Document:

ex-10_2.htm

FS Investment Corporation 8-K

 

Exhibit 10.2

 

SUPPLEMENTAL INDENTURE NO. 1, dated as of February 15, 2012 (this “Supplemental Indenture”), between Locust Street Funding LLC, a Delaware limited liability company (the “Issuer”), and Citibank, N.A., a national banking association, organized and existing under the laws of United States of America, as trustee (the “Trustee”), to the Indenture, dated as of July 21, 2011, between the Issuer and the Trustee (as amended, supplemented and modified from time to time, the “Indenture”).

 

WHEREAS, pursuant to Article VIII of the Indenture and subject to certain conditions stated therein, the Issuer and the Trustee may enter into a supplemental indenture in order to amend the Indenture;

 

WHEREAS, the Issuer desires to enter into this Supplemental Indenture to effect certain amendments, as set forth herein;

 

WHEREAS, with the consent of not less than a Majority of the Controlling Class, the Issuer and the Trustee at any time and from time to time may enter into one or more supplemental indentures for the purpose of amending, modifying or waiving any provision of the Indenture;

 

WHEREAS, all the other requirements set forth in Article VIII of the Indenture with respect to the execution of this Supplemental Indenture have been satisfied or waived; and

 

WHEREAS, the Issuer desires to amend the Indenture in accordance with the terms and conditions set forth below.

 

NOW THEREFORE, in consideration of the foregoing premises, the parties mutually agree as follows for the benefit of each other and for the benefit of the Noteholders:

 

 

PART I

 

Definitions

 

PART 1.1.   Defined Terms.  Terms for which meanings are provided in the Indenture are, unless otherwise defined herein or the context otherwise requires, used in this Supplemental Indenture with such meanings.

 

 

PART II

 

Amendments to Indenture

 

PART 2.1.   Amendments to Section 1.1.

 

(a)           The definition of “Aggregate Principal Amount” contained in Section 1.1 of the Indenture is hereby amended by adding before the period at the end of the definition the following:

 

“; provided, that for purposes of calculating Concentration Limitations for compliance with clauses (iv) and (v) of the definition of Concentration Limitations, the Aggregate Principal Amount shall be deemed to be $600,000,000”

 

  

  

  

 

(b)           A new defined term, “Amendment Date” as set forth below, is added to Section 1.1 of the Indenture in alphabetical order:

 

“Amendment Date”:  February 15, 2012.

 

(c)           The definition of “Class A Maximum Principal Amount” contained in Section 1.1 of the Indenture is hereby amended by replacing the number “$420,000,000” with the following:

 

“From the Closing Date to the Amendment Date, $420,000,000, and from and after the Amendment Date, $560,000,000”.

 

(d)           The definition of “Deposit” contained in Section 1.1 of the Indenture is hereby deleted and replaced with the following:

 

“Deposit:  Any Cash deposited with the Trustee by the Issuer on or before the Closing Date and on the Amendment Date, as applicable, for inclusion as Collateral and deposited by the Trustee in the Principal Collection Account on the Closing Date or on the Amendment Date, as applicable.”

 

PART 2.2.   Amendment to Section 2.3.  Section 2.3 of the Indenture is hereby amended by replacing the number “$420,000,000” in the first and second paragraphs with the number “$560,000,000”.

 

PART 2.3.   Amendment to Section 2.13.  Section 2.13 of the Indenture is hereby deleted and replaced with the following:

 

“Section 2.13    Increases on the Class A Notes.

 

(a)           The Class A Notes will be issued on the Closing Date in initial aggregate principal amounts equal to the Class A Initial Principal Amount and may be increased from time to time up to the Class A Maximum Principal Amount subject to the terms and conditions herein.  The Registrar will make a record of any such increase in principal amount of the Class A Notes in the Register.

 

(b)           After the Closing Date and up to and including the Payment Date occurring in July 2012, the aggregate outstanding principal amount of the Class A Notes may be increased up to the applicable Class A Maximum Principal Amount (each such increase referred to as an “Increase”), in connection with the acquisition of Collateral Obligations permitted to be acquired hereunder or to be retained by the Issuer in anticipation of such acquisition; provided that an Issuer Order from the Collateral Manager substantially in the form of Exhibit G (an “Increase Request”) is delivered by, or on behalf of, the Issuer and received by the Trustee.

 

(c)           The aggregate outstanding principal amount of the Class A Notes may be increased on any Business Day pursuant to subsection (b) above, only upon satisfaction of each of the following conditions with respect to each proposed Increase:

 

(i)           The aggregate outstanding principal amount of the Rule 144A Global Class A Notes may be increased no more than six times during the period from and excluding the Closing Date to and excluding the Amendment Date.  The aggregate outstanding principal amount of the Rule 144A Global Class A Notes shall be increased in any number of times on or after the Amendment Date; provided, that the aggregate principal amount of all Increases during the period from the Amendment Date through the Payment Date occurring in April 2012 shall not, in the aggregate, be less than $70,000,000.

 

  

  

  

 

(ii)           The aggregate principal amount of any Increase on or prior to the Effective Date shall be in a minimum amount of $40,000,000 (and in integral multiple of $50,000 in excess thereof), unless the remaining aggregate principal amount of the Class A Notes available for an Increase is less than such minimum amount, then in the entire available amount of the Class A Notes.

 

(iii)           No Event of Default has occurred and is continuing.

 

(iv)           After giving effect to such Increase, the principal amount of each Class A Note shall not exceed the Class A Maximum Principal Amount.

 

(v)           The Trustee shall have received an Increase Request substantially in the form of Exhibit G (i) specifying the aggregate principal amount of the Increase to be applied to each Class A Note and the effective date of such Increase and (ii) certifying that all conditions precedent to such Increase on such Business Day have been satisfied.

 

(vi)           The prior written consent of the Majority of the Controlling Class with respect to such Increase has been provided to the Issuer.

 

(vii)           Notwithstanding anything herein to the contrary, if on the Payment Date occurring in July 2012 the aggregate outstanding principal amount of the Class A Notes is less than the Class A Maximum Principal Amount of the Class A Notes, the Issuer (or the Collateral Manager on behalf of the Issuer) shall request from the respective Holders of the Class A Notes an Increase in an amount equal to such remaining principal amount of the Class A Notes and thereafter, no further Increases shall be made hereunder.

 

(d)           Upon receipt of the cash proceeds of such Increase by or on behalf of the Issuer, the Trustee shall deposit such proceeds in the Principal Collection Account and shall instruct the Registrar to make appropriate notations on the Register or on its books and records of the amount of such adjustment to the outstanding principal amounts of each of the Class A Notes as specified in the Increase Request delivered to the Trustee in connection with an Increase, and the Issuer hereby authorizes the Trustee to make such notations on the Register and on its books and records as aforesaid.  Further, in accordance with DTC's procedures, the Trustee, as Registrar, will credit or cause to be credited to the account of the relevant Holder a principal amount of such Class A Note equal to such Increase.

 

(e)           Notwithstanding the foregoing, or any other provision of this Indenture (including without limitation Article XI), the Issuer, at the option of the Equity Owner, shall have the right to direct the Trustee (such direction to be given no later than the Business Day immediately following the receipt of the cash proceeds of the Increase) to make a cash distribution from the cash proceeds of such Increase to the Equity Owner but only if, and only to the extent that, after giving effect to such cash distribution, the Aggregate Principal Amount of the Collateral minus the Aggregate Outstanding Amount of the Class A Notes shall not fall below $240,000,000.”

 

  

  

  

 

PART 2.4.   Amendment to Section 3.2(c).  Section 3.2(c) of the Indenture is hereby amended by adding the following sentence to the end of clause (i):

 

“On or prior to the date of the first Increase on or after the Amendment Date, the Issuer shall deliver cash in an amount of $60,000,000 to the Trustee for deposit in the Principal Collection Account; provided that the Issuer, at the option of the Equity Owner, may deliver to the Trustee, in lieu of cash, Collateral Obligations in an Aggregate Principal Amount of not less than $60,000,000 and subject to the prior written consent of the Majority of the Controlling Class with respect to each of such Collateral Obligation.”

 

PART 2.5.   Amendment to Section 3.14.  Section 3.14 of the Indenture is hereby amended by replacing clauses (a) and (b) with the following:

 

“(a)           Investment of Deposit or Increases in Collateral Obligations.  The Collateral Manager on behalf of the Issuer shall seek to invest the Deposit and Increases, as applicable, in Collateral Obligations in accordance with the provisions hereof.  Subject to the provisions of this Section 3.4, all or any portion of the Deposit or Increase may be applied prior to the end of the Reinvestment Period to purchase a Collateral Obligation or one or more Eligible Investments for inclusion in the Collateral upon receipt by the Trustee of an Issuer Order with respect thereto directing the Trustee to pay out the amount specified therein against delivery of the Collateral Obligations or Eligible Investments specified therein.

 

(b)           Investment of Deposit or Increases in Eligible Investments.  Any portion of the Deposit or any Increase that is not invested in Collateral Obligations at 3:00 p.m., New York City time, on any Business Day during the Reinvestment Period shall, on the next succeeding Business Day or as soon as practicable thereafter, be invested in Eligible Investments as directed by the Collateral Manager in writing (which may be in the form of standing instructions).”

 

PART 2.6.   Amendment to Section 10.3.  The first sentence of Section 10.3(b) of the Indenture is hereby amended by adding the words “, all Increases made pursuant to Section 2.13” after the words “Section 3.2(c)”.

 

 

PART III

 

Conditions Precedent

 

PART 3.1.    This Supplemental Indenture shall become effective as of the date first written above upon satisfaction of the following conditions precedent:

 

(a) execution and delivery of this Supplemental Indenture by the parties hereto;

 

(b) waiver of the fifteen (15) Business Day notice period described in Section 8.1 of the Indenture by the Noteholders and the Collateral Manager, as evidenced by their execution and delivery of their signature pages attached hereto;

 

(c) receipt by the Trustee of written consent to the substance of this Supplemental Indenture from a Majority of the Controlling Class as evidenced by its execution and delivery of its signature page attached hereto;

 

  

  

  

 

 

(d) delivery to and receipt by the Trustee of any Opinion of Counsel requested pursuant to Section 8.2 of the Indenture; and

 

(e) the cancellation of the existing Class A Note and issuance of a new Class A Note with the Class A Maximum Principal Amount as amended by this Amendment.

 

 

PART IV

 

Miscellaneous

 

PART 5.1.   Governing Law.  This Supplemental Indenture shall be construed in accordance with and governed by the laws of the State of New York applicable to agreements made and to be performed therein without regard to conflict of laws principles that would apply the law of a jurisdiction other than the laws of the State of New York.

 

PART 5.2.   Ratification of Indenture; Supplemental Indenture Part of Indenture.  Except as expressly supplemented hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect.  This Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of Class A Notes heretofore or hereafter authenticated and delivered shall be bound hereby.

 

PART 5.3.   Counterparts.  The parties hereto may sign one or more copies of this Supplemental Indenture in counterparts, all of which together shall constitute one and the same agreement.  Delivery by facsimile or other electronic means of an executed signature page of this Supplemental Indenture shall be effective as delivery of an executed counterpart hereof.

 

PART 5.4.   Execution, Delivery and Validity.  The Issuer represents and warrants to the Trustee that this Supplemental Indenture has been duly and validly executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable against such party in accordance with its terms.

 

PART 5.5.   Acceptance by Trustee.  The Trustee accepts the amendment to the Indenture as set forth in this Supplemental Indenture and agrees to perform the duties of the Trustee upon the terms and conditions set forth in the Indenture, as amended and supplemented hereby.

 

PART 5.6.   Binding Effect.  This Supplemental Indenture shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

 

PART 5.7.   Concerning the Trustee.  The recitals contained in this Supplemental Indenture shall be taken as the statements of the Issuer and the Trustee assumes no responsibility for their correctness.  The Trustee makes no representation as to the validity, execution, or sufficiency of this Supplemental Indenture (except as may be made with respect to the validity of the Trustee’s obligations hereunder).  In entering into this Supplemental Indenture, the Trustee shall be entitled to the benefit of every provision of the Indenture relating to the conduct of or affecting the liability of or affording protection to the Trustee.

 

[Signature Pages Follow]

 

  

  

  

 

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed as of the date first above written.

 

 

	  	  	

LOCUST STREET FUNDING LLC,

	 	 	  as Issuer
	  	  	  
	  	  	
By:

	
/s/Gerald F. Stahlecker

	  	  	
Name:

	Gerald F. Stahlecker
	  	  	
Title:

	Executive Vice President

 

 

	  	  	

CITIBANK, N.A.,

	 	 	  as Trustee
	  	  	  
	  	  	
By:

	
/s/Thomas J. Varcados

	  	  	
Name:

	Thomas J. Varcados
	  	  	
Title:

	Vice President

  

  

  

 

As consented to by:

 

	

JPMORGAN CHASE BANK, N.A.,

	  
	  as Majority of the Controlling Class	 

 

	 	 
	
By:

	

/s/ Louis J. Cerrotta

	  
	
Name:

	Louis J. Cerrotta	  
	
Title:

	Executive Director	  

 

  

  

  

 

As consented to by:

 

	

FS INVESTMENT CORPORATION,

	  
	  as Collateral Manager	 

 

	 	 
	
By:

	

/s/ Gerald F. Stahlecker

	  
	
Name:

	
Gerald F. Stahlecker

	  
	
Title:

	
Executive Vice Presidentex-10_3.htm

FS Investment Corporation 8-K

 

Exhibit 10.3

 

LOCUST STREET FUNDING LLC

 

CLASS A FLOATING RATE SECURED NOTE, DUE 2021

 

THIS CLASS A NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND THE ISSUER HAS NOT BEEN REGISTERED UNDER THE UNITED STATES INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE "INVESTMENT COMPANY ACT").  THE HOLDER HEREOF, BY PURCHASING THIS CLASS A NOTE, AGREES FOR THE BENEFIT OF THE ISSUER THAT SUCH CLASS A NOTE MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (A)(1) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT, PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER, IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE SECURITIES ACT AND THAT (U) IS A QUALIFIED PURCHASER WITHIN THE MEANING OF SECTION 3(c)(7) OF THE INVESTMENT COMPANY ACT, (V) WAS NOT FORMED FOR THE PURPOSE OF INVESTING IN THE ISSUER (EXCEPT WHEN EACH BENEFICIAL OWNER OF THE PURCHASER IS A QUALIFIED PURCHASER), (W) UNDERSTANDS AND AGREES THAT THE ISSUER MAY RECEIVE A LIST OF PARTICIPANTS IN THE SECURITIES FROM ONE OR MORE BOOK-ENTRY DEPOSITORIES, (X) IS NOT A BROKER-DEALER THAT OWNS AND INVESTS ON A DISCRETIONARY BASIS LESS THAN $25,000,000 IN SECURITIES OF UNAFFILIATED ISSUERS, (Y) IS NOT A PENSION, PROFIT-SHARING OR OTHER RETIREMENT TRUST FUND OR PLAN IN WHICH THE PARTNERS, BENEFICIARIES OR PARTICIPANTS OR AFFILIATES MAY DESIGNATE THE PARTICULAR INVESTMENT TO BE MADE AND (Z) HAS RECEIVED THE NECESSARY CONSENT FROM ITS BENEFICIAL OWNERS WHEN THE PURCHASER IS A PRIVATE INVESTMENT COMPANY FORMED ON OR BEFORE APRIL 30, 1996, AND IN A TRANSACTION THAT MAY BE EFFECTED WITHOUT LOSS OF ANY APPLICABLE INVESTMENT COMPANY ACT EXEMPTION OR EXCLUSION, (B) IN A PRINCIPAL AMOUNT OF NOT LESS THAN THE MINIMUM DENOMINATION SET FORTH IN THE INDENTURE AND (C) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES OR OTHER APPLICABLE JURISDICTION.  ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB INITIO AND WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING ANY INSTRUCTIONS TO THE CONTRARY TO THE ISSUER, THE TRUSTEE OR ANY INTERMEDIARY.  EACH TRANSFEROR OF THIS CLASS A NOTE WILL PROVIDE NOTICE OF THE TRANSFER RESTRICTIONS SET FORTH HEREIN AND IN THE INDENTURE TO ITS TRANSFEREE.  IN ADDITION TO THE FOREGOING, THE ISSUER MAINTAINS THE RIGHT TO RESELL SECURITIES PREVIOUSLY TRANSFERRED TO NON-PERMITTED HOLDERS (AS DEFINED IN THE INDENTURE) IN ACCORDANCE WITH AND SUBJECT TO THE TERMS OF THE INDENTURE.

 

ANY TRANSFER, PLEDGE OR OTHER USE OF THIS CLASS A NOTE FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN, UNLESS THIS CLASS A NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY ("DTC"), NEW YORK, NEW YORK, TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR OF SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO.).

 

  

  

  

 

TRANSFERS OF THIS CLASS A NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S NOMINEE, AND TRANSFERS OF PORTIONS OF THIS CLASS A NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO HEREIN.

 

PRINCIPAL OF THIS CLASS A NOTE IS PAYABLE AS SET FORTH HEREIN.  ACCORDINGLY, THE OUTSTANDING PRINCIPAL OF THIS CLASS A NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.  ANY PERSON ACQUIRING THIS CLASS A NOTE MAY ASCERTAIN ITS CURRENT PRINCIPAL AMOUNT BY INQUIRY OF THE TRUSTEE.

 

THE FAILURE TO PROVIDE THE ISSUER, THE TRUSTEE AND ANY PAYING AGENT WITH THE APPLICABLE U.S. FEDERAL INCOME TAX CERTIFICATIONS (GENERALLY, AN INTERNAL REVENUE SERVICE FORM W-9 (OR SUCCESSOR APPLICABLE FORM) IN THE CASE OF A PERSON THAT IS A "UNITED STATES PERSON" WITHIN THE MEANING OF SECTION 7701(A)(30) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") WILL RESULT IN U.S. WITHHOLDING FROM PAYMENTS TO THE HOLDER IN RESPECT OF THIS CLASS A NOTE.

 

BY ACQUIRING THIS CLASS A NOTE (OR INTEREST THEREIN), EACH PURCHASER (AND, IF THE PURCHASER OR TRANSFEREE IS AN EMPLOYEE BENEFIT PLAN OR OTHER PLAN, ITS FIDUCIARY) IS DEEMED TO REPRESENT AND WARRANT THAT (1) IT IS NOT ACQUIRING THE CLASS A NOTE (OR INTEREST THEREIN) WITH THE ASSETS OF AN EMPLOYEE BENEFIT PLAN (AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA")) WHICH IS SUBJECT TO TITLE I OF ERISA OR A PLAN (AS DEFINED IN SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”)) OR ANY ENTITY WHOSE UNDERLYING ASSETS INCLUDE "PLAN ASSETS" (WITHIN THE MEANING OF 29 C.F.R. § 2510.3-101, AS MODIFIED BY SECTION 3(42) OF ERISA) BY REASON OF SUCH EMPLOYEE BENEFIT PLAN'S OR PLAN'S INVESTMENT IN THE ENTITY, (2) IF THE PURCHASER OR TRANSFEREE IS A GOVERNMENTAL PLAN OR CHURCH PLAN, ITS ACQUISITION AND HOLDING OF THE CLASS A NOTE (OR INTEREST THEREIN) WILL NOT GIVE RISE TO A NONEXEMPT VIOLATION OF ANY STATE, LOCAL OR OTHER LAW THAT IS SIMILAR TO THE FIDUCIARY AND PROHIBITED TRANSACTION PROVISIONS OF ERISA OR SECTION 4975 OF THE CODE AND (3) IF ACQUIRED DURING THE INITIAL INVESTMENT PERIOD (AS DEFINED IN THE INDENTURE), IT IS NOT AN AFFECTED BANK (AS DEFINED IN THE INDENTURE).  ANY PURPORTED TRANSFER OF A CLASS A NOTE (OR INTEREST THEREIN) TO A PURCHASER OR TRANSFEREE THAT DOES NOT COMPLY WITH THE ABOVE REQUIREMENTS SHALL BE NULL AND VOID AB INITIO.

 

  

  

  

LOCUST STREET FUNDING LLC

 

Class A Floating Rate Secured Note, Due 2021

 

Up to U.S.$560,000,000

 

R-1

CUSIP NO.: 540141 AA6

LOCUST STREET FUNDING LLC, a Delaware limited liability company (the "Issuer"), for value received, hereby promise to pay to CEDE & CO. or its registered assigns, upon presentation and surrender of this Class A Note (except as otherwise permitted by the Indenture hereinafter referred to), the principal sum of up to FIVE HUNDRED SIXTY MILLION United States Dollars (U.S.$560,000,000) on July 15, 2021 (the "Stated Maturity"), as adjusted by any Increases up to and including the Effective Date and as adjusted upward or downward in accordance with the Schedule of Exchanges as attached hereto, or upon the unpaid principal of this Class A Note becoming due and payable at an earlier date by declaration of acceleration, call for redemption or as otherwise provided below and in the Indenture.  The Issuers promise to pay interest thereon on October 15, January 15, April 15 and July 15 in each year, commencing October 15, 2011, and at the Stated Maturity, at the rate equal to the LIBOR for the Applicable Period plus 4.00% per annum (the "Class A Note Interest Rate") on the unpaid principal amount hereof until the principal hereof is paid or duly provided for in accordance with the Indenture.  Interest shall be computed on the basis of the actual number of days elapsed in the applicable Interest Accrual Period divided by 360.  The interest so payable and punctually paid on any Payment Date, and the principal payable and punctually paid on any Payment Date, will, as provided in the Indenture, be paid to the Person in whose name this Class A Note (or one or more predecessor Class A Notes) is registered at the close of business on the Regular Record Date for such interest, which shall be the fifteenth day (whether or not a Business Day) preceding such Payment Date.

 

The obligations of the Issuers under this Class A Note and the Indenture are limited recourse obligations of the Issuer payable solely from the Collateral Obligations and other Collateral pledged by the Issuer in accordance with the Priority of Payments, and in the event the Collateral Obligations and other Collateral are insufficient to satisfy such obligations, any claims of Holders shall be extinguished.

 

This Class A Note is one of a duly authorized issue of Class A Floating Rate Secured Notes, Due 2021 (the "Class A Notes") of the Issuer, limited in aggregate principal amount to U.S. $560,000,000 and issued under that certain Indenture dated as of July 21, 2011 (the "Indenture") among the Issuers and U.S. Bank National Association, as trustee (the "Trustee," which term includes any successor trustee as permitted under the Indenture).  Authorized under the Indenture are the Class A Notes of the Issuer.  Interest will cease to accrue on this Class A Note, or in the case of a partial repayment, on such part, from the date of repayment or Stated Maturity unless payment of principal is improperly withheld.

 

Reference is hereby made to the Indenture and all indentures supplemental thereto for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Issuer, the Trustee and the Holders of the Class A Notes and the terms upon which the Class A Notes are, and are to be, authenticated and delivered.

 

Capitalized terms used herein and not otherwise defined herein shall have the meanings set forth in the Indenture.

 

  

  

  

 

Payments in respect of principal and interest due on any Payment Date of this Class A Note shall be made by the Paying Agent, subject to any laws or regulations applicable thereto, by wire transfer in immediately available funds to a Dollar account maintained by DTC or its nominee to the extent practicable or otherwise by U.S. dollar check drawn on a bank in the United States of America delivered to DTC or its nominee.  The final payment of interest and principal due on this Class A Note shall be made (except as otherwise provided in the Indenture) only upon presentation and surrender of this Class A Note at the Corporate Trust Office of the Trustee or at the office of any Paying Agent appointed under the Indenture.

 

The registered Holder of this Class A Note shall be treated as the owner hereof for all purposes.

 

Except as specifically provided herein and in the Indenture, the Issuer shall not be required to make any payment with respect to any tax, assessment or other governmental charge imposed by any government or any political subdivision or taxing authority thereof or therein.

 

In certain cases, including in the event that the Par Value Test relating to the Class A Notes in not satisfied as of the time specified in the Indenture, this Class A Note may be redeemed, in whole or in part, in the manner provided in the Indenture.

 

As specified in the Indenture and subject to conditions therein, on any Business Day, the Issuer may cause an optional redemption, in whole, or in part, of the Class A Notes at the written direction of, or with the written consent of, the Equity Owner.  In addition, upon the occurrence of a Tax Event, the Issuer may on any Business Day redeem in whole, or in part, the Class A Notes at the written direction of, or with the written consent of, the Equity Owner or the Majority of the Controlling Class, in accordance with the procedures described in the Indenture.  The redemption price for the Class A Notes shall be subject to the provisions set forth in the Indenture.

 

If an Event of Default shall occur and be continuing, the Class A Notes may become or be declared due and payable in the manner and with the effect provided in the Indenture. If any such acceleration of maturity occurs prior to the Stated Maturity of this Class A Note, the amount payable to the Holder of this Class A Note will be equal to the aggregate unpaid principal amount of the Class A Notes on the date this Class A Note becomes so due and payable, together with accrued and unpaid interest on such unpaid principal amount at the Note Interest Rate.

 

Payments of principal and interest on this Note are subordinate to the payment on each Payment Date of certain other obligations of the Issuer in accordance with the Priority of Payments.

 

The Class A Notes are issuable only in fully registered from without coupons in minimum denominations of $500,000 and integral multiples of $1,000 in excess thereof if held through a Rule 144A Global Class A Note.

 

The Issuer shall arrange for the Registrar (which shall initially be the Trustee) to keep the Register.  Title to this Class A Note shall pass by registration in the Register for the Class A Notes.

 

No service charge shall be made for exchanging or registering the transfer of this Class A Note, but the Trustee may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. The Trustee and the Registrar may request evidence reasonably satisfactory to it proving the identity of the transferee and transferor and the authenticity of their signatures.

 

  

  

  

 

The remedies of the Trustee and the Holder hereof, as provided herein or in the Indenture, shall be cumulative and concurrent and may be pursued solely against the Collateral.  No failure on the part of the Holder or of the Trustee in exercising any right or remedy hereunder or under the Indenture shall operate as a waiver or release thereof, nor shall any single or partial exercise of any such right or remedy preclude any other further exercise thereof or the exercise of any other right or remedy hereunder or under the Indenture.

 

AS PROVIDED IN THE INDENTURE, THE INDENTURE AND THE CLASS A NOTES SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAW OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN WITHOUT REGARD TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF.

 

Unless the certificate of authentication hereon has been executed by the Trustee by the manual signature of one of its Authorized Officers, this Class A Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

  

  

  

 

IN WITNESS WHEREOF, the Issuer has caused this Class A Note to be duly executed.

 

Dated February 15, 2012.

 

 

	  	  	

LOCUST STREET FUNDING LLC,

	 	 	  as Issuer
	  	  	  
	  	  	
By:

	
/s/Gerald F. Stahlecker

	  	  	
Name:

	Gerald F. Stahlecker
	  	  	
Title:

	Executive Vice President

 

  

  

  

 

CERTIFICATE OF AUTHENTICATION

 

  This is one of the Class A Notes referred to in the within-mentioned Indenture.

 

 

	

CITIBANK, N.A., as Trustee

	 
	  	 
	
By:

	
/s/Thomas J. Varcados

	 
	 	Thomas J. Varcados	 
	
 

	Authorized Signatory	 

 

 

  

  

  

 

ASSIGNMENT FORM

 

	
For value received   

	
                                                                        

 

hereby sells, assigns and transfers unto

 

 

Please insert social security or other identifying number of assignee

 

Please print or type name and address, including zip code of assignee:

 

 

 

 

 

the within Class A Note and does hereby irrevocably constitute and appoint _________________ Attorney to transfer the Class A Note on the books of the Issuer with full power of substitution in the premises.

 

	Date:	
 

	 	
Your Signature:

	 

 

	
  

	
(Sign exactly as your name appears on this Class A Note)

 

  

  

  

 

SCHEDULE OF EXCHANGES IN RULE 144A GLOBAL CLASS A NOTE

 

The amount issued on the date this Global Note is executed by the Issuer above is U.S. $420,000,000.

 

The following exchanges of a part of this Global Note have been made:

 

	
Date of

Exchange

	
Amount of

Decrease in

Principal Amount

of this Global Note

	
Amount of

Increase in

Principal Amount

of this Global Note

	
Principal Amount of this Global

Note following such Decrease (or

Increase)

	
Signature of

Authorized

Officer of Trustee

or Registrar

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00199-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00199-of-00352.parquet"}]]