As filed with the Securities and Exchange Commission on September 30, 1999
Registration Statement No. 333-86895
- -------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------------------
AMENDMENT No. 2 TO
FORM S-4
REGISTRATION STATEMENT
NO. 333-86895
UNDER THE SECURITIES ACT OF 1933
------------------------------------
JONES APPAREL GROUP, INC.
(Exact name of Registrant as specified in its charter)
JONES APPAREL GROUP HOLDINGS, INC.
(Exact name of Registrant as specified in its charter)
JONES APPAREL GROUP USA, INC.
(Exact name of registrant as specified in its charter)
NINE WEST GROUP INC.
(Exact names of registrant as specified in its charter)
------------------------------------
Pennsylvania 6179 06-0935166
(State or other (Primary standard industrial (I.R.S. Employer
jurisdiction of classification code number) Identification No.)
incorporation or
organization)
Delaware 6179 51-0384507
(State or other (Primary standard industrial (I.R.S. Employer
jurisdiction of classification code number) Identification No.)
incorporation or
organization)
Pennsylvania 2330 23-2978516
(State or other (Primary standard industrial (I.R.S. Employer
jurisdiction or classification code number) Identification No.)
incorporation or
organization)
Delaware 3140 06-1093855
(State or other (Primary standard industrial (I.R.S. Employer
jurisdiction or classification code number) Identification No.)
incorporation or
organization)
------------------------------------
250 Rittenhouse Circle
Bristol, PA 19007
(215) 785-4000
(Address, including zip code, and telephone number, including area code,
of Registrant's principal executive offices)
------------------------------------
Ira M. Dansky, Esq.
Jones Apparel Group, Inc.
1411 Broadway
New York, NY 10018
(212) 536-9526
(Name, address, including zip code, and telephone number,
including area code, of agent for service)
------------------------------------
Copy to:
Philip J. Boeckman, Esq.
Cravath, Swaine & Moore
825 Eighth Avenue
New York, NY 10019
(212) 474-1000
------------------------------------
Approximate date of commencement of proposed sale to public: As soon as
practicable after this Registration Statement becomes effective.
If the securities being registered on this Form are being offered in
connection with the formation of a holding company and there is compliance
with General Instruction G, check the following box.|_|
If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act of 1933, please check the
following box and list the Securities Act registration statement number of the
earlier effective registration statement for the same offering. |_|
<PAGE>
The Registrants hereby amend this Registration Statement on such date or
dates as may be necessary to delay its effective date until the Registrants
shall file a further amendment that 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 SEC, 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 SEPTEMBER 30, 1999
PROSPECTUS
------------------------------------
$400,000,000
Jones Apparel Group, Inc.
Jones Apparel Group Holdings, Inc.
Jones Apparel Group USA, Inc.
Nine West Group Inc.
Offer to Exchange
7.50% Senior Notes due 2004 and 7.875% Senior Notes due 2006 for any and
all outstanding 7.50% Senior Notes due 2004 and 7.875% Senior Notes due 2006
------------------------------------
Summary of the Exchange Offer
This Prospectus (and accompanying Letter of Transmittal) relates to our
proposed offer to exchange up to $400,000,000 aggregate principal amount of
new 7.50% Senior Notes due 2004 (the "2004 Notes") and 7.875% Senior Notes due
2006 (the "2006 Notes" and, together with the 2004 Notes, the "Exchange
Notes"), which will be freely transferable, for any and all outstanding 7.50%
Senior Notes due 2004 and 7.875% Senior Notes due 2006 issued in a private
offering on June 15, 1999 (collectively, the "Restricted Notes"), which have
certain transfer restrictions.
o The Exchange Offer expires at 5:00 p.m., New York City time, on [ ],
1999, unless extended.
o The terms of the Exchange Notes are substantially identical to the
terms of the Restricted Notes, except that the Exchange Notes will
be freely transferable and issued free of any covenants regarding
exchange and registration rights.
o All Restricted Notes which are validly tendered and not validly
withdrawn will be exchanged.
o Tenders of Restricted Notes may be withdrawn at any time prior to
expiration of the Exchange Offer.
o We will not receive any proceeds from the Exchange Offer.
o The exchange of Restricted Notes for Exchange Notes should not be a
taxable event for United States Federal income tax purposes.
o Holders of Restricted Notes do not have any appraisal or dissenters'
rights in connection with the Exchange Offer. Restricted Notes not
exchanged in the Exchange Offer will remain outstanding and be
entitled to the benefits of the Indenture (defined below), but
except under certain circumstances will have no further exchange or
registration rights under the Exchange and Registration Rights
Agreement.
o Our "affiliates" (within the meaning of the Securities Act of 1933,
as amended) may not participate in the Exchange Offer.
o All broker-dealers must comply with the registration and prospectus
delivery requirements of the Securities Act. See "Plan of
Distribution" beginning on page 33.
o We do not intend to apply for listing of the Exchange Notes on any
securities exchange or to arrange for them to be quoted on any
quotation system.
------------------------------------
Please see "Risk Factors" beginning on page 5 for a discussion of certain
factors you should consider in connection with the Exchange Offer .
------------------------------------
Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of the Exchange Notes or determined if
this Prospectus is truthful or complete. Any representation to the contrary is
a criminal offense.
We may amend or supplement this Prospectus from time to time by filing
amendments or supplements as required. You should read this entire Prospectus
(and accompanying Letter of Transmittal and related documents) and any
amendments or supplements carefully before making your investment decision.
------------------------------------
Our principal executive offices are located at 250 Rittenhouse
Circle, Bristol, Pennsylvania 19007.
Our telephone number is (215) 785-4000.
The date of this is [ ], 1999.
<PAGE>
TABLE OF CONTENTS
Page
Where You Can Find More Information.................................. 3
The Company.......................................................... 4
Forward-Looking Statements........................................... 5
Risk Factors......................................................... 5
Ratios of Earnings to Fixed Charges.................................. 10
Exchange Offer....................................................... 11
Description of Notes................................................. 20
Certain United States Federal Income Tax Considerations.............. 29
Book-Entry; Delivery and Form........................................ 30
Plan of Distribution................................................. 33
Legal Matters........................................................ 34
Experts.............................................................. 34
------------------------------------
As used in this Prospectus, unless the context requires otherwise,
(1) "JAG" means Jones Apparel Group, Inc., (2) "Jones Holdings" means Jones
Apparel Group Holdings, Inc., (3) "Jones USA" means Jones Apparel Group USA,
Inc., (4) "Nine West" means Nine West Group Inc., (5) "We" means JAG, Jones
Holdings, Jones USA and Nine West, collectively, (6) "Jones" or the "Company"
means JAG and its predecessors and consolidated subsidiaries, (7) "Issuers"
means JAG, Jones, Jones Holdings, Jones USA and Nine West and (8) "Notes"
means both the Restricted Notes and the Exchange Notes. Italicized terms in
this Prospectus indicate trademarks or other protected intellectual property
which Jones owns or licenses.
2
<PAGE>
WHERE YOU CAN FIND MORE INFORMATION
In connection with the Exchange Offer, we have filed with the SEC a
Registration Statement under the Securities Act of 1933 (the "Securities
Act"), relating to the Exchange Notes to be issued in the Exchange Offer. As
permitted by SEC rules, this Prospectus omits certain information included in
the Registration Statement. For a more complete understanding of the Exchange
Offer, you should refer to the Registration Statement, including its exhibits.
We also file annual, quarterly and special reports, proxy statements
and other information with the SEC. You may read and copy the Registration
Statement and any other document we file at the SEC's public reference room at
450 Fifth Street, N.W., Washington, D.C. 20549. These documents are also
available at the public reference rooms at the SEC's regional offices in New
York, New York and Chicago, Illinois. Please call the SEC at 1-800-SEC-0330
for further information on the public reference rooms. Our SEC filings are
also available to the public at the SEC's web site at http://www.sec.gov.
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. These incorporated documents contain
important business and financial information about us which is not included in
or delivered with this Prospectus. The information incorporated by reference
is considered to be part of this Prospectus, and later information filed with
the SEC will update and supersede this information. We incorporate by
reference the documents listed below and any future filings made with the SEC
under Section 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934
(the "Exchange Act") prior to [ ], 1999, the date the Exchange Offer expires.
o Annual Report on Form 10-K for the year ended December 31,
1998, as amended by Form 10K/A Numbers 1 and 2 dated August 26,
1999 and September 10, 1999;
o Quarterly Reports on Form 10-Q for the quarters ended April 4,
1999 and July 4, 1999; and
o Current Reports on Form 8-K dated January 1, 1999, January 13,
1999, March 2,1999, April 7, 1999 and June 15, 1999.
These filings are available without charge to holders of Restricted
Notes. You may request a copy of these filings by writing or telephoning us at
the following address:
Chief Financial Officer
Jones Apparel Group, Inc.
250 Rittenhouse Circle
Bristol, Pennsylvania 19007
(215) 785-4000
To obtain timely delivery of any copies of filings requested from
us, please write or telephone us no later than [ ] , 1999.
3
<PAGE>
THE COMPANY
General
Jones is a leading designer and marketer of better priced women's
sportswear, suits, dresses and jeanswear. Jones has pursued a multi-brand
strategy by marketing its products under several of its nationally known
brands, including Jones New York, Evan-Picone and Rena Rowan, and the licensed
brands Lauren by Ralph Lauren and Ralph by Ralph Lauren. Each label is
differentiated by its own styling and pricing strategy. Jones primarily
contracts for the manufacture of its products through a worldwide network of
quality manufacturers. Jones has capitalized on its nationally known brand
names by entering into 32 licenses for the Jones New York brand name and 14
licenses for the Evan-Picone brand name with select manufacturers of women's
and men's apparel and accessories.
Recent Transactions
Acquisition of Nine West. On June 15, 1999, JAG completed its
acquisition (the "Acquisition") of Nine West, pursuant to an Agreement and
Plan of Merger dated as of March 1, 1999 with Nine West. In the Acquisition,
JAG indirectly purchased all of the shares of Nine West common stock for a
total purchase price of approximately $463.2 million in cash and approximately
17.1 million shares of JAG common stock. In addition, JAG assumed all of Nine
West's outstanding debt, a portion of which has been or will be refinanced.
JAG financed the Acquisition with the proceeds of the Notes and the new Senior
Credit Facilities (defined below).
Nine West is a leading designer, developer, manufacturer and
marketer of women's footwear and accessories. Nine West markets collections of
casual, career and dress footwear and accessories under multiple brand names
which are targeted to various segments of the women's footwear and accessories
markets. Nine West's footwear and accessories are sold to more than 7,000
department, specialty and independent retail stores and through approximately
1,400 of its own retail locations. In addition to its flagship Nine West
label, Nine West's internationally recognized brands include Amalfi,
Bandolino, Calico, cK/Calvin Klein Shoes and Bags (under license), Easy
Spirit, Enzo Angiolini, Evan-Picone (under license), 9 & Co., Pappagallo, Pied
a Terre, Selby and Westies. Nine West's private label division also arranges
for the purchase of footwear by major retailers and other wholesalers for sale
under the customer's own label.
Offering of Restricted Notes. On June 15, 1999, the Issuers issued
$400.0 million aggregate principal amount of the Restricted Notes in a private
offering exempt from the registration requirements of the Securities Act. The
Restricted Notes were issued pursuant to an indenture dated as of June 15,
1999 (the "Indenture") among the Issuers and The Bank of New York, as trustee
(the "Trustee"). The Restricted Notes were issued as unsecured senior
obligations of the Issuers, ranking equally in right of payment with all
existing and future unsecured senior debt of the Issuers and senior in right
of payment to all future subordinated debt of the Issuers.
JAG received net proceeds of approximately $396.4 million from the
issuance of the Restricted Notes. JAG used the net proceeds from the sale of
the Restricted Notes, together with borrowings under the Senior Credit
Facilities, to finance the cash portion of the Acquisition, to refinance
certain existing indebtedness of Nine West, to pay related expenses and for
general corporate purposes, including working capital.
Senior Credit Facilities. Concurrently with the issuance of the
Restricted Notes, the Issuers entered into $1.2 billion aggregate principal
amount of unsecured revolving credit facilities (the "Senior Credit
Facilities") with a syndicate of banks led by First Union National Bank.
4
<PAGE>
FORWARD-LOOKING STATEMENTS
This Prospectus includes and incorporates by reference
"forward-looking statements" within the meaning of the Private Securities
Reform Act of 1995. All statements regarding our expected financial position,
business and financing plans are forward-looking statements. The words
"believes", "expects", "plans", "intends" and "anticipates" and similar
expressions identify forward-looking statements. Forward-looking statements
also include representations of our expectations or beliefs concerning future
events that involve risks and uncertainties, including those associated with
the effect of national and regional economic conditions, the overall level of
consumer spending, the performance of our products within the prevailing
retail environment, customer acceptance of both new designs and
newly-introduced product lines, financial difficulties encountered by
customers, the effects of vigorous competition in the markets in which we
operate, and the integration of Nine West, Sun Apparel, Inc. ("Sun"), or other
acquired businesses into the Company's existing operations, the termination or
non-renewal of the licenses with Polo Ralph Lauren Corporation, the Company's
extensive foreign operations and manufacturing, pending litigation and
investigations, the failure of customers or suppliers to achieve Year 2000
compliance, changes in the costs of raw materials, labor and advertising, and
the Company's ability to secure and protect trademarks and other intellectual
property rights. Although we believe that the expectations reflected in such
forward-looking statements are reasonable, such expectations may prove to be
incorrect. Important factors that could cause actual results to differ
materially from such expectations ("cautionary statements") are disclosed in
this Prospectus, in conjunction with the forward-looking statements included
in this Prospectus and under "Risk Factors." All subsequent written and oral
forward-looking statements attributable to us or persons acting on our behalf
are expressly qualified in their entirety by the cautionary statements.
RISK FACTORS
You should consider carefully all the information included or
incorporated by reference in this Prospectus and, in particular, should
evaluate the following risks in connection with the Exchange Offer.
We Face Significant Challenges in Integrating Acquired Businesses, Especially
Nine West
On October 2, 1998, we completed our acquisition of Sun, which was
our first significant acquisition of another company. On June 15, 1999, we
completed our acquisition of Nine West, which was our second significant
acquisition of another company. Every acquisition involves certain risks,
including:
o initial reductions in reported operating results;
o diversion of management's attention;
o unanticipated problems or legal liabilities;
o claims by a person that such acquisition violates the terms of
a material agreement; and
o possible reduction in reported earnings due to amortization of
acquired intangible assets.
In addition to these general risks, integrating the organizations
and operations of Jones and Nine West will present significant specific
challenges. Nine West is primarily a footwear designer, marketer and retailer,
while Jones is primarily an apparel designer and marketer. We have little
experience with the footwear industry or with managing a large retail
operation such as Nine West's. We may not be able to retain certain key
personnel from Nine West who may be important in integrating the two
companies. Integrating Jones and Nine West will be complex and time-consuming.
The failure to successfully integrate Nine West and Jones and to successfully
manage the challenges presented by the integration process may prevent us from
achieving the anticipated potential benefits of the acquisition.
Some or all the above items could have a material adverse effect on
us. Nine West or any other company which we might acquire in the future may
not achieve sales and profitability levels that justify our investment.
5
<PAGE>
The Apparel, Footwear and Accessories Industries are Highly Competitive
Apparel, footwear and accessories companies face competition on many
fronts, including the following:
o establishing and maintaining favorable brand recognition;
o developing products that appeal to consumers;
o pricing products appropriately;
o providing strong marketing support; and
o obtaining access to retail locations and sufficient floor
space.
There is intense competition in the sectors of the apparel, footwear
and accessories industries in which we and Nine West participate. We compete
with many other manufacturers and retailers, some of which are larger and have
greater resources than we do. Any increased competition could result in
reduced sales or prices, or both, which would have a material adverse effect
on us.
Fashion Trends are Constantly Changing
Customer tastes and fashion trends change rapidly. We may not be
able to anticipate, gauge or respond to such changes in a timely manner. If we
misjudge the market for our products or product groups, we may be faced with a
significant amount of unsold finished goods inventory, which would have a
material adverse effect on us.
The Apparel, Footwear and Accessories Industries are Highly Cyclical
Negative economic trends over which we have no control that depress
the level of consumer spending could have a material adverse effect on us.
Purchases of apparel, footwear and related goods often decline during
recessionary periods when disposable income is low. In such an environment, we
may increase the number of promotional sales, which would further adversely
affect our profitability.
The Concentration of Our Customers Could Adversely Affect Our Business
Our ten largest customers, principally department stores, accounted
for approximately 62% of sales in 1998. While no single customer accounted for
more than 10% of our net sales, certain of our customers are under common
ownership. Department stores owned by the following entities accounted for the
following percentages of Jones' 1998 sales:
Jones
Federated Department Stores, Inc................................ 16%
May Department Store Company.................................... 16%
Remainder of ten largest customers.............................. 30%
We believe that purchasing decisions are generally made
independently by individual department stores within a commonly controlled
group. There has been a trend, however, toward more centralized purchasing
decisions. As such decisions become more centralized, the risk to us of such
concentration increases. The loss of any of our largest customers, or the
bankruptcy or material financial difficulty of any customer or any of the
companies listed above, could have a material adverse effect on us. We do not
have long-term contracts with any of our customers, and sales to customers
generally occur on an order-by-order basis. As a result, customers can
terminate their relationships with us at any time or under certain
circumstances cancel or delay orders.
6
<PAGE>
Significant Portions of Our Sales and Profits Depend on Our License Agreements
with Polo Ralph Lauren Corporation
The termination or non-renewal of our exclusive licenses to
manufacture and market clothing under the Lauren by Ralph Lauren and Polo
Jeans Company trademarks in the United States and elsewhere would have a
material adverse effect on us. Our Lauren by Ralph Lauren line and Polo Jeans
Company business represent significant portions of our sales and profits. We
sell products bearing those trademarks under exclusive licenses from
affiliates of Polo Ralph Lauren Corporation. In addition, we have introduced
for Fall 1999 a line of sportswear directed to younger women under the
trademark Ralph by Ralph Lauren, under an additional exclusive license from
Polo Ralph Lauren.
The Lauren by Ralph Lauren license expires on December 31, 2001,
subject to our right to renew through December 31, 2006, if sales of that
product line for the year 2000 exceed a specified level. Although such sales
in 1997 and 1998 exceeded the renewal minimum, our sales are made
season-to-season, with customers having no obligation to buy products beyond
what they have already ordered for a particular season. The initial term of
the Polo Jeans Company license expires on December 31, 2000 and may be renewed
by us in five-year increments for up to 30 additional years, if certain
minimum sales levels in certain years are met. Although Polo Jeans Company
sales in 1997 and 1998 exceeded the renewal minimum which would be required in
1999 to extend the term of the license through December 31, 2005, Polo Jeans
Company sales are made season-to-season, with customers having no obligation
to buy products beyond what they have already ordered. In addition, renewal of
the Polo Jeans Company license after 2010 requires a one-time payment by us of
$25 million or, at our option, a transfer of a 20% interest in our Polo Jeans
Company business to Polo Ralph Lauren (with no fees required for subsequent
renewals). Polo Ralph Lauren also has an option, exercisable on or before June
1, 2010, to purchase our Polo Jeans Company business from us at the end of
2010 for a purchase price, payable in cash, equal to 80% of the then fair
value of the business as a going concern, assuming the continuation of the
Polo Jeans Company license through December 31, 2030. In addition to the
provisions described above, the licenses contain provisions common to
trademark licenses which could result in termination of a license, such as
failure to meet payment or advertising obligations.
The Extent of Our Foreign Operations and Manufacturing May Adversely Affect
Our Domestic Business
In 1998, approximately 75% of our products were manufactured outside
North America, primarily in Asia, while the remainder were manufactured in the
United States and Mexico. Nearly all of Nine West's products were manufactured
outside of North America in 1998 as well. The following may adversely affect
foreign operations:
o political instability in countries where contractors and
suppliers are located;
o imposition of regulations and quotas relating to imports;
o imposition of duties, taxes and other charges on imports;
o significant fluctuation of the value of the dollar against
foreign currencies; and
o restrictions on the transfer of funds to or from foreign
countries.
As a result of our substantial foreign operations, our domestic
business is subject to the following risks:
o quotas imposed by bilateral textile agreements between the
United States and certain foreign countries;
o reduced manufacturing flexibility because of geographic
distance between us and our foreign manufacturers, increasing
the risk that we may have to mark down unsold inventory as a
result of misjudging the market for a foreign-made product; and
o violations by foreign contractors of labor and wage standards
and resulting adverse publicity.
In January 1999, 23 unidentified Asian garment workers filed a
purported class-action lawsuit against 22 garment manufacturers with factories
located in Saipan (part of the U.S. Commonwealth of the Northern Mariana
Islands). The lawsuit, filed in federal court in Saipan, alleges violations of
federal labor statutes and other laws. We were named in two companion lawsuits
filed in the United States in connection with the Saipan claims. At this early
stage, we are not in a position to evaluate the likelihood of an unfavorable
outcome.
7
<PAGE>
Fluctuations in the Price, Availability and Quality of Raw Materials Could
Cause Delay and Increase Costs
Fluctuations in the price, availability and quality of the fabrics
or other raw materials used by us in our manufactured apparel could have a
material adverse effect on our cost of sales or our ability to meet our
customers' demands. We mainly use cotton twill, wool, denim, and synthetic and
blended fabrics. The prices for such fabrics depend largely on the market
prices for the raw materials used to produce them, particularly cotton. The
price and availability of such raw materials and, in turn, the fabrics used in
our apparel may fluctuate significantly, depending on many factors, including
crop yields and weather patterns. We generally enter into denim purchase order
contracts at specified prices for three to six months at a time. Higher cotton
prices would directly affect our costs and could affect our earnings. We may
not be able to pass all or a portion of such higher prices on to our
customers.
Our Reliance on Independent Manufacturers Could Cause Delay and Damage
Customer Relationships
We rely upon independent third parties for the manufacture of many
of our products. A manufacturer's failure to ship products to us in a timely
manner or to meet the required quality standards could cause us to miss the
delivery date requirements of our customers for those items. The failure to
make timely deliveries may drive customers to cancel orders, refuse to accept
deliveries or demand reduced prices, any of which could have a material
adverse effect on our business. We do not have long-term written agreements
with any of our third party manufacturers. As a result, any of these
manufacturers may unilaterally terminate their relationships with us at any
time.
Antitrust Investigation and Litigation Against Nine West May Result in Damages
The Federal Trade Commission and attorneys general from several
states are conducting an inquiry with respect to Nine West's resale pricing
policies to determine whether Nine West violated antitrust laws by agreeing
with others to set minimum prices at which retailers sell products marketed by
Nine West. Nine West also faces an action in U.S. District Court in New York
in which more than 25 putative class action suits alleging antitrust
violations by Nine West were consolidated. Similar suits have been filed in
state courts and in federal court in Pennsylvania. If any of the class action
suits is determined adversely, or if the FTC or state governments successfully
pursue antitrust action, Nine West could be liable for significant damages.
We Depend on Key Personnel to Manage Our Business
Our success depends upon the personal efforts and abilities of
Sidney Kimmel (Chairman), Jackwyn Nemerov (President), Irwin Samelman
(Executive Vice President, Marketing), Eric A. Rothfeld (President of Sun),
Mindy Grossman (President and Chief Executive Officer of Sun's Polo Jeans
Company Division) and, with respect to Nine West, Mark J. Schwartz, who was
named Chairman and Chief Executive Officer of Nine West upon completion of the
acquisition. We do not have employment agreements with Mr. Kimmel, Ms.
Nemerov, Mr. Samelman or Mr. Schwartz. If any of these individuals become
unable or unwilling to continue in their present positions, our business and
financial results could be materially adversely affected.
Our Year 2000 Compliance Initiative May Not Succeed
Certain functions in various types of technology used by us are
designed to use only two digits to identify a year. These programs may fail or
create erroneous results on or after January 1, 2000, if not corrected. We
have assessed and are updating our own systems to insure that they are Year
2000 compliant. We anticipate substantial completion of this process by
October 1999. We may not be able, however, to complete these plans in time.
Additionally, vendors, customers and other third parties with which we do
business may not make their systems Year 2000 compliant. Our business and
results of operations could suffer if we or such third parties fail to make
necessary technological adjustments.
Consequences of a Failure to Exchange Restricted Notes
The Issuers issued the Restricted Notes in a private offering exempt
from the registration requirements of the Securities Act. Therefore, holders
of Restricted Notes may not offer, sell or otherwise transfer their Restricted
Notes except in compliance with the registration requirements of the
Securities Act and applicable state securities laws or pursuant to exceptions
from, or in transactions not subject to, registration requirements. Holders of
Restricted Notes who do not exchange their Restricted Notes for Exchange Notes
in the Exchange Offer will continue to be subject to these transfer
restrictions after the completion of the Exchange Offer. See "The Exchange
Offer--Consequences of a Failure to Exchange Restricted Notes."
8
<PAGE>
In addition, after completion of the Exchange Offer, holders of
Restricted Notes who do not tender their Restricted Notes in the Exchange
Offer will no longer be entitled to any exchange or registration rights under
the Exchange and Registration Rights Agreement, except under limited
circumstances.
To the extent that Restricted Notes are tendered and accepted in the
Exchange Offer, the liquidity of the trading market for untendered Restricted
Notes could be adversely affected.
Absence of a Public Market
Although holders of Exchange Notes (who are not our "affiliates"
within the meaning of the Securities Act) may resell or otherwise transfer
their Exchange Notes without compliance with the registration requirements of
the Securities Act, there is no existing market for the Exchange Notes, and
there can be no assurance as to the liquidity of any markets that may develop
for the Exchange Notes, the ability of holders of Exchange Notes to sell their
Exchange Notes or the prices at which holders would be able to sell their
Exchange Notes. Future trading prices of the Exchange Notes will depend on
many factors, including, among other things, prevailing interest rates, Jones'
operating results and the market for similar securities.
The initial purchasers in the private offering have advised us that
they intend to make a market in the Exchange Notes after the Exchange Offer.
However, they are not obligated to do so, and any market making may be
discontinued at any time without notice. In addition, such market making
activity may be limited during the Exchange Offer.
We do not intend to apply for listing of the Exchange Notes on any
securities exchange or to arrange for them to be quoted on any quotation
system.
Accordingly, an active trading market for the Exchange Notes may not
develop, either before, during or after the completion of the Exchange Offer.
The absence of an active trading market may have an adverse effect on the
market price and liquidity of the Exchange Notes.
Exchange Offer Procedures
Each holder of Restricted Notes wishing to accept the Exchange Offer
must deliver the Letter of Transmittal, together with the Restricted Notes to
be exchanged and any other required documentation, to the Exchange Agent, or
effect a tender of Restricted Notes by book-entry transfer into the Exchange
Agent's account, in each case in compliance with the instructions provided in
"The Exchange Offer" section of this Prospectus and in the Letter of
Transmittal.
The method of delivery of Restricted Notes and the Letter of
Transmittal and all other required documentation is at the election and risk
of the holders of Restricted Notes. Although we intend to notify tendering
holders of any defects or irregularities with respect to their tenders of
Restricted Notes, none of the Company, the Exchange Agent or any other person
shall be under any duty to give notification of defects or irregularities with
respect to tenders of Restricted Notes, nor shall any of them incur any
liability for failure to give that notification. Tenders of Restricted Notes
will not be deemed to have been made until those irregularities have been
cured or waived.
9
<PAGE>
RATIOS OF EARNINGS TO FIXED CHARGES
The following table sets forth the unaudited consolidated ratios of
earnings to fixed charges for Jones on a historical basis:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Pro Forma
for the Pro Forma
Six Months Six Months for the
Ended Ended Year Ended Year Ended December 31,
July 4, July 4, December 31,
1999 1999 1998 1998 1997 1996 1995 1994
--------- ---------- ------------- ---- ---- ---- ---- -----
Ratio of Earnings to
Fixed Charges....... 2.5x 4.5x 1.9x 12.6x 18.1x 14.4x 14.8x 18.7x
</TABLE>
The pro forma ratios illustrate the estimated effect of the Nine
West and Sun acquisitions (the "Acquisitions") and related financings as if
they had occurred at January 1, 1998. The pro forma financial data do not
purport to represent what the financial position and operating results of JAG
would actually have been if the Acquisitions and related financings had
occurred on such dates and do not give effect to costs of integrating Nine
West or Sun following the Acquisitions.
We computed these ratios by dividing fixed charges into the sum of
earnings (after certain adjustments) and fixed charges. Earnings used in
computing the ratio of earnings to fixed charges consist of income before
income taxes and fixed charges excluding capitalized interest. Fixed charges
consist of interest expensed and capitalized, amortization of debt expense and
that portion of rental expense representative of interest.
10
<PAGE>
EXCHANGE OFFER
Purpose of the Exchange Offer
We initially sold the Restricted Notes in a private offering on June
15, 1999 to Bear, Stearns & Co. Inc., Chase Securities Inc., Merrill Lynch,
Pierce Fenner & Smith Incorporated, Salomon Smith Barney Inc., BancBoston
Robertson Stephens Inc. , Banc of America Securities LLC, ING Baring Furman
Selz LLC, Lazard Freres & Co. LLC, Tucker Anthony Cleary Gull, Brean Murray &
Co., Inc. and The Buckingham Research Group Incorporated (collectively, the
"Initial Purchasers") pursuant to a Purchase Agreement dated June 9, 1999
between the Issuers and the Initial Purchasers. The Initial Purchasers
subsequently resold the Restricted Notes to qualified institutional buyers in
reliance on, and subject to the restrictions imposed under, Rule 144A under
the Securities Act and outside the United States in accordance with the
provisions of Regulation S under the Securities Act.
In connection with the private offering of the Restricted Notes, the
Issuers and the Initial Purchasers entered into an Exchange and Registration
Rights Agreement dated June 15, 1999, in which the Issuers agreed, among other
things:
o to file with the SEC on or before September 13, 1999, a
registration statement relating to an exchange offer for the
Restricted Notes (the "Exchange Offer Registration Statement");
o to use their reasonable best efforts to cause the Exchange
Offer Registration Statement to be declared effective under the
Securities Act on or before December 12, 1999;
o upon the effectiveness of the Exchange Offer Registration
Statement, to offer the holders of the Restricted Notes the
opportunity to exchange their Restricted Notes in the Exchange
Offer for a like principal amount of Exchange Notes;
o to keep the Exchange Offer open for at least 30 days (or
longer, if required by applicable law) after notice of the
Exchange Offer is mailed to holders of Restricted Notes; and
o to use its reasonable best efforts to complete the Exchange
Offer on or before January 10, 2000.
We also agreed, under certain circumstances:
o to use our reasonable best efforts to file a shelf registration
statement relating to the offer and sale of the Restricted
Notes by the holders of the Restricted Notes (a "Shelf
Registration Statement");
o to use our reasonable best efforts to cause the Shelf
Registration Statement to be declared effective; and
o to use our reasonable best efforts to keep the Shelf
Registration Statement effective until June 15, 2001 or until
the Restricted Notes covered by the Shelf Registration
Statement have been sold or until those Restricted Notes become
eligible for resale without volume restrictions pursuant to
Rule 144 under the Securities Act.
The Exchange Offer being made by this Prospectus is intended to
satisfy your exchange and registration rights under the Exchange and
Registration Rights Agreement. If we fail to fulfill those registration and
exchange obligations, you, as a holder of outstanding Restricted Notes, are
entitled to receive additional interest, at a rate of 0.25% per year,
determined daily, as liquidated damages for that default.
For a more complete understanding of your exchange and registration
rights, you should refer to the Exchange and Registration Rights Agreement,
which is included as Exhibit 4.1 to the Registration Statement that relates to
this Prospectus.
Effect of the Exchange Offer
Based on certain no-action letters issued by the staff of the SEC to
third parties in unrelated transactions, we believe that you may offer for
resale, resell or otherwise transfer any Exchange Notes issued to you in the
11
<PAGE>
Exchange Offer in exchange for Restricted Notes without compliance with the
registration and prospectus delivery requirements of the Securities Act, if:
o you are acquiring the Exchange Notes issued in the Exchange
Offer in the ordinary course of your business;
o you are not participating, do not intend to participate and
have no arrangement or understanding with any person to
participate, in a distribution of the Exchange Notes;
o you are not our "affiliate" (as defined in Rule 405 under the
Securities Act); and
o you are not an Initial Purchaser who acquired Restricted Notes
directly from the Issuers in the initial offering to resell
pursuant to Rule 144A, Regulation S or any other available
exemption under the Securities Act.
If you are an "affiliate" or an Initial Purchaser or if you have any
arrangement or understanding with any person to participate in a distribution
of the Exchange Notes:
o you will not be able to rely on the interpretations of the
staff of the SEC, in connection with any offer for resale,
resale or other transfer of Exchange Notes; and
o you must comply with the registration and prospectus delivery
requirements of the Securities Act, or have an exemption
available to you, in connection with any offer for resale,
resale or other transfer of the Exchange Notes.
In addition, we are not making this Exchange Offer to, nor will we
accept surrenders of Restricted Notes from, holders of Restricted Notes in any
state in which this Exchange Offer would not comply with the applicable
securities laws or "blue sky" laws of such state.
Use of Proceeds
We will not receive any cash proceeds from the issuance of the
Exchange Notes. As consideration for the Exchange Notes, we will receive in
exchange an equivalent principal amount of outstanding Restricted Notes, the
terms of which are substantially identical to the terms of the Exchange Notes,
except that the Exchange Notes will be freely transferable and issued free of
any covenants regarding exchange and registration rights.
We will retire and cancel the Restricted Notes surrendered in
exchange for the Exchange Notes. Accordingly, the issuance of the Exchange
Notes under the Exchange Offer will not result in any change in our
outstanding aggregate indebtedness.
Terms of the Exchange Offer
Upon the terms and subject to the conditions set forth in this
Prospectus and in the accompanying Letter of Transmittal, we will accept all
Restricted Notes validly tendered and not withdrawn prior to 5:00 p.m., New
York City time, on the Expiration Date (defined below in "--Expiration Date;
Extensions; Amendments"). After authentication of the Exchange Notes by the
Trustee or an authenticating agent, we will issue and deliver $1,000 principal
amount of Exchange Notes in exchange for each $1,000 principal amount of
outstanding Restricted Notes accepted in the Exchange Offer. Holders may
tender some or all of their Restricted Notes pursuant to the Exchange Offer in
denominations of $1,000 and integral multiples thereof.
By tendering Restricted Notes in exchange for Exchange Notes and by
executing the Letter of Transmittal, each holder of Restricted Notes will
represent to us that, among other things:
o any Exchange Notes to be received by it will be acquired in the
ordinary course of its business;
o it has no arrangement or understanding with any person to
participate in the distribution of the Exchange Notes; and
o it is not our "affiliate" (as defined in Rule 405 under the
Securities Act), or, if it is an affiliate, that it will comply
with the registration and prospectus delivery requirements of
the Securities Act to the extent applicable.
12
<PAGE>
Each broker-dealer that receives Exchange Notes for its own account
in exchange for Restricted Notes, where such Restricted Notes were acquired by
such broker-dealer as a result of market-making activities or other trading
activities, must acknowledge that it will deliver a prospectus in connection
with any resale of those Exchange Notes. See "Plan of Distribution."
The form and terms of the Exchange Notes are identical in all
material respects to the form and terms of the outstanding Restricted Notes,
except that
o the offering of the Exchange Notes has been registered under
the Securities Act;
o the Exchange Notes will not be subject to transfer
restrictions; and
o the Exchange Notes will be issued free of any covenants
regarding exchange and registration rights.
The Exchange Notes will be issued under and entitled to the benefits
of the Indenture that governs the Restricted Notes.
As of the date of this Prospectus, $400.0 million aggregate
principal amount of the Restricted Notes is outstanding. In connection with
the issuance of the Restricted Notes, we arranged for the Restricted Notes to
be issued and transferable in book-entry form through the facilities of The
Depository Trust Company ("DTC"), acting as a depositary. The Exchange Notes
will also be issuable and transferable in book-entry form through DTC.
This Prospectus, together with the accompanying Letter of
Transmittal, is initially being sent to all registered holders of Restricted
Notes at the close of business on [ ], 1999. The Exchange Offer is not
conditioned upon any minimum aggregate principal amount of Restricted Notes
being tendered. However, the Exchange Offer is subject to certain customary
conditions which may be waived by us, and to the terms and provisions of the
Exchange and Registration Rights Agreement. See "--Conditions to the Exchange
Offer."
We will be deemed to have accepted validly tendered Restricted Notes
when, as and if we have given oral or written notice of acceptance to the
Exchange Agent. See "--Exchange Agent." The Exchange Agent will act as agent
for the tendering holders of Restricted Notes for the purpose of receiving
Exchange Notes from us and delivering Exchange Notes to those holders.
If any tendered Restricted Notes are not accepted for exchange
because of an invalid tender or the occurrence of certain other events
described in this Prospectus, certificates for those unaccepted Restricted
Notes will be returned, at our expense, to the tendering holder as promptly as
practicable after the Expiration Date.
Holders who tender Restricted Notes in the Exchange Offer will not
be required to pay brokerage commissions or fees or, subject to the
instructions in the Letter of Transmittal, transfer taxes with respect to the
exchange of Restricted Notes pursuant to the Exchange Offer. We will pay all
charges and expenses, other than certain applicable taxes, in connection with
the Exchange Offer. See "--Solicitation of Tenders, Fees and Expenses."
Expiration Date; Extensions; Amendments
The term "Expiration Date" means 5:00 p.m., New York City time, on
[ ], 1999, unless we, in our sole discretion, extend the Exchange
Offer, in which case the term "Expiration Date" means the latest date to which
the Exchange Offer is extended. We may extend the Exchange Offer at any time
and from time to time by giving oral or written notice to the Exchange Agent
and by timely public announcement.
We expressly reserve the right, in our sole discretion, to amend the
terms of the Exchange Offer in any manner. Without limiting the generality of
that reservation of rights, if any of the conditions described in this
Prospectus under "--Termination" occur and are not waived by us (if permitted
to be waived by us), we expressly reserve the right, in our sole discretion,
by giving oral or written notice to the Exchange Agent, to:
o delay acceptance of, or refuse to accept, any Restricted Notes
not previously accepted;
o extend the Exchange Offer; or
o terminate the Exchange Offer.
Any such delay in acceptance, extension, termination or amendment will be
followed as promptly as practicable by our oral or written notice to the
registered holders of the Restricted Notes. If we amend the Exchange Offer in
a manner which we determine to constitute a material change, we will promptly
disclose that amendment in a manner
13
<PAGE>
reasonably calculated to inform the holders of that amendment and we will
extend the Exchange Offer to the extent required by law.
Without limiting the manner in which we may choose to make public
announcements of any delay in acceptance, extension, termination or amendment
of the Exchange Offer, we have no obligation to publish, advise, or otherwise
communicate those public announcements, other than by making a timely press
release for that purpose.
Interest on the Exchange Notes
Interest on the Exchange Notes will accrue from the last interest
payment date on which interest was paid on the Restricted Notes surrendered in
exchange therefor or, if no interest has been paid on the Restricted Notes,
from June 15, 1999. The Exchange Notes will bear interest at an annual rate of
7.50% for the 2004 Notes and 7.875% for the 2006 Notes. Interest on the
Exchange Notes will be payable semi-annually on June 15 and December 15 of
each year, beginning on December 15, 1999.
Procedures for Tendering
Each holder of Restricted Notes wishing to accept the Exchange Offer
must complete, sign and date the Letter of Transmittal, or a facsimile of the
Letter of Transmittal, in accordance with the instructions contained in this
Prospectus and in the Letter of Transmittal, and mail or otherwise deliver
such Letter of Transmittal, or such facsimile, together with the Restricted
Notes to be exchanged and any other required documentation, to Bank One Trust
Company, NA, as Exchange Agent, at the address set forth under "--Exchange
Agent" in this Prospectus and in the Letter of Transmittal or effect a tender
of Restricted Notes pursuant to the procedures for book-entry transfer as
provided for under "--Book-Entry Transfer" in this Prospectus and in the
Letter of Transmittal.
By tendering Restricted Notes in exchange for Exchange Notes and by
executing the Letter of Transmittal, each holder of Restricted Notes will
represent to us that, among other things:
o any Exchange Notes to be received by it will be acquired in the
ordinary course of its business;
o it has no arrangement or understanding with any person to
participate in the distribution of the Exchange Notes; and
o it is not our "affiliate" (as defined in Rule 405 under the
Securities Act), or, if it is an affiliate, that it will comply
with the registration and prospectus delivery requirements of
the Securities Act to the extent applicable.
Any financial institution that is a participant in DTC's system may
make book-entry delivery of the Restricted Notes by causing DTC to transfer
the Restricted Notes into the Exchange Agent's account in accordance with
DTC's procedure for such transfer. Although delivery of Restricted Notes may
be effected through book-entry transfer into the Exchange Agent's account at
DTC, the Letter of Transmittal (or a facsimile of the Letter of Transmittal),
with any required signature guarantees and any other required documents, must,
in any case, be transmitted to and received by the Exchange Agent at its
address set forth herein under "--Exchange Agent" prior to 5:00 p.m., New York
City time, on the Expiration Date.
Delivery of documents to DTC in accordance with DTC's procedures
does NOT constitute delivery to the Exchange Agent.
Only a holder of Restricted Notes may tender its Restricted Notes in
the Exchange Offer. To tender in the Exchange Offer, a holder must complete,
sign and date the Letter of Transmittal or a facsimile of the Letter of
Transmittal, have the signatures guaranteed if required by the Letter of
Transmittal, and mail or otherwise deliver the Letter of Transmittal or the
facsimile, together with the Restricted Notes (unless the tender is being
effected pursuant to the procedure for book-entry transfer) and other required
documents, to the Exchange Agent, prior to 5:00 p.m., New York City time, on
the Expiration Date.
The tender by a holder of Restricted Notes will constitute an
agreement between that holder, the Exchange Agent and us in accordance with
the terms and subject to the conditions set forth in this Prospectus and in
the Letter of Transmittal. If less than all of the Restricted Notes held by a
holder of Restricted Notes are tendered, the holder should fill in the amount
of Restricted Notes being tendered in the appropriate box in the Letter of
Transmittal. The entire amount of Restricted Notes delivered to the Exchange
Agent will be deemed to have been tendered unless otherwise indicated.
14
<PAGE>
In the case of a broker-dealer that receives Exchange Notes for its
own account in exchange for Restricted Notes that were acquired by it as a
result of market-making or other trading activities, the Letter of Transmittal
will also include an acknowledgment that the broker-dealer will deliver a copy
of this Prospectus in connection with the resale by it of Exchange Notes
received pursuant to the Exchange Offer; however, by so acknowledging and by
delivering a Prospectus, the broker-dealer will not be deemed to admit that it
is an "underwriter" (within the meaning of the Securities Act). See "Plan of
Distribution."
The method of delivery of Restricted Notes and the Letter of
Transmittal and all other required documents to the Exchange Agent is at the
election and risk of the holders of Restricted Notes. Instead of delivery by
mail, we recommend that holders of Restricted Notes use an overnight or hand
delivery service. In all cases, you should allow sufficient time to ensure
delivery to the Exchange Agent prior to the Expiration Date. No Letter of
Transmittal or Restricted Notes should be sent to us.
Any beneficial owner whose Restricted Notes are registered in the
name of a broker, dealer, commercial bank, trust company or other nominee and
who wishes to tender Restricted Notes in the Exchange Offer should contact the
registered holder promptly and instruct the registered holder to tender on the
beneficial owner's behalf. If the beneficial owner wishes to tender on its own
behalf, the beneficial owner must, prior to completing and executing the
Letter of Transmittal and delivering its Restricted Notes, either make
appropriate arrangements to register ownership of the Restricted Notes in the
beneficial owner's own name or obtain a properly completed bond power from the
registered holder of the Restricted Notes. This transfer of record ownership
may take considerable time.
Signatures on a Letter of Transmittal or a notice of withdrawal, as
the case may be, must be guaranteed by a member firm of a registered national
securities exchange or of the National Association of Securities Dealers,
Inc., a commercial bank or trust company having an office or correspondent in
the United States or an "eligible guarantor institution" within the meaning of
Rule 17Ad-15 under the Exchange Act (each, an "Eligible Institution"), unless
the Restricted Notes tendered in connection with the Letter of Transmittal are
tendered:
o by a registered holder who has not completed the box entitled
"Special Registration Instructions" or the box entitled
"Special Delivery Instructions" on the Letter of Transmittal;
or
o for the account of an Eligible Institution.
If the Letter of Transmittal is signed by a person other than the registered
holder listed in the Letter of Transmittal, those Restricted Notes must be
endorsed or accompanied by appropriate bond powers which authorize that person
to tender the Restricted Notes on behalf of the registered holder of the
Restricted Notes, in either case signed as the name of the registered holder
or holders appears on the Restricted Notes. If the Letter of Transmittal or
any Restricted Notes or bond powers are signed or endorsed by trustees,
executors, administrators, guardians, attorneys-in-fact, officers or
corporations or others acting in a fiduciary or representative capacity, those
persons should so indicate when signing, and unless waived by us, submit
evidence satisfactory to us of their authority to so act with the Letter of
Transmittal.
All questions as to the validity, form, eligibility (including time
of receipt), acceptance and withdrawal of the tendered Restricted Notes will
be determined by us in our sole discretion, which determination will be final
and binding. We reserve the absolute right to reject any and all Restricted
Notes not properly tendered or any Restricted Notes our acceptance of which
would, in the opinion of our counsel, be unlawful. We also reserve the
absolute right to waive any irregularities or conditions of tender as to
particular Restricted Notes. Our interpretation of the terms and conditions of
the Exchange Offer (including the instructions in the Letter of Transmittal)
will be final and binding on all parties. Unless waived, any defects or
irregularities in connection with tenders of Restricted Notes must be cured
within such time as we shall determine. Although we intend to notify tendering
holders of defects or irregularities with respect to tenders of Restricted
Notes, none of us, the Exchange Agent or any other person shall be under any
duty to give notification of defects or irregularities with respect to tenders
of Restricted Notes, nor will any of us or them incur any liability for
failure to give that notification. Tenders of Restricted Notes will not be
deemed to have been made until those irregularities have been cured or waived.
Any Restricted Notes received by the Exchange Agent that we determine are not
properly tendered or the tender of which is otherwise rejected by us and as to
which the defects or irregularities have not been cured or waived by us will
be returned by the Exchange Agent to the tendering holder unless otherwise
provided in the Letter of Transmittal, as soon as practicable following the
Expiration Date.
15
<PAGE>
In addition, we reserve the right in our sole discretion:
o to purchase or make offers for any Restricted Notes that remain
outstanding after the Expiration Date;
o to terminate the Exchange Offer, as set forth in "
--Termination"; and
o to the extent permitted by applicable law, to purchase
Restricted Notes in the open market, in privately negotiated
transactions or otherwise.
The terms of any such purchases or offers may differ from the terms of the
Exchange Offer.
Book-Entry Transfer
The Exchange Agent will make a request promptly after the date of
this Prospectus to establish accounts with respect to the Restricted Notes at
DTC to facilitate the Exchange Offer. If those accounts are established, any
financial institution that is a participant in DTC's system may make
book-entry delivery of Restricted Notes by causing DTC to transfer those
Restricted Notes into the Exchange Agent's account with respect to the
Restricted Notes in accordance with DTC's Automated Tender Offer Program
procedures for that transfer. However, the exchange for the Restricted Notes
so tendered will only be made after a timely confirmation of a book-entry
transfer of those Restricted 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 part of the confirmation of a
book-entry transfer, which states that DTC has received an express
acknowledgment from a participant tendering Restricted Notes and that
participant has received the Letter of Transmittal and agrees to be bound by
the terms of the Letter of Transmittal, and we may enforce that agreement
against the participant.
Although delivery of Restricted Notes may be effected through DTC
into the Exchange Agent's account at DTC, an appropriate Letter of Transmittal
properly completed and duly executed with any required signature guarantee and
all other required documents must in each case be transmitted to and received
or confirmed by the Exchange Agent at its address set forth under "--Exchange
Agent" in this Prospectus or in the Letter of Transmittal on or prior to the
Expiration Date, or, if the guaranteed delivery procedures described below are
complied with, within the time period provided under those procedures.
Delivery of documents to DTC without proper confirmation or compliance does
not constitute delivery to the Exchange Agent.
Guaranteed Delivery Procedures
Holders who wish to tender their Restricted Notes and (1) whose
Restricted Notes are not immediately available, or (2) who cannot deliver
their Restricted Notes, the Letter of Transmittal or any other required
documents to the Exchange Agent prior to the Expiration Date, or (3) who
cannot complete the procedure for book-entry transfer on a timely basis, may
effect a tender if:
o the tender is made through an Eligible Institution;
o prior to the Expiration Date, the Exchange Agent receives from
an Eligible Institution a properly completed and duly executed
Notice of Guaranteed Delivery (by facsimile transmittal, mail
or hand delivery) setting forth the name and address of the
holder, the certificate number or numbers of that holder's
Restricted Notes and the principal amount of the Restricted
Notes tendered, stating that the tender is being made thereby,
and guaranteeing that, within three business days after the
Expiration Date, the Letter of Transmittal (or facsimile
thereof), together with the certificate(s) representing the
Restricted Notes to be tendered in proper form for transfer (or
confirmation of a book-entry transfer into the Exchange Agent's
account at DTC of Restricted Notes delivered electronically)
and any other documents required by the Letter of Transmittal,
will be deposited by the Eligible Institution with the Exchange
Agent; and
o a properly completed and executed Letter of Transmittal (or
facsimile thereof), together with the certificate(s)
representing all tendered Restricted Notes in proper form for
transfer (or confirmation of a book-entry transfer into the
Exchange Agent's account at DTC of Restricted Notes delivered
electronically) and all other documents required by the Letter
of Transmittal are received by the Exchange Agent within three
business days after the Expiration Date.
16
<PAGE>
Upon request to the Exchange Agent, a Notice of Guaranteed Delivery
will be sent to holders who wish to tender their Restricted Notes according to
the guaranteed delivery procedures set forth above.
Withdrawal of Tenders
Except as otherwise provided herein, tenders of Restricted Notes may
be withdrawn at any time prior to 5:00 p.m., New York City time, on the
Expiration Date.
For a withdrawal to be effective, a written or facsimile
transmission notice of withdrawal must be received by the Exchange Agent at
its address set forth under "--Exchange Agent" in this Prospectus prior to
5:00 p.m., New York City time, on the Expiration Date.
Any notice of withdrawal must:
o specify the name of the person having deposited the Restricted
Notes to be withdrawn (the "Depositor");
o identify the Restricted Notes to be withdrawn (including the
certificate number or numbers and principal amount of those
Restricted Notes or, in the case of Restricted Notes
transferred by book-entry transfer, the name and number of the
account at DTC to be credited);
o be signed by the Depositor in the same manner as the original
signature on the Letter of Transmittal by which those
Restricted Notes were tendered (including any required
signature guarantee) or be accompanied by documents of transfer
sufficient to permit the registrar to register the transfer of
those Restricted Notes into the name of the Depositor
withdrawing the tender; and
o specify the name in which any of the Restricted Notes are to be
registered, if different from that of the Depositor.
All questions as to the validity, form and eligibility (including
time of receipt) of the withdrawal notices will be determined by us in our
sole discretion and our determination will be final and binding on all
parties. Any Restricted Notes so withdrawn will be deemed not to have been
validly tendered for purposes of the Exchange Offer, and no Exchange Notes
will be issued with respect to them unless the Restricted Notes so withdrawn
are validly retendered. Any Restricted Notes that have been tendered but are
not accepted for exchange will be returned to the holder thereof without cost
to that holder as soon as practicable after withdrawal, rejection of tender or
termination of the Exchange Offer. Properly withdrawn Restricted Notes may be
retendered by following one of the procedures described above under
"--Procedures for Tendering" at any time prior to the Expiration Date.
Conditions to the Exchange Offer
Notwithstanding any other term of the Exchange Offer, we will not be
required to accept for exchange, or to exchange Exchange Notes for, any
Restricted Notes, and may terminate or amend the Exchange Offer before the
acceptance of the Restricted Notes if, in our judgment, any of the following
conditions has occurred or exists or has not been satisfied:
o the Exchange Offer, or the making of any exchange by a holder
of Restricted Notes, violates applicable interpretations of the
SEC staff;
o any action or proceeding is instituted or threatened in any
court or by or before any governmental agency or body with
respect to the Exchange Offer; or
o there has been adopted or enacted any law, statute, rule or
regulation that can reasonably be expected to impair our
ability to proceed with the Exchange Offer.
If we determine that we may terminate the Exchange Offer for any of
the reasons set forth above, we may (1) refuse to accept any Restricted Notes
and return any Restricted Notes that have been tendered to the tendering
holders, (2) extend the Exchange Offer and retain all Restricted Notes
tendered prior to the Expiration Date of the Exchange Offer, subject to the
rights of the holders of the tendered Restricted Notes to withdraw their
Restricted Notes, or (3) waive the termination event with respect to the
Exchange Offer and accept the properly tendered Restricted Notes that have not
been withdrawn. If we determine that a waiver constitutes a material change in
the Exchange Offer, we will promptly disclose that change in a manner
reasonably calculated to inform the holders of that change and we will extend
the Exchange Offer to the extent required by law.
17
<PAGE>
The foregoing conditions are for our sole benefit and we may assert
any condition regardless of the circumstances giving rise to that condition or
may waive the condition in whole or in part at any time and from time to time
in our sole discretion. Our failure at any time to exercise any of the
foregoing rights will not be deemed a waiver of any right and each right will
be deemed an ongoing right which may be asserted at any time and from time to
time.
Exchange Agent
Bank One Trust Company, NA has been appointed as Exchange Agent for
the Exchange Offer. In such capacity, the Exchange Agent has no fiduciary
duties and will be acting solely on the basis of our directions. Requests for
assistance and requests for additional copies of this Prospectus or of the
Letter of Transmittal should be directed to the Exchange Agent addressed as
follows:
By Mail, Overnight Delivery Bank One Trust Company, NA
or Hand Delivery: 153 West 51st Street
5th Floor, Suite 4015
New York, New York 10019
Attention: Corporate Trust Administration
Facsimile Transmission: (212) 373-1383
Attention: Corporate Trust Administration
Information or Confirmation by
Telephone: (212) 373-1339
Delivery to an address or facsimile other than those listed above
will not constitute a valid delivery.
Solicitation of Tenders; Fees and Expenses
We will bear all expenses of soliciting tenders pursuant to the
Exchange Offer. The principal solicitation pursuant to the Exchange Offer is
being made by mail. Additional solicitations may be made by officers and
regular employees of the Company and its affiliates in person or by telegraph,
telephone or facsimile transmission.
We have not retained any dealer-manager in connection with the
Exchange Offer and will not make any payments to brokers, dealers or other
persons soliciting acceptances of the Exchange Offer. We will, however, pay
the Exchange Agent reasonable and customary fees for its services and will
reimburse the Exchange Agent for its reasonable out-of-pocket costs and
expenses and will indemnify the Exchange Agent for all losses and claims
incurred by it as a result of the Exchange Offer. We may also pay brokerage
houses and other custodians, nominees and fiduciaries the reasonable
out-of-pocket expenses incurred by them in forwarding copies of this
Prospectus, Letters of Transmittal and related documents to the beneficial
owners of the Restricted Notes and in handling or forwarding tenders for
exchange.
We will pay all expenses incurred in connection with the Exchange
Offer, including fees and expenses of the Exchange Agent and Trustee,
accounting and legal fees (including the expense of one counsel to the holders
of the Restricted Notes) and printing costs.
We will pay any transfer taxes applicable to the exchange of
Restricted Notes pursuant to the Exchange Offer. If, however, a transfer tax
is imposed for any reason other than the exchange of Restricted Notes pursuant
to the Exchange Offer, then the amount of those transfer taxes (whether
imposed on the registered holder thereof or any other person) will be payable
by the tendering holder. For example, the tendering holder will pay transfer
taxes if:
o certificates representing Exchange Notes for principal amounts
not tendered or accepted for exchange are to be delivered to,
or are to be registered or issued in the name of, any person
other than the registered holder of the Restricted Notes
tendered; or
o tendered Restricted Notes are registered in the name of any
person other than the person signing the Letter of Transmittal.
If satisfactory evidence of payment of the taxes or exemption from the payment
at taxes is not submitted with the Letter of Transmittal, we will bill the
amount of the transfer taxes directly to the tendering holder.
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Accounting Treatment
The Exchange Notes will be recorded at the same carrying value as
the Restricted Notes, as reflected in our accounting records on the date of
the exchange. Accordingly, we will not recognize any gain or loss for
accounting purposes as a result of the consummation of the Exchange Offer. We
will amortize the expense of the Exchange Offer over the term of the Exchange
Notes.
Consequences of a Failure to Exchange Restricted Notes
As a result of the making of, and upon acceptance for exchange of
all validly tendered Restricted Notes pursuant to the terms of, this Exchange
Offer, we will have fulfilled various covenants contained in the Exchange and
Registration Rights Agreement. Holders of Restricted Notes who do not tender
their Restricted Notes in the Exchange Offer will continue to hold their
Restricted Notes and will be entitled to all the rights, and subject to the
limitations applicable thereto, under the Indenture and the Exchange and
Registration Rights Agreement, except for any rights under the Exchange and
Registration Rights Agreement that by their terms terminate or cease to have
further effect as a result of the consummation of this Exchange Offer.
All untendered Restricted Notes will continue to be subject to the
restrictions on transfer set forth in the Indenture. Accordingly, after the
completion of the Exchange Offer, you will only be able to offer for sale,
sell or otherwise transfer untendered Restricted Notes as follows:
o to us;
o pursuant to a registration statement that has been declared
effective under the Securities Act;
o for so long as the Restricted Notes are eligible for resale
pursuant to Rule 144A under the Securities Act, to a person you
reasonably believe is a qualified institutional buyer ("QIB")
within the meaning of Rule 144A, that purchases for its own
account or for the account of a QIB to whom notice is given
that the transfer is being made in reliance on the exemption
from the registration requirements of the Securities Act
provided by Rule 144A;
o pursuant to offers and sales that occur outside the United
States to foreign persons in transactions complying with the
provisions of Regulation S under the Securities Act;
o to an "accredited investor" within the meaning of Rule
501(a)(1), (2), (3) or (7) under the Securities Act that is an
institutional investor (an "Institutional Accredited Investor")
purchasing for its own account or for the account of an
Institutional Accredited Investor, in each case in a minimum
principal amount of the Restricted Notes of $250,000; or
o pursuant to any other available exemption from the registration
requirements of the Securities Act.
To the extent that Restricted Notes are tendered and accepted in the
Exchange Offer, the liquidity of the trading market for untendered Restricted
Notes could be adversely affected.
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DESCRIPTION OF NOTES
General
The Restricted Notes were issued and the Exchange Notes will be
issued, as separate series, under the Indenture among the Issuers and the
Trustee. The term "Notes" as used in this "Description of Notes" refers to all
notes issued or to be issued under the Indenture and includes the Restricted
Notes and the Exchange Notes. Capitalized terms used and not otherwise defined
have the meanings set forth under "--Certain Definitions".
The following summary of certain provisions of the Indenture and the
Notes does not purport to be complete and is subject to, and is qualified in
its entirety by reference to, all the provisions of the Indenture, including
the definitions of certain terms in the Indenture and those terms made a part
of the Indenture by the TIA. For a more complete understanding of the terms of
the Notes, you should refer to the Indenture, which is included as Exhibit 4.2
to the Registration Statement that relates to this Prospectus.
The Notes will be unsecured senior obligations of the Issuers,
ranking equally in right of payment to each other, and with all existing and
future senior debt of the Issuers and senior in right of payment to all future
subordinated debt of the Issuers.
Principal of, premium, if any, and interest on the Notes will be
payable, at the office or agency of Jones in the Borough of Manhattan, The
City of New York (which initially shall be the corporate trust office of the
Trustee, at 101 Barclay Street, 7th Floor, New York, New York 10286), except
that, at the option of Jones, payment of interest may be made by check mailed
to the registered holders of the Notes at their registered addresses.
The Notes may be exchanged or transferred at the office or agency of
Jones in the City of New York (which initially shall be the corporate trust
administration office of the Exchange Agent, at 153 West 51st Street, 5th
Floor, Suite 4015, New York, New York 10019).
The Notes will be issued only in fully registered form, without
coupons, in denominations of $1,000 and any integral multiple of $1,000. The
registered holder of a Note will be treated as the owner of that Note for all
purposes. No service charge will be made for any registration of transfer or
exchange of Notes, but Jones may require payment of a sum sufficient to cover
any transfer tax or other similar governmental charge payable in connection
with any transfer or exchange. See "Exchange Offer --Solicitation of Tenders;
Fees and Expenses".
Terms of the Notes
The Notes will have the following terms:
Principal Amount Interest Rate Maturity Date
2004 Notes................$175,000,000 7.50% June 15, 2004
2006 Notes................$225,000,000 7.875% June 15, 2006
Each Note will bear interest from June 15, 1999, or from the most
recent date to which interest has been paid or provided for, payable
semiannually to holders of record at the close of business on June 1 or
December 1 immediately preceding the interest payment date on June 15 and
December 15 of each year, commencing December 15, 1999. Interest will be
computed on the basis of a 360-day year consisting of twelve 30-day months.
Jones USA is expected to be the primary payor on the Notes.
Exchange and Registration Rights
The terms of the Exchange Notes are substantially identical to the
terms of the Restricted Notes, except that the Exchange Notes will be freely
transferable and issued free of any covenants regarding exchange and
registration rights. Restricted Notes not exchanged in the Exchange Offer will
remain outstanding and be entitled to the benefits of the Indenture, but,
except under certain circumstances, will have no further exchange or
registration rights under the Exchange and Registration Rights Agreement.
Optional Redemption
The Notes will be redeemable as a whole or in part, at the option of
the Issuers at any time or from time to time, at a redemption price equal to
the greater of (1) 100% of their principal amount or (2) the sum of the
present values of the Remaining Scheduled Payments (as defined below)
discounted, on a semiannual basis (assuming a 360-day year consisting of
twelve 30-day months) at a rate equal to the sum of the Treasury Rate (as
defined below) and 25 basis points.
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In the case of each of clause (1) and (2), accrued interest will be
payable to the redemption rate.
"Treasury Rate" means, with respect to any redemption date, the rate
per annum equal to the semiannual equivalent yield to maturity of the
Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue
(expressed as a percentage of its principal amount) equal to the Comparable
Treasury Price for such redemption date.
"Comparable Treasury Issue" means the United States Treasury
security selected by an Independent Investment Banker as having a maturity
comparable to the remaining term of the Notes to be redeemed that would be
utilized, at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of such Notes. "Independent Investment Banker"
means one of the Reference Treasury Dealers appointed by Jones.
"Comparable Treasury Price" means, with respect to any redemption
date, (1) the average of the Reference Treasury Dealer Quotations for such
redemption date after excluding the highest and lowest of such Reference
Treasury Dealer Quotations, or (2) if the Trustee obtains fewer than five such
Reference Treasury Dealer Quotations, the average of all such quotations.
"Reference Treasury Dealer Quotations" means, with respect to each Reference
Treasury Dealer and any redemption date, the average, as determined by the
Trustee, of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) quoted in
writing to the Trustee by such Reference Treasury Dealer at 3:30 p.m., New
York City time, on the third business day preceding such redemption date.
"Reference Treasury Dealer" means each of Bear, Stearns & Co. Inc.,
Chase Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated,
Salomon Smith Barney Inc., BancBoston Robertson Stephens, Inc. and Banc of
America Securities LLC and their respective successors. If any of the
foregoing shall cease to be a primary U.S. Government securities dealer (a
"Primary Treasury Dealer"), we shall substitute another nationally recognized
investment banking firm that is a Primary Treasury Dealer.
"Remaining Scheduled Payments" means, with respect to each Note to
be redeemed, the remaining scheduled payments of principal of and interest on
such Note that would be due after the related redemption date but for such
redemption. If such redemption date is not an interest payment date with
respect to such Note, the amount of the next succeeding scheduled interest
payment on such Note will be reduced by the amount of interest accrued on such
Note to such redemption date.
Holders of Notes to be redeemed will receive notice thereof by
first-class mail at least 30 and not more than 60 days prior to the date fixed
for redemption. In the case of any partial redemption, selection of the Notes
for redemption will be made by the Trustee on a pro rata basis, by lot or by
such other method as the Trustee in its sole discretion shall deem to be fair
and appropriate, although no Note of $1,000 in original principal amount or
less will be redeemed in part. If any Note is to be redeemed in part only, the
notice of redemption relating to such Note shall state the portion of the
principal amount thereof to be redeemed. A new Note of the same series in
principal amount equal to the unredeemed portion thereof will be issued in the
name of the holder thereof upon cancelation of the original Note. On and after
the redemption date, interest will cease to accrue on Notes or portions
thereof called for redemption so long as the Issuers have deposited with the
paying agent funds sufficient to pay the principal of, premium (if any), plus
accrued and unpaid interest, if applicable, and liquidated damages (if any)
on, the Notes to be redeemed.
Certain Covenants
The Indenture contains covenants including, among others, the
following:
Restrictions on Liens. Except as provided below under "-Exempted
Debt," the Issuers will not, and will not permit any Restricted Subsidiary to,
create or suffer to exist any mortgage, lien, pledge, charge, security
interest or encumbrance (a "Lien" or "Liens") to secure any Indebtedness of
any Issuer or Restricted Subsidiary on any Principal Property of any Issuer or
Restricted Subsidiary, without making, or causing such Restricted Subsidiary
to make, effective provision to secure all of the Notes offered hereunder and
then outstanding by such Lien, equally and ratably with any and all other such
Indebtedness thereby secured, so long as such other Indebtedness is so
secured, except that the foregoing restrictions shall not apply to:
(1) Liens on property of a Person existing at the time such
Person is merged into or consolidated with any Issuer or Restricted
Subsidiary or at the time of sale, lease or other disposition of the
properties of such Person (or a division thereof) as an entirety or
substantially as an entirety to any Issuer or Restricted Subsidiary;
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(2) Liens on property of a Person existing at the time such
Person becomes a Restricted Subsidiary or existing on property prior
to the acquisition thereof by any Issuer or Restricted Subsidiary;
(3) Liens securing Indebtedness between a Restricted Subsidiary
and an Issuer or between Restricted Subsidiaries or Issuers;
(4) Liens on any property created, assumed or otherwise brought
into existence in contemplation of the sale or other disposition of
the underlying property, whether directly or indirectly, by way of
share disposition or otherwise, provided that the applicable Issuer
or Restricted Subsidiary must have disposed of such property within
180 days after the creation of such Liens, and any Indebtedness
secured by such Liens shall be without recourse to any Issuer or
Restricted Subsidiary;
(5) Liens in favor of the United States of America or any State
thereof, or any department, agency or instrumentality or political
subdivision of the United States of America or any State thereof, or
in favor of any country, or any political subdivision thereof, to
secure partial, progress, advance or other payments, or performance
of any other similar obligations, including, without limitation,
Liens to secure pollution control bonds or industrial revenue or
other similar types of bonds;
(6) Liens imposed by law, such as carriers', warehousemen's and
mechanics' Liens and other similar Liens arising in the ordinary
course of business which secure obligations not more than 60 days
past due or are being contested in good faith and by appropriate
proceedings;
(7) Liens incurred in the ordinary course of business to secure
performance of obligations with respect to statutory or regulatory
requirements, performance or return-of-money bonds, surety bonds or
other obligations of a like nature, in each case which are not
incurred in connection with the borrowing of money, the obtaining of
advances or credit or the payment of the deferred purchase price of
property and which do not in the aggregate impair in any material
respect the use of property in the operation of the business of the
Issuers and their respective Subsidiaries taken as a whole;
(8) Liens incurred to secure appeal bonds and judgment and
attachment Liens, in each case in connection with litigation or
legal proceedings which are being contested in good faith by
appropriate proceedings so long as reserves have been established to
the extent required by generally accepted accounting principles as
in effect at such time;
(9) pledges or deposit under workmen's compensation laws,
unemployment insurance laws or similar legislation, or good faith
deposits in connection with bids, tenders, contracts (other than for
the payment of Indebtedness) or leases to which any Issuer or
Restricted Subsidiary is a party, or deposits to secure public or
statutory obligations of any Issuer or Restricted Subsidiary or
deposits for the payment of rent, in each case incurred in the
ordinary course of business;
(10) utility easements, building restrictions and such other
encumbrances or charges against real property as are of a nature
generally existing with respect to properties of a similar
character;
(11) Liens granted to any bank or other institution on the
payments to be made to such institution by an Issuer or Subsidiary
of an Issuer pursuant to any interest rate swap or similar agreement
or foreign currency hedge, exchange or similar agreement designed to
provide protection against fluctuations in interest rates and
currency exchange rates, respectively, provided that such agreements
are entered into in, or are incidental to, the ordinary course of
business;
(12) Liens arising solely by virtue of any statutory or common
law provision relating to banker's liens, rights of set off or
similar rights and remedies, in each case as to deposit accounts or
other funds maintained with a creditor depository institution,
provided that such deposit account is not (A) a dedicated cash
collateral account and is not subject to restrictions against access
by the applicable Issuer or Restricted Subsidiary in excess of those
set forth by regulations promulgated by the Federal Reserve Board,
and (B) intended by such Issuer or Restricted Subsidiary to provide
collateral to the depository institution;
(13) Liens arising from Uniform Commercial Code financing
statements regarding leases;
(14) the giving, simultaneously with or within 180 days after
the latest of the date of the Indenture, or the acquisition,
construction, improvement, development or expansion of such
property, of a purchase money Lien on property acquired,
constructed, improved, developed or expanded after the date
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of the Indenture, or the acquisition, construction, improvement,
development or expansion after the date of the Indenture, of
property subject to any Lien which is limited to such property;
(15) the giving of a Lien on real property which is the sole
security for Indebtedness incurred within two years after the latest
of the date of the Indenture, or the acquisition, construction,
improvement, development or expansion of the property, provided that
the holder of such Indebtedness is entitled to enforce its payment
only by resorting to such security;
(16) Liens arising by the terms of letters of credit entered
into in the ordinary course of business to secure reimbursement
obligations thereunder;
(17) Liens existing on the date of the Indenture;
(18) Liens for taxes, assessments and other governmental
charges or levies not yet due or as to which the period of grace, if
any, related thereto has not expired or which are being contested in
good faith and by appropriate proceedings if adequate reserves are
maintained to the extent required by generally accepted accounting
principles; and
(19) extension, renewal, replacement or refunding of any Lien
existing on the date of the Indenture or referred to in clauses (1)
to (11) and (14) to (15) and (17), provided that the principal
amount of Indebtedness secured thereby and not otherwise authorized
by clauses (1) to (11) and (14) to (15) and (17) shall not exceed
the principal amount of Indebtedness, plus any premium or fee
payable in connection with any such extension, renewal, replacement
or refunding, so secured at the time of such extension, renewal,
replacement or refunding.
Restrictions on Sale and Leaseback Transactions. Except as provided
below under "-Exempted Debt," the Issuers will not, and will not permit any
Restricted Subsidiary to, after the date hereof, enter into any arrangement
with any Person providing for the leasing by any such Issuer or Restricted
Subsidiary of any Principal Property now owned or hereafter acquired which has
been or is to be sold or transferred by such Issuer or Restricted Subsidiary
to such Person with the intention of taking back a lease of such Principal
Property (a "Sale and Leaseback Transaction"), unless the net proceeds of such
sale or transfer have been determined by the Board of Directors to be at least
equal to the fair market value of such Principal Property or asset at the time
of such sale and transfer and either (1) such Issuer or Restricted Subsidiary
applies or causes to be applied an amount equal to the net proceeds of such
sale or transfer, within 180 days of receipt thereof, to the retirement or
prepayment (other than any mandatory retirement or prepayment, except
mandatory retirements or prepayments required as a result of such Sale and
Leaseback Transaction) of Funded Debt of any Issuer or Restricted Subsidiary
that is senior to or pari passu with the Notes or to the purchase,
construction or development of property or assets to be used in the ordinary
course of business, or (2) such Issuer or Restricted Subsidiary would, on the
effective date of such sale or transfer, be entitled, pursuant to the
Indenture, to issue, assume or guarantee Indebtedness secured by a Lien upon
such Principal Property at least equal in amount to the Attributable Debt in
respect of such Sale and Leaseback Transaction without equally and ratably
securing the Notes. The foregoing restriction will not apply to any Sale and
Leaseback Transaction (1) between an Issuer and a Restricted Subsidiary or
between Restricted Subsidiaries or Issuers, provided that the lessor shall be
an Issuer or Wholly Owned Restricted Subsidiary, (2) which has a lease of less
than three years in length, (3) entered into within 180 days after the later
of the purchase, construction or development of such Principal Property or
asset or the commencement of operation of such Principal Property, or (4)
involving Jones' distribution warehouse at South Hill, Virginia.
Exempted Debt. Notwithstanding the restrictions in the Indenture on
(1) Liens and (2) Sale and Leaseback Transactions, any Issuer or Restricted
Subsidiary may, in addition to amounts permitted under such restrictions,
create Indebtedness secured by Liens, or enter into Sale and Leaseback
Transactions, provided that, at the time of such transactions and after giving
effect thereto, the aggregate outstanding amount of all such Indebtedness
secured by Liens plus Attributable Debt resulting from such Sale and Leaseback
Transactions does not exceed 20% of Consolidated Stockholders' Equity.
Corporate Existence. Each Issuer will do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate
existence, material rights (charter and statutory) and material franchises;
provided, however, that such Issuer shall not be required to preserve any such
right or franchise if the Board of Directors shall determine that the
preservation of such rights and franchises is no longer desirable in the
conduct of the business of the Issuers and Restricted Subsidiaries considered
as a whole.
No Special Protection in the Event of a Highly Leveraged
Transaction. The terms of the Notes will not afford the holders special
protection in the event of a highly leveraged transaction.
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Merger and Consolidation
The Indenture provides that none of the Issuers will consolidate
with or merge with or into, or convey, transfer or lease all or substantially
all its assets to, any Person (other than a merger of a Wholly Owned
Restricted Subsidiary into an Issuer or another Wholly Owned Restricted
Subsidiary or a merger of one Issuer into another), unless:
(1) the resulting, surviving or transferee Person (the
"Successor Company" ) will be a corporation organized and existing
under the laws of the United States of America, any State thereof or
the District of Columbia and the Successor Company (if not such
Issuer) will expressly assume, by a supplemental Indenture, executed
and delivered to the Trustee, in form satisfactory to the Trustee,
all the obligations of such Issuer under the Notes and the
Indenture;
(2) immediately after giving effect to such transaction (and
treating any Indebtedness which becomes an obligation of the
Successor Company, any other Issuer or any Restricted Subsidiary as
a result of such transaction as having been incurred by the
Successor Company or such Issuer or Restricted Subsidiary at the
time of such transaction), no Event of Default shall have occurred
and be continuing;
(3) such Issuer shall have delivered to the Trustee an
Officers' Certificate and an Opinion of Counsel, each stating that
such consolidation, merger or transfer and such supplemental
Indenture (if any) comply with the Indenture; and
(4) if, as a result of any such consolidation, merger or
transfer, Principal Property of such Issuer would become subject to
a Lien which would not be permitted by the Indenture, such Issuer or
the Successor Company, as the case may be, shall take such steps as
shall be necessary effectively to secure the Notes equally and
ratably with (or prior to) all Indebtedness secured thereby.
The Indenture provides that the Successor Company will succeed to,
and be substituted for, and may exercise every right and power of, the
applicable Issuer under the Indenture, but the predecessor Issuer in the case
of a lease of all or substantially all its assets will not be released from
the obligation to pay the principal of and interest on the Notes.
Defaults
An Event of Default with respect to any series of Notes is defined
in the Indenture as:
(1) a default in any payment of interest or liquidated damages
on any Note of that series when due and payable, continued for 30
days,
(2) a default in the payment of principal of or any premium on
any Note of that series when due and payable at maturity, upon
declaration or otherwise,
(3) the failure by any Issuer to comply with its obligations
under the covenant described under "--Merger and Consolidation"
above,
(4) the failure by any Issuer to comply for 30 days after
notice with any of its obligations under the covenants described
under "--Certain Covenants" above,
(5) the failure by any Issuer to comply for 60 days after
notice with its other covenants or agreements contained in the Notes
or the Indenture,
(6) a default under any Indebtedness by any Issuer or
Restricted Subsidiary (other than the Notes), whether such
Indebtedness now exists or shall hereafter be created, which default
shall have resulted in Indebtedness in excess of $25.0 million or
its foreign currency equivalent becoming due and payable prior to
the date on which it would otherwise have become due and payable,
without such Indebtedness having been discharged or such
acceleration having been rescinded or annulled within 30 days after
notice (the "cross acceleration provision"),
(7) the rendering of any judgment or decree for the payment of
money in excess of $25.0 million or its foreign currency equivalent
against an Issuer or Restricted Subsidiary if (A) an enforcement
proceeding thereon is commenced by any creditor or (B) such judgment
or decree remains outstanding for a period of 60 days following such
judgment and is not discharged, waived or stayed (the "judgment
default provision"),
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(8) the guarantee or co-obligation of any Additional Obligor
shall cease to be in full force and effect (except as contemplated
by the terms thereof) or any Additional Obligor or Person acting by
or on behalf of such Additional Obligor shall deny or disaffirm its
obligations under the Indenture or any such guarantee or
co-obligation, or
(9) certain events of bankruptcy, insolvency or reorganization
of an Issuer or Restricted Subsidiary (the "bankruptcy provisions").
A default under one series of Notes will not necessarily be a
default under another series. The foregoing will constitute Events of Default
whatever the reason for any such Event of Default and whether it is voluntary
or involuntary or is 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.
However, a default with respect to Notes of any series under clause
(4), (5) or (6) will not constitute an Event of Default until the Trustee or
the holders of at least 25% in principal amount of the outstanding Notes of
that series notify the Issuers of the default and the Issuers do not cure such
default within the time specified in clause (4), (5) or (6) hereof after
receipt of such notice.
If an Event of Default with respect to Notes of any series (other
than an Event of Default relating to certain events of bankruptcy, insolvency
or reorganization of an Issuer) occurs and is continuing, the Trustee or the
holders of at least 25% in principal amount of the outstanding Notes of that
series by notice to the Issuers may declare the principal of and accrued but
unpaid interest on all the Notes of that series to be due and payable. Upon
such a declaration, such principal and interest will be due and payable
immediately. If an Event of Default relating to certain events of bankruptcy,
insolvency or reorganization of an Issuer occurs, the principal of and
interest on all the Notes will become immediately due and payable without any
declaration or other act on the part of the Trustee or any holders. Under
certain circumstances, the holders of a majority in principal amount of the
outstanding Notes of any series may rescind any such acceleration with respect
to such series.
Subject to the provisions of the Indenture relating to the duties of
the Trustee, in case an Event of Default occurs and is continuing, the Trustee
will be under no obligation to exercise any of the rights or powers under the
Indenture at the request or direction of any of the holders unless such
holders have offered to the Trustee indemnity or security satisfactory to it
against any loss, liability or expense. Except to enforce the right to receive
payment of principal, premium (if any) or interest when due, no holder may
pursue any remedy with respect to the Indenture or the Notes of any series
unless
(1) such holder has previously given the Trustee notice that an
Event of Default for that series is continuing,
(2) holders of at least 25% in principal amount of the
outstanding Notes of that series have requested the Trustee in
writing to pursue the remedy,
(3) such holders have offered the Trustee reasonable security
or indemnity against any loss, liability or expense,
(4) the Trustee has not complied with such request within 60
days after the receipt of the request and the offer of security or
indemnity and
(5) the holders of a majority in principal amount of the
outstanding Notes of that series have not given the Trustee a
direction inconsistent with such request within such 60-day period.
Subject to certain restrictions, the holders of a majority in principal amount
of the outstanding Notes of each series will be given the right to direct the
time, method and place of conducting any proceeding for any remedy available
to the Trustee or of exercising any trust or power conferred on the Trustee
with respect to Notes of such series. The Trustee, however, may refuse to
follow any direction that conflicts with law or the Indenture or that the
Trustee determines is unduly prejudicial to the rights of any other holder or
that would involve the Trustee in personal liability. Prior to taking any
action under the Indenture, the Trustee will be entitled to indemnification
satisfactory to it in its sole discretion against all losses and expenses
caused by taking or not taking such action.
The Indenture provides that if a Default with respect to Notes of
any series occurs and is continuing and is known to the Trustee, the Trustee
must mail to each holder of Notes of that series notice of the Default within
90 days after it occurs. Except in the case of a Default in the payment of
principal of, premium (if any) or interest on any Note of any series
(including payments pursuant to the redemption provisions of such Note), the
Trustee may withhold notice if and so long as a committee of its Trust
Officers in good faith determines that withholding notice is
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in the interests of the noteholders of such series. In addition, Jones will be
required to deliver to the Trustee, within 120 days after the end of each
fiscal year, a certificate indicating whether the signers thereof know of any
Default that occurred during the previous year.
Amendments and Waivers
Subject to certain exceptions, the Indenture or the Notes may be
amended with the written consent of the holders of a majority in principal
amount of the Notes then outstanding of each series affected by such amendment
and any past default or compliance with any provisions may be waived with the
consent of the holders of a majority in principal amount of the Notes then
outstanding of each series affected by such waiver. However, without the
consent of each holder of an outstanding Note affected, no amendment may,
among other things,
(1) reduce the amount of Notes whose holders must consent to an
amendment,
(2) reduce the rate of or extend the time for payment of
interest or any liquidated damages on any Note,
(3) reduce the principal of or extend the stated maturity of
any Note,
(4) reduce the premium payable upon the redemption of any Note
or change the time at which any Note may be redeemed as described
under "-Optional Redemption" above,
(5) make any Note payable in money other than that stated in
the Note,
(6) impair the right of any holder to receive payment of
principal of, and interest or any liquidated damages on, such
holder's Notes on or after the due dates therefor or to institute
suit for the enforcement of any payment on or with respect to such
holder's Notes,
(7) make any change in the amendment provisions which require
each holder's consent or in the waiver provisions, or
(8) make any change in any guarantee or co-obligation of any
Additional Obligor that would adversely affect the holders.
Without the consent of any holder, the Issuers and the Trustee may
amend the Indenture to cure any ambiguity, omission, defect or inconsistency,
to provide for the assumption by a successor corporation of the obligations of
the Issuers under the Indenture, to provide for uncertificated Notes in
addition to or in place of certificated Notes (provided that the
uncertificated Notes are issued in registered form for purposes of Section
163(f) of the Code, or in a manner such that the uncertificated Notes are
described in Section 163(f)(2)(B) of the Code), to secure the Notes, to add
guarantees or co-obligors with respect to the Notes, to add to the covenants
of the Issuers for the benefit of the noteholders or to surrender any right or
power conferred upon the Issuers, to make any change that does not adversely
affect the rights of any holder, subject to the provisions of the Indenture,
to provide for the issuance of the Exchange Notes or to comply with any
requirement of the SEC in connection with the qualification of the Indenture
under the TIA.
The Senior Credit Facilities contain a covenant which, following a
default or event of default under the Senior Credit Facilities, prohibits the
Issuers from making material amendments to debt instruments, including the
Indenture for the Notes, without the consent of a majority of the lenders
under the Senior Credit Facilities.
The consent of noteholders is not necessary under the Indenture to
approve the particular form of any proposed amendment. It will be sufficient
if such consent approves the substance of the proposed amendment.
After an amendment under the Indenture becomes effective, the
Issuers will be required to mail to noteholders a notice briefly describing
such amendment. However, the failure to give such notice to all noteholders,
or any defect therein, will not impair or affect the validity of the
amendment.
Transfer and Exchange
A noteholder will be able to transfer or exchange Notes of any
series for other Notes of the same series, the same total principal amount and
the same terms but in different authorized denominations in accordance with
the Indenture. Upon any transfer or exchange, the Registrar and the Trustee
may require a noteholder, among other things, to furnish appropriate
endorsements and transfer documents and the Issuers may require a noteholder
to pay any taxes required by law or permitted by the Indenture. The Issuers
will not be required to
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transfer or exchange any Note selected for redemption or to transfer or
exchange any Note for a period of 15 days prior to a selection of Notes to be
redeemed. The Notes will be issued in registered form and the registered
holder of a Note will be treated as the owner of such Note for all purposes.
Defeasance
The Indenture provides that the Issuers at any time may terminate
all their obligations under any series of the Notes and the Indenture ("legal
defeasance"), except for certain obligations, including those respecting the
defeasance trust and obligations to register the transfer or exchange of the
Notes, to replace mutilated, destroyed, lost or stolen Notes and to maintain a
registrar and paying agent in respect of the Notes. In addition, the Indenture
provides that the Issuers at any time may terminate their obligations under
the covenants described under "Certain Covenants," the cross acceleration
provision, the bankruptcy provisions with respect to Restricted Subsidiaries
and the judgment default provision described under "- Defaults" above and the
limitations contained in clauses (3) and (4) under "- Merger and
Consolidation" above ("covenant defeasance").
The Issuers may exercise their legal defeasance option
notwithstanding their prior exercise of their covenant defeasance option. If
the Issuers exercise their legal defeasance option with respect to any series,
payment of the Notes of that series may not be accelerated because of an Event
of Default with respect thereto. If the Issuers exercise their covenant
defeasance option, payment of the Notes may not be accelerated because of an
Event of Default specified in clause (4), (6) or clause (7) (with respect only
to Restricted Subsidiaries) under "Defaults" above or because of the failure
of the Issuers to comply with clause (3) or (4) under "- Merger and
Consolidation" above.
In order to exercise either defeasance option with respect to any
series, the Issuers must irrevocably deposit in trust (the "defeasance trust")
with the Trustee money or U.S. Government Obligations for the payment of
principal, premium (if any) and interest on the Notes of that series to
redemption or maturity, as the case may be, and must comply with certain other
conditions, including delivery to the Trustee of an Opinion of Counsel to the
effect that holders of the Notes of that series will not recognize income,
gain or loss for Federal income tax purposes as a result of such deposit and
defeasance and will be subject to Federal income tax on the same amounts and
in the same manner and at the same times as would have been the case if such
deposit and defeasance had not occurred (and, in the case of legal defeasance
only, such Opinion of Counsel must be based on a ruling of the Internal
Revenue Service or a change in applicable Federal income tax law).
Concerning the Trustee
The Bank of New York is the Trustee under the Indenture and has been
appointed by the Issuers as Registrar and Paying Agent with regard to the
Notes.
Governing Law
The Indenture provides that it and the Notes will be governed by,
and construed in accordance with, the laws of the State of New York without
giving effect to applicable principles of conflicts of law to the extent that
the application of the law of another jurisdiction would be required thereby.
Certain Definitions
"Attributable Debt" in respect of a Sale and Leaseback Transaction
means, at the time of determination, the present value (discounted at the
actual rate of interest of such transaction) of the obligation of the lessee
for net rental payments during the remaining term of the lease included in
such Sale and Leaseback Transaction (including any period for which such lease
has been extended or may, at the option of the lessor, be extended). The term
"net rental payments" under any lease for any period shall mean the sum of the
rental and other payments required to be paid in such period by the lessee
thereunder, not including, however, any amounts required to be paid by such
lessee (whether or not designated as rental or additional rental) on account
of maintenance and repairs, insurance, taxes, assessments, water rates or
similar charges required to be paid by such lessee thereunder or any amounts
required to be paid by such lessee thereunder contingent upon the amount of
sales, maintenance and repairs, insurance, taxes, assessments, water rates or
similar charges. In the case of any lease which is terminable by the lessee
upon the payment of a penalty, such net amount shall also include the amount
of such penalty, but no rent shall be considered as required to be paid under
such lease subsequent to the first date upon which it may be so terminated
without payment of such penalty.
"Board of Directors" means the Board of Directors of the applicable
Issuer or any committee thereof duly authorized to act on behalf of the Board
of Directors of such Issuer.
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"Business Day" means each day which is not a Legal Holiday.
"Capital Stock" of any Person means any and all shares, interests,
rights to purchase, warrants, options, participations or other equivalents of
or interests in (however designated) equity of such Person, including any
preferred stock, but excluding any debt securities convertible into such
equity.
"Code" means the Internal Revenue Code of 1986, as amended.
"Consolidated Net Tangible Assets" means, as of any date of
determination, the total amount of assets of the Issuers and their respective
Subsidiaries (less applicable reserves and other properly deductible items)
after deducting (1) all current liabilities (excluding the amount of those
which are by their terms extendable or renewable at the option of the obligor
to a date more than 12 months after the date as of which the amount is being
determined and excluding all intercompany items between an Issuer and any of
its wholly owned Subsidiaries or between Issuers or wholly owned Subsidiaries
of Issuers) and (2) all goodwill, trade names, trademarks, patents,
unamortized debt discount and expense and other like intangible assets, all as
determined on a consolidated basis in accordance with generally accepted
accounting principles.
"Consolidated Stockholders' Equity" means consolidated stockholders'
equity of the Issuers and their respective Subsidiaries as determined in
accordance with generally accepted accounting principles and reflected on the
Issuers' most recent balance sheet.
"Funded Debt" means Indebtedness, whether incurred, assumed or
guaranteed, maturing by its terms more than one year from the date of creation
thereof or which is extendable or renewable at the sole option of the obligor
in such manner that it may become payable more than one year from the date of
creation thereof; provided, however, that Funded Debt shall not include
obligations created pursuant to leases, or any Indebtedness or portion thereof
maturing by its terms within one year from the time of any computation of the
amount of outstanding Funded Debt unless such Indebtedness shall be extendable
or renewable at the sole option of the obligor in such manner that it may
become payable more than one year from such time, or any Indebtedness for the
payment or redemption of which money in the necessary amount shall have been
deposited in trust either at or before the maturity or redemption date
thereof.
"Indebtedness" of a Person means indebtedness for borrowed money and
all indebtedness under purchase money mortgages or other purchase money liens
or conditional sales or similar title retention agreements (but excluding
trade accounts payable in the ordinary course of business) in each case where
such indebtedness has been created, incurred, assumed or guaranteed by such
Person or where such Person is otherwise liable therefore and indebtedness for
borrowed money secured by any Lien upon property owned by such Person even
though such Person has not assumed or become liable for the payment of such
indebtedness; provided that if the obligation so secured has not been assumed
in full by such Person or is otherwise not such Person's legal liability in
full, the amount of such obligation for the purposes of this definition shall
be limited to the lesser of the amount of such obligation secured by such Lien
or the fair market value of the property securing such Lien.
"Legal Holiday" means a Saturday, Sunday or other day on which
banking institutions in New York State are authorized or required by law to
close.
"Officer" means the Chairman of the Board, the Chief Executive
Officer, the Chief Financial Officer, the President, any Vice President, the
Treasurer or the Secretary of the applicable Issuer.
"Officers' Certificate" means a certificate signed by two Officers.
"Opinion of Counsel" means a written opinion from legal counsel. The
counsel may be an employee of or counsel to the applicable Issuer or the
Trustee.
"Person" means any individual, corporation, partnership, limited
liability company, joint venture, association, joint-stock company, trust,
unincorporated organization, government or any agency or political subdivision
thereof or any other entity.
"Principal" of a note means the principal of the note plus the
premium, if any, payable on the note which is due or overdue or is to become
due at the relevant time.
"Principal Property" means any property owned or leased by any
Issuer or Restricted Subsidiary, the net book value of which exceeds one
percent of Consolidated Net Tangible Assets of the Issuers and their
respective Subsidiaries.
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"Restricted Subsidiary" means, at any time, any Subsidiary of an
Issuer which would be a "Significant Subsidiary" at such time, as such term is
defined in Regulation S-X promulgated by the SEC, as in effect on the date of
the Indenture.
"SEC" means the Securities and Exchange Commission.
"Subsidiary" of any Person means any corporation, association,
partnership or other business entity of which more than 50% of the total
voting power of shares of Capital Stock or other interests (including
partnership interests) entitled (without regard to the occurrence of any
contingency) to vote in the election of directors, managers or trustees
thereof is at the time owned or controlled, directly or indirectly, by (i)
such Person, (ii) such Person and one or more Subsidiaries of such Person or
(iii) one or more Subsidiaries of such Person.
"TIA" means the Trust Indenture Act of 1939 (15
U.S.C.ss.ss.77aaa-77bbbb) as in effect on the date of the Indenture.
"Trust Officer" means the Chairman of the Board, the President or
any other officer or assistant officer of the Trustee assigned by the Trustee
to administer its corporate trust matters.
"U.S. Government Obligations" means direct obligations (or
certificates representing an ownership interest in such obligations) of the
United States of America (including any agency or instrumentality thereof) for
the payment of which the full faith and credit of the United States of America
is pledged and which are not callable or redeemable at the issuer's option.
"Wholly Owned Restricted Subsidiary" means a Restricted Subsidiary,
100% of the outstanding Capital Stock of which (other than Capital Stock
constituting directors' qualifying shares or interests held by directors or
shares or interests required to be held by foreign nationals, in each case to
the extent mandated by applicable law) is directly or indirectly owned by an
Issuer or by one or more Wholly Owned Restricted Subsidiaries.
CERTAIN UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS
The following discussion is a summary of certain United States
Federal income tax consequences of the Exchange Offer to holders of Restricted
Notes, but does not purport to be a complete analysis of all potential tax
effects. The discussion set forth below is based upon currently existing
provisions of the Internal Revenue Code of 1986, as amended (the "Code"),
existing and proposed Treasury regulations promulgated thereunder and current
administrative rulings and judicial decisions, all of which are subject to
change, possibly on a retroactive basis. This summary does not discuss all
aspects of United States Federal income taxation that may be relevant to
certain types of holders subject to special treatment under the United States
Federal income tax laws such as tax-exempt organizations, dealers in
securities, financial institutions and life insurance companies. This summary
applies only to a holder that acquired Restricted Notes at original issue for
cash and holds Restricted Notes as a capital asset as defined in section 1221
of the Code. This summary also does not discuss any aspect of state, local or
foreign taxation. Holders of Restricted Notes considering the Exchange Offer
should consult their own tax advisors concerning the United States Federal
income tax consequences in light of their particular situations as well as any
consequences arising under the laws of any other taxing jurisdiction.
An exchange of Restricted Notes for Exchange Notes pursuant to the
Exchange Offer should not be treated as a taxable exchange or other taxable
event for United States Federal income tax purposes. Accordingly, there should
be no United States Federal income tax consequences to holders of Restricted
Notes who exchange Restricted Notes for Exchange Notes in the Exchange Offer,
and any such holder should have the same adjusted tax basis and holding period
in the Exchange Notes as it had in the Restricted Notes immediately before the
exchange.
THE FOREGOING DISCUSSION OF CERTAIN UNITED STATES FEDERAL INCOME TAX
CONSIDERATIONS DOES NOT CONSIDER THE FACTS AND CIRCUMSTANCES OF ANY PARTICULAR
HOLDER'S SITUATION OR STATUS. ACCORDINGLY, EACH HOLDER OF RESTRICTED NOTES
SHOULD CONSULT ITS OWN TAX ADVISOR WITH RESPECT TO THE TAX CONSEQUENCES OF THE
EXCHANGE OFFER TO IT, INCLUDING THOSE UNDER THE STATE, FOREIGN AND OTHER TAX
LAWS.
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BOOK-ENTRY; DELIVERY AND FORM
The Global Notes
The certificates representing the Restricted Notes were issued, and
the certificates representing the Exchange Notes will be issued, in fully
registered form, without coupons. The Restricted Notes are represented by
global certificates in definitive, fully registered form without interest
coupons in the aggregate amount of $400.0 million (collectively, the "Initial
Global Notes"). Except as described under "Certificated Exchange Notes", the
Exchange Notes initially will be represented by one or more permanent global
certificates in definitive, fully registered form (collectively, the "Global
Notes") and (i) will be deposited with, or on behalf of, DTC, and registered
in the name of Cede & Co., as DTC's nominee or (ii) will remain in the custody
of the Trustee pursuant to a FAST Balance Certificate Agreement between DTC
and the Trustee or (iii) will be deposited with, or on behalf of, a custodian
of DTC for credit to the respective accounts of the purchasers (or to such
accounts as they may direct) at Morgan Guaranty Trust Company of New York,
Brussels office, as operator of the Euroclear System ("Euroclear"), or Cedel
Bank, societe anonyme ("Cedel"). If any holder of Restricted Notes whose
interest in the Restricted Notes is represented by the Initial Global Notes
fails to tender in the Exchange Offer, we may issue and deliver to that holder
a separate certificate representing that holder's Restricted Notes in
registered form without interest coupons.
Certain Book-Entry Procedures for the Global Notes
The descriptions of the operations and procedures of DTC, Euroclear
and Cedel set forth below are provided solely as a matter of convenience.
These operations and procedures are solely within the control of the
respective settlement systems and are subject to change by them from time to
time. The Issuers do not take any responsibility for these operations or
procedures, and investors are urged to contact the relevant system or its
participants directly to discuss these matters.
DTC has advised the Issuers that it is (i) a limited purpose trust
company organized under the laws of the State of New York, (ii) a "banking
organization" within the meaning of the New York Banking Law, (iii) a member
of the Federal Reserve System, (iv) a "clearing corporation" within the
meaning of the Uniform Commercial Code, as amended, and (v) a "clearing
agency" registered pursuant to Section 17A of the Exchange Act. DTC was
created to hold securities for its participants (collectively, the
"Participants") and facilitates the clearance and settlement of securities
transactions between Participants through electronic book-entry changes to the
accounts of its Participants, thereby eliminating the need for physical
transfer and delivery of certificates. DTC's Participants include securities
brokers and dealers (including the Initial Purchasers), banks and trust
companies, clearing corporations and certain other organizations. Indirect
access to DTC's system is also available to other entities such as banks,
brokers, dealers and trust companies (collectively, the "Indirect
Participants") that clear through or maintain a custodial relationship with a
Participant, either directly or indirectly. Investors who are not Participants
may beneficially own securities held by or on behalf of DTC only through
Participants or Indirect Participants.
Upon deposit of each Global Note, DTC credited the accounts of
Participants designated by the Initial Purchasers with an interest in each
Global Note. The Issuers expect that pursuant to procedures established by
DTC, ownership of the Exchange Notes will be shown on, and the transfer of
ownership will be effected only through, records maintained by DTC (with
respect to the interests of Participants) and the records of Participants and
the Indirect Participants (with respect to the interests of persons other than
Participants).
The laws of some jurisdictions may require that certain purchasers
of securities take physical delivery of the securities in definitive form.
Accordingly, the ability to transfer interests in the Exchange Notes
represented by a Global Note to those persons may be limited. In addition,
because DTC can act only on behalf of its Participants, who in turn act on
behalf of persons who hold interests through Participants, the ability of a
person having an interest in the Exchange Notes represented by a Global Note
to pledge or transfer that interest to persons or entities that do not
participate in DTC's system, or to otherwise take actions in respect of that
interest, may be affected by the lack of a physical definitive security in
respect of that interest.
So long as DTC or its nominee is the registered owner of a Global
Note, DTC or the nominee, as the case may be, will be considered the sole
owner or holder of the Exchange Notes represented by the Global Note for all
purposes under the Indenture. Except as provided below, owners of beneficial
interests in a Global Note will not be entitled to have Exchange Notes
represented by that Global Note registered in their names, will not receive or
be entitled to receive physical delivery of Certificated Notes, and will not
be considered the owners or holders of Certificated Notes under the Indenture
for any purpose, including giving any direction, instruction or approval to
the Trustee. Accordingly, each holder owning a beneficial interest in a Global
Note must rely on the procedures of DTC and, if that holder is not a
Participant or an Indirect Participant, on the procedures of the Participant
through which that holder owns its interest, to exercise any rights of a
holder of Exchange Notes under the Indenture or that Global Note. The Issuers
understand that under existing industry practice, in the event that the
Issuers request any
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action of holders of Exchange Notes, or a holder that is an owner of a
beneficial interest in a Global Note desires to take any action that DTC, as
the holder of that Global Note, is entitled to take, DTC would authorize the
Participants to take the action and the Participants would authorize holders
owning through those Participants to take the action or would otherwise act
upon the instruction of those holders. Neither the Issuers nor the Trustee
will have any responsibility or liability for any aspect of the records
relating to or payments made on account of Exchange Notes by DTC, or for
maintaining, supervising or reviewing any records of DTC relating to the
Exchange Notes.
Payments with respect to the principal of, and premium, if any,
liquidated damages, if any, and interest on, any Exchange Notes represented by
a Global Note registered in the name of DTC or its nominee on the applicable
record date will be payable by the Trustee to or at the direction of DTC or
its nominee in its capacity as the registered holder of the Global Note
representing the Exchange Notes under the Indenture. Under the terms of the
Indenture, Jones and the Trustee may treat the persons in whose names the
Exchange Notes, including the Global Notes, are registered as the owners of
the Exchange Notes for the purpose of receiving payment on the Exchange Notes
and for any and all other purposes whatsoever. Accordingly, neither the
Issuers nor the Trustee has or will have any responsibility or liability for
the payment of those amounts to owners of beneficial interests in a Global
Note (including principal, premium, if any, liquidated damages, if any, and
interest). Payments by the Participants and the Indirect Participants to the
owners of beneficial interests in a Global Note will be governed by standing
instructions and customary industry practice and will be the responsibility of
the Participants or the Indirect Participants and DTC.
Transfers between Participants in DTC will be effected in accordance
with DTC's procedures, and will be settled in same-day funds. Transfers
between participants in Euroclear or Cedel will be effected in the ordinary
way in accordance with their respective rules and operating procedures.
Cross-market transfers of Exchange Notes between the Participants in
DTC, on the one hand, and Euroclear or Cedel participants, on the other hand,
will be effected through DTC in accordance with DTC's rules on behalf of
Euroclear or Cedel, as the case may be, by its respective depositary. However,
those cross-market transactions will require delivery of instructions to
Euroclear or Cedel, as the case may be, by the counterparty in that system in
accordance with the rules and procedures and within the established deadlines
(Brussels time) of that system. Euroclear or Cedel, as the case may be, will,
if the transaction meets its settlement requirements, deliver instructions to
its respective depositary to take action to effect final settlement on its
behalf by delivering or receiving interests in the relevant Global Notes in
DTC, and making or receiving payment in accordance with normal procedures for
same-day funds settlement applicable to DTC. Euroclear participants and Cedel
participants may not deliver instructions directly to the depositaries for
Euroclear or Cedel.
Because of time zone differences, the securities account of a
Euroclear or Cedel participant purchasing an interest in a Global Note from a
Participant in DTC will be credited, and any such crediting will be reported
to the relevant Euroclear or Cedel participant, during the securities
settlement processing day (which must be a business day for Euroclear and
Cedel) immediately following the settlement date of DTC. Cash received in
Euroclear or Cedel as a result of sales of interest in a Global Security by or
thorough a Euroclear or Cedel participant to a Participant in DTC will be
received with value on the settlement date of DTC but will be available in the
relevant Euroclear or Cedel cash account only as of the business day for
Euroclear or Cedel following DTC's settlement date.
Although DTC, Euroclear and Cedel have agreed to the foregoing
procedures to facilitate transfers of interests in the Global Notes among
participants in DTC, Euroclear and Cedel, they are under no obligation to
perform or to continue to perform those procedures, and those procedures may
be discontinued at any time. Neither the Issuers nor the Trustee will have any
responsibility for the performance by DTC, Euroclear or Cedel or their
respective participants or indirect participants of their respective
obligations under the rules and procedures governing their operations.
Certificated Exchange Notes
If (i) the Issuers notify the Trustee in writing that DTC is no
longer willing or able to act as a depositary or DTC ceases to be registered
as a clearing agency under the Exchange Act and a successor depositary is not
appointed within 90 days of that notice or cessation, (ii) the Issuers, at
their option, notify the Trustee in writing that they elect to cause the
issuance of Exchange Notes in definitive form under the Indenture or (iii)
certain other events as provided in the Indenture occur, then, upon surrender
by DTC of the Global Notes, Certificated Notes will be issued to each person
that DTC identifies as the beneficial owner of the Exchange Notes represented
by the Global Notes. Upon any issuance of this kind, the Trustee is required
to register those Certificated Notes in the name of that person or persons (or
their nominee) and cause the Certificated Notes to be delivered.
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Neither the Issuers nor the Trustee shall be liable for any delay by
DTC or any Participant or Indirect Participant in identifying the beneficial
owners of the Exchange Notes and each such person may conclusively rely on,
and shall be protected in relying on, instructions from DTC for all purposes
(including with respect to the registration and delivery, and the respective
principal amounts, of the Exchange Notes to be issued).
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PLAN OF DISTRIBUTION
Each broker-dealer that receives Exchange Notes for its own account
in the Exchange Offer must acknowledge that it will deliver a prospectus in
connection with any resale of those Exchange Notes. This Prospectus, as it may
be amended or supplemented from time to time, may be used by a broker-dealer
in connection with resales of Exchange Notes received in exchange for the
Restricted Notes where such Notes were acquired as a result of market-making
activities or other trading activities. We have agreed that, starting on the
date of this Prospectus and ending on the close of business on the earlier to
occur of (i) the date on which all Exchange Notes held by broker-dealers
eligible to use the Prospectus to satisfy their prospectus delivery
obligations under the Securities Act have been sold and (ii) the date 180 days
after the completion of the Exchange Offer, we will make this Prospectus, as
amended or supplemented, available to any broker-dealer that requests such
documents in the Letter of Transmittal for use in connection with any such
resale. In addition, until [ ], 1999, all dealers effecting transactions in
the Exchange Notes may be required to deliver a prospectus.
We will not receive any proceeds from any sale of Exchange Notes by
broker-dealers. Exchange Notes received by broker-dealers for their own
account in 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 those
methods of resale, at market prices prevailing at the time of resale, at
prices related to prevailing market prices or at negotiated prices. Any resale
of this kind 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 the broker-dealer or the purchasers of the Exchange Notes. Any
broker-dealer that resells Exchange Notes that were received by it for its own
account in the Exchange Offer and any broker or dealer that participates in a
distribution of these Exchange Notes may be deemed to be an "underwriter"
within the meaning of the Securities Act and any profit on the resale of
Exchange Notes and any commission or concessions received by any persons may
be deemed to be underwriting compensation under the Securities Act. The Letter
of Transmittal states that, by acknowledging that it will deliver and by
delivering a Prospectus, a broker-dealer will not be deemed to admit that it
is an "underwriter" within the meaning of the Securities Act.
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LEGAL MATTERS
Ira M. Dansky, Esq., General Counsel of Jones, has passed upon the
validity of the Exchange Notes offered by this Prospectus. With respect to
certain matters concerning Pennsylvania and Delaware law, he has relied on
Mesirov Gelman Jaffe Cramer & Jamieson, LLP, Philadelphia, Pennsylvania. Mr.
Dansky owns 8,226 shares of Jones' common stock and holds options entitling
him to purchase an additional 128,226 shares.
EXPERTS
The consolidated financial statements and financial statement
schedule of Jones incorporated by reference in this Prospectus have been
audited by BDO Seidman, LLP, independent certified public accountants, to the
extent and for the periods set forth in their reports incorporated herein by
reference, and are incorporated herein in reliance upon such reports given
upon the authority of said firm as experts in accounting and auditing.
The consolidated financial statements of Nine West as of January 31,
1998 and February 1, 1997 and for the 52 weeks ended January 31, 1998 and
February 1, 1997 and the 53 weeks ended February 3, 1996 appearing in Jones'
Current Report on Form 8-K dated April 7, 1999, have been audited by Deloitte
& Touche LLP, independent auditors, as set forth in their report thereon
included therein and incorporated herein by reference. Such consolidated
financial statements are incorporated herein by reference in reliance upon
such report given upon the authority of said firm as experts in accounting and
auditing.
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We have not authorized any dealer,
salesperson or other person to give any
information or to make any
representations not contained in this
Prospectus in connection with the
Exchange Offer made by this Prospectus
and you must not rely on any such $400,000,000
information or representations as having
been authorized by us. Neither the
delivery of this Prospectus nor any sale
made hereunder will, under any
circumstances, create any implication Jones Apparel Group, Inc.
that there has been no change in our Jones Apparel Group Holdings, Inc.
affairs since the date as of which Jones Apparel Group USA, Inc.
information is given in this Prospectus. Nine West Group Inc.
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.
------------------
Offer to Exchange
7.50% Senior Notes due 2004
7.875% Senior Notes due 2006
Dealer Prospectus Delivery Obligation
Until [ ], 1999, all broker dealers
that effect transactions in the Exchange
Notes, whether or not participating in
the Exchange Offer, may be required to
deliver a Prospectus. This is in
addition to the obligation of
broker-dealers to deliver a Prospectus
when acting as underwriters and with ------------------------
respect to any unsold allotments or PROSPECTUS
subscriptions. ------------------------
[ ], 1999
<PAGE>
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 20. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
As permitted by the Pennsylvania Business Corporation Law of 1988
(the "Pennsylvania Business Corporation Law"), Section 8.1 of the By-laws of
Jones Apparel Group, Inc. and Section 7.1 of the By-laws of Jones Apparel
Group USA, Inc. provide that a director shall not be personally liable for
monetary damages for any action taken or failed to be taken, other than as
expressly provided in the Pennsylvania Business Corporation Law. Furthermore,
such By-laws provide that the applicable corporation shall indemnify each
officer and director to the full extent permitted by the Pennsylvania Business
Corporation Law, and shall pay and advance expenses for any matters covered by
such indemnification.
Section 1741 of the Pennsylvania Business Corporation Law provides
that a corporation shall have the power to indemnify any person who was or is
a party or is threatened to be made a party to any threatened, pending or
completed action or proceeding, whether civil, criminal, administrative or
investigative (other than an action by or in the right of the corporation), by
reason of the fact that he or she is or was a representative of the
corporation, or is or was serving at the request of the corporation as a
representative of another domestic or foreign corporation for profit or
not-for-profit, partnership, joint venture, trust judgments, fines and amounts
paid in settlement actually and reasonably incurred by him or her in
connection with the action or proceeding if he or she acted in good faith and
in a manner he or she reasonably believed to be in, or not opposed to, the
best interests of the corporation and, with respect to any criminal
proceeding, had no reasonable cause to believe his or her conduct was
unlawful. The termination of any action or proceeding by judgment, order,
settlement or conviction or upon a plea of nolo contendere or its equivalent
shall not of itself create a presumption that the person did not act in good
faith and in a manner that he or she reasonably believed to be in, or not
opposed to, the best interests of the corporation and, with respect to any
criminal proceeding, had reasonable cause to believe that his or her conduct
was unlawful.
Section 1742 of the Pennsylvania Business Corporation Law provides
that a corporation shall have the power to indemnify any person who was or is
a party, or is threatened to be made a party, to any threatened, pending or
completed action by or in the right of the corporation to procure a judgment
in its favor by reason of the fact that he or she is or was a representative
of the corporation or is or was serving at the request of the corporation as a
representative of another domestic or foreign corporation for profit or
not-for-profit, partnership, joint venture, trust or other enterprise, against
expenses (including attorneys' fees) actually and reasonably incurred by him
or her in connection with the defense or settlement of the action if he or she
acted in good faith and in a manner he or she reasonably believed to be in, or
not opposed to, the best interest of the corporation. Indemnification shall
not be made under Section 1742 in respect of any claim, issue or matter as to
which the person has been adjudged to be liable to the corporation unless and
only to the extent that the court of common pleas of the judicial district
embracing the county in which the registered office of the corporation is
located or the court in which the action was brought determines upon
application, that, despite the adjudication of liability but in view of all
the circumstances of the case, the person is fairly and reasonably entitled to
indemnity for the expenses that the court of common pleas or other court deems
proper.
The Certificate of Incorporation of Jones Apparel Group Holdings,
Inc., a Delaware corporation ("Jones Holdings") and the Certificate of
Incorporation of Nine West Group Inc., a Delaware corporation ("Nine West"),
provides that no director of Jones Holdings or Nine West shall be personally
liable to Jones Holdings, Nine West or their stockholders for monetary damages
for breach of a fiduciary duty other than as expressly provided in Section
102(b)(7) of the General Corporation Law of Delaware (the "DGCL"), which
eliminates liability except (1) for any breach of the director's duty of
loyalty to Jones Holdings, Nine West or their stockholders, (2) for acts or
omissions not in good faith or which involve intentional misconduct or knowing
violation of law, (3) under Section 174 of the DGCL or (4) for any transaction
from which the director derives an improper personal benefit. Furthermore, the
Certificate of Incorporation and By-laws of Jones Holdings and Nine West each
provide that Jones Holdings and Nine West shall indemnify their officers,
directors, employees and agents to the full extent permitted by the DGCL, and
shall pay and advance expenses for any matters covered by such
indemnification.
Subsection (a) of Section 145 of the DGCL empowers a corporation to
indemnify any person who was or is a party or is threatened to be made a party
to any threatened, pending or completed action, suit or proceeding, whether
civil, criminal, administrative or investigative (other than an action by or
in the right of the corporation) by reason of the fact that he or she is or
was a director, employee or agent of the corporation or is or was serving at
the request of the corporation as a director, officer, employee or agent of
another corporation, partnership, joint venture, trust or their enterprise,
against expenses (including attorneys' fees), judgments, fines and amounts
paid in settlement actually and reasonably incurred by him or her in
connection with such action, suit or proceeding if he or she acted in good
faith and in a manner he or she reasonably believed to be in or not opposed to
the best interests of the corporation and, with respect to any criminal action
or proceeding, had no cause to believe that his or her conduct was unlawful.
II - 1
<PAGE>
Subsection (b) of Section 145 of the DGCL empowers a corporation to
indemnify any person who was or is a party or is threatened to be made a party
to any threatened, pending or completed action or suit by or in the right of
the corporation to procure a judgment in its favor by reason of the fact that
such person acted in any of the capacities set forth above, against expenses
(including attorneys' fees) actually and reasonably incurred by him or her in
connection with the defense or settlement of such action or suit if he or she
acted in good faith and in a manner he or she reasonably believed to be in or
not opposed to the best interests of the corporation and except that no
indemnification may be made in respect any claim, issue or matter as to which
such person shall have been adjudged to be liable to the corporation unless
and only to the extent that the Court of Chancery or the court in which such
action or suit was brought shall determine that despite the adjudication of
liability such person is fairly and reasonably entitled to indemnity for such
expenses which the court shall deem proper.
Section 145 of the DGCL further provides that (1) to the extent a
director, officer, employee or agent of a corporation has been successful in
the defense of any action, suit or proceeding referred to in subsections (a)
and (b) or in the defense of any claim, issue or matter therein, he or she
shall be indemnified against expenses (including attorneys' fees) actually and
reasonably incurred by him or her in connection therewith; (2) indemnification
or advancement of expenses provided for by Section 145 shall not be deemed
exclusive of any other rights to which the indemnified party may be entitled;
and (3) the corporation shall have the power to purchase and maintain
insurance on behalf of a director, officer, employee or agent of the
corporation against any liability asserted against him or her or incurred by
him or her in any such capacity or arising out of his or her status as such
whether or not the corporation would have the power to indemnify him or her
against such liabilities under Section 145.
ITEM 21. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
EXHIBIT NO. DESCRIPTION
3.1 Certificate of Incorporation of Jones Apparel
Group Holdings, Inc. (filed as Exhibit 3.1 to
the Company's Registration Statement on Form S-4
(File No. 333-68587) filed with the SEC on
January 25, 1999)*
3.2 By-laws of Jones Apparel Group Holdings, Inc.
(filed as Exhibit 3.2 to the Company's
Registration Statement on Form S-4 (File No.
333-68587) filed with the SEC on January 25,
1999)*
3.3 Articles of Incorporation of Jones Apparel Group
USA, Inc. (filed as Exhibit 3.3 to the Company's
Registration Statement on Form S-4 (File No.
333-68587) filed with the SEC on January 25,
1999)*
3.4 By-laws of Jones Apparel Group USA, Inc. (filed
as Exhibit 3.4 to the Company's Registration
Statement on Form S-4 (File No. 333-68587) filed
with the SEC on January 25, 1999)*
3.5 Amended and Restated Articles of Incorporation
of Jones Apparel Group, Inc. (filed as Exhibit
3.1 to the Company's Annual Report on Form 10-K
for the year ended December 31, 1998)*
3.6 By-laws of Jones Apparel Group, Inc. (filed as
Exhibit 3.3 to the Company's Registration
Statement on Form S-1 (File No. 39742) filed
with the Commission on April 3, 1991*
3.7 Certificate of Incorporation of Nine West Group
Inc. (formerly known as Jack Asset Sub Inc.)**
3.8 By-laws of Nine West Group Inc. (formerly known
as Jack Asset Sub Inc.)**
3.9 Change of corporate name from Jack Asset Sub
Inc. to Nine West Group Inc**
4.1 Exchange and Note Registration Rights Agreement
dated June 15, 1999 among Jones Apparel Group,
Inc., Jones Apparel Group Holdings, Inc., Jones
Apparel Group USA, Inc., Nine West Group Inc.
and Chase Securities Inc., Merrill Lynch, Pierce
Fenner & Smith Incorporated, Bear, Stearns & Co,
Inc., Salomon Smith Barney Inc., BancBoston
Robertson Stephens Inc., Banc of America
Securities LLC, ING Baring Furman Selz LLC,
Lazard Freres & Co. LLC, Tucker Anthony Cleary
Gull, Brean Murray & Co., Inc. and The
Buckingham Research Group Incorporated (filed as
Exhibit 4.5 to the Company's Quarterly Report on
Form 10-Q for the quarter ended July 4, 1999)*
II - 2
<PAGE>
4.2 Senior Note Indenture dated as of June 15, 1999
among Jones Apparel Group, Inc., Jones Apparel
Group Holdings, Inc., Jones Apparel Group USA,
Inc., Nine West Group Inc. and The Bank of New
York, as trustee (filed as Exhibit 4.6 to the
Company's Quarterly Report on Form 10-Q for the
quarter ended July 4, 1999)*
4.3 Form of 7.50% Exchange Note due 2004 (included
in Exhibit 4.2)
4.4 Form of 7.875% Exchange Note due 2006 (included
in Exhibit 4.2)
5.1 Form of opinion of Ira M. Dansky, Esq.**
5.2 Form of opinion of Mesirov Gelman Jaffe Cramer &
Jamieson, LLP**
10.1 Agreement and Plan of Reorganization dated as of
January 1, 1999, among Jones Apparel Group,
Inc., Jones Apparel Group Holdings, Inc. and
Jones Apparel Group USA, Inc. (filed as Exhibit
10.1 to the Company's Registration Statement on
Form S-4 (File No. 333-68587) filed with the SEC
on January 25, 1999)*
10.2 Master Joinder Agreement, dated as of January 1,
1999, to the Credit Agreements referred to
therein, entered into by and among Jones Apparel
Group, Inc., Jones Apparel Group, USA, Inc.,
Jones Apparel Group Holdings, Inc., as Credit
Parties, and First Union National Bank, as
Administrative Agent on behalf of the Lenders
(filed as Exhibit 10.2 to the Company's
Registration Statement on Form S-4 (File No.
333-68587) filed with the SEC on January 25,
1999)*
10.3 Agreement and Plan of Merger dated as of March
1, 1999, by and among Jones Apparel Group, Inc.,
Jill Acquisition Sub Inc. and Nine West Group
Inc. (filed as Exhibit 2.1 to the Company's
Current Report on Form 8-K filed with the SEC on
March 2, 1999)*
10.4 Second Amended and Restated 364-Day Credit
Agreement dated as of June 15, 1999 among Jones
Apparel Group USA, Inc. and the Additional
Obligors referred to therein, the Lenders
referred to therein, and First Union National
Bank, as Administrative Agent (filed as Exhibit
10.1 to the Company's Quarterly Report on Form
10-Q for the quarter ended July 4, 1999)*
10.5 Five-Year Credit Agreement dated as of June 15,
1999 among Jones Apparel Group USA, Inc. and the
Additional Obligors referred to therein, the
Lenders referred to therein, and First Union
National Bank, as Administrative Agent (filed as
Exhibit 10.2 to the Company's Quarterly Report
on Form 10-Q for the quarter ended July 4,
1999)*
12.1 Computation of Ratios of Earnings to Fixed
Charges**
21.1 List of Subsidiaries**
23.1 Consent of BDO Seidman, LLP**
23.2 Consent of Deloitte & Touche LLP**
23.3 Consent of Ira M. Dansky, Esq. (included in
opinion filed as Exhibit 5.1)
23.4 Consent of Mesirov Gelman Jaffe Cramer &
Jamieson, LLP (included in opinion filed as
Exhibit 5.2)
24.1 Power of Attorney (included in signature page)
25.1 Form T-1 Statement of Eligibility of Trustee**
99.1 Form of Letter of Transmittal**
99.2 Form of Notice of Guaranteed Delivery**
*Incorporated by reference.
**Previously Filed.
II - 3
<PAGE>
ITEM 22. UNDERTAKINGS.
(a) Each 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 (the "Securities Act");
(ii) To reflect in the Prospectus any facts or events arising
after the effective date of this Registration Statement (or the most
recent post-effective date of this 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 this Registration Statement. Notwithstanding the
foregoing, any increase or decrease in volume of securities offered
(if the total dollar value of securities offered would not exceed
that which was registered) and any deviation from the maximum
aggregate offering price may be reflected in the form of prospectus
filed with the SEC pursuant to Rule 424(b) under the Securities Act,
if in the aggregate, the changes in volume and price represent no
more than a 20% change in the maximum aggregate offering price set
forth in the "Calculation of Registration Fee" table in the
effective registration statement; and
(iii) To include any material information with respect to the
plan of distribution not previously disclosed in this Registration
Statement or any material change to such information in this
Registration Statement;
provided, however, that paragraphs (a)(1)(i) and (a)(1)(ii) above do
not apply if the information required to be included in a
post-effective amendment by those paragraphs is contained in
periodic reports filed by the Registrant pursuant to Section 13 or
15(d) of the Exchange Act of 1934 the (the "Exchange Act") and
incorporated by reference in this 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.
(b) Each undersigned Registrant hereby undertakes 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 Exchange
Act (and, where applicable, each filing of an employee benefit plan's annual
report pursuant to Section 15(d) of the Exchange Act) that is incorporated by
reference in this Registration Statement shall be deemed to be a new
registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial
bona fide offering thereof.
(c) Insofar as indemnification for liabilities arising under the
Securities Act may be permitted to directors, officers and controlling persons
of the Registrant pursuant to the foregoing provisions, or otherwise, each
Registrant has been advised that in the opinion of the SEC such
indemnification is against public policy as expressed in the Securities Act
and is therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the Registrant of expenses
incurred or paid by a director, officer or controlling person of the
Registrant in the successful defense of any action, suit or proceeding) is
asserted by 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.
(d) Each undersigned Registrant hereby undertakes to respond to
requests for information that is incorporated by reference into the prospectus
pursuant to Items 4, 10(b), 11 or 13 of this Form, within one business day of
receipt of such request, and to send the incorporated documents by first class
mail or other equally prompt means. This includes information contained in
documents filed subsequent to the effective date of the Registration Statement
through the date of responding to request.
II - 4
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act, each of the
Registrants has duly caused this amendment to the Registration Statement to be
signed on its behalf by the undersigned thereunto duly authorized, in the City
of New York, State of New York, on September 30, 1999.
JONES APPAREL GROUP, INC., Registrant
by /s/ Wesley R. Card
---------------------------------------
Wesley R. Card
Chief Financial Officer
JONES APPAREL GROUP HOLDINGS, INC., Registrant
by /s/ Ira M. Dansky
---------------------------------------------
Ira M. Dansky
President
JONES APPAREL GROUP USA, INC., Registrant
by /s/ Wesley R. Card
----------------------------------------------
Wesley R. Card
Chief Financial Officer
NINE WEST GROUP INC., Registrant
by /s/ Mark J. Schwartz
------------------------------------------------
Mark J. Schwartz
Chairman and Chief Executive Officer
II - 5
<PAGE>
Pursuant to the requirements of the Securities Act, this amendment
to the Registration Statement has been signed by the following persons in the
capacities and on the date indicated.
<TABLE>
<S> <C> <C>
SIGNATURE TITLE DATE
* JONES APPAREL GROUP, INC.
- ------------------------- Chairman and Director September 30, 1999
Sidney Kimmel (Principal Executive Officer)
*
- ------------------------- President and Director September 30, 1999
Jackwyn Nemerov
*
- ------------------------- Chief Financial Officer September 30, 1999
Wesley R. Card (Principal Financial Officer)
*
- ------------------------- Vice President and Corporate Controller September 30, 1999
Patrick M. Farrell (Principal Accounting Officer)
*
- ------------------------- Executive Vice President, Marketing, and September 30, 1999
Irwin Samelman Director
- ------------------------- Director
Geraldine Stutz
- ------------------------- Director
Howard Gittis
*
- ------------------------- Director September 30, 1999
Eric A. Rothfeld
*
- ------------------------- Director September 30, 1999
Mark J. Schwartz
</TABLE>
II - 6
<PAGE>
<TABLE>
<S> <C> <C>
SIGNATURE TITLE DATE
JONES APPAREL GROUP HOLDINGS, INC.
/s/ Ira M. Dansky
- ------------------------- President and Treasurer and Director September 30, 1999
Ira M. Dansky (Principal Executive Officer)
*
- -------------------------
Joseph T. Donnalley Vice President/Finance and Assistant Secretary September 30, 1999
(Principal Financial Officer and Principal
Accounting Officer)
*
- -------------------------
Norman Shuman Vice President and Secretary and Director September 30, 1999
JONES APPAREL GROUP USA, INC.
*
- ------------------------- Chairman and Director September 30, 1999
Sidney Kimmel (Principal Executive Officer)
*
- ------------------------- President and Director September 30, 1999
Jackwyn Nemerov
*
- ------------------------- Chief Financial Officer September 30, 1999
Wesley R. Card (Principal Financial Officer)
*
- ------------------------- Vice President and Corporate Controller September 30, 1999
Patrick M. Farrell (Principal Accounting Officer)
*
- ------------------------- Executive Vice President, Marketing, and September 30, 1999
Irwin Samelman Director
NINE WEST GROUP INC.
*
- ------------------------- Chairman and Chief Executive Officer and September 30, 1999
Mark J. Schwartz Director (Principal Executive Officer)
*
- ------------------------- Senior Vice President--Finance and Assistant September 30, 1999
Jeffrey K. Howald Secretary (Principal Financial Officer and
Principal Accounting Officer)
* Director September 30, 1999
- -------------------------
Sidney Kimmel
*
- ------------------------- Director September 30, 1999
Jackwyn Nemerov
*
- ------------------------- Director September 30, 1999
Wesley R. Card
*
- ------------------------- Director September 30, 1999
Irwin Samelman
</TABLE>
II - 7
<PAGE>
Ira M. Dansky, by signing his name below, signs this document on
behalf of each of the above-named persons specified by an asterisk (*),
pursuant to a power of attorney duly executed by such persons, filed with the
Securities and Exchange Commission in the Registrant's Registration Statement
on Form S-4 on September 10, 1999.
/s/ Ira M. Dansky
Ira M. Dansky
Attorney-in-fact
II - 8
<PAGE>
INDEX TO EXHIBITS
EXHIBIT NO. DESCRIPTION
3.1 Certificate of Incorporation of Jones Apparel
Group Holdings, Inc. (filed as Exhibit 3.1 to
the Company's Registration Statement on Form S-4
(File No. 333-68587) filed with the SEC on
January 25, 1999)*
3.2 By-laws of Jones Apparel Group Holdings, Inc.
(filed as Exhibit 3.2 to the Company's
Registration Statement on Form S-4 (File No.
333-68587) filed with the SEC on January 25,
1999)*
3.3 Articles of Incorporation of Jones Apparel Group
USA, Inc. (filed as Exhibit 3.3 to the Company's
Registration Statement on Form S-4 (File No.
333-68587) filed with the SEC on January 25,
1999)*
3.4 By-laws of Jones Apparel Group USA, Inc. (filed
as Exhibit 3.4 to the Company's Registration
Statement on Form S-4 (File No. 333-68587) filed
with the SEC on January 25, 1999)*
3.5 Amended and Restated Articles of Incorporation
of Jones Apparel Group, Inc. (filed as Exhibit
3.1 to the Company's Annual Report on Form 10-K
for the year ended December 31, 1998)*
3.6 By-laws of Jones Apparel Group, Inc. (filed as
Exhibit 3.3 to the Company's Registration
Statement on Form S-1 (File No. 39742) filed
with the Commission on April 3, 1991*
3.7 Certificate of Incorporation of Nine West Group
Inc. (formerly known as Jack Asset Sub Inc.)**
3.8 By-laws of Nine West Group Inc. (formerly known
as Jack Asset Sub Inc.)**
3.9 Change of corporate name from Jack Asset Sub
Inc. to Nine West Group Inc.**
4.1 Exchange and Note Registration Rights Agreement
dated June 15, 1999 among Jones Apparel Group,
Inc., Jones Apparel Group Holdings, Inc., Jones
Apparel Group USA, Inc., Nine West Group Inc.
and Chase Securities Inc., Merrill Lynch, Pierce
Fenner & Smith Incorporated, Bear, Stearns & Co,
Inc., Salomon Smith Barney Inc., BancBoston
Robertson Stephens Inc., Banc of America
Securities LLC, ING Baring Furman Selz LLC,
Lazard Freres & Co. LLC, Tucker Anthony Cleary
Gull, Brean Murray & Co., Inc. and The
Buckingham Research Group Incorporated (filed as
Exhibit 4.5 to the Company's Quarterly Report on
Form 10-Q for the quarter ended July 4, 1999)*
4.2 Senior Note Indenture dated as of June 15, 1999
among Jones Apparel Group, Inc., Jones Apparel
Group Holdings, Inc., Jones Apparel Group USA,
Inc., Nine West Group Inc. and The Bank of New
York, as trustee (filed as Exhibit 4.6 to the
Company's Quarterly Report on Form 10-Q for the
quarter ended July 4, 1999)*
4.3 Form of 7.50% Exchange Note due 2004 (included
in Exhibit 4.2)
4.4 Form of 7.875% Exchange Note due 2006 (included
in Exhibit 4.2)
5.1 Form of opinion of Ira M. Dansky, Esq.**
5.2 Form of opinion of Mesirov Gelman Jaffe Cramer &
Jamieson, LLP**
10.1 Agreement and Plan of Reorganization dated as of
January 1, 1999, among Jones Apparel Group,
Inc., Jones Apparel Group Holdings, Inc. and
Jones Apparel Group USA, Inc. (filed as Exhibit
10.1 to the Company's Registration Statement on
Form S-4 (File No. 333-68587) filed with the SEC
on January 25, 1999)*
10.2 Master Joinder Agreement, dated as of January 1,
1999, to the Credit Agreements referred to
therein, entered into by and among Jones Apparel
Group, Inc., Jones Apparel Group,
II - 9
<PAGE>
USA, Inc., Jones Apparel Group Holdings, Inc.,
as Credit Parties, and First Union National
Bank, as Administrative Agent on behalf of the
Lenders (filed as Exhibit 10.2 to the Company's
Registration Statement on Form S-4 (File No.
333-68587) filed with the SEC on January 25,
1999)*
10.3 Agreement and Plan of Merger dated as of March
1, 1999, by and among Jones Apparel Group, Inc.,
Jill Acquisition Sub Inc. and Nine West Group
Inc. (filed as Exhibit 2.1 to the Company's
Current Report on Form 8-K filed with the SEC on
March 2, 1999)*
10.4 Second Amended and Restated 364-Day Credit
Agreement dated as of June 15, 1999 among Jones
Apparel Group USA, Inc. and the Additional
Obligors referred to therein, the Lenders
referred to therein, and First Union National
Bank, as Administrative Agent (filed as Exhibit
10.1 to the Company's Quarterly Report on Form
10-Q for the quarter ended July 4, 1999)*
10.5 Five-Year Credit Agreement dated as of June 15,
1999 among Jones Apparel Group USA, Inc. and the
Additional Obligors referred to therein, the
Lenders referred to therein, and First Union
National Bank, as Administrative Agent (filed as
Exhibit 10.2 to the Company's Quarterly Report
on Form 10-Q for the quarter ended July 4,
1999)*
12.1 Computation of Ratios of Earnings to Fixed
Charges**
21.1 List of Subsidiaries**
23.1 Consent of BDO Seidman, LLP**
23.2 Consent of Deloitte & Touche LLP**
23.3 Consent of Ira M. Dansky, Esq. (included in
opinion filed as Exhibit 5.1)
23.4 Consent of Mesirov Gelman Jaffe Cramer &
Jamieson, LLP (included in opinion filed as
Exhibit 5.2)
24.1 Power of Attorney (included in signature page)
25.1 Form T-1 Statement of Eligibility of Trustee**
99.1 Form of Letter of Transmittal**
99.2 Form of Notice of Guaranteed Delivery**
*Incorporated by reference.
**Previously Filed.
II - 10
