and each such Global Security shall
constitute a single Security for all purposes of this Indenture.
(2) Notwithstanding any other provision in this Indenture, no Global
Security may be exchanged in whole or in part for Securities registered,
and no transfer of a Global Security in whole or in part may be
registered, in the name of any Person other than the Depositary for such
Global Security or a nominee
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thereof unless (A) such Depositary (i) has notified the Company that it is
unwilling or unable to continue as Depositary for such Global Security or
(ii) has ceased to be a clearing agency registered under the Exchange Act,
and in either (i) or (ii) of this clause (2) a successor Depositary is not
appointed by the Company within 90 days after the date of such notice from
the Depositary, (B) there shall have occurred and be continuing an Event
of Default, or an event which with notice or lapse of time, or both, would
constitute an Event of Default with respect to such Global Security or (C)
the Company, by Company Order, elects to have the Global Security
registered in the name of a Person other than the Depositary or its
nominee.
(3) Subject to Clause (2) above, any exchange of a Global Security
for other Securities of the same Series may be made in whole or in part,
and all Securities issued in exchange for a Global Security or any portion
thereof shall be registered in such names as the Depositary for such
Global Security shall direct.
(4) Every Security authenticated and delivered upon registration of
transfer of, or in exchange for or in lieu of, a Global Security or any
portion thereof, whether pursuant to this Section, Section 304, 306 or 906
or otherwise, shall be authenticated and delivered in the form of, and
shall be, a Global Security, unless such Security is registered in the
name of a Person other than the Depositary for such Global Security or a
nominee thereof.
(b) Certain Transfers and Exchanges. Notwithstanding any other
provision of this Indenture or the Securities, transfers and exchanges of
Securities and beneficial interests in a Global Security of the kinds specified
in this Section 305(b) shall be made only in accordance with this Section
305(b).
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(i) Restricted Global Security to Regulation S Global Security. If
the owner of a beneficial interest in a Restricted Global Security wishes
at any time to transfer such interest to a Person who wishes to acquire
the same in the form of a beneficial interest in the Regulation S Global
Security of the same Series, such transfer may be effected only in
accordance with the provisions of this Clause (b)(i) and Clause (b)(iv)
below and subject to the Applicable Procedures. Upon receipt by the
Trustee, as Security Registrar, of (A) an order given by the Depositary or
its authorized representative directing that a beneficial interest in the
Regulation S Global Security in a specified principal amount be credited
to a specified Agent Member's account and that a beneficial interest in
the Restricted Global Security of the same Series and in an equal
principal amount be debited from another specified Agent Member's account
and (B) a Regulation S Certificate, satisfactory to the Trustee and duly
executed by the owner of such beneficial interest in the Restricted Global
Security or his attorney duly authorized in writing, then the Trustee, as
Security Registrar but subject to Clause (b)(iv) below, shall reduce the
principal amount of the Restricted Global Security and increase the
principal amount of the Regulation S Global Security of the same Series by
such specified principal amount.
(ii) Regulation S Global Security to Restricted Global Security. If
the owner of a beneficial interest in a Regulation S Global Security
wishes at any time to transfer such interest to a Person who wishes to
acquire the same in the form of a beneficial interest in the Restricted
Global Security of the same Series, such transfer may be effected only in
accordance with this Clause (b)(ii) and subject to the Applicable
Procedures. Upon receipt by the Trustee, as Security Registrar, of (A) an
order given by the Depositary or its authorized representative directing
that a beneficial interest in the Restricted Global Security in a
specified principal amount be credited to a specified Agent Member's
account and that a beneficial interest in the Regulation S Global Security
of the same Series and in an equal principal amount be debited from
another specified Agent Member's account and (B) if such transfer is to
occur during the Restricted Period, a Restricted Securities Certificate,
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satisfactory to the Trustee and duly executed by the owner of such
beneficial interest in the Regulation S Global Security or his attorney
duly authorized in writing, then the Trustee, as Security Registrar, shall
reduce the principal amount of the Regulation S Global Security and
increase the principal amount of the Restricted Global Security of the
same Series by such specified principal amount. If transfers under this
Clause (b)(ii) occur after the Restricted Period, no Restricted Securities
Certificates will be required.
(iii) Non-Global Security to Non-Global Security. A Security that is
not a Global Security may be transferred, in whole or in part, to a Person
who takes delivery in the form of another Security of the same Series that
is not a Global Security as provided in Section 305(a), provided that, if
the Security to be transferred in whole or in part is a Restricted
Security, then the Trustee shall have received a Restricted Securities
Certificate, satisfactory to the Trustee and duly executed by the
transferor Holder or his attorney duly authorized in writing, in which
case the transferee Holder shall take delivery in the form of a Restricted
Security (subject in every case to Section 305(c)).
(iv) Regulation S Global Security to be Held Through Euroclear or
Cedel During Restricted Period. The Company shall use its reasonable
efforts to cause the Depositary to ensure that during the Restricted
Period beneficial interests in a Regulation S Global Security may be held
only in or through accounts maintained at the Depositary by Euroclear or
Cedel (or by Agent Members acting for the account thereof), and no person
shall be entitled to effect any transfer or exchange that would result in
any such interest being held otherwise than in or through such an account;
provided that this Clause (b)(iv) shall not prohibit any transfer or
exchange of such an interest in accordance with Clause (b)(ii) above.
(v) Restricted Non-Global Security to Restricted Global Security or
Regulation S Global Security. If the Holder of a Restricted Security
(other than a Global Security) wishes at any time to transfer all or any
portion of such Security to a Person who wishes to take delivery thereof
in the form
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of a beneficial interest in the Restricted Global Security of the same
Series or the Regulation S Global Security of the same Series, such
transfer may be effected only in accordance with the provisions of this
Clause (b)(v) and Clause (b)(iv) above and subject to the Applicable
Procedures. Upon receipt by the Trustee, as Security Registrar, of (A)
such Security as provided in Section 305(a) and instructions satisfactory
to the Trustee directing that a beneficial interest in such Restricted
Global Security of the same Series or such Regulation S Global Security of
the same Series in a specified principal amount not greater than the
principal amount of such Security be credited to a specified Agent
Member's account and (B) a Restricted Securities Certificate, if the
specified account is to be credited with a beneficial interest in such
Restricted Global Security, or a Regulation S Certificate, if the
specified account is to be credited with a beneficial interest in such
Regulation S Global Security of the same Series, in either case
satisfactory to the Trustee and duly executed by such Holder or his
attorney duly authorized in writing, then the Trustee, as Security
Registrar, shall cancel such Security (and issue a new Security in respect
of any untransferred portion thereof) and increase the principal amount of
the Restricted Global Security of the same Series or the Regulation S
Global Security of the same Series, as the case may be, by the specified
principal amount, both as provided in Section 305(a).
(c) Securities Act Legends. Restricted Securities and their Successor
Securities shall bear a Restricted Securities Legend, and the Regulation S
Securities and their Successor Securities shall bear a Regulation S Legend,
subject to the following:
(i) subject to the following Clauses of this Section 305(c), a
Security or any portion thereof which is exchanged, upon transfer or
otherwise, for a Global Security of the same Series or any portion thereof
shall bear the Securities Act Legend borne by such Global Security while
represented thereby;
(ii) subject to the following Clauses of this Section 305(c), a new
Security which is not a Global Security and is issued in exchange for
another Security of the same Series (including a Global Security of the
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same Series) or any portion thereof, upon transfer or otherwise, shall
bear the Securities Act Legend borne by such other Security, provided
that, if such new Security is required pursuant to Section 305(b)(v) to be
issued in the form of a Restricted Security, it shall bear a Restricted
Securities Legend and, if such new Security is so required to be issued in
the form of a Regulation S Security, it shall bear a Regulation S Legend;
(iii) Registered Securities shall not bear a Securities Act Legend;
(iv) at any time after the Securities may be freely transferred
without registration under the Securities Act or without being subject to
transfer restrictions pursuant to the Securities Act, a new Security which
does not bear a Securities Act Legend may be issued in exchange for or in
lieu of a Security of the same Series (other than a Global Security) or
any portion thereof which bears such a legend if the Trustee has received
an Unrestricted Securities Certificate, satisfactory to the Trustee and
duly executed by the Holder of such legended Security or his attorney duly
authorized in writing, and after such date and receipt of such
certificate, the Trustee shall authenticate and deliver such a new
Security in exchange for or in lieu of such other Security as provided in
this Article Three;
(v) a new Security which does not bear a Securities Act Legend may be
issued in exchange for or in lieu of a Security of the same Series (other
than a Global Security) or any portion thereof which bears such a legend
if, in the Company's judgment, placing such a legend upon such new
Security is not necessary to ensure compliance with the registration
requirements of the Securities Act, and the Trustee, at the written
direction of the Company, shall authenticate and deliver such a new
Security as provided in this Article Three; and
(vi) notwithstanding the foregoing provisions of this Section 305(c),
a Successor Security of a Security that does not bear a particular form of
Securities Act Legend shall not bear such form of legend unless the
Company has reasonable cause to
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believe that such Successor Security is a "restricted security" within the
meaning of Rule 144, in which case the Trustee, at the written direction
of the Company, shall authenticate and deliver a new Security bearing a
Restricted Securities Legend in exchange for such Successor Security as
provided in this Article Three.
SECTION 306. Mutilated, Destroyed, Lost and
Stolen Securities.
If any mutilated Security is surrendered to the Trustee, the Company
shall execute and the Trustee shall authenticate and deliver in exchange
therefor a new Security of the same Series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding.
If there shall be delivered to the Company and the Trustee (i)
evidence to their satisfaction of the destruction, loss or theft of any
Security and (ii) such security or indemnity as may be required by them to save
each of them and any agent of either of them harmless, then, in the absence of
notice to the Company or the Trustee that such Security has been acquired by a
bona fide purchaser, the Company shall execute and the Trustee shall
authenticate and deliver, in lieu of any such destroyed, lost or stolen
Security, a new Security of the same Series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding.
In case any such mutilated, destroyed, lost or stolen Security has
become or is about to become due and payable, the Company in its discretion
may, instead of issuing a new Security, pay such Security.
Upon the issuance of any new Security under this Section, the Company
may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Trustee) connected therewith.
Every new Security issued pursuant to this Section in lieu of any
destroyed, lost or stolen Security shall constitute an original additional
contractual obligation of the Company, whether or not the destroyed, lost or
stolen Security shall be at any time enforceable by anyone, and shall be
entitled to all the benefits of this Indenture
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equally and proportionately with any and all other Securities duly issued
hereunder.
The provisions of this Section are exclusive and shall preclude (to
the extent lawful) all other rights and remedies with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Securities.
SECTION 307. Payment of Interest; Interest
Rights Preserved.
Interest on any Security which is payable, and is punctually paid or
duly provided for, on any Interest Payment Date shall be paid to the Person in
whose name that Security (or one or more Predecessor Securities) is registered
at the close of business on the Regular Record Date for such interest.
Any interest on any Security which is payable, but is not punctually
paid or duly provided for, on any Interest Payment Date (herein called
"Defaulted Interest") shall forthwith cease to be payable to the Holder on the
relevant Regular Record Date by virtue of having been such Holder, and such
Defaulted Interest may be paid by the Company, at its election in each case, as
provided in Clause (1) or (2) below:
(1) The Company may elect to make payment of any Defaulted Interest
to the Persons in whose names the Securities (or their respective
Predecessor Securities) are regis tered at the close of business on a
Special Record Date for the payment of such Defaulted Interest, which
shall be fixed in the following manner. The Company shall notify the
Trustee in writing of the amount of Defaulted Interest proposed to be paid
on each Security and the date of the proposed payment, and at the same
time the Company shall deposit with the Trustee an amount of money equal
to the aggregate amount proposed to be paid in respect of such Defaulted
Interest or shall make arrangements satisfactory to the Trustee for such
deposit prior to the date of the proposed payment, such money when
deposited to be held in trust
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for the benefit of the Persons entitled to such Defaulted Interest as in
this Clause provided. Thereupon the Trustee shall fix a Special Record
Date for the payment of such Defaulted Interest which shall be not more
than 15 days and not less than 10 days prior to the date of the proposed
payment and not less than 10 days after the receipt by the Trustee of the
notice of the proposed payment. The Trustee shall promptly notify the
Company of such Special Record Date and, in the name and at the expense of
the Company, shall cause notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor to be mailed, first-class
postage prepaid, to each Holder at his address as it appears in the
Security Register, not less than 10 days prior to such Special Record
Date. Notice of the proposed payment of such Defaulted Interest and the
Special Record Date therefor having been so mailed, such Defaulted
Interest shall be paid to the Persons in whose names the Securities (or
their respective Predecessor Securities) are registered at the close of
business on such Special Record Date and shall no longer be payable
pursuant to the following Clause (2).
(2) The Company may make payment of any Defaulted Interest in any
other lawful manner not inconsistent with the requirements of any
securities exchange on which the Securities may be listed, and upon such
notice as may be required by such exchange, if, after notice given by the
Company to the Trustee of the proposed payment pursuant to this Clause,
such manner of payment shall be deemed practicable by the Trustee.
Subject to the foregoing provisions of this Section, each Security
delivered under this Indenture upon registration of transfer of or in exchange
for or in lieu of any other Security shall carry the rights to interest accrued
and unpaid, and to accrue, which were carried by such other Security.
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SECTION 308. Persons Deemed Owners.
Prior to due presentment of a Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name such Security is registered as the owner of such
Security for the purpose of receiving payment of principal of and (subject to
Section 307) interest on such Security and for all other purposes whatsoever,
whether or not such Security be overdue, and neither the Company, the Trustee
nor any agent of the Company or the Trustee shall be affected by notice to the
contrary.
SECTION 309. Cancellation.
All Securities surrendered for payment, registration of transfer or
exchange shall, if surrendered to any Person other than the Trustee, be
delivered to the Trustee and shall be promptly canceled by it. The Company may
at any time deliver to the Trustee for cancellation any Securities previously
authenticated and delivered hereunder which the Company may have acquired in
any manner whatsoever, and all Securities so delivered shall be promptly
canceled by the Trustee. No Securities shall be authenticated in lieu of or in
exchange for any Securities canceled as provided in this Section, except as
expressly permitted by this Indenture. All canceled Securities held by the
Trustee shall be disposed of as directed by a Company Order.
SECTION 310. Computation of Interest.
Interest on the Securities shall be computed on the basis of a
360-day year of twelve 30-day months.
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ARTICLE FOUR
Satisfaction and Discharge
SECTION 401. Satisfaction and Discharge of Indenture.
This Indenture shall cease to be of further effect (except as to any
surviving rights of registration of transfer or exchange of Securities herein
expressly provided for), and the Trustee, on demand of and at the expense of
the Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture, when
(1) either
(A) all Securities theretofore authenticated and delivered
(other than (i) Securities which have been destroyed, lost or stolen
and which have been replaced or paid as provided in Section 306 and
(ii) Securities for whose payment money has theretofore been
deposited in trust or segregated and held in trust by the Company and
thereafter repaid to the Company or discharged from such trust, as
provided in Section 1003) have been delivered to the Trustee for
cancellation; or
(B) all such Securities not theretofore delivered to the Trustee
for cancellation
(i) have become due and payable, or
(ii) will become due and payable at their Stated Maturity
within one year,
and the Company, in the case of (i) or (ii) above, has deposited or
caused to be deposited with the Trustee as trust funds in trust for
the purpose an amount sufficient to pay and discharge the entire
indebtedness on such Securities
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not theretofore delivered to the Trustee for cancellation, for
principal and interest to the date of such deposit (in the case of
Securities which have become due and payable) or to the Stated
Maturity, as the case may be;
(2) the Company has paid or caused to be paid all other sums payable
hereunder by the Company; and
(3) the Company has delivered to the Trustee an Officers' Certificate
and an Opinion of Counsel, each stating that all conditions precedent
herein provided for relating to the satisfaction and discharge of this
Indenture have been complied with.
Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 607, the obligations
of the Trustee to any Authenticating Agent under Section 614 and, if money
shall have been deposited with the Trustee pursuant to subclause (B) of Clause
(1) of this Section, the obligations of the Trustee under Section 402 and the
last paragraph of Section 1003 shall survive.
SECTION 402. Application of Trust Money.
Subject to the provisions of the last paragraph of Section 1003, all
money deposited with the Trustee pursuant to Section 401 shall be held in trust
and applied by it, in accordance with the provisions of the Securities and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal and interest for
whose payment such money has been deposited with the Trustee.
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ARTICLE FIVE
Remedies
SECTION 501. Events of Default.
"Event of Default", wherever used herein, means any one of the
following events (whatever the reason for such Event of Default and whether it
shall be voluntary or involuntary or be effected by operation of law or
pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):
(1) default in the payment of any interest upon any Security when it
becomes due and payable, and continuance of such default for a period of
30 days; or
(2) default in the payment of the principal of any Security at its
Maturity and the continuance of such default for a period of 5 Business
Days; or
(3) default in the performance, or breach, of any covenant or
warranty of the Company in this Indenture (other than a covenant or
warranty a default in whose performance or whose breach is elsewhere in
this Section specifically dealt with), and continuance of such default or
breach for a period of 60 days after there has been given, by registered
or certified mail, to the Company by the Trustee or to the Company and the
Trustee by the Holders of at least 25% in principal amount of the
Outstanding Securi ties a written notice specifying such default or breach
and requiring it to be remedied and stating that such notice is a "Notice
of Default" hereunder; or
(4) a default under any bond, debenture, note or other evidence of
indebtedness for money borrowed by the Company or a Restricted Subsidiary
or under any mortgage, indenture or instrument under
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which there may be issued or by which there may be secured or evidenced
any indebtedness for money borrowed by the Company or a Restricted
Subsidiary, whether such indebtedness now exists or shall hereafter be
created, which default (i) shall have resulted from the failure by the
Company or any Restricted Subsidiary to pay the principal amount due upon
final stated maturity of such indebtedness in an amount in excess of $75
million after the expiration of any applicable grace period or (ii) shall
have resulted in such indebtedness in an amount in excess of $75 million
becoming or being declared due and payable prior to the date on which it
would otherwise have become due and payable, in either case without such
indebtedness having been discharged, or such acceleration having been
rescinded or annulled, within a period of 10 days after there shall have
been given, by registered or certified mail, to the Company by the Trustee
or to the Company and the Trustee by the Holders of at least 25% in
principal amount of the Outstanding Securities a written notice specifying
such default and requiring the Company to cause such indebtedness to be
discharged or cause such acceleration to be rescinded or annulled and
stating that such notice is a "Notice of Default" hereunder; or
(5) the entry by a court having jurisdiction in the premises of (A) a
decree or order for relief in respect of the Company in an involuntary
case or proceeding under any applicable Federal or State bankruptcy,
insolvency, reorganization or other similar law or (B) a decree or order
adjudging the Company a bankrupt or insolvent, or approving as properly
filed a petition seeking reorganization, arrangement, adjustment or
composition of or in respect of the Company under any applicable Federal
or State law, or appointing a custodian, receiver, liquidator, assignee,
trustee, sequestrator or other similar official of the Company or of any
substantial part of its property, or ordering
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the winding up or liquidation of its affairs, and the continuance of any
such decree or order for relief or any such other decree or order unstayed
and in effect for a period of 60 consecutive days; or
(6) the commencement by the Company of a voluntary case or proceeding
under any applicable Federal or State bankruptcy, insolvency,
reorganization or other similar law or of any other case or proceeding to
be adjudicated a bankrupt or insolvent, or the consent by it to the entry
of a decree or order for relief in respect of the Company in an
involuntary case or proceeding under any applicable Federal or State
bankruptcy, insolvency, reorganization or other similar law or to the
commencement of any bankruptcy or insolvency case or proceeding against
it, or the filing by it of a petition or answer or consent seeking
reorganization or relief under any applicable Federal or State bankruptcy
law, or the consent by it to the filing of such petition or to the
appointment of or taking possession by a custodian, receiver, liquidator,
assignee, trustee, sequestrator or other similar official of the Company
or of any substantial part of its property, or the making by it of an
assignment for the benefit of creditors, or the admission by it in writing
of its inability to pay its debts generally as they become due.
For the purpose of clarifying clauses (3) and (4) above, the occurrence of an
Additional Interest Event does not constitute a default or breach under such
clauses.
SECTION 502. Acceleration of Maturity; Rescission
and Annulment.
If an Event of Default occurs and is continuing, then and in every
such case the Trustee or the Holders of not less than 25% in principal amount
of the Outstanding Securities may declare the principal of all the Securities
to be due and payable immediately, by a notice in writing to
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the Company (and to the Trustee if given by Holders), and upon any such
declaration such principal shall become immediately due and payable.
At any time after such a declaration of acceleration has been made
and before a judgment or decree for payment of the money due has been obtained
by the Trustee as hereinafter in this Article provided, the Holders of a
majority in principal amount of the Outstanding Securities, by written notice
to the Company and the Trustee, may rescind and annul such declaration and its
consequences if
(1) the Company has paid or deposited with the Trustee a sum
sufficient to pay
(A) all overdue interest on all Securities,
(B) the principal of any Securities which have become due
otherwise than by such declaration of acceleration and interest
thereon at the rate borne by the Securities,
(C) to the extent that payment of such interest is lawful,
interest upon overdue interest at the rate borne by the Securities,
and
(D) all sums paid or advanced by the Trustee hereunder and the
reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel;
and
(2) all Events of Default, other than the non-payment of the
principal of Securities which have become due solely by such declaration
of acceleration, have been cured or waived as provided in Section 513.
No such rescission shall affect any subsequent default or impair any right
consequent thereon.
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SECTION 503. Collection of Indebtedness and Suits
for Enforcement by Trustee.
The Company covenants that if
(1) default is made in the payment of any interest on any Security
when such interest becomes due and payable and such default continues for
a period of 30 days, or
(2) default is made in the payment of the principal of any Security
at the Maturity thereof and such default continues for a period of 5
Business Days,
the Company will, upon demand of the Trustee, pay to it, for the benefit of
the Holders of such Securities, the whole amount then due and payable on such
Securities for principal and interest, and, to the extent that payment of such
interest shall be legally enforceable, interest on any overdue principal and
on any overdue interest at the rate borne by the Securities, and, in addition
thereto, such further amount as shall be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel.
If an Event of Default occurs and is continuing, the Trustee may in
its discretion proceed to protect and enforce its rights and the rights of the
Holders by such appropriate judicial proceedings as the Trustee shall deem most
effectual to protect and enforce any such rights, whether for the specific
enforcement of any covenant or agreement in this Indenture or in aid of the
exercise of any power granted herein, or to enforce any other proper remedy.
SECTION 504. Trustee May File Proofs of Claim.
In case of any judicial proceeding relative to the Company (or any
other obligor upon the Securities), its property or its creditors, the Trustee
shall be entitled and empowered, by intervention in such proceeding or
otherwise, to take any and all actions authorized under the Trust Indenture Act
in order to have claims of the Holders and the Trustee allowed in any such
proceeding. In particular, the Trustee shall be authorized to collect and
receive any
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moneys or other property payable or deliverable on any such claims and to
distribute the same; and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due it for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 607.
No provision of this Indenture shall be deemed to authorize the
Trustee to authorize or consent to or accept or adopt on behalf of any Holder
any plan of reorganization, arrangement, adjustment or composition affecting
the Securities or the rights of any Holder thereof or to authorize the Trustee
to vote in respect of the claim of any Holder in any such proceeding; provided,
however, that the Trustee may vote on behalf of the Holders for the election of
a trustee in bankruptcy or similar official and may be a member of a creditors'
or other similar committee.
SECTION 505. Trustee May Enforce Claims
Without Possession of Securities.
All rights of action and claims under this Indenture or the
Securities may be prosecuted and enforced by the Trustee without the possession
of any of the Securities or the production thereof in any proceeding relating
thereto, and any such proceeding instituted by the Trustee shall be brought in
its own name as trustee of an express trust, and any recovery of judgment
shall, after provision for the payment of the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, be
for the ratable benefit of the Holders of the Securities in respect of which
such judgment has been recovered.
SECTION 506. Application of Money Collected.
Any money collected by the Trustee pursuant to this Article shall be
applied in the following order, at the date or dates fixed by the Trustee and,
in case of the distribution of such money on account of principal or
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interest upon presentation of the Securities and the notation thereon of the
payment if only partially paid and upon surrender thereof if fully paid:
FIRST: To the payment of all amounts due the Trustee under Section
607;
SECOND: To the payment of the amounts then due and unpaid for
principal of and interest on the Securities in respect of which or for the
benefit of which such money has been collected, ratably, without
preference or priority of any kind, according to the amounts due and
payable on such Securities for principal and interest, respectively; and
THIRD: The balance, if any, to the Person or Persons entitled
thereto.
SECTION 507. Limitation on Suits.
No Holder of any Security shall have any right to institute any
proceeding, judicial or otherwise, with respect to this Indenture, or for the
appointment of a receiver or trustee, or for any other remedy hereunder, unless
(1) such Holder has previously given written notice to the Trustee of
a continuing Event of Default;
(2) the Holders of not less than 25% in principal amount of the
Outstanding Securities shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default in its own name
as Trustee hereunder;
(3) such Holder or Holders have offered to the Trustee reasonable
indemnity against the costs, expenses and liabilities to be incurred in
compliance with such request;
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(4) the Trustee for 60 days after its receipt of such notice, request
and offer of indemnity has failed to institute any such proceeding; and
(5) no direction inconsistent with such written request has been
given to the Trustee during such 60-day period by the Holders of a
majority in principal amount of the Outstanding Securities;
it being understood and intended that no one or more Holders shall have any
right in any manner whatever by virtue of, or by availing of, any provision of
this Indenture to affect, disturb or prejudice the rights of any other
Holders, or to obtain or to seek to obtain priority or preference over any
other Holders or to enforce any right under this Indenture, except in the
manner herein provided and for the equal and ratable benefit of all the
Holders.
SECTION 508. Unconditional Right of Holders to
Receive Principal and Interest
Notwithstanding any other provision in this Indenture, the Holder of
any Security shall have the right, which is absolute and unconditional, to
receive payment of the principal of and (subject to Section 307) interest on
such Security on the respective Stated Maturities expressed in such Security
and to institute suit for the enforcement of any such payment, and such rights
shall not be impaired without the consent of such Holder.
SECTION 509. Restoration of Rights and Remedies.
If the Trustee or any Holder has instituted any proceeding to enforce
any right or remedy under this Indenture and such proceeding has been
discontinued or abandoned for any reason, or has been determined adversely to
the Trustee or to such Holder, then and in every such case, subject to any
determination in such proceeding, the Company, the Trustee and the Holders
shall be restored severally and respectively to their former positions
hereunder and thereafter all rights and remedies of the Trustee and the Holders
shall continue as though no such proceeding had been instituted.
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SECTION 510. Rights and Remedies Cumulative.
Except as otherwise provided with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities in the last
paragraph of Section 306, no right or remedy herein conferred upon or reserved
to the Trustee or to the Holders is intended to be exclusive of any other right
or remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent
the concurrent assertion or employment of any other appropriate right or
remedy.
SECTION 511. Delay or Omission Not Waiver.
No delay or omission of the Trustee or of any Holder of any Security
to exercise any right or remedy accruing upon any Event of Default shall impair
any such right or remedy or constitute a waiver of any such Event of Default or
an acquiescence therein. Every right and remedy given by this Article or by law
to the Trustee or to the Holders may be exercised from time to time, and as
often as may be deemed expedient, by the Trustee or by the Holders, as the case
may be.
SECTION 512. Control by Holders.
Subject to the provisions of Section 603, the Holders of a majority
in principal amount of the Outstanding Securities shall have the right to
direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee or exercising any trust or power conferred on the
Trustee, provided that
(1) such direction shall not be in conflict with any rule of law or
with this Indenture, and
(2) the Trustee may take any other action deemed proper by the
Trustee which is not inconsistent with such direction.
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SECTION 513. Waiver of Past Defaults.
The Holders of not less than a majority in principal amount of the
Outstanding Securities may on behalf of the Holders of all the Securities waive
any past default hereunder and its consequences, except a default
(1) in the payment of the principal of or interest on any Security,
or
(2) in respect of a covenant or provision hereof which under Article
Nine cannot be modified or amended without the consent of the Holder of
each Outstanding Security affected.
Upon any such waiver, such default shall cease to exist, and any
Event of Default arising therefrom shall be deemed to have been cured, for
every purpose of this Indenture; but no such waiver shall extend to any
subsequent or other default or impair any right consequent thereon.
SECTION 514. Undertaking for Costs.
In any suit for the enforcement of any right or remedy under this
Indenture, or in any suit against the Trustee for any action taken, suffered or
omitted by it as Trustee, a court may require any party litigant in such suit
to file an undertaking to pay the costs of such suit, and may assess costs
against any such party litigant, in the manner and to the extent provided in
the Trust Indenture Act; provided that neither this Section nor the Trust
Indenture Act shall be deemed to authorize any court to require such an
undertaking or to make such an assessment in any suit instituted by the
Company, by any Holder, or group of Holders, holding in the aggregate more than
10% in principal amount of the Outstanding Securities, or by any Holder for the
enforcement of the payment of the principal of or interest on any Security on
or after the respective Stated Maturities expressed in such Security.
SECTION 515. Waiver of Stay or Extension Laws.
The Company covenants (to the extent that it may lawfully do so) that
it will not at any time insist upon, or
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plead, or in any manner whatsoever claim or take the benefit or advantage of,
any stay or extension law wherever enacted, now or at any time hereafter in
force, which may affect the covenants or the performance of this Indenture;
and the Company (to the extent that it may lawfully do so) hereby expressly
waives all benefit or advantage of any such law and covenants that it will not
hinder, delay or impede the execution of any power herein granted to the
Trustee, but will suffer and permit the execution of every such power as
though no such law had been enacted.
ARTICLE SIX
The Trustee
SECTION 601. Certain Duties and Responsibilities.
The duties and responsibilities of the Trustee shall be as provided
by the Trust Indenture Act. Notwithstanding the foregoing, no provision of
this Indenture shall require the Trustee to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it.
Whether or not therein expressly so provided, every provision of this
Indenture relating to the conduct or affecting the liability of or affording
protec tion to the Trustee shall be subject to the provisions of this Section.
SECTION 602. Notice of Defaults.
The Trustee shall give the Holders notice of any default hereunder as
and to the extent provided by the Trust Indenture Act; provided, however, that
in the case of any default of the character specified in Section 501(3), no
such notice to Holders shall be given until at least 30 days after the
occurrence thereof. For the purpose of this Section, the term "default" means
any event which is, or after notice or lapse of time or both would become, an
Event of Default.
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SECTION 603. Certain Rights of Trustee.
Subject to the provisions of Section 601:
(a) the Trustee may rely and shall be protected in acting or
refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order,
bond, debenture, note, other evidence of indebtedness or other paper or
document believed by it to be genuine and to have been signed or
presented by the proper party or parties;
(b) any request or direction of the Company mentioned herein shall be
sufficiently evidenced by a Company Request or Company Order and any
resolution of the Board of Directors may be sufficiently evidenced by a
Board Resolution;
(c) whenever in the administration of this Indenture the Trustee
shall deem it desirable that a matter be proved or established prior to
taking, suffering or omitting any action hereunder, the Trustee (unless
other evidence be herein specifically pre scribed) may, in the absence of
bad faith on its part, rely upon an Officers' Certificate;
(d) the Trustee may consult with counsel and the written advice of
such counsel or any Opinion of Counsel shall be full and com plete
authorization and protection in respect of any action taken, suffered or
omitted by it hereunder in good faith and in reliance thereon;
(e) the Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Indenture at the request or
direction of any of the Holders pursuant to this Indenture, unless such
Holders shall have offered to the Trustee reasonable security or indemnity
against the
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costs, expenses and liabilities which might be incurred by it in
compliance with such request or direction;
(f) the Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order,
bond, debenture, note, other evidence of indebtedness or other paper or
document, but the Trustee, in its discretion, may make such further
inquiry or investigation into such facts or matters as it may see fit,
and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and
premises of the Company, personally or by agent or attorney;
(g) the Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents or
attorneys and the Trustee shall not be responsible for any misconduct or
negligence on the part of any agent or attorney appointed with due care by
it hereunder; and
(h) the Trustee is not a party to the Registration Rights Agreement
and shall be entitled to rely on an Officers' Certificate as to whether
Additional Interest is owed on the Securities.
SECTION 604. Not Responsible for Recitals
or Issuance of Securities.
The recitals contained herein and in the Securities, except the
Trustee's certificates of authentication, shall be taken as the statements of
the Company, and the Trustee or any Authenticating Agent assumes no
responsibility for their correctness. The Trustee makes no representations as
to the validity or sufficiency of this Indenture or of the Securities. The
Trustee or any Authenticating Agent shall not be accountable for the use or
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application by the Company of Securities or the proceeds thereof.
SECTION 605. May Hold Securities.
The Trustee, any Authenticating Agent, any Paying Agent, any Security
Registrar or any other agent of the Company, in its individual or any other
capacity, may become the owner or pledgee of Securities and, subject to
Sections 608 and 613, may otherwise deal with the Company with the same rights
it would have if it were not Trustee, Authenticating Agent, Paying Agent,
Security Registrar or such other agent.
SECTION 606. Money Held in Trust.
Money held by the Trustee in trust hereunder need not be segregated
from other funds except to the extent required by law. The Trustee shall be
under no liability for interest on any money received by it hereunder except as
otherwise agreed with the Company.
SECTION 607. Compensation and Reimbursement.
The Company agrees
(1) to pay to the Trustee from time to time reasonable compensation
for all services rendered by it hereunder (which compensation shall not be
limited by any provision of law in regard to the compensation of a trustee
of an express trust);
(2) except as otherwise expressly provided herein, to reimburse the
Trustee upon its request for all reasonable expenses, disbursements and
advances incurred or made by the Trustee in accordance with any provision
of this Indenture (including the reasonable compensation and the expenses
and disbursements of its agents and counsel), except any such expense,
disbursement or advance as may be attributable to its negligence or bad
faith; and
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(3) to indemnify the Trustee for, and to hold it harmless against,
any loss, liability or expense incurred without negligence or bad faith
on its part, arising out of or in connection with the acceptance or admin
istration of this trust, including the costs and expenses of defending
itself against any claim or liability in connection with the exercise or
performance of any of its powers or duties hereunder.
The Trustee shall have a claim prior to the Securities as to all
property and funds held by it hereunder for any amounts owing it or any
predecessor Trustee pursuant to this Section 607, except to funds held in trust
for the benefit of the Holders of any Securities. The obligations of the
Company under this Section 607 shall survive payment in full of the Securities.
SECTION 608. Disqualification; Conflicting Interests.
If the Trustee has or shall acquire a conflicting interest within the
meaning of the Trust Indenture Act, the Trustee shall either eliminate such
interest or resign, to the extent and in the manner provided by, and subject to
the provisions of, the Trust Indenture Act and this Indenture. To the extent
permitted by such Act, the Trustee shall not be deemed to have a conflicting
interest by virtue of being a trustee under the Indenture dated March 1, 1983,
as amended, between Delta Air Lines, Inc. and The Bank of New York, the
Indenture dated April 30, 1990, as amended, between Delta Air Lines, Inc. and
The Bank of New York and the Indenture dated May 1, 1991, between Delta Air
Lines, Inc. and The Bank of New York.
SECTION 609. Corporate Trustee Required; Eligibility.
There shall at all times be a Trustee hereunder which shall be a
Person that is eligible pursuant to the Trust Indenture Act to act as such and
has a combined capital and surplus of at least $50,000,000. If such Person
publishes reports of condition at least annually, pursuant to law or to the
requirements of said supervising or examining authority, then for the purposes
of this Section, the combined capital and surplus of such Person shall be
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deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section, it shall resign
immediately in the manner and with the effect hereinafter specified in this
Article.
SECTION 610. Resignation and Removal;
Appointment of Successor.
(a) No resignation or removal of the Trustee and no appointment of a
successor Trustee pursuant to this Article shall become effective until the
acceptance of appointment by the successor Trustee under Section 611.
(b) The Trustee may resign at any time by giving written notice
thereof to the Company. If an instrument of acceptance by a successor Trustee
required by Section 611 shall not have been delivered to the Trustee within 30
days after the giving of such notice of resignation, the resigning Trustee may
petition any court of competent jurisdiction for the appointment of a successor
Trustee.
(c) The Trustee may be removed at any time by Act of the Holders of a
majority in principal amount of the Outstanding Securities, delivered to the
Trustee and to the Company.
(d) If at any time:
(1) the Trustee shall fail to comply with Section 608 after written
request therefor by the Company or by any Holder who has been a bona fide
Holder of a Security for at least six months, or
(2) the Trustee shall cease to be eligible under Section 609 and
shall fail to resign after written request therefor by the Company or by
any such Holder, or
(3) the Trustee shall become incapable of acting or shall be adjudged
a bankrupt or insolvent or a receiver of the Trustee or of its property
shall be appointed or any public officer shall take charge or control of
the
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Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation,
then, in any such case, (i) the Company by a Board Resolution may remove the
Trustee, or (ii) subject to Section 514, any Holder who has been a bona fide
Holder of a Security for at least six months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for
the removal of the Trustee and the appointment of a successor Trustee.
(e) If the Trustee shall resign, be removed or become incapable of
acting, or if a vacancy shall occur in the office of Trustee for any cause, the
Company, by a Board Resolution, shall promptly appoint a successor Trustee and
shall comply with the applicable requirements of Section 611. If, within one
year after such resignation, removal or incapability, or the occurrence of such
vacancy, a successor Trustee shall be appointed by Act of the Holders of a
majority in principal amount of the Outstanding Securities delivered to the
Company and the retiring Trustee, the successor Trustee so appointed shall,
forthwith upon its acceptance of such appointment in accordance with the
applicable requirements of Section 611, become the successor Trustee and
supersede the successor Trustee appointed by the Company. If no successor
Trustee shall have been so appointed by the Company or the Holders and accepted
appointment in the manner required by Section 611, any Holder who has been a
bona fide Holder of a Security for at least six months may, on behalf of
himself and all others similarly situated, petition any court of competent
jurisdiction for the appointment of a successor Trustee.
(f) The Company shall give notice of each resignation and each
removal of the Trustee and each appointment of a successor Trustee to all
Holders in the manner provided in Section 106. Each notice shall include the
name of the successor Trustee and the address of its Corporate Trust Office.
SECTION 611. Acceptance of Appointment by Successor.
Every successor Trustee appointed hereunder shall execute,
acknowledge and deliver to the Company and to the retiring Trustee an
instrument accepting such appointment,
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and thereupon the resignation or removal of the retiring Trustee shall become
effective and such successor Trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties
of the retiring Trustee; but, on request of the Company or the successor
Trustee, such retiring Trustee shall, upon payment of its charges, execute and
deliver an instrument transferring to such successor Trustee all the rights,
powers and trusts of the retiring Trustee and shall duly assign, transfer and
deliver to such successor Trustee all property and money held by such retiring
Trustee hereunder. Upon request of any such successor Trustee, the Company
shall execute any and all instruments for more fully and certainly vesting in
and confirming to such successor Trustee all such rights, powers and trusts,
and duties referred to above.
No successor Trustee shall accept its appointment unless at the time
of such acceptance such successor Trustee shall be qualified and eligible under
this Article.
SECTION 612. Merger, Conversion, Consolidation
or Succession to Business.
Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated, or any corporation resulting from any
merger, conversion or consolidation to which the Trustee shall be a party, or
any corporation succeeding to all or substantially all the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder,
provided such corporation shall be otherwise qualified and eligible under this
Article, without the execution or filing of any paper or any further act on the
part of any of the parties hereto. In case any Securities shall have been
authenticated, but not delivered, by the Trustee then in office, any successor
by merger, conversion or consolidation to such authenticating Trustee may
adopt such authentication and deliver the Securities so authenticated with the
same effect as if such successor Trustee had itself authenticated such
Securities.
SECTION 613. Preferential Collection
of Claims Against Company.
If and when the Trustee shall be or become a creditor of the Company
(or any other obligor upon the
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Securities), the Trustee shall be subject to the provisions of the Trust
Indenture Act regarding the collection of claims against the Company (or any
such other obligor).
SECTION 614. Appointment of Authenticating Agent.
The Trustee may appoint an Authenticating Agent or Agents which shall
be authorized to act on behalf of the Trustee to authenticate Securities issued
upon original issue and upon exchange, registration of transfer or pursuant to
Section 306, and Securities so authenticated shall be entitled to the benefits
of this Indenture and shall be valid and obligatory for all purposes as if
authenticated by the Trustee hereunder. Wherever reference is made in this
Indenture to the authentication and delivery of Securities by the Trustee or
the Trustee's certificate of authentication, such reference shall be deemed to
include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be
acceptable to the Company and shall at all times be a corporation organized and
doing business under the laws of the United States of America, any State
thereof or the District of Columbia, authorized under such laws to act as
Authenticating Agent, having a combined capital and surplus of not less than
$50,000,000 and subject to supervision or examination by Federal or State
authority. If such Authenticating Agent publishes reports of condition at least
annually, pursuant to law or to the requirements of said supervising or
examining authority, then for the purposes of this Section, the combined
capital and surplus of such Authenticating Agent shall be deemed to be its
combined capital and surplus as set forth in its most recent report of
condition so published. If at any time an Authenticating Agent shall cease to
be eligible in accordance with the provisions of this Section, such
Authenticating Agent shall resign immediately in the manner and with the effect
specified in this Section.
Any corporation into which an Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which such Authenticating Agent
shall be a party, or any corporation succeeding to the corporate agency or
corporate trust business of an Authenticating Agent, shall continue to be an
Authenticating Agent,
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provided such corporation shall be otherwise eligible under this Section,
without the execution or filing of any paper or any further act on the part of
the Trustee or the Authenticating Agent.
An Authenticating Agent may resign at any time by giving written
notice thereof to the Trustee and to the Company. The Trustee may at any time
terminate the agency of an Authenticating Agent by giving written notice
thereof to such Authenticating Agent and to the Company. Upon receiving such a
notice of resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee may appoint a successor Authenticating
Agent which shall be acceptable to the Company and shall mail written notice of
such appointment by first-class mail, postage prepaid, to all Holders as their
names and addresses appear in the Security Register. Any successor
Authenticating Agent upon acceptance of its appointment hereunder shall become
vested with all the rights, powers and duties of its predecessor hereunder,
with like effect as if originally named as an Authenticating Agent. No
successor Authenticating Agent shall be appointed unless eligible under the
provisions of this Section.
The Trustee agrees to pay to each Authenticating Agent from time to
time reasonable compensation for its services under this Section, and the
Trustee shall be entitled to be reimbursed for such payments, subject to the
provisions of Section 607.
If an appointment is made pursuant to this Section, the Securities
may have endorsed thereon, in addition to the Trustee's certificate of
authentication, an alternative certificate of authentication in the following
form:
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This is one of the Securities described in the within-mentioned
Indenture.
The Bank of New York,
As Trustee
By___________________________,
As Authenticating Agent
By___________________________
Authorized Agent
ARTICLE SEVEN
Holders' Lists and Reports by Trustee and Company
SECTION 701. Company to Furnish Trustee
Names and Addresses of Holders.
The Company will furnish or cause to be furnished to the Trustee
(a) semi-annually, not more than 15 days after each Regular Record
Date, a list, in such form as the Trustee may reasonably require, of the
names and addresses of the Holders as of such Regular Record Date, and
(b) at such other times as the Trustee may request in writing, within
30 days after the receipt by the Company of any such request, a list of
similar form and content as of a date not more than 15 days prior to the
time such list is furnished;
excluding from any such list names and addresses received by the Trustee in
its capacity as Security Registrar.
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SECTION 702. Preservation of Information;
Communications to Holders.
(a) The Trustee shall preserve, in as current a form as is reasonably
practicable, the names and addresses of Holders contained in the most recent
list furnished to the Trustee as provided in Section 701 and the names and
addresses of Holders received by the Trustee in its capacity as Security
Registrar. The Trustee may destroy any list furnished to it as provided in
Section 701 upon receipt of a new list so furnished.
(b) The rights of Holders to communicate with other Holders with
respect to their rights under this Indenture or under the Securities, and the
corresponding rights and duties of the Trustee, shall be as provided by the
Trust Indenture Act.
(c) Every Holder of Securities, by receiving and holding the same,
agrees with the Company and the Trustee that neither the Company nor the
Trustee nor any agent of either of them shall be held accountable by reason of
any disclosure of information as to names and addresses of Holders made
pursuant to the Trust Indenture Act.
SECTION 703. Reports by Trustee.
(a) The Trustee shall within 60 days of May 15 of each year,
commencing May 15, 2000, and at such other times as may be required by the
Trust Indenture Act, transmit to Holders such reports concerning the Trustee
and its actions under this Indenture as may be required pursuant to the Trust
Indenture Act at the times and in the manner provided pursuant thereto.
(b) A copy of each such report shall, at the time of such
transmission to Holders, be filed by the Trustee with each stock exchange upon
which the Securities are listed, with the Commission and with the Company. The
Company will notify the Trustee when the Securities are listed on any stock
exchange.
SECTION 704. Reports by Company.
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The Company shall file with the Trustee and the Commission, and
transmit to Holders, such information, documents and other reports, and such
summaries thereof, as may be required pursuant to the Trust Indenture Act at
the times and in the manner provided pursuant to such Act; provided that any
such information, documents or reports required to be filed with the Commission
pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 shall be
filed with the Trustee within 15 days after the same is so required to be filed
with the Commission.
ARTICLE EIGHT
Consolidation, Merger, Conveyance, Transfer or Lease
SECTION 801. Company May Consolidate, Etc.,
Only on Certain Terms.
The Company shall not consolidate with or merge into any
other Person or convey, transfer or lease its properties and assets
substantially as an entirety to any Person, and the Company shall not permit
any Person to consolidate with or merge into the Company or convey, transfer
or lease its properties and assets substantially as an entirety to the
Company, unless:
(1) in case the Company shall consolidate with or merge into another
Person or convey, transfer or lease its properties and assets
substantially as an entirety to any Person, the Person formed by such
consolidation or into which the Company is merged or the Person which
acquires by conveyance or transfer, or which leases, the properties and
assets of the Company substantially as an entirety shall be a Person,
shall be organized and validly existing under the laws of the United
States of America, any State thereof or the District of Columbia and shall
expressly assume, by an indenture supplemental hereto, executed and
delivered to the Trustee, in form satisfactory to the Trustee, the due and
punctual payment of the principal of and interest on all the
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Securities and the performance or observance of every covenant of this
Indenture on the part of the Company to be performed or observed;
(2) immediately after giving effect to such transaction and treating
any indebtedness which becomes an obligation of the Company or a
Subsidiary as a result of such transaction as having been incurred by the
Company or such Subsidiary at the time of such transaction, no Event of
Default, and no event which, after notice or lapse of time or both, would
become an Event of Default, shall have happened and be continuing; and
(3) the Company has delivered to the Trustee an Officers' Certificate
and an Opinion of Counsel, each stating that such consolidation, merger,
conveyance, transfer or lease and, if a supplemental indenture is required
in connection with such transaction, such supplemental indenture comply
with this Article and that all conditions precedent herein provided for
relating to such transaction have been complied with.
SECTION 802. Successor Substituted.
Upon any consolidation of the Company with, or merger of the Company
into, any other Person or any conveyance, transfer or lease of the properties
and assets of the Company substantially as an entirety in accordance with
Section 801, the successor Person formed by such consolidation or into which
the Company is merged or to which such conveyance, transfer or lease is made
shall succeed to, and be substituted for, and may exercise every right and
power of, the Company under this Indenture with the same effect as if such
successor Person had been named as the Company herein, and thereafter, except
in the case of a lease, the predecessor Person shall be relieved of all
obligations and covenants under this Indenture and the Securities.
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ARTICLE NINE
Supplemental Indentures
SECTION 901. Supplemental Indentures
Without Consent of Holders.
Without the consent of any Holders, the Company, when authorized by a
Board Resolution, and the Trustee, at any time and from time to time, may enter
into one or more indentures supplemental hereto, in form satisfactory to the
Trustee, for any of the following purposes:
(1) to evidence the succession of another Person to the Company and
the assumption by any such successor of the covenants of the Company
herein and in the Securities; or
(2) to add to the covenants of the Company for the benefit of the
Holders, or to surrender any right or power herein conferred upon the
Company; or
(3) to add any additional Events of Default; or
(4) to add to or change any of the provisions of this Indenture to
such extent as shall be necessary to permit or facilitate the issuance of
Securities in bearer form, registrable or not registrable as to principal,
and with or without interest coupons, or to permit or facilitate the
issuance of Securities in uncertificated form; or
(5) to secure the Securities; or
(6) to make such changes as are necessary to qualify this Indenture
under the Trust Indenture Act of 1939; or
(7) to evidence and provide for the acceptance of appointment
hereunder by a successor Trustee; or
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(8) to cure any ambiguity, to correct or supplement any provision
herein which may be inconsistent with any other provision herein, or to
make any other provisions with respect to matters or questions arising
under this Indenture, provided that such action pursuant to this Clause
(8) shall not adversely affect the interests of the Holders in any
material respect.
SECTION 902. Supplemental Indentures
with Consent of Holders.
With the consent of the Holders of not less than a majority in
principal amount of the Outstanding Securities, by Act of said Holders
delivered to the Company and the Trustee, the Company, when authorized by a
Board Resolution, and the Trustee may enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Indenture or of
modifying in any manner the rights of the Holders under this Indenture;
provided, however, that no such supplemental indenture shall, without the
consent of the Holder of each Outstanding Security affected thereby,
(1) change the Stated Maturity of the principal of, or any instalment
of principal of or interest on, any Security, or reduce the principal
amount thereof or the rate of interest thereon, or change the Place of
Payment where, or the coin or currency in which, any Security or any
interest thereon is payable, or impair the right to institute suit for the
enforcement of any such payment on or after the Stated Maturity thereof,
or
(2) reduce the percentage in principal amount of the Outstanding
Securities, the consent of whose Holders is required for any such
supplemental indenture, or the consent of whose Holders is required for
any waiver (of compliance with certain provisions of this Indenture or
certain defaults hereunder and their consequences) provided for in this
Indenture, or
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(3) modify any of the provisions of this Section, Section 513 or
Section 1006, except to increase any such percentage or to provide that
certain other provisions of this Indenture cannot be modified or waived
without the consent of the Holder of each Outstanding Security affected
thereby; provided, however, that this clause shall not be deemed to
require the consent of any Holder with respect to changes in the
references to "the Trustee" and concomitant changes in this Section and
Section 1006 or the deletion of this proviso, in accordance with the
requirements of Section 611 and Section 901(8).
It shall not be necessary for any Act of Holders under this Section
to approve the particular form of any proposed supplemental indenture, but it
shall be sufficient if such Act shall approve the substance thereof.
SECTION 903. Execution of Supplemental Indentures.
In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article or the modifications thereby
of the trusts created by this Indenture, the Trustee shall be entitled to
receive, and (subject to Section 601) shall be fully protected in relying upon,
an Opinion of Counsel stating that the execution of such supplemental indenture
is authorized or permitted by this Indenture. The Trustee may, but shall not be
obligated to, enter into any such supplemental indenture which affects the
Trustee's own rights, duties or immunities under this Indenture or otherwise.
SECTION 904. Effect of Supplemental Indentures.
Upon the execution of any supplemental indenture under this Article,
this Indenture shall be modified in accordance therewith, and such supplemental
indenture shall form a part of this Indenture for all purposes; and every
Holder of Securities theretofore or thereafter authenticated and delivered
hereunder shall be bound thereby.
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SECTION 905. Conformity with Trust Indenture Act.
Every supplemental indenture executed pursuant to this Article shall
conform to the requirements of the Trust Indenture Act.
SECTION 906. Reference in Securities
to Supplemental Indentures.
Securities authenticated and delivered after the execution of any
supplemental indenture pursuant to this Article may, and shall if required by
the Trustee, bear a notation in form approved by the Trustee as to any matter
provided for in such supplemental indenture. If the Company shall so determine,
new Securities so modified as to con form, in the opinion of the Trustee and
the Company, to any such supplemental indenture may be prepared and executed by
the Company and authenticated and delivered by the Trustee in exchange for
Outstanding Securities.
ARTICLE TEN
Covenants
SECTION 1001. Payment of Principal and Interest.
The Company covenants and agrees for the benefit of the Holders of
the Securities that it will duly and punctually pay the principal of and
interest on the Securities in accordance with the terms of the Securities and
this Indenture.
SECTION 1002. Maintenance of Office or Agency.
The Company will maintain in the Place of Payment an office or agency
where Securities may be presented or surrendered for payment, where Securities
may be surrendered for registration of transfer or exchange and where notices
and demands to or upon the Company in respect of the Securities and this
Indenture may be served. The Company will give prompt written notice to the
Trustee of the location, and any change in the location, of such office or
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agency. If at any time the Company shall fail to maintain any such required
office or agency or shall fail to furnish the Trustee with the address
thereof, such presentations, surrenders, notices and demands may be made or
served at the Corporate Trust Office of the Trustee, and the Company hereby
appoints the Trustee as its agent to receive all such presentations,
surrenders, notices and demands.
The Company may also from time to time designate one or more other
offices or agencies where the Securities may be presented or surrendered for
any or all such purposes and may from time to time rescind such designations;
provided, however, that no such designation or rescission shall in any manner
relieve the Company of its obligation to maintain an office or agency in the
Place of Payment for such purposes. The Company will give prompt written notice
to the Trustee of any such designation or rescission and of any change in the
location of any such other office or agency.
SECTION 1003. Money for Security
Payments to Be Held in Trust.
If the Company shall at any time act as its own Paying Agent, it
will, on or before each due date of the principal of or interest on any of the
Securities, segregate and hold in trust for the benefit of the Persons entitled
thereto a sum sufficient to pay the principal or interest so becoming due until
such sums shall be paid to such Persons or otherwise disposed of as herein
provided and will promptly notify the Trustee of its action or failure so to
act.
Whenever the Company shall have one or more Paying Agents, it will,
prior to each due date of the principal of or interest on any Securities,
deposit with a Paying Agent a sum sufficient to pay such amount, such sum to be
held as provided by the Trust Indenture Act, and (unless such Paying Agent is
the Trustee) the Company will promptly notify the Trustee of its action or
failure so to act.
The Company will cause each Paying Agent other than the Trustee to
execute and deliver to the Trustee an instrument in which such Paying Agent
shall agree with the Trustee, subject to the provisions of this Section, that
such Paying Agent will (i) comply with the provisions of the
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Trust Indenture Act applicable to it as a Paying Agent and (ii) during the
continuance of any default by the Company (or any other obligor upon the
Securities) in the making of any payment in respect of the Securities, and
upon the written request of the Trustee, forthwith pay to the Trustee all sums
held in trust by such Paying Agent for payment in respect of the Securities.
The Company may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, pay, or
by Company Order direct any Paying Agent to pay, to the Trustee all sums held
in trust by the Company or such Paying Agent, such sums to be held by the
Trustee upon the same trusts as those upon which such sums were held by the
Company or such Paying Agent; and, upon such payment by any Paying Agent to the
Trustee, such Paying Agent shall be released from all further liability with
respect to such money.
Any money deposited with the Trustee or any Paying Agent, or then
held by the Company, in trust for the payment of the principal of or interest
on any Security and remaining unclaimed for two years after such principal or
interest has become due and payable shall be paid to the Company on Company
Request, or (if then held by the Company) shall be discharged from such trust;
and the Holder of such Security shall thereafter, as an unsecured general
creditor, look only to the Company for payment thereof, and all liability of
the Trustee or such Paying Agent with respect to such trust money, and all
liability of the Company as trustee thereof, shall thereupon cease; provided,
however, that the Trustee or such Paying Agent, before being required to make
any such repayment, may at the expense of the Company cause to be published
once, in a newspaper published in the English language, customarily published
on each Business Day and of general circulation in the Borough of Manhattan,
The City of New York, notice that such money remains unclaimed and that, after
a date specified therein, which shall not be less than 30 days from the date of
such publication, any unclaimed balance of such money then remaining will be
repaid to the Company.
SECTION 1004. Statement by Officers as to Default.
The Company will deliver to the Trustee, within 120 days after the
end of each fiscal year of the Company
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ending after the date hereof, an Officers' Certificate, stating whether or not
to the best knowledge of the signers thereof the Company is in default in the
performance and observance of any of the terms, provisions and conditions of
this Indenture (without regard to any period of grace or requirement of notice
provided hereunder) and, if the Company shall be in default, specifying all
such defaults and the nature and status thereof of which they may have
knowledge.
SECTION 1005. Existence.
Subject to Article Eight, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its existence
and rights (charter and statutory); provided, however, that the Company shall
not be required to preserve any such right if the Company shall determine that
the preservation thereof is no longer desirable in the conduct of the business
of the Company and that the loss thereof would not materially and adversely
affect the Company's ability to perform its obligations under this Indenture.
SECTION 1006. Waiver of Certain Covenants.
The Company may omit in any particular instance to comply with any
term, covenant or condition, if before the time for such compliance the Holders
of at least a majority in principal amount of the Outstanding Securities shall,
by Act of such Holders, either waive such compliance in such instance or
generally waive compliance with such term, covenant or condition, but no such
waiver shall extend to or affect such covenant or condition except to the
extent so expressly waived, and, until such waiver shall become effective, the
obligations of the Company and the duties of the Trustee in respect of any such
term, covenant or condition shall remain in full force and effect.
Section 1007. Officers' Certificate as to Additional
Interest.
The Company shall deliver an Officers' Certificate to the Trustee
within five Business Days after an Additional Interest Event occurs which
identifies such Additional
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Interest Event and states the date as of which Additional Interest began
accruing or will begin to accrue. Promptly upon (i) an Additional Interest
Event having been cured or (ii) the expiration of the Rule 144(k) Holding
Period, the Company shall deliver to the Trustee an Officers' Certificate
which identifies such Additional Interest Event, states that it has been cured
or that the Rule 144(k) Holding Period has expired, as the case may be, and
states the date as of which Additional Interest ceased accruing or will cease
to accrue.
ARTICLE ELEVEN
DEFEASANCE
Section 1101. Reserved.
[Reserved]
Section 1102. Defeasance Upon Deposit of Moneys or U.S.
Government Obligations.
At the Company's option, written notice of which shall be provided to
the Trustee by the Company, either (a) the Company shall be deemed to have been
Discharged (as defined below) from its obligations with respect to the
Securities after the applicable conditions set forth below have been satisfied
or (b) an event specified in Section 501 (4) shall not be deemed to be an Event
of Default with respect to the Outstanding Securities at any time after the
applicable conditions set forth below have been satisfied:
1. the Company shall have deposited or caused to be deposited with
the Trustee as trust funds in trust and dedicated solely to, the benefit of the
Holders (i) money in an amount, or (ii) U.S. Government Obligations (as defined
below) that through the payment of interest and principal in respect thereof in
accordance with their terms will provide, not later than the due date of any
payment, money in an amount, or (iii) a combination of (i) and (ii),
sufficient, without reinvestment, in the opinion of a nationally recognized
firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee, to pay and discharge principal of and
interest on, the
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Outstanding Securities on the Stated Maturity of such principal or interest;
2. (A) no Event of Default or event which with notice or lapse of
time or both would become an Event of Default with respect to the Securities
shall have occurred and be continuing on the date of such deposit and (B) in
the case of an election under Section 1102 (a), no Event or Default under
subsections 501(5) or 501 (6) or event which with notice or lapse of time or
both would become an Event of Default under subsections 501 (5) or 501 (6) with
respect to the Securities shall have occurred and be continuing at any time
during the period ending on the 91st day after the date of such deposit (it
being understood that the condition in this condition shall not be deemed
satisfied until the expiration of such period);
3. such defeasance or covenant defeasance shall not result in the
trust arising from such deposit to constitute, unless it is qualified as, a
regulated investment company under the Investment Company Act of 1940, as
amended;
4. such defeasance or covenant defeasance shall not result in a
breach or violation of, or constitute a default under, any agreement or
instrument to which the Company is a party or by which it is bound if such
breach, violation or default would affect the validity of such defeasance or
covenant defeasance;
5. in the case of an election under Section 1102 (a), the Company
shall have delivered to the Trustee an Opinion of Counsel stating that (x) the
Company has received from, or there has been published by, the Internal Revenue
Service a ruling, or (y) since the date of this Indenture there has been a
change in the applicable Federal income tax law, in either case to the effect
that, and based thereon such opinion shall confirm that, the Holders of the
Outstanding Securities will not recognize income, gain or loss for Federal
income tax purposes as a result of such defeasance and will be subject to
Federal income tax on the same amounts, in the same manner and at the same time
as would have been the case if such defeasance had not occurred;
6. in the case of an election under Section 1102 (b), the Company
shall have delivered to the Trustee an
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Opinion of Counsel to the effect that the Holders of the Outstanding
Securities will not recognize income, gain or loss for Federal income tax
purposes as a result of such covenant defeasance and will be subject to
Federal income tax on the same amounts, in the same manner and at the same
time as would have been the case if such covenant defeasance had not occurred;
and
7. the Company shall have delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that all conditions
precedent herein provided relating to defeasance of Securities under this
Indenture have been complied with.
"Discharged" means that the Company shall be deemed to have paid and
discharged the entire indebtedness represented by, and obligations under, the
Securities and to have satisfied all the obligations under this Indenture
relating to the Securities (and the Trustee, upon the request of and at the
expense of the Company, shall execute proper instruments acknowledging the
same), except (A) the rights of Holders of Securities to receive, from the
trust fund described in clause (1) above, payment of the principal of and
interest on such Securities when such payments are due, (B) the Company's
obligations with respect to the Securities under Sections 304, 305, 306 and
1002, (C) this Article Eleven and (D) the obligations of the Company to the
Trustee under Section 607, and the obligations of the Trustee under Section 402
and the last paragraph of Section 1003.
"U.S. Government Obligations" means securities that are (i) direct
obligations of the United States of America for the payment of which its full
faith and credit is pledged or (ii) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States
of America, the timely payment of which is unconditionally guaranteed as a full
faith and credit obligation by the United States of America, that, in either
case under clauses (i) or (ii), are not callable or redeemable at the option of
the issuer thereof, and shall also include a depository receipt issue by a bank
(as defined in Section 3(a)(2) of the Securities Act) as custodian with respect
to any such U.S. Government Obligation or a specific payment of interest on or
principal of any U.S. Government Obligation held by such custodian for the
account of the holder of a depository receipt; provided
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that (except as required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such depository receipt
from any amount received by the custodian in respect of the U.S. Government
Obligation or the specific payment of interest on or principal of the U.S.
Government Obligation evidenced by such depository receipt.
Section 1103. Deposited Moneys and U.S. Government
Obligations to be Held in Trust.
Subject to the provisions of the last paragraph of Section 1003, all
moneys and U.S. Government Obligations deposited with the Trustee pursuant to
Section 1102 in respect of Securities shall be held in trust and applied by it,
in accordance with the provisions of such Securities and this Indenture, to the
payment, either directly or through any Paying Agent (but not including the
Company acting as its own Paying Agent) as the Trustee may determine, to the
Holders of such Securities, of all sums due and to become due thereon for
principal and interest, but such money need not be segregated from other funds
except to the extent required by law.
The Company shall pay and indemnify the Trustee against any tax, fee
or other charge imposed on or assessed against the money or U.S. Government
Obligations deposited pursuant to Section 1102 or the principal and interest
received in respect thereof.
Section 1104. Repayment to Company.
Notwithstanding anything in this Indenture to the contrary, the
Trustee and the Paying Agent shall promptly pay or return to the Company upon
Company Request any moneys or U.S. Government Obligations held by it pursuant
to Section 1102 which, in the opinion of a nationally recognized firm of
independent accountants expressed in a written certification thereof delivered
to the Trustee, are in excess of the amount thereof which would be then
required to be deposited to effect an equivalent defeasance.
The provisions of the last paragraph of Section 1003 shall apply to
any money held by the Trustee or any Paying Agent under this Article that
remains unclaimed for two years afer the Maturity of any Securities for which
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money or U.S. Government Obligations have been deposited pursuant to Section
1102.
Section 1105. Reinstatement.
If the Trustee or the Paying Agent is unable to apply any money in
accordance with Section 1102(a) or 1102(b) by reason of any order or judgment
of any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, then the Trustee or the Paying Agent, as the case
may be, shall at the Company's request return to the Company all such money
held by the Trustee or the Paying Agent and the Company's obligations under the
Securities shall be revived and reinstated as though no deposit had occurred
pursuant to this Article Eleven. If notwithstanding the Trustee's and the
Paying Agent's obligation to do so pursuant to the preceding sentence of this
Section, the money held by the Trustee or the Paying Agent is not returned to
the Company, such revival and reinstatement shall terminate at such time as the
Trustee or Paying Agent is permitted to apply all such money in accordance with
Section 1102(a) or 1102(b); and provided, further, that, notwithstanding the
Trustee's and the Paying Agent's obligation to do so, the money held by the
Trustee or the Paying Agent is not returned to the Company, if the Company
makes any payment of principal of or interest on any such Security following
the reinstatement of its obligations, the Company shall be subrogated to the
rights of the Holders of such Securities to receive such payment from the money
held by the Trustee or the Paying Agent.
ARTICLE TWELVE
IMMUNITY
SECTION 1201. Personal Immunity of Incorporators,
Stockholders, Directors and Officers.
No recourse for the payment of the principal of or interest on any
Security, and no recourse under or upon any obligation, covenant or agreement
contained in this Indenture or in any indenture supplemental hereto, or in any
Security, or because of any indebtedness evidenced thereby, shall be had
against any incorporator, or against any past, present or future stockholder,
officer or director, as such,
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of the Company or any successor corporation, either directly or through the
Company or any successor corporation, under any rule of law, statute or
constitutional provision or by the enforcement of any assessment or by any
legal or equitable proceeding or otherwise, all such liability being expressly
waived and released by the acceptance of the Securities by the Holders thereof
as part of the consideration for the issue of the Securities. Each and every
Holder of the Securities, by receiving and holding the same, agrees to the
provisions of this Section 1201 and waives and releases any and all such
recourse, claim and liability.
This instrument may be executed in any number of counterparts, each
of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument.
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IN WITNESS WHEREOF, the parties hereto have caused this Indenture to
be duly executed, and their respective corporate seals to be hereunto affixed
and attested, all as of the day and year first above written.
DELTA AIR LINES, INC.
By___________________________
Attest:
- --------------------------
THE BANK OF NEW YORK
By___________________________
Attest:
- --------------------------
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STATE OF NEW YORK )
ss.:
COUNTY OF NEW YORK )
On the _____ day of __________, 19__, before me personally came
___________________________, to me known, who, being by me duly sworn, did
depose and say that [he -- she] is ____________________________________________
of ___________________________, one of the corporations described in and which
executed the foregoing instrument; that [he -- she] knows the seal of said
corporation; that the seal affixed to said instrument is such corporate seal;
that it was so affixed by authority of the Board of Directors of said
corporation, and that [he -- she] signed [his -- her] name thereto by like
authority.
------------------------------
STATE OF NEW YORK )
ss.:
COUNTY OF NEW YORK )
On the _____ day of __________, 19__, before me personally came
___________________________, to me known, who, being by me duly sworn, did
depose and say that [he -- she] is _________________________________________ of
___________________________, one of the corporations described in and which
executed the foregoing instrument; that [he -- she] knows the seal of said
corporation; that the seal affixed to said instrument is such corporate seal;
that it was so affixed by authority of the Board of Directors of said
corporation, and that [he -- she] signed [his -- her] name thereto by like
authority.
------------------------------
ANNEX A -- Form of
Regulation S Certificate
REGULATION S CERTIFICATE
A-1
<PAGE>
(For transfers pursuant to ss. 305(b)(i) and (v)
of the Indenture)
The Bank of New York,
as Trustee
101 Barclay Street
New York, NY 10286
Attention: Corporate Trust Administration
Re: __% Notes due ____________________ of Delta Air Lines, Inc. (the
"Securities")
Reference is made to the Indenture, dated as of December 14, 1999
(the "Indenture"), between Delta Air Lines, Inc. (the "Company") and The Bank
of New York, as Trustee. Terms used herein and defined in the Indenture or in
Regulation S or Rule 144 under the U.S. Securities Act of 1933, as amended (the
"Securities Act"), are used herein as therein so defined.
This certificate relates to U.S. $____________ principal amount of
Securities, which are evidenced by the following certificate(s) (the "Specified
Securities"):
CUSIP No(s). ___________________________
CERTIFICATE No(s). _____________________
The person in whose name this certificate is executed below (the
"Undersigned") hereby certifies that either (i) it is the sole beneficial
owner of the Specified Securities or (ii) it is acting on behalf of all the
beneficial owners of the Specified Securities and is duly authorized by them
to do so. Such beneficial owner or owners are referred to herein collectively
as the "Owner". If the Specified Securities are represented by a Global
Security, they are held through the Depositary or an Agent Member in the name
of the Undersigned, as or on behalf of the Owner. If the Specified Securities
are not represented by a Global Security, they are registered in the name of
the Under signed, as or on behalf of the Owner.
The Owner has requested that the Specified Securities be transferred
to a person (the "Transferee") who will take delivery in the form of a
Regulation S Security.
A-2
<PAGE>
In connection with such transfer, the Owner hereby certifies that, unless such
transfer is being effected pursuant to an effective registration statement
under the Securities Act, it is being effected in accordance with Rule 904 or
Rule 144 under the Securities Act and with all applicable securities laws of
the states of the United States and other jurisdic tions. Accordingly, the
Owner hereby further certifies as follows:
(1) Rule 904 Transfers. If the transfer is being effected in
accordance with Rule 904:
(A) the Owner is not a distributor of the Securities, an
affiliate of the Company or any such distributor or a person acting
on behalf of any of the foregoing;
(B) the offer of the Specified Securities was not made to a
person in the United States;
(C) either:
(i) at the time the buy order was originated, the
transferee was outside the United States or the Owner and any
person acting on its behalf reasonably believed that the
Transferee was outside the United States, or
(ii) the transaction is being executed in, on or through
the facilities of the Eurobond market, as regulated by the
Association of International Bond Dealers, or another
designated offshore securities market and neither the Owner nor
any person acting on its behalf knows that the transaction has
been prearranged with a buyer in the United States;
(D) no directed selling efforts have been made in the United
States by or on behalf of the Owner or any affiliate thereof;
(E) if the Owner is a dealer in securities or has received a
selling concession, fee or other remuneration in respect of the
Specified Securities, and the transfer is to occur during
A-3
<PAGE>
the Restricted Period, then the requirements of Rule 904(c)(1) have
been satisfied; and
(F) the transaction is not part of a plan or scheme to evade the
registration requirements of the Securities Act.
(2) Rule 144 Transfers. If the transfer is being effected pursuant to
Rule 144:
(A) the transfer is occurring after a holding period of at least
one year (computed in accordance with paragraph (d) of Rule 144) has
elapsed since the Specified Securities were last acquired from the
Company or from an affiliate of the Company, whichever is later, and
is being effected in accordance with the applicable volume, manner of
sale and notice requirements of Rule 144; or
(B) the transfer is occurring after a holding period of at least
two years has elapsed since the Specified Securities were last
acquired from the Company or from an affiliate of the Company,
whichever is later, and the Owner is not, and during the preceding
three months has not been, an affiliate of the Company.
This certificate and the statements contained herein are made for
your benefit and the benefit of the Company and the Purchasers.
Dated: ___________________________________________________
(Print the name of the Undersigned,
as such term is defined in the
second paragraph of this certificate.)
By:________________________________________________
Name:
Title:
(If the Undersigned is a corporation,
partnership or fiduciary, the title
A-4
<PAGE>
of the person signing on behalf of
the Undersigned must be stated.)
A-5
<PAGE>
ANNEX B -- Form of Restricted
Securities Certificate
RESTRICTED SECURITIES CERTIFICATE
(For transfers pursuant to ss. 305(b)(ii), (iii) and (v)
of the Indenture)
The Bank of New York,
as Trustee
101 Barclay Street
New York, NY 10286
Attention: Corporate Trust Administration
Re: __% Notes due ____________________ of Delta Air Lines, Inc. (the
"Securities")
Reference is made to the Indenture, dated as of December 14, 1999
(the "Indenture"), between Delta Air Lines, Inc. (the "Company") and The Bank
of New York, as Trustee. Terms used herein and defined in the Indenture or in
Regulation S or Rule 144 under the U.S. Securities Act of 1933, as amended (the
"Securities Act"), are used herein as so defined.
This certificate relates to U.S. $_____________ principal amount of
Securities, which are evidenced by the following certificate(s) (the "Specified
Securities"):
CUSIP No(s). ___________________________
CERTIFICATE No(s). _____________________
The person in whose name this certificate is executed below (the
"Undersigned") hereby certifies that either (i) it is the sole beneficial
owner of the Specified Securities or (ii) it is acting on behalf of all the
beneficial owners of the Specified Securities and is duly authorized by them
to do so. Such beneficial owner or owners are referred to herein collectively
as the "Owner". If the Specified Securities are represented by a Global
Security, they are held through the Depositary or an Agent Member in the name
of the Undersigned, as or on behalf of the Owner. If the Specified Securities
are not represented by a Global Security, they are registered in the name of
the Undersigned, as or on behalf of the Owner.
B-1
<PAGE>
The Owner has requested that the Specified Securities be transferred
to a person (the "Transferee") who will take delivery in the form of a
Restricted Security. In connection with such transfer, the Owner hereby
certifies that, unless such transfer is being effected pursuant to an effective
registration statement under the Securities Act, it is being effected in
accordance with Rule 144A or Rule 144 under the Securities Act and all
applicable securities laws of the states of the United States and other
jurisdic tions. Accordingly, the Owner hereby further certifies as follows:
(1) Rule 144A Transfers. If the transfer is being effected in
accordance with Rule 144A:
(A) the Specified Securities are being transferred to a person
that the Owner and any person acting on its behalf reasonably believe
is a "qualified institutional buyer" within the meaning of Rule
144A, acquiring for its own account or for the account of a qualified
institutional buyer; and
(B) the Owner and any person acting on its behalf have taken
reasonable steps to ensure that the Transferee is aware that the
Owner may be relying on Rule 144A in connection with the transfer;
and
(2) Rule 144 Transfers. If the transfer is being effected pursuant to
Rule 144:
(A) the transfer is occurring after a holding period of at least
one year (computed in accordance with paragraph (d) of Rule 144) has
elapsed since the Specified Securities were last acquired from the
Company or from an affiliate of the Company, whichever is later, and
is being effected in accordance with the applicable volume, manner of
sale and notice requirements of Rule 144; or
(B) the transfer is occurring after a holding period of at least
two years has elapsed since the Specified Securities were last
acquired from the Company or from an affiliate of the Company,
whichever is later, and the Owner is not,
B-2
<PAGE>
and during the preceding three months has not been, an affiliate of
the Company.
B-3
<PAGE>
This certificate and the statements contained herein are made for
your benefit and the benefit of the Company and the Purchasers.
Dated: ____________________________________________________
(Print the name of the Undersigned,
as such term is defined in the
second paragraph of this certificate.)
By:_________________________________________________
Name:
Title:
(If the Undersigned is a corporation, partnership
or fiduciary, the title of the person signing on
behalf of the Undersigned must be stated.)
B-4
<PAGE>
ANNEX C -- Form of Unrestricted
Securities Certificate
UNRESTRICTED SECURITIES CERTIFICATE
(For removal of Securities Act Legends pursuant to ss. 305(c))
The Bank of New York ,
as Trustee
101 Barclay Street
New York, NY 10286
Attention: Corporate Trust Trustee Administration
Re: __% Notes due ____________________ of Delta Air Lines, Inc. (the
"Securities")
Reference is made to the Indenture, dated as of December 14, 1999
(the "Indenture"), between Delta Air Lines, Inc. (the "Company") and The Bank
of New York, as Trustee. Terms used herein and defined in the Indenture or in
Regulation S or Rule 144 under the U.S. Securities Act of 1933, as amended (the
"Securities Act"), are used herein as so defined.
This certificate relates to U.S. $_____________ principal amount of
Securities, which are evidenced by the following certificate(s) (the "Specified
Securities"):
CUSIP No(s). ___________________________
CERTIFICATE No(s). _____________________
The person in whose name this certificate is executed below (the
"Undersigned") hereby certifies that either (i) it is the sole beneficial
owner of the Specified Securities or (ii) it is acting on behalf of all the
beneficial owners of the Specified Securities and is duly authorized by them
to do so. Such beneficial owner or owners are referred to herein collectively
as the "Owner". If the Specified Securities are represented by a Global
Security, they are held through the Depositary or an Agent Member in the name
of the Undersigned, as or on behalf of the Owner. If the Specified Securities
are not represented by a Global Security, they are registered in the name of
the Under signed, as or on behalf of the Owner.
The Owner has requested that the Specified Securities be exchanged
for Securities bearing no Securities Act Legend pursuant to Section 305(c) of
the Indenture. In
C-1
<PAGE>
connection with such exchange, the Owner hereby certifies that the exchange is
occurring after a holding period of at least two years (computed in accordance
with paragraph (d) of Rule 144) has elapsed since the Specified Securities
were last acquired from the Company or from an affiliate of the Company,
whichever is later, and the Owner is not, and during the preceding three
months has not been, an affiliate of the Company.
This certificate and the statements contained herein are made for
your benefit and the benefit of the Company and the Purchasers.
Dated: _______________________________________________
(Print the name of the Undersigned,
as such term is defined in the
second paragraph of this certificate.)
By:____________________________________________
Name:
Title:
(If the Undersigned is a corporation, partnership
or fiduciary, the title of the person signing on
behalf of the Undersigned must be stated.)
C-2
EXHIBIT 5.1
212-450-4000
January 20, 2000
Delta Air Lines, Inc.
Hartsfield Atlanta International Airport
Atlanta, Georgia 30320
Ladies and Gentlemen:
We have acted as special counsel to Delta Air Lines, Inc., a Delaware
corporation (the "Company"), in connection with the Company's offer (the
"Exchange Offer") to exchange its 7.70% Exchange Notes Due December 15, 2005,
7.90% Exchange Notes Due December 15, 2009 and 8.30% Exchange Notes Due
December 15, 2029 (the "New Notes") for any and all of its outstanding 7.70%
Notes Due December 15, 2005, 7.90% Notes Due December 15, 2009 and 8.30% Notes
Due December 15, 2029, respectively (the "Old Notes").
We have examined originals or copies, certified or otherwise identified to
our satisfaction, of such documents, corporate records, certificates of public
officials and other instruments as we have deemed necessary or advisable for
the purpose of rendering this opinion.
Upon the basis of the foregoing and assuming the due execution and
delivery of the New Notes, we are of the opinion that the New Notes, when
authenticated, issued and delivered in exchange for the Old Notes in accordance
with the Exchange Offer and the indenture dated as of December 14, 1999 between
the Company and The Bank of New York, as trustee, will be valid and binding
obligations of the Company, enforceable against the Company in accordance with
their terms, subject to bankruptcy, insolvency, fraudulent conveyance or
similar laws affecting creditors' rights generally and general principles of
equity (regardless of whether enforcement is sought in a proceeding at law or
in equity).
<PAGE>
Delta Air Lines, Inc. 2 January 20, 2000
We are members of the Bar of the State of New York and the foregoing
opinion is limited to the laws of the State of New York, the federal laws of
the United States of America and the General Corporation Law of the State of
Delaware.
We hereby consent to the filing of this opinion as an exhibit to the
registration statement relating to the Exchange Offer. We also consent to the
references to us under the caption "Legal Matters" in the prospectus contained
in such registration statement.
This opinion is rendered solely to you in connection with the above
matter. This opinion may not be relied upon by you for any other purpose or
relied upon by or furnished to any other person without our prior written
consent except that The Bank of New York, as exchange agent for the Exchange
Offer, may rely upon this opinion as if it were addressed directly to it.
Very truly yours,
/s/ Davis Polk & Wardwell
EXHIBIT 12.1
DELTA AIR LINES, INC.
STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In millions, except ratios)
<TABLE>
- -----------------------------------------------------------------------------------------------------------------------------------
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
December 31 December 31 December 31 December 31
1999 1998 1999 1998
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Earnings (loss):
Earnings (loss) before income taxes $ 579 $ 320 $ 1,162 $ 858
Add (deduct):
Fixed charges from below 221 198 426 410
Interest capitalized (11) (12) (24) (22)
---------------- ---------------- ---------------- ----------------
Earnings (loss) as adjusted $ 789 $ 506 $ 1,564 $ 1,246
Fixed charges:
Interest expense $ 77 $ 43 $ 143 $ 92
Portion of rental expense representative
of the interest factor 144 155 283 318
---------------- ---------------- ---------------- ----------------
Total fixed charges $ 221 $ 198 $ 426 $ 410
Ratio of earnings to fixed charges 3.57 2.56 3.67 3.04
</TABLE>
Exhibit 23.2
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the use in this
Registration Statement on Form S-4 of our reports dated August 13, 1999 included
or incorporated by reference in Delta Air Lines, Inc.'s Annual Report on Form
10-K for the year ending June 30, 1999 and to all references to our firm
included in this Registration Statement.
/s/ Arthur Andersen LLP
Atlanta, Georgia
January 18, 2000
EXHIBIT 25.1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
------------------
FORM T-1
STATEMENT OF ELIGIBILITY UNDER THE
TRUST INDENTURE ACT OF 1939 OF A CORPORATION
DESIGNATED TO ACT AS TRUSTEE
------------------
CHECK IF AN APPLICATION TO DETERMINE ELIGIBILITY OF A TRUSTEE
PURSUANT TO SECTION 305(b)(2) (3)___(3)
------------------
THE BANK OF NEW YORK
(Exact name of trustee as specified in its charter)
13-5160382
(I.R.S. employer identification no.)
48 Wall Street, New York, New York 10286
(Address of principal executive offices) (Zip Code)
-------------------
The Bank of New York
10161 Centurion Parkway
Highwoods Center, 2nd Floor
Jacksonville, Florida 32256
Attn: Mr. William Cardozo
(904) 998-4716
(Name, address and telephone number of agent for service)
--------------------
DELTA AIR LINES, INC.
(Exact name of obligor as specified in its charter)
DELAWARE 58-0218548
(State or other jurisdiction of (IRS employer
incorporation or organization) identification no.)
DELTA AIR LINES, INC.
HARTSFIELD ATLANTA INTERNATIONAL AIRPORT
ATLANTA, GEORGIA 30320
(404) 715-2600
(Address and telephone number of principal executive offices)
--------------------
$500,000,000 7.70% Notes due 2005
$500,000,000 7.90% Notes due 2009
$1,000,000,000 8.30% Notes due 2029
(Title of the indenture securities)
<PAGE>
1. General Information.
Furnish the following information as to the trustee--
Name and address of each examining or supervising authority to which
it is subject.
Superintendent of Banks of the State of New York
2 Rector Street
New York, N.Y. 10006, and Albany, N.Y. 12203
Federal Reserve Bank of New York
33 Liberty Plaza
New York, N.Y. 10045
Federal Deposit Insurance Corporation
Washington, D.C. 20429
New York Clearing House Association
New York, N.Y.
Whether it is authorized to exercise corporate trust powers.
Yes.
2. Affiliations with Obligor.
If the obligor is an affiliate of the trustee, describe each such
affiliation.
None. (See Note on page 4.)
3-15 Not Applicable
16. List of Exhibits.
Exhibits identified in parentheses below, on file with the Commission, are
incorporated herein by reference as an exhibit hereto, pursuant to Rule
7a-29 under the Trust Indenture Act of 1939 (the "Act") and Rule 24 of the
Commission's Rules of Practice.
(1) A copy of the Organization Certificate of the Bank of New York
(formerly Irving Trust Company) as now in effect,
<PAGE>
which contains the authority to commence business and a grant of powers to
exercise corporate trust powers. (Exhibit 1 to Amendment 1 to Form T-1
filed with Registration Statement No. 33-6215, Exhibits 1a and 1b to Form
T-1 filed with Registration Statement No. 33-21672 and Exhibit 1 to Form
T-1 filed with Registration Statement No. 33-29637.)
(4) A copy of the existing By-laws of the Trustee. (Exhibit 4 to Form T-1
filed with Registration Statement No. 33-31019.)
(6) The consent of the Trustee required by Section 321(b) of the Act.
(Exhibit 6 to Form T-1 filed with Registration No. 33-44051.)
(7) A copy of the latest report of condition of the Trustee published
pursuant to law or the requirements of its supervising or examining
authority.
NOTE
Inasmuch as this Form T-1 is filed prior to the ascertainment by the Trustee of
all facts on which to base a responsive answer to Item 2, the answer to said
Item is based on incomplete information.
Item 2 may, however, be considered as correct unless amended by an amendment to
this Form T-1.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Act, the Trustee, The Bank of New
York, a corporation organized and existing under the laws of the State of New
York, has duly caused this statement of eligibility to be signed on its behalf
by the undersigned, thereunto duly authorized, all in the City of Jacksonville
and the State of Florida, on the 19th day of January, 2000.
THE BANK OF NEW YORK
By:
------------------------------------
William Cardozo, Agent
<PAGE>
EXHIBIT 6 TO FORM T-1
CONSENT OF TRUSTEE
Pursuant to the requirements of Section 321(b) of the Trust Indenture Act
of 1939, in connection with the proposed issuance of Delta Air Lines, Inc.
$500,000,000 7.70% Notes due 2005, $500,000,000 7.90% Notes due 2009 and
$1,000,000,000 8.30% Notes due 2029, The Bank of New York hereby consents that
reports of examinations by Federal, State, Territorial or District Authorities
may be furnished by such authorities to the Securities and Exchange Commission
upon request therefor.
THE BANK OF NEW YORK
By:
------------------------------------
William Cardozo, Agent
<PAGE>
EXHIBIT 6 TO FORM T-1
CONSENT OF TRUSTEE
Pursuant to the requirements of Section 321(b) of the Trust Indenture Act
of 1939, in connection with the proposed issuance of Delta Air Lines, Inc.
$500,000,000 7.70% Notes due 2005, $500,000,000 7.90% Notes due 2009 and
$1,000,000,000 8.30% Notes due 2029, The Bank of New York hereby consents that
reports of examinations by Federal, State, Territorial or District Authorities
may be furnished by such authorities to the Securities and Exchange Commission
upon request therefor.
THE BANK OF NEW YORK
By: /S/ William Cardozo
------------------------------------
William Cardozo, Agent
<PAGE>
SIGNATURE
Pursuant to the requirements of the Act, the Trustee, The Bank of New
York, a corporation organized and existing under the laws of the State of New
York, has duly caused this statement of eligibility to be signed on its behalf
by the undersigned, thereunto duly authorized, all in the City of Jacksonville
and the State of Florida, on the 19th day of January, 2000.
THE BANK OF NEW YORK
By: /S/ William Cardozo
------------------------------------
William Cardozo, Agent
<PAGE>
EXHIBIT 7 TO FORM T-1
Consolidated Report of Condition of
THE BANK OF NEW YORK
of 48 Wall Street, New York, N.Y. 10286
And Foreign and Domestic Subsidiaries, a member of the Federal Reserve
System, at the close of business September 30, 1999, published in accordance
with a call made by the Federal Reserve Bank of this District pursuant to the
provisions of the Federal Reserve Act.
Dollar Amounts
in Thousands
ASSETS
- ------
Cash and balances due from
depository institutions:
Noninterest-bearing balances
and currency and coin.................................. $ 6,394,412
Interest-bearing balances................................ 3,966,749
Securities:
Held-to-maturity securities.............................. 805,227
Available-for-sale securities............................ 4,152,260
Federal funds sold and securities
purchased under agreements to resell..................... 1,449,439
Loans and lease financing receivables:
Loans and leases,
net of unearned income. . . . . 37,900,739
LESS: Allowance for loan and
lease losses. . . . . . . . . . 572,761
LESS: Allocated transfer
risk reserve. . . . . . . . . . 11,754
Loans and leases, net of unearned
income and allowance and reserve....................... 37,316,224
Assets held in trading accounts................................... 1,646,634
Premises and fixed assets (including
capitalized leases)...................................... 678,439
Other real estate owned........................................... 11,571
Investments in unconsolidated
subsidiaries and associated
companies................................................ 183,038
Customers' liability to this bank
on acceptances outstanding............................... 349,282
Intangible assets................................................. 790,558
Other assets...................................................... 2,498,658
-----------
Total assets...................................................... $60,242,491
===========
LIABILITIES
- -----------
Deposits:
In domestic offices...................................... $26,030,231
<PAGE>
Noninterest-bearing . . . . . . . 11,348,986
Interest-bearing. . . . . . . . . 14,681,245
In foreign offices, Edge and
Agreement subsidiaries, and IBFs....................... 18,530,950
Noninterest-bearing . . . . . . . 156,624
Interest-bearing. . . . . . . . . 18,374,326
Federal funds purchased and securities
sold under agreements to repurchase
in domestic offices of the bank and
of its Edge and Agreement
subsidiaries, and in IBFs:
Federal funds purchased.................................. 2,094,678
Demand notes issued to the
U.S. Treasury............................................ 232,459
Trading liabilities............................................... 2,081,462
Other borrowed money:
With remaining maturity of one year
or less................................................ 863,201
With remaining maturity of more
than one year through three years...................... 449
With remaining maturity of more
than three years....................................... 31,080
Bank's liability on acceptances
executed and outstanding............................... 351,286
Subordinated notes and debentures................................. 1,308,000
Other liabilities................................................. 3,055,031
-----------
Total liabilities................................................. 54,578,827
===========
EQUITY CAPITAL
- --------------
Common stock...................................................... 1,135,284
Surplus........................................................... 815,314
Undivided profits and capital
reserves................................................. 3,759,164
Net unrealized holding gains (losses)
on available-for-sale securities......................... (15,440)
Cumulative foreign currency
translation adjustments.................................. ( 30,658)
-----------
Total equity capital.............................................. 5,663,664
-----------
Total liabilities and equity capital.............................. $60,242,491
===========
I, Thomas J. Masiro, Senior Vice President and Comptroller of the
above-named bank do hereby declare that this Report of Condition has been
prepared in conformance with the instructions issued by the Board of Governors
of the Federal Reserve System and is true to the best of my knowledge and
belief.
Thomas J. Masiro
We, the undersigned directors, attest to the correctness of this Report of
Condition and declare that it has been examined by
<PAGE>
us and to the best of our knowledge and belief has been prepared in conformance
with the instructions issued by the Board of Governors of the Federal Reserve
System and is true and correct.
Thomas A. Renyi )
Gerald L. Hassell ) Directors
Allen R. Griffith )
EXHIBIT 99.1
LETTER OF TRANSMITTAL
DELTA AIR LINES, INC.
Offer to Exchange
7.70% Exchange Notes Due December 15, 2005 For Any and All
Outstanding 7.70% Notes Due December 15, 2005
7.90% Exchange Notes Due December 15, 2009 for Any and All
Outstanding 7.90% Notes Due December 15, 2009
8.30% Exchange Notes Due December 15, 2029 for Any and All
Outstanding 8.30% Notes Due December 15, 2029
Pursuant to the Prospectus
Dated __________ __, 2000
THE EXCHANGE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT 5:00 P.M., NEW
YORK CITY TIME, ON __________ __, 2000, UNLESS THE OFFER IS EXTENDED.
THE EXCHANGE AGENT FOR THE EXCHANGE OFFER IS:
The Bank of New York
By Registered or Certified Mail: By Overnight Delivery or Hand:
The Bank of New York The Bank of New York
101 Barclay Street 101 Barclay Street
Reorganization Department- 7E Reorganization Department- 7E
New York, New York 10286 New York, New York 10286
Attn: Gertrude Jean-Pierre Attn: Gertrude Jean-Pierre
To Confirm by Telephone Facsimile Transmissions:
or for Information: (212) 815-6339
(212) 815-5920
DELIVERY OF THIS LETTER OF TRANSMITTAL TO AN ADDRESS OTHER THAN AS SET
FORTH ABOVE OR TRANSMISSION OF THIS LETTER OF TRANSMITTAL VIA FACSIMILE TO A
NUMBER OTHER THAN AS SET FORTH ABOVE DOES NOT CONSTITUTE A VALID DELIVERY.
THE INSTRUCTIONS CONTAINED HEREIN SHOULD BE READ CAREFULLY BEFORE THIS
LETTER OF TRANSMITTAL IS COMPLETED.
Capitalized terms used but not defined herein shall have the same meaning
given them in the Prospectus (as defined below).
<PAGE>
This Letter of Transmittal is to be completed by holders of Old Notes (as
defined below) if Old Notes are to be forwarded herewith or delivered by
book-entry transfer as provided herein. If tenders of Old Notes are to be made
by book-entry transfer to an account maintained by The Bank of New York (the
"Exchange Agent") at The Depository Trust Company ("DTC") pursuant to the
procedures set forth in "The Exchange Offer--Book-Entry Transfer" in the
Prospectus and in accordance with the Automated Tender Offer Program ("ATOP")
established by DTC, a tendering holder will become bound by the terms and
conditions hereof in accordance with the procedures established under ATOP.
Holders of Old Notes whose certificates (the "certificates") for such Old
Notes 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 (as defined in the Prospectus) or who cannot complete the
procedures for book-entry transfer on a timely basis, must tender their Old
Notes according to the guaranteed delivery procedures set forth in "The
Exchange Offer--Guaranteed Delivery Procedures" in the Prospectus. SEE
INSTRUCTION 1. DELIVERY OF DOCUMENTS TO DTC IN ACCORDANCE WITH ITS PROCEDURES
DOES NOT CONSTITUTE DELIVERY TO THE EXCHANGE AGENT.
2
<PAGE>
NOTE: SIGNATURES MUST BE PROVIDED BELOW
PLEASE READ THE ACCOMPANYING INSTRUCTIONS CAREFULLY
<TABLE>
ALL TENDERING HOLDERS COMPLETE THIS BOX:
- ---------------------------------------------------------------------------------------------------------------
DESCRIPTION OF OLD NOTES TENDERED
- ---------------------------------------------------------------------------------------------------------------
Name(s) and address(es) of Registered Holder(s) Old Notes Tendered
(Please fill in, if blank) (attach additional list if necessary)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Principal Amount of
Certificate Principal Amount Old Notes Tendered
Number(s)* of Old Notes* (if less than all)**
----------------------------------------------------------
----------------------------------------------------------
----------------------------------------------------------
----------------------------------------------------------
----------------------------------------------------------
Total Amount
Tendered
- ---------------------------------------------------------------------------------------------------------------
* Need not be completed by book-entry holders.
** Old Notes may be tendered in whole or in part in denominations of $1,000
and integral multiples thereof. All Old Notes held shall be deemed
tendered unless a lesser number is specified in this column.
</TABLE>
(BOXES BELOW TO BE CHECKED BY ELIGIBLE INSTITUTIONS ONLY)
[ ] CHECK HERE IF TENDERED OLD NOTES 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 __________________________________________________
[ ] CHECK HERE AND ENCLOSE A PHOTOCOPY OF THE NOTICE OF GUARANTEED DELIVERY
IF TENDERED OLD NOTES ARE BEING DELIVERED PURSUANT TO A NOTICE OF
GUARANTEED DELIVERY PREVIOUSLY SENT TO THE EXCHANGE AGENT AND COMPLETE
THE FOLLOWING:
Name of Registered Holder(s) _____________________________________________
Window Ticket Number (if any) ____________________________________________
Date of Execution of Notice of Guaranteed Delivery _______________________
Name of Institution which Guaranteed _____________________________________
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 OLD
NOTES ARE TO BE RETURNED BY CREDITING THE DTC ACCOUNT NUMBER SET FORTH
ABOVE.
3
<PAGE>
[ ] CHECK HERE IF YOU ARE A BROKER-DEALER WHO ACQUIRED THE OLD NOTES 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: _________________________________________________________________
_________________________________________________________________
4
<PAGE>
Ladies and Gentlemen:
The undersigned hereby tenders to Delta Air Lines, Inc., a Delaware
corporation (the "Company"), the principal amount of the Company's 7.70% Notes
Due December 15, 2005, 7.90% Notes Due December 15, 2009 and 8.30% Notes Due
December 15, 2029 (the "Old Notes") specified above in exchange for a like
aggregate principal amount of the Company's 7.70% Exchange Notes Due December
15, 2005, 7.90% Exchange Notes Due December 15, 2009 and 8.30% Exchange Notes
Due December 15, 2029, respectively (the "New Notes"), upon the terms and
subject to the conditions set forth in the Prospectus dated __________ __,
2000 (as the same may be amended or supplemented from time to time, the
"Prospectus"), receipt of which is acknowledged, and in this Letter of
Transmittal (which, together with the Prospectus, constitute the "Exchange
Offer"). The Exchange Offer has been registered under the Securities Act of
1933, as amended (the "Securities Act").
Subject to and effective upon the acceptance for exchange of all or any
portion of the Old Notes 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 Old Notes 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 Old Notes, 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 Old Notes 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 New Notes to be issued in exchange for such Old
Notes, (ii) present certificates for such Old Notes for transfer, and to
transfer the Old Notes 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 Old Notes, 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
OLD NOTES 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
OLD NOTES 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 OLD NOTES
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) of the Old Notes
tendered hereby should be printed above, if they are not already set forth
above, as they appear on the certificates representing such Old Notes. The
certificate number(s) and the Old Notes that the undersigned wishes to tender
should be indicated in the appropriate boxes above.
If any tendered Old Notes are not exchanged pursuant to the Exchange
Offer for any reason, or if certificates are submitted for more Old Notes than
are tendered or accepted for exchange, certificates for such unaccepted or
nonexchanged Old Notes will be returned (or, in the case of Old Notes tendered
by book-entry transfer, such Old Notes 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 Old Notes pursuant to any one
of the procedures described in "The Exchange Offer--Procedures for Tendering
Old Notes" in the Prospectus and in the instructions hereto will, upon the
Company's acceptance for exchange of such tendered Old Notes, constitute a
binding agreement between the undersigned and the Company upon the terms and
subject to the conditions of the Exchange Offer. In all cases in which a
Participant elects to accept the Exchange Offer by transmitting an express
acknowledgment in accordance with the established ATOP procedures, such
Participant shall be bound by all of the terms and conditions of this Letter
of Transmittal. 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 Old Notes tendered hereby.
Unless otherwise indicated herein in the box entitled "Special Issuance
Instructions" below, the undersigned hereby directs that the New Notes be
issued in the name(s) of the undersigned or, in the case of a book-entry
transfer of Old Notes, that such New Notes be credited to the account
indicated above maintained at DTC. If applicable, substitute certificates
representing Old Notes not exchanged or not accepted for exchange will be
issued to the undersigned or, in the case of a book-entry transfer of Old
Notes, will be credited to the account indicated above maintained at DTC.
Similarly, unless otherwise indicated under "Special Delivery Instructions,"
please deliver New Notes to the undersigned at the address shown below the
undersigned's signature.
5
<PAGE>
By tendering Old Notes and executing, or otherwise becoming bound by,
this Letter of Transmittal, the undersigned hereby represents and agrees that
(i) the undersigned is not an "affiliate" of the Company,
(ii) any New Notes to be received by the undersigned are being acquired
in the ordinary course of its business, and
(iii) the undersigned has no arrangement or understanding with any person
to participate in a "distribution" (within the meaning of the Securities Act)
of such New Notes.
By tendering Old Notes pursuant to the Exchange Offer and executing, or
otherwise becoming bound by, this Letter of Transmittal, a holder of Old Notes
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 Old Notes held by the broker-dealer are held only as a nominee, or (b)
such Old Notes were acquired by such broker-dealer for its own account as a
result of market-making activities 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
New Notes (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
(as defined below) in connection with resales of New Notes received in
exchange for Old Notes, where such Old Notes were acquired by such
participating broker-dealer for its own account as a result of market-making
activities or other trading activities, for a period ending 90 days after the
expiration date (subject to extension under certain limited circumstances) or,
if earlier, when all such New Notes have been disposed of by such
participating broker-dealer. In that regard, each broker dealer who acquired
Old Notes for its own account as a result of market-making or other trading
activities (a "participating broker-dealer"), by tendering such Old Notes and
executing, or otherwise becoming bound by, this Letter of Transmittal, agrees
that, upon receipt of notice from the Company of the occurrence of any event
or the discovery of any fact which makes any statement contained in the
Prospectus untrue in any material respect or which causes the Prospectus to
omit to state a material fact necessary in order to make the statements
contained therein, in light of the circumstances under which they were made,
not misleading or of the occurrence of certain other events specified in the
Registration Rights Agreement, such participating broker-dealer will suspend
the sale of New Notes 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 New Notes may be resumed, as the case may be.
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.
6
<PAGE>
HOLDER(S) SIGN HERE
(See Instructions 2, 5 and 6)
(Note: Signature(s) Must be Guaranteed if Required by Instruction 2)
Must be signed by registered holder(s) exactly as name(s) appear(s) on
certificate(s) for the Old Notes hereby tendered or on a security position
listing, or by any person(s) authorized to become the registered holder(s) by
endorsements and documents transmitted herewith. 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.
Name(s) ________________________________________________________________________
(Signature(s) of Holder(s))
Date _____________________________________________________________________, 2000
Name(s) ________________________________________________________________________
________________________________________________________________________________
(Please Print)
Capacity: ______________________________________________________________________
(Include Full Title)
Address ________________________________________________________________________
________________________________________________________________________________
(Include Zip Code)
Area Code and Telephone Number _________________________________________________
________________________________________________________________________________
(Tax Identification or Social Security Number(s))
GUARANTEE OF SIGNATURE(S)
(See Instructions 2 and 5)
Authorized Signature ___________________________________________________________
Name ___________________________________________________________________________
________________________________________________________________________________
(Please Print)
Date _____________________________________________________________________, 2000
Capacity or Title ______________________________________________________________
Name of Firm ___________________________________________________________________
Address ________________________________________________________________________
(Include Zip Code)
Area Code and Telephone Number _________________________________________________
7
<PAGE>
SPECIAL ISSUANCE INSTRUCTIONS
(See Instructions 1, 5 and 6)
To be completed ONLY if the New Notes are to be issued in the name of
someone other than the registered holder of the Old Notes whose name(s)
appear(s) above.
Issue New Notes to:
Name ___________________________________________________________________
(Please Print)
________________________________________________________________________
Address ________________________________________________________________
________________________________________________________________________
________________________________________________________________________
(Include Zip Code)
________________________________________________________________________
(Taxpayer Identification or
Social Security Number)
SPECIAL DELIVERY INSTRUCTIONS
(See Instructions 1, 5 and 6)
To be completed ONLY if New Notes are to be sent to someone other than
the registered holder of the Old Notes whose name(s) appear(s) above, or to
such registered holder(s) at an address other than that shown above.
Mail New Notes To:
Name ___________________________________________________________________
(Please Print)
________________________________________________________________________
Address ________________________________________________________________
________________________________________________________________________
________________________________________________________________________
(Include Zip Code)
________________________________________________________________________
(Taxpayer Identification or
Social Security Number)
8
<PAGE>
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 if certificates are to
be forwarded herewith or delivered by book-entry transfer as provided herein. If
tenders are to be made pursuant to the procedures for tender by book-entry
transfer set forth in "The Exchange Offer--Book- Entry Transfer" in the
Prospectus and in accordance with ATOP established by DTC, a tendering holder
will become bound by the terms and conditions hereof in accordance with the
procedures established under ATOP. Certificates, or timely confirmation of a
book-entry transfer of such Old Notes into the Exchange Agent's account at DTC,
as well as this Letter of Transmittal (or facsimile thereof), if required,
properly completed and duly executed, with any required signature guarantees,
must be received by the Exchange Agent at one of its addresses set forth herein
on or prior to the expiration date. Old Notes may be tendered in whole or in
part in the principal amount of $1,000 and integral multiples of $1,000.
Holders who wish to tender their Old Notes and (i) whose Old Notes are
not immediately available or (ii) who cannot deliver their Old Notes and this
Letter of Transmittal to the Exchange Agent on or prior to the expiration date
of the Exchange Offer or (iii) who cannot complete the procedures for delivery
by book-entry transfer on a timely basis, may tender their Old Notes by
properly completing and duly executing a Notice of Guaranteed Delivery
pursuant to the guaranteed delivery procedures set forth in "The Exchange
Offer--Guaranteed Delivery Procedures" in the Prospectus. Pursuant to such
procedures: (i) such tender must be made by or through an Eligible Institution
(as defined below); (ii) a properly completed and duly executed Letter of
Transmittal (or facsimile) thereof and 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 (iii) the
certificates (or a book-entry confirmation (as defined in the Prospectus))
representing all tendered Old Notes, in proper form for transfer, must be
received by the Exchange Agent within five New York Stock Exchange trading
days after the date of execution of such Notice of Guaranteed Delivery, all as
provided in "The Exchange Offer--Guaranteed Delivery Procedures" in the
Prospectus.
The Notice of Guaranteed Delivery may be delivered by hand or transmitted
by telegram, telex, 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 Old Notes 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 of the Exchange Offer. As used herein and in
the Prospectus, "Eligible Institution" means a firm which is a member of a
registered national securities exchange or a member of the National
Association of Securities Dealers, Inc. or a commercial bank or trust company
having an office or correspondent in the United States.
THE METHOD OF DELIVERY OF OLD NOTES, THIS LETTER OF TRANSMITTAL AND ALL
OTHER REQUIRED DOCUMENTS IS AT THE ELECTION AND RISK OF THE TENDERING HOLDER.
IF SUCH DELIVERY IS BY MAIL, IT IS RECOMMENDED THAT REGISTERED MAIL WITH
RETURN RECEIPT REQUESTED, PROPERLY INSURED, BE USED. IN ALL CASES, SUFFICIENT
TIME SHOULD BE ALLOWED TO ASSURE TIMELY DELIVERY. NO LETTERS OF TRANSMITTAL OR
OLD NOTES SHOULD BE SENT TO THE COMPANY.
The Company will not accept any alternative, conditional or contingent
tenders. Each tendering holder, by execution of a Letter of Transmittal (or
facsimile thereof), or any Agent's Message in lieu thereof, waives any right
to receive any notice of the acceptance of such tender.
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 document, shall include any participant in DTC
whose name appears on a security position listing as the owner of the Old
Notes) of Old Notes tendered herewith, unless such holder(s) has
completed either the box entitled "Special Issuance Instructions" or the
box entitled "Special Delivery Instructions" above, or
(ii) such Old Notes are tendered for the account of a firm that is an
Eligible Institution.
9
<PAGE>
In all other cases, an Eligible Institution must guarantee the
signature(s) on this Letter of Transmittal. See Instruction 5.
3. INADEQUATE SPACE. If the space provided in the box captioned
"Description of Old Notes Tendered" is inadequate, the certificate number(s)
and/or the principal amount of Old Notes and any other required information
should be listed on a separate signed schedule which is attached to this
Letter of Transmittal.
4. PARTIAL TENDERS AND WITHDRAWAL RIGHTS. Tenders of Old Notes will be
accepted only in the principal amount of $1,000 and integral multiples
thereof. If less than all the Old Notes evidenced by any certificate submitted
are to be tendered, fill in the principal amount of Old Notes which are to be
tendered in the box entitled "Principal Amount of Old Notes Tendered (if less
than all)." In such case, new certificate(s) for the remainder of the Old
Notes that were evidenced by your old certificate(s) will only be sent to the
holder of the Old Note, promptly after the expiration date of the Exchange
Offer. All Old Notes 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 Old Notes 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 notice of
withdrawal must be timely received by the Exchange Agent at one of its
addresses set forth above or in the Prospectus on or prior to the expiration
date of the Exchange Offer. Any such notice of withdrawal must specify the
name of the person who tendered the Old Notes to be withdrawn, identify the
Old Notes to be withdrawn (including the principal amount of such Old Notes)
and (where certificates for Old Notes have been transmitted) specify the name
in which such Old Notes are registered, if different from that of the
withdrawing holder. If certificates for the Old Notes have been delivered or
otherwise identified to the Exchange Agent, then prior to the release of such
certificates, the withdrawing holder must submit the serial numbers of the
particular certificates for the Old Notes to be withdrawn and a signed notice
of withdrawal with signatures guaranteed by an Eligible Institution, unless
such holder is an Eligible Institution. If Old Notes have been tendered
pursuant to the procedures for book-entry transfer set forth in the Prospectus
under "The Exchange Offer--Book-Entry Transfer," any notice of withdrawal must
specify the name and number of the account at DTC to be credited with the
withdrawal of Old Notes and otherwise comply with the procedures of such
facility. Old Notes properly withdrawn will not be deemed validly tendered for
purposes of the Exchange Offer, but may be retendered at any time on or prior
to the expiration date by following one of the procedures described in the
Prospectus under "The Exchange Offer--Procedures for Tendering Old Notes".
All questions as to the validity, form and eligibility (including time of
receipt) of such withdrawal notices will be determined by the Company, whose
determination shall be final and binding on all parties. Any Old Notes which
have been tendered for exchange but which are not exchanged for any reason
will be returned to the holder thereof without cost to such holder (or, in the
case of Old Notes tendered by book-entry transfer into the Exchange Agent's
account at DTC pursuant to the book-entry procedures described in the
Prospectus under "The Exchange Offer--Book-Entry Transfer" such Old Notes will
be credited to an account maintained with DTC for the Old Notes) as soon as
practicable after withdrawal, rejection of tender or termination of the
Exchange Offer.
5. SIGNATURES ON LETTER OF TRANSMITTAL, ASSIGNMENTS AND ENDORSEMENTS. If
this Letter of Transmittal is signed by the registered holder(s) of the Old
Notes tendered hereby, the signature(s) must correspond exactly with the
name(s) as written on the face of the certificate(s) without alteration,
enlargement or any change whatsoever.
If any of the Old Notes tendered hereby are owned of record by two or
more joint owners, all such owners must sign this Letter of Transmittal.
If any tendered Old Notes 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) as there are different
registrations of certificates.
If this Letter of Transmittal or any certificates or powers of attorney
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,
unless waived by the Company, proper evidence satisfactory to the Company of
such persons' authority to so act must be submitted.
10
<PAGE>
When this Letter of Transmittal is signed by the registered holder(s) of
the Old Notes listed and transmitted hereby, no endorsement(s) of
certificate(s) or written instrument or instruments of transfer or exchange
are required unless New Notes are to be issued in the name of a person other
than the registered holder(s). Signature(s) on such certificate(s) or written
instrument or instruments of transfer or exchange must be guaranteed by an
Eligible Institution.
If this Letter of Transmittal is signed by a person other than the
registered holder(s) of the Old Notes listed, the certificates must be
endorsed or accompanied by a written instrument or instruments of transfer or
exchange, in satisfactory form as determined by the Company in its sole
discretion and executed by the registered holder(s), in either case signed
exactly as the name or names of the registered holder(s) appear(s) on the
certificates. Signatures on such certificates or written instrument or
instruments of transfer or exchange must be guaranteed by an Eligible
Institution.
6. SPECIAL ISSUANCE AND DELIVERY INSTRUCTIONS. If New Notes are to be
issued in the name of a person other than the signer of this Letter of
Transmittal, or if New Notes 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 Old Notes not exchanged will be returned by mail or, if
tendered by book-entry transfer, by crediting the account indicated above
maintained at DTC. See Instruction 4.
7. IRREGULARITIES. The Company will determine, in its sole discretion,
all questions as to the form, validity, eligibility (including time of
receipt) and acceptance for exchange of any tender of Old Notes, which
determination shall be final and binding. The Company reserves the absolute
right to reject any and all tenders of any particular Old Notes not properly
tendered or to not accept any particular Old Notes which acceptance might, in
the judgment of the Company or its counsel, be unlawful. The Company also
reserves the absolute right, in its sole discretion, to waive any defects or
irregularities or conditions of the Exchange Offer as to any particular Old
Notes either before or after the expiration date (including the right to waive
the ineligibility of any holder who seeks to tender Old Notes in the Exchange
Offer). The interpretation of the terms and conditions of the Exchange Offer
as to any particular Old Notes either before or after the expiration date
(including the Letter of Transmittal and the instructions thereto) by the
Company shall be final and binding on all parties. Unless waived, any defects
or irregularities in connection with the tender of Old Notes for exchange must
be cured within such reasonable period of time as the Company shall determine.
Neither the Company, the Exchange Agent nor any other person shall be under
any duty to give notification of any defect or irregularity with respect to
any tender of Old Notes for exchange, nor shall any of them incur any
liability for failure to give such notification.
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 the Letter of Transmittal may be obtained from the Exchange Agent
or from your broker, dealer, commercial bank, trust company or other nominee.
9. LOST, DESTROYED OR STOLEN CERTIFICATES. If any certificate(s)
representing Old Notes have been lost, destroyed or stolen, the holder should
promptly notify the Exchange Agent. The holder will then be instructed as to
the steps that must be taken in order to replace the certificate(s). This
Letter of Transmittal and related documents cannot be processed until the
procedures for replacing lost, destroyed or stolen certificate(s) have been
followed.
10. SECURITY TRANSFER TAXES. Holders who tender their Old Notes for
exchange will not be obligated to pay any transfer taxes in connection
therewith, except that holders who instruct the Company to register New Notes
in the name of or request that Old Notes not tendered or not accepted in the
Exchange Offer to be returned to, a person other than the registered tendering
holder will be responsible for the payment of any applicable transfer tax
thereon.
IMPORTANT: THIS LETTER OF TRANSMITTAL (OR FACSIMILE THEREOF),
OR AN AGENT'S MESSAGE IN LIEU THEREOF, AND ALL OTHER REQUIRED
DOCUMENTS MUST BE RECEIVED BY THE EXCHANGE AGENT
ON OR PRIOR TO THE EXPIRATION DATE OF THE EXCHANGE OFFER.
10
EXHIBIT 99.2
NOTICE OF GUARANTEED DELIVERY
For Tender Of
7.70% Notes Due December 15, 2005,
7.90% Notes Due December 15, 2009 and
8.30% Notes Due December 15, 2029
of
Delta Air Lines, Inc.
This Notice of Guaranteed Delivery or one substantially equivalent
hereto must be used to accept the Exchange Offer (as defined below) if (i)
certificates for the Company's (as defined below) 7.70% Notes Due December 15,
2005, 7.90% Notes Due December 15, 2009 and/or 8.30% Notes Due December 15,
2029 (the "Old Notes") are not immediately available, (ii) Old Notes, the
Letter of Transmittal and any other documents required by the Letter of
Transmittal cannot be delivered to The Bank of New York (the "Exchange Agent")
on or prior to the Expiration Date (as defined in the Prospectus referred to
below) or (iii) the procedures for book-entry transfer cannot be completed on
a timely basis. This Notice of Guaranteed Delivery may be delivered by hand or
sent by facsimile transmission, overnight courier, telex, telegram or mail to
the Exchange Agent. See "The Exchange Offer - Guaranteed Delivery Procedures"
in the Prospectus dated __________ __, 2000 (which, together with the related
Letter of Transmittal, constitutes the "Exchange Offer") of Delta Air Lines,
Inc., a Delaware corporation (the "Company").
The Exchange Agent for the Exchange Offer is:
The Bank of New York
<TABLE>
<S> <C> <C>
By Hand or Overnight Delivery: Facsimile Transmissions: By Registered or Certified Mail:
The Bank of New York (212) 815-6339 The Bank of New York
101 Barclay Street 101 Barclay Street
Reorganization Department- 7E To Confirm by Telephone Reorganization Department- 7E
New York, New York 10286 or for Information Call: New York, New York 10286
Attn: Gertrude Jean-Pierre Attn: Gertrude Jean-Pierre
(212) 815-5920
</TABLE>
<PAGE>
DELIVERY OF THIS NOTICE OF GUARANTEED DELIVERY TO AN ADDRESS OTHER
THAN AS SET FORTH ABOVE OR TRANSMISSION OF THIS NOTICE OF GUARANTEED DELIVERY
VIA A FACSIMILE TRANSMISSION TO A NUMBER OTHER THAN AS SET FORTH ABOVE WILL
NOT CONSTITUTE A VALID DELIVERY.
THIS NOTICE OF GUARANTEED DELIVERY IS NOT TO BE USED TO GUARANTEE
SIGNATURES. IF A SIGNATURE ON A LETTER OF TRANSMITTAL IS REQUIRED TO BE
GUARANTEED BY AN "ELIGIBLE INSTITUTION" UNDER THE INSTRUCTIONS THERETO, SUCH
SIGNATURE GUARANTEE MUST APPEAR IN THE APPLICABLE SPACE PROVIDED ON THE LETTER
OF TRANSMITTAL.
2
<PAGE>
THE FOLLOWING GUARANTEE MUST BE COMPLETED
GUARANTEE OF DELIVERY
(Not to be used for Signature Guarantee)
The undersigned, a firm that is a member of a registered national
securities exchange or a member of the National Association of Securities
Dealers, Inc. or a commercial bank or trust company having an office or
correspondent in the United States, hereby guarantees to deliver to the
Exchange Agent, at one of its addresses set forth above, either the
certificates for all physically tendered Old Notes, in proper form for
transfer, or confirmation of the book-entry transfer of such Old Notes to the
Exchange Agent's account at The Depository Trust Company ("DTC"), pursuant to
the procedures for book-entry transfer set forth in the Prospectus, in either
case together with any other documents required by the Letter of Transmittal,
within five New York Stock Exchange trading days after the date of execution
of this Notice of Guaranteed Delivery.
The undersigned acknowledges that it must deliver the Old Notes
tendered hereby to the Exchange Agent within the time period set forth above
and that failure to do so could result in a financial loss to the undersigned.
Name of Firm: ________________________ ______________________________
(Authorized Signature)
Address:______________________________ Title:________________________
______________________________________ Name:_________________________
(Zip Code) (Please type or print)
Area Code and Telephone Number: Date:_________________________
_______________________________________
NOTE: DO NOT SEND OLD NOTES WITH THIS NOTICE OF GUARANTEED DELIVERY. ACTUAL
SURRENDER OF OLD NOTES MUST BE MADE PURSUANT TO, AND BE ACCOMPANIED BY, A
PROPERLY COMPLETED AND FULLY EXECUTED LETTER OF TRANSMITTAL AND ANY OTHER
REQUIRED DOCUMENTS.
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EXHIBIT 99.3
DELTA AIR LINES, INC.
Offer to Exchange
7.70% Exchange Notes Due December 15, 2005 for Any and All
Outstanding 7.70% Notes Due December 15, 2005
7.90% Exchange Notes Due December 15, 2009 for Any and All
Outstanding 7.90% Notes Due December 15, 2009
8.30% Exchange Notes Due December 15, 2029 for Any and All
Outstanding 8.30% Notes Due December 15, 2029
To Our Clients:
Enclosed is a Prospectus, dated _______ __, 2000, of Delta Air Lines,
Inc., a Delaware corporation (the "Company"), and a related Letter of
Transmittal (which together constitute the "Exchange Offer") relating to the
offer by the Company to exchange its 7.70% Exchange Notes Due December 15, 2005,
7.90% Exchange Notes Due December 15, 2009 and 8.30% Exchange Notes Due December
15, 2029 (the "New Notes"), pursuant to an offering registered under the
Securities Act of 1933, as amended (the "Securities Act"), for a like principal
amount of the Company's issued and outstanding 7.70% Notes Due December 15,
2005, 7.90% Notes Due December 15, 2009 and 8.30% Notes Due December 15, 2029,
respectively (the "Old Notes"), upon the terms and subject to the conditions set
forth in the Exchange Offer.
Please note that the Exchange Offer will expire at 5:00 p.m., New York
City time, on __________ __, 2000, unless extended.
The Exchange Offer is not conditioned upon any minimum number of Old
Notes being tendered.
We are the holder of record and/or participant in the book-entry
transfer facility of Old Notes held by us for your account. A tender of such Old
Notes can be made only by us as the record holder and/or participant in the
book-entry transfer facility and pursuant to your instructions. The Letter of
Transmittal is
<PAGE>
furnished to you for your information only and cannot be used by you to tender
Old Notes held by us for your account.
We request instructions as to whether you wish to tender any or all of
the Old Notes held by us for your account pursuant to the terms and conditions
of the Exchange Offer. We also request that you confirm that we may on your
behalf make the representations contained in the Letter of Transmittal.
Pursuant to the Letter of Transmittal, each holder of Old Notes will
represent to the Company that (i) the holder is not an "affiliate" of the
Company, (ii) any New Notes to be received by the holder are being acquired in
the ordinary course of its business, and (iii) the holder has no arrangement or
understanding with any person to participate in a distribution (within the
meaning of the Securities Act) of such New Notes. If the tendering holder is a
broker-dealer that will receive New Notes for its own account in exchange for
Old Notes, we will represent on behalf of such broker-dealer that the Old Notes
to be exchanged for the New Notes were acquired by it as a result of
market-making activities or other trading activities, and acknowledge on behalf
of such broker-dealer that it will deliver a prospectus meeting the requirements
of the Securities Act in connection with any resale of such New Notes. By
acknowledging that it will deliver and by delivering a prospectus meeting the
requirements of the Securities Act in connection with any resale of such New
Notes, such broker-dealer is not deemed to admit that it is an "underwriter"
within the meaning of the Securities Act.
Very truly yours,
2
EXHIBIT 99.4
DELTA AIR LINES, INC.
Offer to Exchange
7.70% Exchange Notes Due December 15, 2005 for Any and All Outstanding
7.70% Notes Due December 15, 2005
7.90% Exchange Notes Due December 15, 2009 for Any and All Outstanding
7.90% Notes Due December 15, 2009
8.30% Exchange Notes Due December 15, 2029 for Any and All Outstanding
8.30% Notes Due December 15, 2029
To Registered Holders and The Depository
Trust Company Participants:
Enclosed are the materials listed below relating to the offer by Delta
Air Lines, Inc., a Delaware corporation (the "Company"), to exchange its 7.70%
Exchange Notes Due December 15, 2005, 7.90% Exchange Notes Due December 15, 2009
and 8.30% Exchange Notes Due December 15, 2029 (the "New Notes"), pursuant to an
offering registered under the Securities Act of 1933, as amended (the
"Securities Act"), for a like principal amount of the Company's issued and
outstanding 7.70% Notes Due December 15, 2005, 7.90% Notes Due December 15, 2009
and 8.30% Notes Due December 15, 2029, respectively (the "Old Notes"), upon the
terms and subject to the conditions set forth in the Company's Prospectus, dated
__________ __, 2000, and the related Letter of Transmittal (which together
constitute the "Exchange Offer").
Enclosed herewith are copies of the following documents:
1. Prospectus dated __________ __, 2000;
2. Letter of Transmittal;
3. Notice of Guaranteed Delivery;
4. Instruction to Registered Holder and/or Book-Entry Transfer
Participant from Owner; and
<PAGE>
5. Letter which may be sent to your clients for whose account you
hold Old Notes in your name or in the name of your nominee, to
accompany the instruction form referred to above, for obtaining
such client's instruction with regard to the Exchange Offer.
We urge you to contact your clients promptly. Please note that the
Exchange Offer will expire at 5:00 p.m., New York City time, on __________ __,
2000 unless extended.
The Exchange Offer is not conditioned upon any minimum number of Old
Notes being tendered.
Pursuant to the Letter of Transmittal, each holder of Old Notes will
represent to the Company that (i) the holder is not an "affiliate" of the
Company, (ii) any New Notes to be received by it are being acquired in the
ordinary course of its business, and (iii) the holder has no arrangement or
understanding with any person to participate in a distribution (within the
meaning of the Securities Act) of such New Notes. If the tendering holder is a
broker-dealer that will receive New Notes for its own account in exchange for
Old Notes, you will represent on behalf of such broker-dealer that the Old Notes
to be exchanged for the New Notes were acquired by it as a result of
market-making activities or other trading activities, and acknowledge on behalf
of such broker-dealer that it will deliver a prospectus meeting the requirements
of the Securities Act in connection with any resale of such New Notes. By
acknowledging that it will deliver and by delivering a prospectus meeting the
requirements of the Securities Act in connection with any resale of such New
Notes, such broker-dealer is not deemed to admit that it is an "underwriter"
within the meaning of the Securities Act.
The enclosed Instruction to Registered Holder and/or Book-Entry
Transfer Facility Participant from Owner contains an authorization by the
beneficial owners of the Old Notes for you to make the foregoing
representations.
The Company will not pay any fee or commission to any broker or dealer
or to any other persons (other than the Exchange Agent) in connection with the
solicitation of tenders of Old Notes pursuant to the Exchange Offer. The Company
will pay or cause to be paid any transfer taxes payable on the transfer of Old
Notes to it, except as otherwise provided in Instruction 10 of the enclosed
Letter of Transmittal.
Additional copies of the enclosed material may be obtained from the
undersigned.
Very truly yours,
THE BANK OF NEW YORK
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<PAGE>
NOTHING CONTAINED HEREIN OR IN THE ENCLOSED DOCUMENTS SHALL MAKE YOU THE AGENT
OF DELTA AIR LINES, INC. OR THE BANK OF NEW YORK, OR AUTHORIZE YOU TO USE ANY
DOCUMENT OR MAKE ANY STATEMENT ON THEIR BEHALF IN CONNECTION WITH THE EXCHANGE
OFFER OTHER THAN THE DOCUMENTS ENCLOSED HEREWITH AND THE STATEMENTS CONTAINED
THEREIN.
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EXHIBIT 99.5
INSTRUCTION TO REGISTERED HOLDER AND/OR
BOOK-ENTRY TRANSFER FACILITY PARTICIPANT FROM OWNER
OF
DELTA AIR LINES, INC.
7.70% Notes Due December 15, 2005,
7.90% Notes Due December 15, 2009 and
8.30% Notes Due December 15, 2029
(the "Old Notes")
To Registered Holder and/or Participant of the Book-Entry Transfer
Facility:
The undersigned hereby acknowledges receipt of the Prospectus dated
__________ __, 2000 (the "Prospectus") of Delta Air Lines, Inc., a Delaware
corporation (the "Company"), and the accompanying Letter of Transmittal (the
"Letter of Transmittal"), that together constitute the Company's offer (the
"Exchange Offer"). Capitalized terms used but not defined herein have the
meanings as ascribed to them in the Letter of Transmittal.
This will instruct you, the registered holder and/or book-entry
transfer facility participant, as to the action to be taken by you relating to
the Exchange Offer with respect to the Old Notes held by you for the account of
the undersigned.
The aggregate face amount of the Old Notes held by you for the account
of the undersigned is (fill in amount):
$___________ of the 7.70% Notes Due December 15, 2005
$___________ of the 7.90% Notes Due December 15, 2009
$___________ of the 8.30% Notes Due December 15, 2029
With respect to the Exchange Offer, the undersigned hereby instructs
you (check appropriate box):
|_| To TENDER the following Old Notes held by you for the account of the
undersigned (insert principal amount of Old Notes to be tendered, if any):
<PAGE>
$___________ of the 7.70% Notes Due December 15, 2005
$___________ of the 7.90% Notes Due December 15, 2009
$___________ of the 8.30% Notes Due December 15, 2029
|_| NOT to TENDER any Old Notes held by you for the account of the undersigned.
If the undersigned instructs you to tender the Old Notes held by you
for the account of the undersigned, it is understood that you are authorized to
make, on behalf of the undersigned (and the undersigned, by its signature below,
hereby makes to you), the representations and warranties contained in the Letter
of Transmittal that are to be made with respect to the undersigned as a
beneficial owner, including but not limited to the representations, that (i) the
holder is not an "affiliate" of the Company, (ii) any New Notes to be received
by the holder are being acquired in the ordinary course of its business, and
(iii) the holder has no arrangement or understanding with any person to
participate in a distribution (within the meaning of the Securities Act) of such
New Notes. If the undersigned is a broker-dealer that will receive New Notes for
its own account in exchange for Old Notes, it represents that such Old Notes
were acquired as a result of market-making activities or other trading
activities, and it acknowledges that it will deliver a prospectus meeting the
requirements of the Securities Act in connection with any resale of such New
Notes. By acknowledging that it will deliver and by delivering a prospectus
meeting the requirements of the Securities Act in connection with any resale of
such New Notes, such broker-dealer is not deemed to admit that it is an
"underwriter" within the meaning of the Securities Act.
2
<PAGE>
SIGN HERE
Name of beneficial owner(s):____________________________________________________
Signature(s):___________________________________________________________________
Name(s) (please print):_________________________________________________________
Address:________________________________________________________________________
________________________________________________________________________________
Telephone Number:_______________________________________________________________
Taxpayer Identification or Social Security Number:______________________________
________________________________________________________________________________
Date:___________________________________________________________________________
3
