UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): December 1, 2017
ENTERCOM COMMUNICATIONS CORP.
(Exact Name of Registrant as Specified in Charter)
Pennsylvania | 001-14461 | 23-1701044 | ||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification Number) |
401 E. City Avenue, Suite 809 Bala Cynwyd, Pennsylvania |
19004 | |
(Address of Principal Executive Offices) | (Zip Code) |
Registrants telephone number, including area code: (610) 660-5610
N/A
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01 Regulation FD Disclosure.
On December 1, 2017, Entercom Communications Corp. (the Company) announced that its wholly owned subsidiary, CBS Radio Inc. (CBS Radio), is soliciting consents from holders of CBS Radios outstanding 7.250% Senior Notes due 2024 (the Notes). The consent solicitation will expire at 5:00 p.m., New York City time, on December 8, 2017, unless extended. A copy of the press release announcing the consent solicitation is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. The terms and conditions of the consent solicitation are described in a Consent Solicitation Statement, dated December 1, 2017, which is furnished as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference. The consent form sent to holders of the Notes, dated December 1, 2017, is furnished as Exhibit 99.3 to this Current Report on Form 8-K and is incorporated herein by reference.
The information in this Current Report on Form 8-K and Exhibits 99.1, 99.2 and 99.3 hereto is being furnished pursuant to Item 7.01 of Form 8-K and shall not be deemed to be filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 | Financial Statements and Exhibits. |
(d) | Exhibits |
99.1 | Press Release, dated December 1, 2017 | |
99.2 | Consent Solicitation Statement of CBS Radio, dated December 1, 2017 | |
99.3 | Consent Form sent to holders of the Notes, dated December 1, 2017 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: December 1, 2017 | ENTERCOM COMMUNICATIONS CORP. | |||||
By: | /s/ Andrew P. Sutor, IV | |||||
Name: | Andrew P. Sutor, IV | |||||
Title: | Executive Vice President and Secretary |
Exhibit 99.1
ENTERCOM COMMUNICATIONS CORP. ANNOUNCES
CONSENT SOLICITATION FOR 7.250% SENIOR NOTES DUE 2024
PHILADELPHIA, PA December 1, 2017 Entercom Communications Corp. (Entercom) (NYSE: ETM) announced today that its wholly owned subsidiary, CBS Radio Inc. (CBS Radio), is soliciting consents from holders of CBS Radios outstanding 7.250% Senior Notes due 2024 (the Notes) to approve certain amendments (the Proposed Amendments) to the indenture, dated October 17, 2016, among CBS Radio, the guarantors party thereto and Deutsche Bank Trust Company Americas, as Trustee (the Trustee), governing the Notes (the Indenture) to align certain definitions in the Indenture with the corresponding definitions in CBS Radios credit facility.
CBS Radio will make a cash payment of $5.00 per $1,000 in aggregate principal amount of Notes held by each holder of Notes as of the Record Date (as defined below) who has validly delivered a duly executed consent at or prior to the Expiration Time (as defined below) and who has not revoked the consent in accordance with the procedures described in the Consent Solicitation Statement (as defined below). The consent payment will be paid as promptly as practicable after the Expiration Time, subject to the terms and conditions described in the Consent Solicitation Documents (as defined below).
Adoption of the Proposed Amendments requires the consent of the holders of at least a majority in principal amount of all Notes then outstanding voting as a single class (such consent, the Requisite Consents). The aggregate outstanding principal amount of the Notes as of December 1, 2017 was $400,000,000. Consents may be validly revoked at any time prior to the Effective Time (as defined below) but not thereafter.
CBS Radio anticipates that, promptly after receipt of the Requisite Consents prior to the Expiration Time, CBS Radio will give notice to the Trustee that the Requisite Consents have been obtained, and CBS Radio and the Trustee will execute and deliver a second supplemental indenture with respect to the Indenture (the Supplemental Indenture and such time, the Effective Time). Pursuant to the terms of the Supplemental Indenture, the Proposed Amendments will become effective at the Effective Time and shall thereafter bind every holder of Notes.
The consent solicitation will expire at 5:00 p.m., New York City time, on December 8, 2017 (such date and time, as CBS Radio may extend from time to time, the Expiration Time). Only holders of record of the Notes as of 5:00 p.m., New York City time, on November 28, 2017 (the Record Date), are eligible to deliver consents to the Proposed Amendments in the consent solicitation.
The consent solicitation is being made solely on the terms and subject to the conditions set forth in the Consent Solicitation Statement, dated December 1, 2017 (as may be amended or supplemented from time to time, the Consent Solicitation Statement), and the accompanying Consent Form (together, the Consent Solicitation Documents). CBS Radio may, in its sole discretion, terminate, extend or amend the consent solicitation at any time as described in the Consent Solicitation Statement.
Copies of the Consent Solicitation Documents and other related documents may be obtained from D.F. King & Co., Inc., the Information and Tabulation Agent, via email at entercom@dfking.com or via phone at (212) 269-5550. Holders of the Notes are urged to review the Consent Solicitation Documents for the detailed terms of the consent solicitation and the procedures for consenting to the Proposed Amendments. Any persons with questions regarding the consent solicitation should contact the Solicitation Agent, RBC Capital Markets, LLC, at (212) 618-7843 (collect) or (877) 381-2099 (toll free).
This announcement is for information purposes only and is neither an offer to sell nor a solicitation of an offer to buy any security. This announcement is also not a solicitation of consents with respect to the Proposed Amendments or any securities. No recommendation is being made as to whether holders of Notes should consent to the Proposed Amendments. The solicitation of consents is not being made in any jurisdiction in which, or to or from any person to or from whom, it is unlawful to make such solicitation under applicable state or foreign securities or blue sky laws.
CONTACT:
Richard Schmaeling
Entercom Communications
610-660-5686
Richard.Schmaeling@entercom.com
@EntercomPR
About Entercom Communications Corp.
Entercom Communications Corp. (NYSE: ETM) is a leading American media and entertainment company reaching and engaging over 100 million people each week through its premier collection of highly rated, award winning radio stations, digital platforms and live events. As one of the countrys two largest radio broadcasters, Entercom offers integrated marketing solutions and delivers the power of local connection on a national scale with coverage of close to 90% of persons 12+ in the top 50 markets. Entercom is the #1 creator of live, original, local audio content and the nations unrivaled leader in news and sports radio. Learn more about Philadelphia-based Entercom at www.Entercom.com, Facebook and Twitter (@Entercom).
Forward-Looking Statements
This communication contains forward-looking statements. All statements other than statements of historical fact contained in this report are forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements usually relate to future events and anticipated revenues, earnings, cash flows or other aspects of our operations or operating results. Forward-looking statements are often identified by the words believe, expect, anticipate, plan, intend, foresee, should, projects, would, will, could, may, estimate, outlook and similar expressions, including the negative thereof. The absence of these words, however, does not mean that the statements are not forward-looking. These forward-looking statements are based on our current expectations, beliefs and assumptions concerning future developments and business conditions and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate.
All of our forward-looking statements involve risks and uncertainties (some of which are significant or beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. You should carefully consider the foregoing factors and the other risks and uncertainties that affect the parties businesses, including those described in the Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other documents filed from time to time with the U.S. Securities and Exchange Commission by Entercom and CBS Radio. We wish to caution you not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any of our forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except to the extent required by law.
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Exhibit 99.2
CBS RADIO INC.
a wholly owned subsidiary of Entercom Communications Corp.
Solicitation of Consents to the Proposed Amendment to the Indenture
Relating to the 7.250% Senior Notes Due 2024
(CUSIP Nos. 124847 AC8 and U12496 AA0)
The Consent Solicitation (as defined below) will expire at 5:00 p.m., New York City time, on December 8, 2017 or such later time and date to which the Consent Solicitation is extended (such time and date, the Expiration Time). Consents may be revoked at any time prior to the Consent Date, which is the earlier of (a) the Effective Date (as defined below) and (b) the Expiration Time. CBS Radio Inc., a Delaware corporation (CBS Radio or the Issuer), intends to execute a Supplemental Indenture (as defined below) to the Indenture (as defined below), promptly following the receipt of the Requisite Consents (as defined below). The date on which the Supplemental Indenture is executed in connection with the Consent Solicitation is referred to as the Effective Date. The Proposed Amendment (as defined below) will become operative only upon the satisfaction of all conditions to the Consent Solicitation.
The Issuer, a wholly owned subsidiary of Entercom Communications Corp., a Pennsylvania corporation (Entercom or the Parent), is furnishing this Consent Solicitation Statement (as the same may be amended or supplemented from time to time, the Statement) and the accompanying form of consent (the Consent Form and, together with the Statement and the other documents related to the Consent Solicitation, the Consent Documents) to the holders of record (each, a Holder and, collectively, the Holders) at 5:00 p.m., New York City time, on November 28, 2017 (the Record Date) of the Issuers outstanding 7.250% Senior Notes Due 2024 (the Notes), in connection with the solicitation (the Consent Solicitation) of consents (the Consents) by the Issuer to the amendment of certain provisions of the Indenture, dated as of October 17, 2016 (as amended, the Indenture), by and among the Issuer, the guarantors from time to time party thereto and Deutsche Bank Trust Company Americas, as trustee (the Trustee), pursuant to which the Notes were issued. All capitalized terms used herein but not defined in this Statement have the meaning ascribed to them in the Indenture.
In the event that certain conditions described below, including, without limitation, the receipt of the Requisite Consents and the provisions of the Supplemental Indenture having become operative, are satisfied or waived, the Issuer will, as promptly as practicable after the Expiration Time, pay to the Holders of outstanding Notes who delivered valid and unrevoked Consents prior to the Expiration Time a cash payment of $5.00 per $1,000 principal amount of Notes, for which Consents have been delivered by such Holder (the Consent Fee). Holders of Notes for which no Consent is delivered (or who revoke their Consent) will not receive the Consent Fee, even though the Proposed Amendment, if approved by the Requisite Consents (as defined below), will bind all Holders of the Notes and their transferees.
Title of Security |
Aggregate Principal Amount |
CUSIPs |
Aggregate Consent Fee per $1,000 | |||
7.250% Senior Notes due 2024 |
$400,000,000 | 124847AC8 / U12496 AA0 | $5.00 |
The Issuer is seeking consents from the Holders of the Notes to amend the Indenture to modify the definitions of EBITDA and Asset Sale for the purpose of aligning the requirements of the Indenture with the requirements of the Parents credit facility (such amendment, more fully described in Proposed Amendment to Indenture below, the Proposed Amendment). The Issuer will accept all properly completed, executed and dated Consents received by the Tabulation Agent (as defined below) prior to the Expiration Time.
The Consents of the Holders of at least a majority in principal amount of the Notes then outstanding voting as a single class (the Requisite Consents) are required pursuant to the terms of the Indenture for the Proposed Amendment to be approved and for the Supplemental Indenture to be approved and binding on the Holders of the Notes and any subsequent holder of such Notes.
Provided the Requisite Consents are received by the Issuer, the Proposed Amendment will be effected by a Supplemental Indenture to the Indenture (the Supplemental Indenture), substantially in the form attached hereto as Appendix A. Promptly following the receipt of the Requisite Consents, the Issuer intends to execute the Supplemental Indenture containing the Proposed Amendment. Upon the Proposed Amendment and the Supplemental Indenture becoming operative, all Holders will be bound by the terms of the Supplemental Indenture, even if they did not deliver Consents to the Proposed Amendment. While the Issuer expects to execute the Supplemental Indenture promptly after the receipt of the Requisite Consents, the terms of the Supplemental Indenture will not become operative unless and until the remaining conditions to the Consent Solicitation have been satisfied or waived.
Regardless of the outcome of the Consent Solicitation, the Notes will continue to be outstanding and will continue to bear interest as provided in the Indenture. The Proposed Amendment will not alter the Issuers obligation to pay the principal of or interest on the Notes or alter the stated interest rate, maturity date or redemption provisions thereof.
The Issuer has appointed D.F. King & Co., Inc. as tabulation agent (the Tabulation Agent) for Consents with respect to the Consent Solicitation and as information agent (the Information Agent) with respect to the Consent Solicitation. The Issuer has also retained RBC Capital Markets, LLC as the exclusive solicitation agent (the Solicitation Agent) with respect to the Consent Solicitation.
None of the Parent, the Issuer, the Trustee, the Information Agent, the Solicitation Agent or the Tabulation Agent makes any recommendation as to whether or not Holders should deliver Consents in response to the Consent Solicitation.
The Solicitation Agent for the Consent Solicitation is:
RBC Capital Markets
December 1, 2017
IMPORTANT INFORMATION
Holders are requested to read and consider carefully the information contained in this Statement and the related Consent Form and to give their consent to the Proposed Amendment by properly completing and executing the accompanying Consent Form in accordance with the instructions set forth herein and therein.
Recipients of this Statement and the accompanying materials should not construe the contents hereof or thereof as legal, business or tax advice. Each recipient should consult its own attorney, business advisor and tax advisor as to legal, business, tax and related matters concerning the Consent Solicitation.
Any Holder desiring to consent to the Proposed Amendment must complete and sign the Consent Form (or a facsimile thereof, with an original to be delivered within one business day of such facsimile transmission by overnight courier) in accordance with the instructions set forth in the Consent Documents and mail or deliver such manually signed Consent (or such facsimile thereof) and any other documents required by the Consent Documents to the Tabulation Agent at the address set forth on the back cover of this Statement. Beneficial owners whose Notes are registered in the name of a broker, dealer, commercial bank, trust company or other nominee must contact such broker, dealer, commercial bank, trust company or other nominee if they desire to deliver Consents with respect to the Notes so registered and instruct such broker, dealer, commercial bank, trust company or other nominee to deliver Consents on the beneficial owners behalf. See Procedures for Delivering Consents.
The Depository Trust Company participants (the DTC Participants) that hold Notes on behalf of beneficial owners of Notes through the Depository Trust Company (DTC) are authorized to consent to the Proposed Amendment as if they were Holders. To effect a Consent, DTC Participants should follow the procedures set forth in Procedures for Delivering Consents. Holders delivering Consents will not be obligated to pay fees, commissions or other expenses of the Tabulation Agent.
In no event should a Holder deliver Notes together with the Consent. Giving a Consent will not affect the Holders right to sell or transfer Notes. Each validly delivered Consent will be counted notwithstanding any transfer of Notes to which such Consent relates, unless the procedure for revoking Consents described herein and in the Consent Form has been satisfied.
Requests for additional copies of the Consent Documents and questions and requests for assistance relating to the Consent Documents may be directed to the Information Agent at the address and telephone number set forth on the back cover of this Statement. Beneficial owners may also contact their broker, dealer, commercial bank, trust company or other nominee to obtain additional copies of the Consent Documents.
HOLDERS OF NOTES SHOULD NOT TENDER OR DELIVER NOTES AT ANY TIME.
This Statement does not constitute a solicitation of Consents in any jurisdiction in which, or to or from any person to or from whom, it is unlawful to make such solicitation under applicable federal securities or blue sky laws. The delivery of this Statement shall not under any circumstances create any implication that the information contained herein is correct as of any time subsequent to the date hereof or that there has been no change in the information set forth herein or in any attachments hereto or in the affairs of the Issuer or any of its affiliates since the date hereof.
No person has been authorized to give any information or to make any representation not contained or incorporated by reference in this Statement. If given or made, such information or representation may not be relied upon as having been authorized by the Parent, the Issuer, the Information Agent, the Solicitation Agent, the Tabulation Agent or the Trustee.
This Statement has not been approved or disapproved by the Securities Exchange Commission (the Commission) or any state securities commission nor has the Commission or any state securities commission passed upon the fairness or merits of such transaction nor upon the accuracy or adequacy of the information contained in the Consent Documents. Any representation to the contrary is unlawful.
The Consent Solicitation is made subject to the terms and conditions set forth in the Consent Documents. No Consent will be deemed to have been accepted unless and until such conditions have been satisfied or waived. See Principal Terms of the Consent Solicitation Conditions to the Consent Solicitation. The Consent Documents contain important information which should be read carefully before any decision is made with respect to the Consent Solicitation.
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AVAILABLE INFORMATION
The Parent currently files reports and other information with the Commission in accordance with the Securities Exchange Act of 1934, as amended (the Exchange Act). Under the Commissions rules and the Indenture, the Parent may satisfy the Issuers obligation to file reports and other information with the Commission under the Exchange Act by filing such reports and other information. Such reports and other information (including the documents incorporated by reference herein) may be inspected and copied at the Public Reference Section of the Commission at 100 F. Street, N.E., Washington, D.C. 20549. Copies of such materials can also be obtained at prescribed rates from the Public Reference Section of the Commission at its Washington address. The Commission also maintains a website at http://www.sec.gov that contains reports, proxy statements and other information regarding companies like the Issuer that file electronically with the Commission.
Copies of the materials referred to in the preceding paragraph, as well as copies of any current amendment or supplement to this Statement, may also be obtained from the Information Agent at the address set forth on the back cover of this Statement.
DOCUMENTS INCORPORATED BY REFERENCE
The following documents filed by the Parent with the Commission are incorporated by reference herein and shall be deemed to be a part hereof:
| Annual Report on Form 10-K for the year ended December 31, 2016, filed on February 28, 2017; |
| Quarterly Report on Form 10-Q for the three months ended March 31, 2017, filed on May 9, 2017; |
| Quarterly Report on Form 10-Q for the three and six months ended June 30, 2017, filed on August 4, 2017; |
| Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2017, filed on November 6, 2017; |
| Current Reports on Form 8-K filed on February 3, 2017, March 22, 2017, April 20, 2017, May 16, 2017, July 10, 2017, July 24, 2017, August 7, 2017, September 13, 2017, November 1, 2017, November 3, 2017, November 16, 2017, November 17, 2017 and December 1, 2017; and |
| Registration Statement on Form S-4, initially filed on April 12, 2017, as amended. |
The following documents filed by the Issuer with the Commission are incorporated by reference herein and shall be deemed to be a part hereof:
| Current Reports on Form 8-K filed on November 3, 2017 and November 16, 2017; and |
| Registration Statement on Form S-4, initially filed on April 13, 2017, as amended. |
All documents filed pursuant to Section 13(a), l3(c), 14 or 15(d) of the Exchange Act after the date hereof and prior to the Expiration Time shall be deemed to be incorporated by reference in and made a part of this Statement from the date of filing such documents.
Notwithstanding the foregoing, information that the Parent or Issuer furnishes or has furnished under Items 2.02 and 7.01 of any Current Report on Form 8-K, including the related exhibits under Item 9.01, will not be deemed incorporated by reference herein.
Any statement contained in this Statement or incorporated or deemed to be incorporated by reference in this Statement shall be deemed to be modified or superseded for purposes of this Statement to the extent that a statement contained in this Statement or in any other subsequently filed document which also is or is deemed to be incorporated by reference in this Statement modifies or supersedes such statement.
The Information Agent will provide without charge to each person to whom this Statement is delivered upon the request of such person, a copy of any or all of the documents incorporated by reference herein, other than exhibits to such documents (unless such exhibits are specifically incorporated by reference in such documents). Requests for such documents should be directed to the Information Agent at the address set forth on the back cover of this Statement.
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FORWARD-LOOKING STATEMENTS
This Statement, the reports incorporated by reference herein and statements made from time to time by the Issuer, the Parent and our representatives contain forward-looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as seek, anticipate, plan, continue, estimate, expect, may, will, project, predict, potential, targeting, intend, could, might, should, believe and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Issuer believes that the expectations reflected in these forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct. Forward-looking statements included in this Statement, the reports incorporated by reference herein and statements made from time to time by the Issuer, the Parent and our representatives should not be unduly relied upon. These statements speak only as of the date hereof. Other than as required by applicable laws, we do not intend, and do not assume any obligation, to update these forward-looking statements.
All forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements.
Additionally, other than as required by applicable laws, none of the Issuer or the Parent undertakes any responsibility to update you on the occurrence of any unanticipated events that may cause actual results to differ from those expressed or implied by the forward-looking statements contained in this Statement, the reports incorporated by reference herein and statements made from time to time by the Issuer, the Parent and our representatives. We urge you to carefully review and consider the disclosures made in this Statement, the documents incorporated by reference herein and statements made from time to time by the Issuer, the Parent and our representatives that attempt to advise interested parties of the risks and factors that may affect our business.
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THE ISSUER
On November 17, 2017, Entercom combined with the radio business of CBS Corporation, a Delaware corporation (CBS) in a two-step all-stock Reverse Morris Trust transaction that involved (i) a separation of CBS Radio from CBS (the Separation), followed by (ii) the merger of CBS Radio with Constitution Merger Sub Corp., a Delaware corporation and wholly owned subsidiary of Entercom, with CBS Radio surviving the merger as a wholly owned subsidiary of Entercom.
Prior to the merger, CBS Radio was one of the largest major-market broadcast radio operators in the United States and a leader in news and sports radio. CBS Radio produces original audio and video content, live events and exclusive programming distributed on-air, online and on mobile platforms.
THE PARENT
Entercom is headquartered in the Philadelphia, Pennsylvania metropolitan area and is and has been a Pennsylvania corporation since its organization in 1968. On November 17, 2017, Entercom completed its merger with CBS Radio, creating a leading American media and entertainment company and one of the top two radio broadcasters in the country. Entercom is now the leading creator of live, original, local audio content in the United States and the nations unrivaled leader in news and sports radio. With a nationwide footprint of 235 stations, Entercom engages over 100 million people weekly with a premier collection of highly-rated, award-winning radio stations, digital platforms and live events.
Entercoms principal executive offices are located at 401 E. City Avenue, Suite 809, Bala Cynwyd, PA 19004, and its telephone number at that address is (610) 660-5610. Its website is located at http://www.entercom.com. Information contained on Entercoms website is not part of this Statement except as specifically set forth herein under the heading Documents Incorporated by Reference.
PROPOSED AMENDMENT TO THE INDENTURE
The purpose of the Consent Solicitation is to obtain Consents to the adoption of the Proposed Amendment described below. See Certain Significant Considerations for a discussion of certain factors that should be considered in evaluating the consequences of the adoption of the Proposed Amendment.
The Issuer is soliciting the Consents of Holders of Notes to the Proposed Amendment and to the execution and delivery by the Issuer of a Supplemental Indenture which will give effect to the Proposed Amendment. A copy of the proposed form of the Supplemental Indenture is attached hereto as Appendix A. All statements herein regarding the substance of any provision of the Proposed Amendment, the Supplemental Indenture and the Indenture are qualified in their entirety by reference to the Supplemental Indenture and the Indenture. A copy of the Indenture is available upon request from the Information Agent at the address and telephone number set forth on the back cover of this Statement. We urge you to read the text of the Supplemental Indenture in its entirety.
The Proposed Amendment set forth below reflects additions in bolded underline and deletions in strikethrough.
If the Proposed Amendment is enacted, clause (j) of the definition of EBITDA in Section 1.01 of the Indenture will be amended as follows:
(j) | the amount of cost savings, operating expense reductions, other operating improvements and initiatives and
synergies projected by the Issuer in good faith to be reasonably anticipated to be realizable within |
4
determination of the Issuer) and (z) the aggregate amount of cost savings, operating expense reductions, other operating improvements and initiatives and synergies added back pursuant to
this clause (j) in any period of four consecutive fiscal quarters shall not exceed |
If the Proposed Amendment is enacted, clause (d) of the definition of Asset Sale in Section 1.01 of the Indenture will be amended as follows:
(d) | any disposition of assets or issuance or sale of Equity Interests of any Restricted Subsidiary in any transaction or series of transactions with an aggregate fair market value (as determined in good faith by the Issuer)
not to exceed $ |
If the Proposed Amendment is enacted, the last paragraph of the definition of Consolidated Net Leverage Ratio in Section 1.01 of the Indenture will be amended as follows:
For purposes of this definition, whenever pro forma effect is to be given to a transaction, the pro forma calculations shall be
made in good faith by a responsible financial or accounting officer of the Issuer. Any such pro forma calculation may include adjustments appropriate, in the reasonable determination of the Issuer as set forth in an Officers
Certificate, to reflect reasonably identifiable and factually supportable operating expense reductions and other operating improvements or synergies reasonably expected to result from any action taken or expected to be taken within 12
18 months after the date of any acquisition, amalgamation or merger; provided, that no such amounts shall be included pursuant to this paragraph to the extent duplicative of any amounts that are otherwise added back in
computing EBITDA with respect to such period;
Upon the Proposed Amendment and the Supplemental Indenture becoming operative, all Holders of Notes issued under the Indenture will be bound by the terms of the Supplemental Indenture, even if they did not deliver Consents to the Proposed Amendment. While the Issuer expects to execute the Supplemental Indenture promptly after the receipt of the Requisite Consents, the terms of the Supplemental Indenture will not become operative unless and until the remaining conditions to the Consent Solicitation have been satisfied or waived. If the Consent Solicitation is terminated, the Proposed Amendment will have no effect on the Notes or the Holders thereof.
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CERTAIN SIGNIFICANT CONSIDERATIONS
The following considerations, in addition to the other information described elsewhere in this Statement, should be carefully considered by each Holder before deciding whether to consent to the Proposed Amendment. See Proposed Amendment to the Indenture for a detailed description of the Proposed Amendment.
| There can be no assurance that the liquidity, market value and price volatility of the Notes will not be adversely affected by the consummation of the Consent Solicitation. |
| If the Requisite Consents to the Proposed Amendment are provided prior to the Expiration Time and you do not provide your Consent to the Proposed Amendment prior to the Expiration Time, you will not receive the Consent Fee. |
| If the Requisite Consents to the Proposed Amendment are provided prior to the Expiration Time, the Issuer and the Trustee will execute a Supplemental Indenture, which will result in the Proposed Amendment contained therein becoming operative upon satisfaction of all conditions to the Consent Solicitation. Once a Supplemental Indenture becomes operative, your rights under the Indenture and the rights of all other Holders will be impacted by the Proposed Amendment, whether or not you provide your Consent. |
| The consummation of the Consent Solicitation and the payment of the Consent Fee are subject to the satisfaction or waiver by the Issuer of certain conditions, including, without limitation, the receipt of the Requisite Consents and the provisions of the Supplemental Indenture having become operative. See Principal Terms of the Consent SolicitationConditions to the Consent Solicitation. There can be no assurance that such conditions will be met. If such conditions are not met, you will not receive the Consent Fee. |
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PRINCIPAL TERMS OF THE CONSENT SOLICITATION
This section summarizes the terms of the Consent Solicitation. While the Issuer believes that this description covers the material terms of the Consent Solicitation, this summary may not contain all the information that is important to Holders of Notes. You should read carefully the entire Statement and other documents the Issuer refers to or incorporates by reference in this Statement for a more complete understanding of the Consent Solicitation.
General
The Issuer is seeking Consents to the Proposed Amendment to the Indenture. While the Issuer expects to execute a Supplemental Indenture promptly after the receipt of the Requisite Consents, the terms of the Supplemental Indenture will not become operative unless and until the remaining conditions to the Consent Solicitation have been satisfied or waived. See Conditions to the Consent Solicitation.
Holders who deliver their properly completed, executed and dated Consents to the Tabulation Agent prior to the Expiration Time shall be deemed to have validly consented to the Proposed Amendment. The Issuer will be deemed to have accepted the Consents with respect to the Notes if, as and when the Issuer executes the Supplemental Indenture. If the Requisite Consents are received, and the other Conditions (as defined below) are satisfied or waived, the Issuer will pay (directly or through an agent) the Consent Fee to each Holder who consents by delivering the properly executed and completed Consent Form to the Tabulation Agent prior to the Expiration Time, and does not revoke such Consent prior to the Consent Date. The Consent Fee shall be payable as promptly as practicable following the Expiration Time, subject to the satisfaction or waiver of all of the Conditions (as defined below).
Holders who do not deliver their Consents prior to the Expiration Time shall be bound by the Proposed Amendment once the Supplemental Indenture relating to such Proposed Amendment becomes operative as described above. If the Consent Solicitation is terminated or withdrawn, the Indenture will remain in effect in its present form.
Consent Fee
In the event that the Conditions to the Consent Solicitation, including the receipt of the Requisite Consents and the provisions of the Supplemental Indenture related thereto having become operative, have been satisfied or waived, the Issuer will, as promptly as practicable after the Expiration Time, pay the Consent Fee to each Holder who delivers a valid unrevoked Consent to the Proposed Amendment prior to the Expiration Time. The Consent Fee will be a cash payment of $5.00 per $1,000 principal amount of Notes as to which such valid and unrevoked Consent is delivered. All Holders that do not deliver valid unrevoked Consents to the Proposed Amendment prior to the Expiration Time will not be entitled to receive the Consent Fee, but will be bound by the Proposed Amendment.
For a discussion of certain U.S. federal income tax considerations relating to the adoption of the Proposed Amendment and the receipt of the Consent Fee, see Certain U.S. Federal Income Tax Considerations.
Requisite Consents
Under Section 9.02 of the Indenture, the consents of the Holders of at least a majority of the principal amount of the Notes then outstanding, voting as a single class, are required to adopt the Proposed Amendment to the Indenture. Under the terms of the Indenture, in determining whether the Requisite Consents have been received, Notes owned by any affiliate of the Issuer will be considered as though not outstanding. If the Requisite Consents are received, the terms of the Indenture would permit and direct the Trustee to execute the Supplemental Indenture. While the Issuer expects to execute the Supplemental Indenture promptly after the receipt of the Requisite Consents, the terms of the Supplemental Indenture will not become operative unless and until the remaining conditions to the Consent Solicitation have been satisfied or waived. See Conditions to the Consent Solicitation.
Record Date
The Consent Documents are being sent to all Persons who were Holders at 5:00 p.m., New York City time on November 28, 2017 (the Record Date). The Record Date has been fixed by the Issuer as the date for the determination of Holders entitled to give Consents and receive the Consent Fee, if payable, pursuant to the Consent Solicitation. The Issuer reserves the right to establish from time to time any new date as the Record Date, subject to the requirements of the applicable Indenture, and, thereupon, any such new date will be deemed to be the Record Date for purposes of the Consent Solicitation.
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Conditions to the Consent Solicitation
The Issuers obligation to accept valid and unrevoked Consents in respect of Notes and to pay the Consent Fee in respect of such Consents is conditioned upon satisfaction, or waiver by the Issuer, of the following conditions: (1) receipt by the Tabulation Agent prior to the Expiration Time of valid and unrevoked Requisite Consents from Holders of the Notes; (2) the execution by the Issuer and the Trustee of a Supplemental Indenture embodying the Proposed Amendment; (3) the absence of any law or regulation which would, and the absence of any injunction or action or other proceeding (pending or threatened) which (in the case of any action or proceeding if adversely determined) would, make unlawful or invalid or enjoin the implementation of the Proposed Amendment or the payment of the Consent Fee or that would question the legality or validity thereof; and (4) all of the provisions of the Supplemental Indenture becoming operative (collectively, the Conditions).
If the Conditions specified above are not satisfied or waived (to the extent permitted by applicable law) prior to the Expiration Time, or such later date as the Issuer may specify, the Issuer may, in its sole discretion and without giving any notice, allow the Consent Solicitation to lapse, or extend the solicitation period and continue soliciting Consents in the Consent Solicitation. Subject to applicable law, the Consent Solicitation may be abandoned or terminated for any reason at any time, in which case any Consents received will be voided and no Consent Fee will be paid to any Holders of the Notes. The condition specified in clause (3) of the preceding paragraph is for the benefit of the Issuer and may be waived or extended by the Issuer with respect to the Consent Solicitation in its sole discretion.
Expiration; Extension; Amendment; Termination
The Consent Solicitation expires at 5:00 p.m., New York City time, on December 8, 2017. The Issuer expressly reserves the right to extend the Expiration Time at any time for such period(s) as it may determine, in its sole discretion, from time to time by giving written notice to the Tabulation Agent and DTC.
The Issuer expressly reserves the right, at any time prior to the Expiration Time, to (i) amend any of the terms of the Consent Solicitation in any manner it deems necessary or advisable in its sole discretion or (ii) terminate the Consent Solicitation.
The Consent Solicitation may also be terminated after the Expiration Time and prior to the effectiveness of the Proposed Amendment in the Issuers sole discretion, whether or not the Requisite Consents have been received.
If the Consent Solicitation, or any of the applicable Consent Documents, are amended prior to the Expiration Time in a manner determined by the Issuer, in its sole discretion, to constitute a material change to the terms of the Consent Solicitation, the Issuer will promptly disseminate additional Consent Solicitation materials and, if necessary, extend the Expiration Time for a period deemed by the Issuer to be adequate to permit Holders to consider such amendments.
Any such extension, amendment or termination of the Consent Solicitation will be followed as promptly as practicable by a press release or written notice to the Holders.
Effective Date of the Supplemental Indenture
The terms of the Supplemental Indenture will not become operative unless and until all conditions to the Consent Solicitation have been satisfied or waived and the Consent Fee has been paid. The Issuer intends to execute the Supplemental Indenture promptly after the receipt of the Requisite Consents.
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PROCEDURES FOR DELIVERING CONSENTS
General
Each Holder who delivers a Consent to the Proposed Amendment in accordance with the procedures set forth in the Consent Documents will be deemed to have validly consented to the Proposed Amendment.
To effectively consent to the Proposed Amendment and receive the applicable Consent Fee, a properly completed Consent (or a facsimile thereof, with an original to be delivered within one business day of such facsimile transmission by overnight courier) duly executed by the Holder must be received by the Tabulation Agent at the address set forth on the back cover of this Statement prior to the Expiration Time. Consents should be sent only to the Tabulation Agent and should not be sent to the Issuer.
If Notes are registered in the name of a broker, dealer, commercial bank, trust company or other nominee and the beneficial owner of the Notes wishes to consent to the Proposed Amendment, the beneficial owner must promptly contact and instruct such registered Holder to deliver a Consent to the Tabulation Agent on the beneficial owners behalf. The Tabulation Agent will not accept Consents delivered by beneficial owners directly to the Tabulation Agent. Any beneficial owner of Notes registered in the name of a DTC participant may direct the DTC participant through which such beneficial owners Notes are held to execute a Consent Form on such beneficial owners behalf and deliver the executed Consent to the Tabulation Agent.
The Issuer anticipates that DTC or its nominee will execute an omnibus proxy in favor of DTC Participants, holding Notes, which will authorize each such DTC Participant to consent to the Proposed Amendment with respect to the principal amount of Notes shown as owned by such DTC Participant on the books of DTC on the Record Date. For purposes of the Consent Solicitation, the term Holder shall be deemed to include DTC Participants, and DTC has authorized participants to execute Consents as if they were Holders of record. The Tabulation Agent will accept and record only a properly executed Consent from those parties listed as a Holder in the omnibus proxy received by the Tabulation Agent from DTC. If DTC or its nominee has authorized a proxy to execute a Consent, then the Consent must be executed by the DTC Participant. A Consent in respect of any Notes not held by DTC or a DTC Participant must be executed in the name of the Holder.
The Issuer will accept all properly completed, executed and dated Consents received by the Tabulation Agent prior to the Expiration Time.
Consents by the Holder(s) of Notes should be executed in exactly the same manner as the name(s) of such registered Holder(s) appear(s) on the Notes. If Notes to which a Consent relates are held by two or more joint Holders, all such Holders should sign the Consent. If a Consent is signed by a trustee, partner, executor, administrator, guardian, attorney-in-fact, officer of a corporation or other person acting in a fiduciary or representative capacity, such person must so indicate when signing and must submit with the Consent appropriate evidence of authority to execute the Consent. If a Consent is executed by a person other than the registered Holder, then it must be accompanied by a proxy duly executed by such Holder.
If a Consent relates to fewer than all the Notes held of record as of the Record Date by the Holder providing such Consent, such Holder must indicate on the relevant Consent Form the aggregate dollar amount (in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof) of such Notes to which the Consent relates. Otherwise, the Consent will be deemed to relate to all such Notes.
The method of delivery of a Consent and any other required documents to the Tabulation Agent is at the election and risk of the Holder and, except as otherwise provided in the Consent, delivery will be deemed made only when the Consent or any other required document is actually received by the Tabulation Agent prior to the Expiration Time. If the delivery is by mail, it is suggested that the Holder use registered mail with return receipt requested, and that the mailing be made sufficiently in advance of the Expiration Time to permit delivery to the Tabulation Agent prior to such date.
IN NO EVENT SHOULD A HOLDER DELIVER NOTES TOGETHER WITH A CONSENT. Giving a Consent will not affect the Holders right to sell or transfer the Notes. Consent Forms should not be delivered to the Issuer, the Solicitation Agent or the Trustee. However, we reserve the right (but are not obligated) to accept any Consent Form received by the Issuer, the Solicitation Agent or the Trustee. The Issuer reserves the right (but is not obligated) to accept any Consent Form received by any other reasonable means or in any form that reasonably evidences the giving of consent.
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Determination of Validity
All questions as to the validity, form, eligibility (including time of receipt) and acceptance of any delivered Consent pursuant to any of the procedures described above shall be determined by the Issuer, in its sole discretion (which determination shall be final and binding). The Issuer reserves the absolute right to reject any or all deliveries of any Consent determined by it not to be in proper form or the acceptance of which would, in the Issuers opinion, be unlawful. The Issuer also reserves the absolute right, in its sole discretion, to waive any defect or irregularity as to any delivery of any Consent of any particular Holder, whether or not similar defects or irregularities are waived in the case of other Holders. The Issuers interpretation of the terms and conditions of the Consent Solicitation, including the instructions to the Consent, shall be final and binding. Any defect or irregularity in connection with deliveries of Consents must be cured within such time as the Issuer determines, unless waived by the Issuer. Deliveries of Consents shall not be deemed to have been made until all defects and irregularities have been waived by the Issuer or cured. None of the Issuer, the Trustee, or any other person shall be under any duty to give notification to any Holder of any defects or irregularities in deliveries of Consents or shall incur any liability for failure to give any such notification.
REVOCATION OF CONSENT
A Consent may be revoked by a Holder of Notes if the Tabulation Agent receives the written notice of revocation of Consent (or a facsimile thereof) prior to the Consent Date. The notice of revocation of Consent must be signed by the Holder in the same manner as the Consent to which the notice of revocation of Consent relates. Notices of revocation of Consent must be sent to the Tabulation Agent at the address set forth on the back cover of this Statement in accordance with the procedures set forth in the Consent Documents.
If the Consent Solicitation, or any of the Consent Documents, are amended prior to the Effective Date in a manner determined by the Issuer, in its sole discretion, to constitute a material change to the terms of the Consent Solicitation, the Issuer shall promptly disseminate additional Consent Solicitation materials and, if necessary, extend the Expiration Time for a period deemed by the Issuer to be adequate to permit Holders to consider such amendments and revoke their Consents.
The Issuer reserves the right to contest the validity of any notice of revocation of Consent and all questions as to validity, including the time of receipt of any notice of revocation of Consent, will be determined by the Issuer in its sole discretion, which determination shall be final and binding on all parties. None of the Issuer, the Trustee or any other person shall be under any duty to give notification to any Holder of any defects or irregularities with respect to any notice of revocation of Consent or shall incur any liability for failure to give any such notification.
A revocation of Consent may be rescinded only by the execution and delivery of a new Consent prior to the Expiration Time. A Holder who delivered a notice of revocation of Consent may thereafter deliver a new Consent by following the procedures described in the Consent Documents at any time prior to the Expiration Time. See Procedures for Delivering Consents.
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CERTAIN U.S. FEDERAL INCOME TAX CONSIDERATIONS
The following discussion is a summary of certain U.S. federal income tax considerations relevant to the Proposed Amendment and the receipt of the Consent Fee, but does not purport to be a complete analysis of all potential tax effects. The effects of other U.S. federal tax laws, such as estate and gift tax laws, and any applicable state, local or foreign tax laws are not discussed. This discussion is based on the U.S. Internal Revenue Code of 1986, as amended (the Code), Treasury Regulations promulgated thereunder, judicial decisions, and published rulings and administrative pronouncements of the U.S. Internal Revenue Service (the IRS), in each case in effect as of the date hereof. These authorities may change or be subject to differing interpretations. Any such change or differing interpretation may be applied retroactively in a manner that could adversely affect a holder of the Notes. Holders should be aware that, due to the factual nature of the inquiry and the absence of relevant legal authorities, there is some uncertainty under current U.S. federal income tax law as to the appropriate tax consequences of the adoption of the Proposed Amendment and/or the receipt of the Consent Fee. We have not sought and will not seek any rulings from the IRS regarding the matters discussed below. There can be no assurance the IRS or a court will not take a contrary position to that discussed below regarding the tax consequences of the Proposed Amendment and the receipt of the Consent Fee.
This discussion is limited to Holders who hold the Notes as capital assets within the meaning of Section 1221 of the Code (generally, property held for investment). This discussion does not address all U.S. federal income tax consequences relevant to a Holders particular circumstances, including the impact of the tax on net investment income. In addition, it does not address consequences relevant to Holders subject to special rules, including, without limitation:
| U.S. expatriates and former citizens or long-term residents of the United States; |
| persons subject to the alternative minimum tax; |
| U.S. Holders (as defined below) whose functional currency is not the U.S. dollar; |
| persons holding the Notes as part of a hedge, straddle or other risk reduction strategy or as part of a conversion transaction or other integrated investment; |
| banks, insurance companies, and other financial institutions; |
| real estate investment trusts or regulated investment companies; |
| brokers, dealers or traders in securities; |
| controlled foreign corporations, passive foreign investment companies, and corporations that accumulate earnings to avoid U.S. federal income tax; |
| S corporations, partnerships or other entities or arrangements treated as partnerships for U.S. federal income tax purposes (and investors therein); |
| tax-exempt organizations or governmental organizations; and |
| persons deemed to sell the Notes under the constructive sale provisions of the Code. |
If an entity treated as a partnership for U.S. federal income tax purposes holds the Notes, the tax treatment of a partner in the partnership will depend on the status of the partner, the activities of the partnership and certain determinations made at the partner level. Accordingly, partnerships holding the Notes and the partners in such partnerships should consult their tax advisors regarding the U.S. federal income tax consequences to them.
THIS DISCUSSION IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT TAX ADVICE. HOLDERS SHOULD CONSULT THEIR TAX ADVISORS WITH RESPECT TO THE APPLICATION OF THE U.S. FEDERAL INCOME TAX LAWS TO THEIR PARTICULAR SITUATIONS AS WELL AS ANY TAX CONSEQUENCES OF THE PROPOSED AMENDMENT AND THE RECEIPT OF THE CONSENT FEE ARISING UNDER OTHER U.S. FEDERAL TAX LAWS (INCLUDING ESTATE AND GIFT TAX LAWS), UNDER THE LAWS OF ANY STATE, LOCAL OR NON-U.S. TAXING JURISDICTION OR UNDER ANY APPLICABLE TAX TREATY.
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Tax Considerations Applicable to U.S. Holders
Definition of a U.S. Holder
For purposes of this discussion, a U.S. Holder is a beneficial owner of a Note that, for U.S. federal income tax purposes, is or is treated as:
| an individual who is a citizen or resident of the United States; |
| a corporation created or organized under the laws of the United States, any state thereof, or the District of Columbia; |
| an estate, the income of which is subject to U.S. federal income tax regardless of its source; or |
| a trust that (1) is subject to the primary supervision of a U.S. court and the control of one or more United States persons (within the meaning of Section 7701(a)(30) of the Code), or (2) has a valid election in effect to be treated as a United States person for U.S. federal income tax purposes. |
Modification of the Notes
The U.S. federal income tax considerations of the adoption of the Proposed Amendment and payment of the Consent Fee will depend, in part, upon whether these events result in a deemed exchange of a U.S. Holders Notes for such purposes. Generally, a modification of the terms of a debt instrument, which for this purpose would include the adoption of the Proposed Amendment and the payment of the Consent Fee, results in a deemed exchange (of old notes for deemed new notes) for U.S. federal income tax purposes if the modification is significant for U.S. federal income tax purposes, in which case such deemed exchange would be a taxable event in respect of which gain or, subject to the application of the wash sale rules of Section 1091 of the Code, loss may be recognized by Holders (unless a non-recognition provision of the Code was to apply). In general, subject to provisions applicable to certain categories of modifications, a modification is significant under the applicable Treasury Regulations if, based on all facts and circumstances and taking into account all modifications of the debt instrument collectively (subject to certain exceptions), the legal rights or obligations that are altered and the degree to which they are altered are economically significant.
The applicable Treasury Regulations provide that the addition, deletion or alteration of customary accounting or financial covenants is not a significant modification, although it is not clear what constitutes such customary accounting or financial covenants.
The applicable Treasury Regulations also provide that a change in the yield of a debt instrument generally is not a significant modification unless the yield of the modified instrument (determined by taking into account any payments made by the issuer to the holder as consideration for the modification) varies from the yield on the unmodified instrument (determined as of the date of the modification) by more than the greater of 25 basis points or 5 percent of the annual yield of the unmodified instrument.
Although the issue is not free from doubt, the Company intends to take the position that the adoption of the Proposed Amendment and the receipt of the Consent Fee, taken together, does not result in a significant modification of the Notes. Assuming this position is respected, (i) subject to the discussion under Consent Fee below, a U.S. Holder of Notes should not realize any gain or loss as a result of the adoption of the Proposed Amendment and the receipt of the Consent Fee and (ii) any such U.S. Holder should continue to have the same adjusted tax basis, holding period, accrued market discount (if any) and accrued original issue discount with respect to the Notes as such Holder had immediately prior to the adoption of the Proposed Amendment. U.S. Holders should note that no ruling has been sought from the IRS and there can be no assurance that the IRS will agree with the Companys position that the adoption of the Proposed Amendment and the receipt of the Consent Fee is not a significant modification of the Notes. The remainder of this discussion assumes the Companys position will be respected and the adoption of the Proposed Amendment and payment of the Consent Fee will not be a significant modification of the Notes.
U.S. Holders, including non-consenting U.S. Holders, are encouraged to consult their tax advisors regarding the risk that the adoption of the Proposed Amendment and the receipt of the Consent Fee constitutes a significant modification for U.S. federal income tax purposes, the tax consequences to them if there were to be a deemed exchange, and the tax consequences of holding the Notes after the adoption of the Proposed Amendment.
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Consent Fee
The U.S. federal income tax treatment of the Consent Fee is unclear. The receipt of the Consent Fee by a U.S. Holder may be characterized as either (1) an additional payment with respect to the Notes or (2) a separate fee (taxable as ordinary income) for consenting to the Proposed Amendment. Other treatments of the Consent Fee are possible. For instance, based on an IRS private letter ruling on which the Company and any U.S. Holder may not rely, it is possible that payment of the Consent Fee in respect of a Note may be properly treated first as a payment of unpaid accrued interest (if any) on the Note, and second as payment of principal on the Notes. Although the matter is not free from doubt, the Company intends to take the position that the Consent Fee is a separate fee for consenting to the Proposed Amendment (and not interest income), which would generally be taxable as ordinary income at the time the Consent Fee is received or accrued in accordance with the U.S. Holders regular method of tax accounting. No assurance can be given, however, that such position would be sustained if challenged by the IRS. Each U.S. Holder should consult its own tax advisor as to (i) possible alternative treatments of the Consent Fee and (ii) the impact of the Consent Fee on the U.S. Holders tax accounting in respect of the Notes.
Information Reporting and Backup Withholding
A U.S. Holder may be subject to information reporting and backup withholding when such holder receives the Consent Fee. Certain U.S. Holders are exempt from backup withholding, including corporations and certain tax-exempt organizations. A U.S. Holder will be subject to backup withholding if such holder is not otherwise exempt and:
| the holder fails to furnish the holders taxpayer identification number, which for an individual is ordinarily his or her social security number; |
| the holder furnishes an incorrect taxpayer identification number; |
| the applicable withholding agent is notified by the IRS that the holder previously failed to properly report payments of interest or dividends; or |
| the holder fails to certify under penalties of perjury that the holder has furnished a correct taxpayer identification number and that the IRS has not notified the holder that the holder is subject to backup withholding. |
Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules may be allowed as a refund or a credit against a U.S. Holders U.S. federal income tax liability, provided the required information is timely furnished to the IRS. U.S. Holders should consult their tax advisors regarding their qualification for an exemption from backup withholding and the procedures for obtaining such an exemption.
Tax Considerations Applicable to Non-U.S. Holders
Definition of a Non-U.S. Holder
For purposes of this discussion, a Non-U.S. Holder is a beneficial owner of a Note that is neither a U.S. Holder nor an entity treated as a partnership for U.S. federal income tax purposes.
Modification of the Notes
As discussed in more detail above under Tax Considerations Applicable to U.S. HoldersModification of the Notes, the Company intends to take the position that the adoption of the Proposed Amendment and the receipt of the Consent Fee, taken together, does not result in a significant modification of the Notes, and therefore does not result in a deemed exchange. Assuming this position is respected, Non-U.S. Holders should generally not realize any gain or loss or be subject to U.S. federal income tax on account of the Proposed Amendment of the Notes or the receipt of the Consent Fee, except as described below under Consent Fee. Non-U.S. Holders should consult their own tax advisors regarding the risk that the adoption of the Proposed Amendment and the receipt of the Consent Fee constitutes a significant modification for U.S. federal income tax purposes, the tax consequences to them if there were to be a deemed exchange, and the tax consequences of holding the Notes after the adoption of the Proposed Amendment.
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Consent Fee
As discussed in more detail above under U.S. HoldersConsent Fee, under current U.S. federal income tax law, there is uncertainty regarding the characterization of the Consent Fee for U.S. federal income tax purposes and the Company intends to treat the Consent Fee as a separate fee (treated as ordinary income) for consenting to the Proposed Amendment (and not as interest income). Therefore, the Company intends to take the position that the Consent Fee paid to a Non-U.S. Holder should be subject to U.S. federal withholding tax at a rate of 30% unless (i) the Non-U.S. Holder is engaged in the conduct of a trade or business in the United States to which the receipt of the Consent Fee is effectively connected and provides a properly executed IRS Form W-8ECI (in which case the Non-U.S. Holder would be subject to regular U.S. federal income tax on such Consent Fee in generally the same manner as if it were a U.S. Holder, and a Non-U.S. Holder that is a corporation may also be subject to an additional branch profits tax (unless, in each case, an applicable income tax treaty provides otherwise)) or (ii) an applicable income tax treaty eliminates or reduces the applicable withholding tax and the Non-U.S. Holder provides a properly executed IRS Form W-8BEN or Form W-8BEN-E (or other applicable documentation) claiming exemption or reduction under the applicable treaty. If such withholding results in an overpayment of taxes, a refund or credit may be obtainable, provided that the required information is timely furnished to the IRS. Non-U.S. Holders should consult their tax advisors with respect to the treatment of the Consent Fee, and the application of U.S. federal income tax withholding, including eligibility for a withholding tax exemption and refund procedures.
Information Reporting and Backup Withholding
Backup withholding may apply to the Consent Fee paid to a Non-U.S. Holder unless the Non-U.S. Holder certifies its non-U.S. status on an applicable Form W-8 and the Company or the applicable withholding agent does not know or have reason to know that the conditions to any applicable exemption are not satisfied. In addition, the Company, the paying agent or other intermediary may be required to report to a Non-U.S. Holder and the IRS the amount of any Consent Fee paid to such Non-U.S. Holder.
Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules may be allowed as a refund or a credit against a Non-U.S. Holders U.S. federal income tax liability, provided the required information is timely furnished to the IRS.
Additional Withholding Tax on Payments Made to Foreign Accounts
Withholding taxes may be imposed under Sections 1471 to 1474 of the Code (such Sections commonly referred to as the Foreign Account Tax Compliance Act, or FATCA) on certain types of payments made to non-U.S. financial institutions and certain other non-U.S. entities. Specifically, a 30% withholding tax may be imposed on payments of interest on, or gross proceeds from the sale or other disposition of, a Note paid to a foreign financial institution or a non-financial foreign entity (each as defined in the Code), unless (1) the foreign financial institution undertakes certain diligence and reporting obligations, (2) the non-financial foreign entity either certifies it does not have any substantial United States owners (as defined in the Code) or furnishes identifying information regarding each substantial United States owner, or (3) the foreign financial institution or non-financial foreign entity otherwise qualifies for an exemption from these rules. If the payee is a foreign financial institution and is subject to the diligence and reporting requirements in (1) above, it must enter into an agreement with the U.S. Department of the Treasury requiring, among other things, that it undertake to identify accounts held by certain specified United States persons or United States-owned foreign entities (each as defined in the Code), annually report certain information about such accounts, and withhold 30% on certain payments to non-compliant foreign financial institutions and certain other account holders. Foreign financial institutions located in jurisdictions that have an intergovernmental agreement with the United States governing FATCA may be subject to different rules.
Under the applicable Treasury Regulations and administrative guidance, withholding under FATCA generally applies to payments of interest on a note.
As discussed in more detail above under Tax Considerations Applicable to U.S. HoldersConsent Fee, the U.S. federal income tax treatment of the Consent Fee is unclear. In light of this uncertainty, the applicable withholding agent may treat the payment of the Consent Fee as a payment that is subject to withholding under FATCA, subject to the exceptions described above.
Holders should consult their tax advisors regarding the potential application of withholding under FATCA to the Notes and the Consent Fee.
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TABULATION AGENT AND INFORMATION AGENT
D.F. King & Co., Inc. has been appointed as Tabulation Agent for the Consent Solicitation to receive, tabulate and verify Consents. All Consents and correspondence sent to the Tabulation Agent should be directed to the address set forth on the back cover of this Statement. The Issuer has agreed to indemnify the Tabulation Agent for certain liabilities, including liabilities under the federal securities laws. D.F. King & Co., Inc. has agreed to facilitate the Consent Solicitation in its capacity as Tabulation Agent; however, it is not passing upon the merits or accuracy of the information contained in the Consent Solicitation in its capacity as Tabulation Agent.
D.F. King & Co., Inc. will act as Information Agent with respect to the Consent Solicitation. Requests for additional copies of and questions relating to the Consent Documents, the Indenture and the documents incorporated by reference herein may be directed to the Information Agent at the address and telephone number set forth on the back cover of this Statement. Holders of the Notes may also contact their broker, dealer, commercial bank, trust company or other nominee for assistance concerning the Consent Solicitation.
In connection with the Consent Solicitation, directors, officers and employees of the Issuer (who will not be specifically compensated for such services) may solicit Consents by use of the mails, personally or by telephone, facsimile or other means.
The Issuer will pay the Tabulation Agent and the Information Agent reasonable and customary fees for their services and will reimburse them for their out-of-pocket expenses in connection therewith. The Issuer will also reimburse brokers and dealers for customary mailing and handling expenses incurred by them in forwarding copies of this Statement and related documents to the beneficial owners of Notes.
SOLICITATION AGENT
The Issuer has engaged RBC Capital Markets, LLC to act as the exclusive Solicitation Agent in connection with the Consent Solicitation. The Issuer will pay RBC Capital Markets, LLC reasonable and customary fees for its services as Solicitation Agent and will reimburse it for its reasonable out-of-pocket expenses in connection herewith. The Issuer has agreed to indemnify the Solicitation Agent against certain liabilities in connection with its services as Solicitation Agent. At any given time, the Solicitation Agent may trade Notes or other debt securities of the Issuer for its own account or for the accounts of customers and, accordingly, may hold a long or short position in the Notes or such other securities. All inquiries and correspondence addressed to the Solicitation Agent relating to the Consent Solicitation should be directed to the address or telephone number set forth on the back cover page of this Statement.
The Solicitation Agent assumes no responsibility for the accuracy or completeness of the information contained in this Statement or for any failure by the Issuer to disclose events that may affect the significance or accuracy of that information.
The Solicitation Agent has provided in the past and may continue to provide other investment banking and financial advisory services to the Issuer, the Parent and their respective affiliates and could receive customary compensation from the Issuer for such services. The Parent currently indirectly owns all of the outstanding equity of the Issuer.
In the ordinary course of business, the Solicitation Agent or its affiliates may at any time hold long or short positions, and may trade for their own account or the account of customers, in the debt securities of the Issuer, the Parent or any of their respective affiliates, including any of the Notes and, to the extent that the Solicitation Agent or its affiliates hold Notes during the consent solicitation, it may provide Consents relating to such Notes pursuant to the terms of this Statement.
TRUSTEE
Deutsche Bank Trust Company Americas, a New York banking corporation, serves as the Trustee with respect to the Indenture. The Trustee, other than during the occurrence and continuance of an event of default under the Indenture, undertakes to perform only those duties as are specifically set forth in the Indenture. Except for the contents of this subsection, the Trustee has not reviewed or participated in the preparation of this Statement and assumes no responsibility for the nature, contents, accuracy or completeness of the information set forth herein, or for the recitals contained in the Indenture, the Supplemental Indenture or the Notes, or for the validity, sufficiency or legal effect of any of such documents.
15
The Trustee has not evaluated any risk, benefits or propriety of the Consent Documents, the Consent Solicitation, the Proposed Amendment or this Statement, and makes no representation, and has reached no conclusions, regarding the investment quality of any of the Notes, about which the Trustee expresses no opinion and expressly disclaims the expertise to evaluate.
16
FEES AND EXPENSES
The Issuer will bear all of the costs of the Consent Solicitation and will reimburse the Trustee for the reasonable and customary expenses that the Trustee incurs in connection with the Consent Solicitation and the execution of the Supplemental Indenture. The Issuer will also reimburse banks, trust companies, securities dealers, nominees, custodians and fiduciaries for their reasonable and customary expenses in forwarding this Statement and the Consent Documents to beneficial owners of the Notes. The Issuer will not otherwise pay any fees or commissions to any broker, dealer or other person (other than the Solicitation Agent, the Tabulation Agent, the Trustee and the Information Agent) in connection with the Consent Solicitation.
MISCELLANEOUS
Holders residing outside the United States who wish to deliver a Consent must satisfy themselves as to their full observance of the laws of the relevant jurisdiction in connection therewith. If the Issuer becomes aware of any jurisdiction where the making of the Consent Solicitation would not be in compliance with such laws, the Issuer will make a good faith effort to comply with any such laws or may seek to have such laws declared inapplicable to the Consent Solicitation. If, after such good faith effort, the Issuer cannot comply with any such applicable laws, the Consent Solicitation will not be made to (nor will Consents be accepted from or on behalf of) the Holders of the Notes residing or having a principal place of business in each such jurisdiction.
From time to time, the Issuer or its affiliates may engage in additional consent solicitations. Any future consent solicitations may be on the same terms or on terms that are more or less favorable to Holders of the Notes than the terms of the Consent Solicitation, as the Issuer may determine in its sole discretion.
17
Appendix A
EXECUTION VERSION
CBS RADIO, INC.
as Issuer
and
DEUTSCHE BANK TRUST COMPANY AMERICAS,
as Trustee
7.250% SENIOR NOTES DUE 2024
SECOND SUPPLEMENTAL INDENTURE
Dated as of December [ ], 2017
Second Supplemental Indenture (this Supplemental Indenture), dated as of December [__], 2017, between CBS Radio Inc., a Delaware corporation (the Issuer), and Deutsche Bank Trust Company Americas, a New York banking corporation, as trustee (the Trustee).
W I T N E S S E T H
WHEREAS, the Issuer and the Subsidiary Guarantors (as defined in the Indenture referred to below) have heretofore executed and delivered to the Trustee an indenture, as amended, supplemented or otherwise modified from time to time, (the Indenture), dated as of October 17, 2016, providing for the issuance of an unlimited aggregate principal amount of Senior Notes due 2024 (the Notes);
WHEREAS, there is currently outstanding under the Indenture $400,000,000 aggregate principal amount of the Notes;
WHEREAS, pursuant to Section 9.02 of the Indenture, the Issuer and the Trustee may amend or supplement the Indenture with the consent of the holders of at least a majority in principal amount of the Notes then outstanding;
WHEREAS, Holders of $[ ] aggregate principal amount of the Notes have consented to entry into this Supplemental Indenture pursuant to consents delivered in accordance with the terms of the Indenture;
WHEREAS, all acts and proceedings required by law, by the Indenture and by the organizational documents of the Company to make this Supplemental Indenture a valid and binding agreement for the purposes expressed herein, in accordance with the Indentures terms, have been duly done and performed.
NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows:
(1) Capitalized Terms. Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.
(2) Amendments.
(a) Clause (j) of the definition of EBITDA in Section 1.01 of the Indenture is amended as follows:
(j)
the amount of cost savings, operating expense reductions, other operating improvements and initiatives and synergies projected by the Issuer in good faith to be reasonably anticipated to be realizable within 12 18
months of the date of any Investment, acquisition, disposition, merger, consolidation or other action being given pro forma effect (which will be added to EBITDA as so projected until fully realized and calculated on a pro forma basis as
though such cost savings, operating expense reductions, other operating improvements and initiatives and synergies had been realized on the first day of such period), net of
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the amount of actual benefits realized during such period from such actions; provided that (x) all steps have been taken for realizing such cost savings or all steps are expected to be
taken within 18 months of the date of any Investment, acquisition, disposition, merger, consolidation or other action begin given pro forma effect, (y) such cost savings are reasonably identifiable and
factually supportable (in the good faith determination of the Issuer) and (z) the aggregate amount of cost savings, operating expense reductions, other operating improvements and initiatives and synergies added back pursuant to this clause
(j) in any period of four consecutive fiscal quarters shall not exceed 10% 30% of EBITDA (prior to giving effect to such addbacks);
(b) Clause (d) of the definition of Asset Sale in Section 1.01 of the Indenture is amended as follows:
(d) any disposition of assets or issuance or sale of Equity Interests of any Restricted Subsidiary in any transaction or series
of transactions with an aggregate fair market value (as determined in good faith by the Issuer) not to exceed $5.0 25.0 million
(c) The last paragraph of the definition of Consolidated Net Leverage Ratio in Section 1.01 of the Indenture is amended as follows:
For purposes of this definition, whenever pro forma effect is to be given to a transaction, the pro forma
calculations shall be made in good faith by a responsible financial or accounting officer of the Issuer. Any such pro forma calculation may include adjustments appropriate, in the reasonable determination of the Issuer as set forth in an
Officers Certificate, to reflect reasonably identifiable and factually supportable operating expense reductions and other operating improvements or synergies reasonably expected to result from any action taken or expected to be taken within
12 18 months after the date of any acquisition, amalgamation or merger; provided, that no such amounts shall be included pursuant to this paragraph to the extent duplicative of any amounts that are otherwise
added back in computing EBITDA with respect to such period.
(3) Effectiveness. This Supplemental Indenture shall be effective and operative as of the date first set forth above.
(4) Continuing Effect of Indenture. Except as expressly provided herein, all of the terms, provisions and conditions of the Indenture and the Notes outstanding thereunder shall remain in full force and effect.
(5) Governing Law. THIS SUPPLEMENTAL INDENTURE WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
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(6) Counterparts. The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. The exchange of copies of this Supplemental Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Supplemental Indenture as to the parties hereto and may be used in lieu of the original Supplemental Indenture and signature pages for all purposes.
(7) Effect of Headings. The Section headings herein are for convenience only and shall not affect the construction hereof.
(8) The Trustee. Each of the rights, privileges and protections of the Trustee set forth in the Indenture is hereby incorporated by reference. Without limiting the foregoing, the Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture (including the consequences thereof) or, for or in respect of the recitals contained herein, all of which recitals are made solely by the Issuer.
[Signature pages follow.]
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IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed, all as of the date first above written.
CBS RADIO INC. | ||
By: | ||
Name: Andrew P. Sutor, IV | ||
Title: Executive Vice President |
[Signature Page to Second Supplemental Indenture]
DEUTSCHE BANK TRUST COMPANY AMERICAS, as Trustee | ||
By: Deutsche Bank National Trust Company | ||
By: | ||
Name: | ||
Title: | ||
By: | ||
Name: | ||
Title: |
[Signature Page to Second Supplemental Indenture]
CONSENT SOLICITATION STATEMENT
CBS RADIO INC.
Questions and requests for assistance or additional copies of the Consent Documents, the Indenture and the documents incorporated by reference herein may be directed to the Information Agent at the address and telephone number set forth below. Holders should retain their Notes and not deliver any Notes to the Tabulation Agent or the Information Agent. Duly executed Consents should be sent to the Tabulation Agent at the address set forth below in accordance with the instructions set forth in the Consent Documents:
The Tabulation Agent and the Information Agent for the Consent Solicitation is
D.F. King & Co., Inc.
48 Wall Street, 22nd Floor
New York, NY 10005
Attention: Andrew Beck
E-mail: entercom@dfking.com
Toll free: (866) 796-7184
Banks and Brokers call: (212) 269-5550
Facsimile: (212) 709-3328
(For Eligible Institutions only)
Confirmation: (212) 269-5552
By Mail, by Overnight Courier or by Hand:
D.F. King & Co., Inc.
48 Wall Street, 22nd Floor
New York, NY 10005
Questions and requests for assistance may be directed to the Solicitation Agent at the address and telephone number set forth below. A Holder may also contact its broker, dealer, commercial bank, trust company or other nominee for assistance concerning the Consent Solicitation.
The Solicitation Agent for the Consent Solicitation is:
RBC Capital Markets, LLC
Three World Financial Center
200 Vesey Street, 8th floor
New York, New York 10281
Attn: Liability Management
Telephone: (212) 618-7843
Toll free: (877) 381-2099
Exhibit 99.3
CONSENT FORM
CBS RADIO INC.
a wholly owned subsidiary of Entercom Communications Corp.
Solicitation of Consents to the Proposed Amendment to the Indenture
Relating to the 7.250% Senior Notes Due 2024
(CUSIP Nos. 124847 AC8 and U12496 AA0)
TO: D.F. King & Co., Inc. (as Tabulation Agent)
For a Consent Fee of up to $5.00 per $1,000 Principal Amount
The Consent Solicitation is made by CBS Radio Inc., a Delaware corporation (the Issuer), only to Holders (as defined below) as of the Record Date (as defined below) of its 7.250% Senior Notes Due 2024 (the Notes) as described in the accompanying Consent Solicitation Statement dated December 1, 2017 (the Statement). The Statement and the instructions accompanying this Consent Form should be read carefully before this Consent Form is completed. Capitalized terms used but not defined herein have the meanings ascribed to them in the Statement.
The Consent Solicitation will expire at 5:00 p.m., New York City time, on December 8, 2017 or such later time and date to which the Consent Solicitation is extended (such time and date, the Expiration Time). Consents may be revoked at any time prior to the Consent Date, which is the earlier of (a) the Effective Date (as defined below) and (b) the Expiration Time. The Issuer intends to execute a Supplemental Indenture (as defined in the Statement) promptly following receipt of the Requisite Consents (as defined in the Statement). The date on which the Supplemental Indenture is executed in connection with the Consent Solicitation is referred to as the Effective Date. The Proposed Amendment (as defined below) will become operative only upon satisfaction of all Conditions (as defined below) to the Consent Solicitation. Please review the Statement carefully.
In the event that the Conditions to the Consent Solicitation, including, without limitation, the receipt of the Requisite Consents and the provisions of the Supplemental Indenture having become operative, are satisfied or waived, the Issuer will, as promptly as reasonably practicable after the Expiration Time, pay to the Holders of outstanding Notes who delivered valid and unrevoked Consents prior to the Expiration Time a cash payment of $5.00 per $1,000 principal amount of Notes for which Consents have been delivered by such Holder (the Consent Fee). Holders of Notes for which no Consent is delivered will not receive the Consent Fee, even though the Proposed Amendment, if approved, will bind all Holders and their transferees.
The Issuers obligation to accept valid and unrevoked Consents in respect of the Notes and to pay the Consent Fee in respect of such Consents is conditioned upon satisfaction, or waiver by the Issuer, of the following conditions: (1) receipt by the Tabulation Agent prior to the Expiration Time of valid and unrevoked Requisite Consents from Holders of the Notes; (2) the execution by the Issuer and the Trustee of a Supplemental Indenture embodying the Proposed Amendment; (3) the absence of any law or regulation which would, and the absence of any injunction or action or other proceeding (pending or threatened) which (in the case of any action or proceeding if adversely determined) would, make unlawful or invalid or enjoin the implementation of the Proposed Amendment or the payment of the Consent Fee or that would question the legality or validity thereof; and (4) all of the provisions of the Supplemental Indenture becoming operative (collectively, the Conditions).
Any Holders of the Notes desiring to consent to the Proposed Amendment must complete, execute and deliver their Consent Form by mail (first-class postage prepaid), hand delivery, overnight courier or by facsimile transmission (with an original to be delivered within one business day of such facsimile transmission by overnight courier) to the Tabulation Agent (not to the Issuer) at the address or facsimile number set forth on the back of this Consent Form in accordance with the instructions set forth herein and in the Statement. However, the Issuer reserves the right to accept any Consent received by it. Under no circumstances should any person tender or deliver Notes to the Issuer or the Tabulation Agent at any time.
Except as provided in this paragraph, Holder means each person shown on the record of the registrar for the Notes as a holder at 5:00 p.m., New York City time, on November 28, 2017 (the Record Date). For purposes of the Consent Solicitation, The Depository Trust Company (DTC) has authorized DTC participants (DTC Participants) set forth in the position listing of DTC as of the Record Date to execute Consent Forms as if they were the Holders of the Notes held of record in the name of DTC or the name of its nominee. Accordingly, for purposes of the Consent Solicitation, the term Holder shall be deemed to include such DTC Participants. Any beneficial owner of Notes who is not a Holder of such Notes must arrange with the person who is the Holder or such Holders assignee or nominee to execute and deliver a Consent Form on behalf of such beneficial owner.
CONSENT OF HOLDER(S) OF 7.250% SENIOR NOTES DUE 2024
By execution hereof, the undersigned acknowledges receipt of the Statement. The undersigned hereby represents and warrants that the undersigned is a Holder of the Notes indicated below and has full power and authority to take the action indicated below in respect of such Notes. The undersigned will, upon request, execute and deliver any additional documents deemed by the Issuer to be necessary or desirable to perfect the undersigneds Consent.
The undersigned acknowledges that the undersigned must comply with the provisions of this Consent Form, and complete the information required herein, to validly consent to the Proposed Amendment set forth in the Statement. In the event that certain conditions described in the Statement, including, without limitation, the receipt of the Requisite Consents and the provisions of the Supplemental Indenture having become operative, are satisfied or waived, the Issuer will, as promptly as reasonably practicable after the Expiration Time, pay to the Holders of outstanding Notes who delivered valid and unrevoked Consents prior to the Expiration Time the Consent Fee for the Notes for which Consents have been delivered by such Holder.
The Issuers obligation to accept valid and unrevoked Consents in respect of the Notes and to pay the Consent Fee in respect of such Consents is conditioned upon satisfaction, or waiver by the Issuer, of the following conditions: (1) receipt by the Tabulation Agent prior to the Expiration Time of valid and unrevoked Requisite Consents from Holders of the Notes; (2) the execution by the Issuer and the Trustee of a Supplemental Indenture embodying the Proposed Amendment; (3) the absence of any law or regulation which would, and the absence of any injunction or action or other proceeding (pending or threatened) which (in the case of any action or proceeding if adversely determined) would, make unlawful or invalid or enjoin the implementation of the Proposed Amendment or the payment of the Consent Fee or that would question the legality or validity thereof; and (4) all of the provisions of the Supplemental Indenture becoming operative.
Please indicate by marking the appropriate box below whether you wish to:
(i) consent to the Proposed Amendment to the Indenture; or
(ii) not consent to the Proposed Amendment to the Indenture.
The undersigned acknowledges that a Consent Form delivered and not revoked pursuant to any one of the procedures described under the headings Principal Terms of the Consent Solicitation and Procedures for Delivering Consents in the Statement and in the instructions hereto will constitute a binding agreement between the undersigned and the Issuer upon the terms and subject to the Conditions of the Consent Solicitation. The undersigned further understands that if no box is checked, but this Consent Form is executed and delivered to the Tabulation Agent, the undersigned will be deemed to have consented to the Proposed Amendment. The undersigned hereby agrees that it will not revoke any Consent it grants hereby except in accordance with the procedures set forth herein and in the Statement.
Notes
(CUSIP Nos. 124847 AC8 and U12496 AA0)
CONSENT |
DO NOT CONSENT | |
☐ | ☐ |
2
Unless otherwise specified in the table below, this Consent Form relates to the total principal amount of Notes held of record by the undersigned at the close of business on the Record Date. If this Consent Form relates to less than the total principal amount of Notes so held, the undersigned has listed on the table below the serial numbers (with respect to Notes not held by depositaries) and principal amount of Notes for which consent is hereby given. If the space provided below is inadequate, list the certificate numbers and aggregate principal amounts on a separate signed schedule and affix such list to this Consent Form.
DESCRIPTION OF THE NOTES AS TO WHICH CONSENTS ARE GIVEN | ||||||
Name and Address of Holder |
DTC Participant Number(s) |
Aggregate Principal Amount of Notes** |
Principal Amount With Respect to Which Consents Are Given** | |||
Total Principal Amount of 7.250% Senior Notes Due 2024 (CUSIP Nos. 124847 AC8 and U12496) Consenting: $ |
** | Unless otherwise indicated in the column labeled Principal Amount With Respect to Which Consents Are Given, the Holder will be deemed to have consented in respect of the entire aggregate principal amount indicated in the column labeled Aggregate Principal Amount of Notes. All principal amounts must be in minimum denominations of $2,000 or an integral multiple of $1,000 in excess thereof. |
3
The undersigned authorizes the Tabulation Agent to deliver this Consent Form and any proxy delivered in connection herewith to the Issuer as evidence of the undersigneds actions with respect to the Proposed Amendment.
IMPORTANT READ CAREFULLY
If this Consent Form is executed by the Holder, it must be executed in exactly the same manner as the name of the Holder appears on the Notes. An authorized DTC Participant must execute this Consent Form exactly as its name appears on DTCs position listing as of the Record Date. If Notes are held of record by two or more joint Holders, all such Holders must sign this Consent Form. If a signature is by a trustee, executor, administrator, guardian, attorney-in-fact, officer of a corporation or other Holder acting in a fiduciary or representative capacity, such person must so indicate when signing and must submit proper evidence satisfactory to the Issuer of such persons authority to so act. If a Holder has Notes registered in different names, separate Consent Forms must be executed covering each form of registration. If a Consent Form is executed by a person other than the Holder, then such person must have been authorized by proxy or in some other manner acceptable to the Issuer to execute this Consent Form with respect to the applicable Notes on behalf of the Holder. Any beneficial owner of Notes who is not a Holder of record of such Notes must arrange with the person who is the Holder of record or such Holders assignee or nominee to execute and deliver this Consent Form on behalf of such beneficial owner.
SIGN HERE
Signature(s) of Holder(s) |
Date: |
Name(s): | ||
(Please Print) |
Capacity (full title): |
Address (with Zip Code): |
Telephone No. (with Area Code): |
Taxpayer ID or SSN: |
4
GUARANTEE OF SIGNATURE(S)
(If required, see instructions 5 and 6 below)
Authorized Signature: |
Name and Title: | ||
(Please Print) |
Date: |
Name of Firm: |
5
CONSENT FEE INSTRUCTIONS
Subject to the terms and conditions set forth herein and in the Statement, the Issuer agrees to make an aggregate cash payment of $5.00 per $1,000 principal amount of Notes (the Consent Fee) to each Holder who timely delivers to the Tabulation Agent a valid and effective Consent that is not subsequently properly revoked and that is accepted by the Issuer. The Consent Fee will be paid as stated under the heading Principal Terms of the Consent SolicitationConsent Fee in the Statement. The Consent Fee will be paid only to Holders whose Consent Forms are received by the Tabulation Agent prior to 5:00 p.m., New York City time, on December 8, 2017 unless extended, and so accepted by the Issuer in connection with the Consent Solicitation. Holders whose Consent Forms are not received by the Tabulation Agent prior to the Expiration Time or that are revoked will NOT be entitled to a Consent Fee. The method of delivery of all documents, including fully executed Consent Forms, is at the election and risk of the Holder.
In order for a Consent to be valid and effective, (a) this Consent Form must be properly completed, executed and received by the Tabulation Agent prior to the Expiration Time and (b) the Consent must not thereafter be properly revoked as provided herein and in the Statement.
The Issuers obligation to accept Consents and to pay the Consent Fee in respect of such Consents is conditioned upon satisfaction, or waiver by the Issuer, of the following conditions: (1) receipt by the Tabulation Agent prior to the Expiration Time of valid and unrevoked Requisite Consents from Holders of Notes; (2) the execution by the Issuer and the Trustee of a Supplemental Indenture embodying the Proposed Amendment; (3) the absence of any law or regulation which would, and the absence of any injunction or action or other proceeding (pending or threatened) which (in the case of any action or proceeding if adversely determined) would, make unlawful or invalid or enjoin the implementation of the Proposed Amendment or the payment of the Consent Fee or that would question the legality or validity thereof; and (4) all of the provisions of the relevant Supplemental Indenture becoming operative.
If the Conditions specified above are not satisfied or waived with respect to the Consent Solicitation (to the extent permitted by applicable law) prior to the Expiration Time, or such later date as the Issuer may specify, the Issuer may, in its sole discretion and without giving any notice, allow the Consent Solicitation to lapse, or extend the solicitation period and continue soliciting Consents in connection with such Consent Solicitation. Subject to applicable law, the Consent Solicitation may be abandoned or terminated for any reason at any time, in which case any Consents received will be voided and no Consent Fee will be paid to any Holders.
6
The Consent Fee may be disbursed by the Tabulation Agent to the Holder(s) (not to the beneficial owners of the Notes) by wire transfer or by check. If wire transfer instructions are not provided, the Consent Fee will be paid by check. Please indicate below to whom the Consent Fee should be paid.
For check:
SPECIAL PAYMENT INSTRUCTIONS |
SPECIAL DELIVERY INSTRUCTIONS | |
To be completed ONLY if the check for the Consent Fee is to be issued in the name of and sent to someone other than the undersigned | To be completed ONLY if the check for the Consent Fee is to be sent to someone other than the undersigned, or to the undersigned at an address other than that shown in this Consent Form. | |
Issue Check to: | Mail Check to: | |
Name (Print): | Address (Print): | |
Address (with Zip Code):
(Tax identification or social security number) (Please also complete the enclosed IRS Form W-9 or appropriate IRS Form W- 8, as applicable) |
Address (with Zip Code):
(Tax identification or social security number) (Please also complete the enclosed IRS Form W-9 or appropriate IRS Form W- 8, as applicable) |
For wire transfer:
WIRE TRANSFER INSTRUCTIONS | ||
(Please Print) |
Bank Name: |
City, State: |
ABA #: |
Account Name: |
Checking A/C #: |
f/f/c #: | ||
Re: |
7
INSTRUCTIONS FOR CONSENTING HOLDERS, FORMING PART
OF THE TERMS AND CONDITIONS OF THE CONSENT SOLICITATION
1. Delivery of this Consent Form. Upon the terms and subject to the conditions set forth herein and in the Statement, a properly completed and duly executed copy of this Consent Form and any other documents required by this Consent Form must be received by the Tabulation Agent at the address or facsimile number set forth on the back cover of this Consent Form prior to the Expiration Time (provided that the executed original of each document sent by facsimile transmission prior to the Expiration Time must be delivered to the Tabulation Agent within one business day by overnight courier). The method of delivery of this Consent Form and all other required documents to the Tabulation Agent is at the risk of the Holder, and the delivery will be deemed made only when actually received by the Tabulation Agent. In all cases, sufficient time should be allowed to assure timely delivery. If the delivery is by U.S. mail, it is suggested that the Holder use registered mail with return receipt requested, and that the mailing be made sufficiently in advance of the Expiration Time to permit delivery to the Tabulation Agent prior to such date. No Consent Form should be sent to any person other than the Tabulation Agent.
Any beneficial owner of Notes who is not a Holder of such Notes must arrange with the person who is the Holder (e.g., held in the name of DTC or the beneficial owners broker, commercial bank, trust company or other nominee institution) or such Holders assignee or nominee to execute and deliver this Consent Form on behalf of such beneficial owner.
2. Expiration Time. The Consent Solicitation expires at 5:00 p.m., New York City time, on December 8, 2017 unless the Issuer, in its sole discretion, extends the period during which the Consent Solicitation is open, in which case the term Expiration Time shall mean the latest date and time to which the Consent Solicitation is extended. In order to extend the Expiration Time, the Issuer will notify the Tabulation Agent and the Holders in writing or orally of any extension and will make a public announcement thereof. The Issuer may extend the Consent Solicitation on a daily basis or for such specified period of time as it determines, in its sole discretion. Failure by any Holder or beneficial owner of the Notes to be so notified will not affect the extension of the Consent Solicitation.
3. Questions Regarding Validity, Form, Legality, etc. All questions as to the validity, form, eligibility (including time of receipt) and acceptance of Consents and revocations of Consents will be resolved by the Issuer, whose determination will be binding. The Issuer reserves the absolute right to reject any or all Consents and revocations that are not in proper form or the acceptance of which could, in the opinion of the Issuers counsel, be unlawful. The Issuer also reserves the right to waive any irregularities in connection with deliveries which it may require to be cured within such time as it determines, whether or not similar irregularities or defects are waived in the case of the other Holders. None of the Issuer, the Tabulation Agent or any other person shall have any duty to give notification to any Holder of any such irregularities or waiver, nor shall any of them incur any liability for failure to give such notification. Unless the Issuer otherwise determines, deliveries of Consent Forms or notices of revocation will not be deemed to have been made until such irregularities have been cured or waived. The Issuers interpretation of the terms and conditions of the Consent Solicitation (including this Consent Form and the accompanying Statement and the instructions hereto and thereto) will be final and binding on all parties.
4. Holders Entitled to Consent. Only a Holder as defined herein (or its representative or attorney-in-fact) or another person who has complied with the procedures set forth below may execute and deliver a Consent Form. For purposes of the Consent Solicitation, the term Holder shall be deemed to include DTC Participants through which a beneficial owners Notes may be held of record as of the Record Date in DTC. Any beneficial owner or registered holder of Notes who is not the Holder thereof (e.g., held in the name of DTC or the beneficial owners broker, dealer, commercial bank, trust company or other nominee institution) must arrange with such Holder(s) or such Holders assignee or nominee to execute and deliver this Consent Form to the Tabulation Agent on behalf of such beneficial owner. All properly completed and executed Consent Forms received prior to the Expiration Time will be counted, notwithstanding any transfer of the Notes to which such Consent Form relates, unless the Tabulation Agent receives from the Holder who submitted this Consent Form (or a subsequent Holder which has received a proxy from the relevant Holder) a written notice of revocation or a changed Consent Form bearing a date later than the date of the prior Consent Form prior to the Consent Date.
5. Signatures on this Consent Form. If this Consent Form is signed by the Holder(s) of the Notes with respect to which the Consent is given, the signature(s) of such Holder(s) must correspond with the name(s) as contained on the books of the register maintained by the Trustee or as set forth in DTCs position listing without alteration, enlargement or any change whatsoever.
8
If any of the Notes with respect to which the Consent is given were held of record on the Record Date by two or more joint Holders, all such Holders must sign this Consent Form. If any Notes with respect to which the Consent is given have different Holders, it will be necessary to complete, sign and submit as many separate copies of this Consent Form and any necessary accompanying documents as there are different Holders.
If this Consent Form is signed by trustees, executors, administrators, guardians, attorneys-in-fact, officers of corporations or others acting in a fiduciary or representative capacity, such persons should indicate such fact when signing, and, unless waived by the Issuer, evidence satisfactory to the Issuer of their authority to so act must be submitted with this Consent Form.
6. Signature Guarantees. All signatures on this Consent Form must be guaranteed by a recognized participant in the Securities Transfer Agents Medallion Program, the New York Stock Exchange Medallion Signature Program or the Stock Exchange Medallion Program (each a Medallion Signature Guarantor), unless the Consents are delivered (i) by a registered Holder (or by a participant in DTC whose name appears on a security position listing as the owner of such Notes) who has not completed any of the boxes entitled Special Issuance Instructions or Special Delivery Instructions on the Consent Form or (ii) for the account of a member firm of a registered national securities exchange, a member of the Financial Industry Regulatory Authority, Inc. or a commercial bank or trust company having an office or correspondence in the United States (each of the foregoing being referred to as an Eligible Institution). If the Notes are registered in the name of a person other than the signer of the Consent Form, then the signature on the Consent Form must be guaranteed by a Medallion Signature Guarantor as described above. If the Holder of the Notes is a person other than the signer of this Consent Form, see Instruction 5.
7. Revocation of Consent. Any Holder of the Notes as to which a Consent has been given may revoke such Consent as to such Notes or any portion of such Notes (in minimum denominations of $2,000 or an integral multiple of $1,000 in excess thereof) by delivering a written notice of revocation or a changed Consent Form bearing a date later than the date of the prior Consent Form to the Tabulation Agent at any time prior to the Consent Date. The transfer of the Notes after the Record Date will not have the effect of revoking any Consent theretofore validly given by a Holder of such Notes, and each properly completed and executed Consent Form will be counted notwithstanding any transfer of the Notes to which such Consent relates, unless the procedure for revoking Consents described below has been complied with.
To be effective, a notice of revocation must be in writing, must contain the name of the Holder and the aggregate principal amount of the Notes to which it relates and must be (a) signed in the same manner as the original Consent Form or (b) signed by the transferee of the relevant Notes and accompanied by a duly executed proxy or other authorization from the relevant Holder (in form satisfactory to the Issuer). All revocations of Consents must be sent to the Tabulation Agent at the address set forth on the back cover of this Consent Form.
To be effective, the revocation must be executed by the Holder of such Notes in the same manner as the name of such Holder appears on the books of the register maintained by the Trustee or as set forth in DTCs position listing without alteration, enlargement or any change whatsoever. If a revocation is signed by a trustee, executor, administrator, guardian, attorney-in-fact, officer of a corporation or other person acting in a fiduciary or representative capacity, such person must indicate such fact when signing and must submit with the revocation appropriate evidence of authority to execute the revocation. A revocation of the Consent will be effective only as to the Notes listed on the revocation and only if such revocation complies with the provisions of this Consent Form and the Statement. Only a Holder of the Notes is entitled to revoke a Consent previously given. A beneficial owner of the Notes must arrange with the Holder to execute and deliver on its behalf a revocation of any Consent already given with respect to such Notes. A transfer of Notes after the Record Date must be accompanied by a duly executed proxy from the relevant Holder if the subsequent transferee is to have revocation rights with respect to the relevant Consent to the Proposed Amendment. A purported notice of revocation that is not received by the Tabulation Agent in a timely fashion and accepted by the Issuer as a valid revocation will not be effective to revoke a Consent previously given.
A revocation of a Consent may be rescinded only by the delivery to the Tabulation Agent at the address set forth on the back cover of this Consent Form of a written notice of revocation or the execution and delivery of a new Consent Form. A Holder who has delivered a revocation may thereafter deliver a new Consent Form by following one of the described procedures at any time prior to the Expiration Time.
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Prior to the Expiration Time, the Issuer intends to consult with the Tabulation Agent to determine whether the Tabulation Agent has received any revocations of Consents. The Issuer reserves the right to contest the validity of any such revocations.
8. Waiver of Conditions. The Issuer reserves the absolute right, subject to applicable law, at any time prior to the effectiveness of the Proposed Amendment, to amend, waive or modify the terms and conditions of the Consent Solicitation as described in the Statement.
9. Termination. The Issuer reserves the right, in its sole discretion and regardless of whether any of the Conditions applicable to the Consent Solicitation as described under the heading Principal Terms of the Consent SolicitationConditions to the Consent Solicitation in the Statement have been satisfied, subject to applicable law, at any time prior to the effectiveness of the Proposed Amendment, to terminate the Consent Solicitation for any reason. In the event the Consent Solicitation is abandoned or terminated prior to the effectiveness of the Proposed Amendment, any Consents received in connection with such Consent Solicitation will be voided and no Consent Fee will be paid with respect to such Consents.
10. Questions and Requests for Assistance and Additional Copies. Questions concerning the terms of the Consent Solicitation and requests for assistance in completing this Consent Form, or requests for additional copies of the Statement, this Consent Form or other related documents, should be directed to the Information Agent at the address and telephone number set forth on the back cover of this Consent Form.
Questions concerning the terms of the Consent Solicitation and requests for assistance in completing this Consent Form may also be directed to the Solicitation Agent.
11. Information Reporting and Backup Withholding. Payments of the Consent Fee may be subject to information reporting and backup withholding, currently at a rate of 28%. Each consenting Holder is required to provide the Tabulation Agent with such Holders correct taxpayer identification number, generally the Holders social security or federal employer identification number, on the Form W-9, which is provided below or, alternatively, to establish another basis for exemption from backup withholding. Each consenting Holder that is a foreign person, including entities, must submit an appropriate properly completed IRS Form W-8 certifying, under penalties of perjury, to such Holders foreign status in order to establish an exemption from backup withholding. An appropriate Form W-8 can be obtained from the Tabulation Agent. See Certain U.S. Federal Income Tax Considerations in the Statement.
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W-9 Request for Taxpayer Give Form to the (Rev. Form November 2017) Identification Number and Certification requester. Do not Department of the Treasury send to the IRS. Internal Revenue Service Go to www.irs.gov/FormW9 for instructions and the latest information. 1 Name (as shown on your income tax return). Name is required on this line; do not leave this line blank. 2 Business name/disregarded entity name, if different from above 3. 3 Check appropriate box for federal tax classification of the person whose name is entered on line 1. Check only one of the 4 Exemptions (codes apply only to following seven boxes. certain entities, not individuals; see page instructions on page 3): on Individual/sole proprietor or C Corporation S Corporation Partnership Trust/estate single-member LLC Exempt payee code (if any) type. Limited liability company. Enter the tax classification (C=C corporation, S=S corporation, P=Partnership) or Note: Check the appropriate box in the line above for the tax classification of the single-member owner. Do not check Exemption from FATCA reporting LLC if the LLC is classified as a single-member LLC that is disregarded from the owner unless the owner of the LLC is Print Instructions another LLC that is not disregarded from the owner for U.S. federal tax purposes. Otherwise, a single-member LLC that code (if any) is disregarded from the owner should check the appropriate box for the tax classification of its owner. Other (see instructions) (Applies to accounts maintained outside the U.S.) Specific 5 Address (number, street, and apt. or suite no.) See instructions. Requesters name and address (optional) See 6 City, state, and ZIP code 7 List account number(s) here (optional) Part I Taxpayer Identification Number (TIN) Enter your TIN in the appropriate box. The TIN provided must match the name given on line 1 to avoid Social security number backup withholding. For individuals, this is generally your social security number (SSN). However, for a resident alien, sole proprietor, or disregarded entity, see the instructions for Part I, later. For other entities, it is your employer identification number (EIN). If you do not have a number, see How to get a TIN, later. or Note: If the account is in more than one name, see the instructions for line 1. Also see What Name and Employer identification number Number To Give the Requester for guidelines on whose number to enter. Part II Certification Under penalties of perjury, I certify that: 1. The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me); and 2. I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding; and 3. I am a U.S. citizen or other U.S. person (defined below); and 4. The FATCA code(s) entered on this form (if any) indicating that I am exempt from FATCA reporting is correct. Certification instructions. You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return. For real estate transactions, item 2 does not apply. For mortgage interest paid, acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement arrangement (IRA), and generally, payments other than interest and dividends, you are not required to sign the certification, but you must provide your correct TIN. See the instructions for Part II, later. Sign Signature of Here U.S. person Date General Instructions Section references are to the Internal Revenue Code unless otherwise noted. Future developments. For the latest information about developments related to Form W-9 and its instructions, such as legislation enacted after they were published, go to www.irs.gov/FormW9. Purpose of Form An individual or entity (Form W-9 requester) who is required to file an information return with the IRS must obtain your correct taxpayer identification number (TIN) which may be your social security number (SSN), individual taxpayer identification number (ITIN), adoption taxpayer identification number (ATIN), or employer identification number (EIN), to report on an information return the amount paid to you, or other amount reportable on an information return. Examples of information returns include, but are not limited to, the following. Form 1099-INT (interest earned or paid) Form 1099-DIV (dividends, including those from stocks or mutual funds) Form 1099-MISC (various types of income, prizes, awards, or gross proceeds) Form 1099-B (stock or mutual fund sales and certain other transactions by brokers) Form 1099-S (proceeds from real estate transactions) Form 1099-K (merchant card and third party network transactions) Form 1098 (home mortgage interest), 1098-E (student loan interest), 1098-T (tuition) Form 1099-C (canceled debt) Form 1099-A (acquisition or abandonment of secured property) Use Form W-9 only if you are a U.S. person (including a resident alien), to provide your correct TIN. If you do not return Form W-9 to the requester with a TIN, you might be subject to backup withholding. See What is backup withholding, later. Cat. No. 10231X Form W-9 (Rev. 11-2017)
Form W-9 (Rev. 11-2017) Page 2 By signing the filled-out form, you: 1. Certify that the TIN you are giving is correct (or you are waiting for a number to be issued), 2. Certify that you are not subject to backup withholding, or 3. Claim exemption from backup withholding if you are a U.S. exempt payee. If applicable, you are also certifying that as a U.S. person, your allocable share of any partnership income from a U.S. trade or business is not subject to the withholding tax on foreign partners share of effectively connected income, and 4. Certify that FATCA code(s) entered on this form (if any) indicating that you are exempt from the FATCA reporting, is correct. See What is FATCA reporting, later, for further information. Note: If you are a U.S. person and a requester gives you a form other than Form W-9 to request your TIN, you must use the requesters form if it is substantially similar to this Form W-9. Definition of a U.S. person. For federal tax purposes, you are considered a U.S. person if you are: An individual who is a U.S. citizen or U.S. resident alien; A partnership, corporation, company, or association created or organized in the United States or under the laws of the United States; An estate (other than a foreign estate); or A domestic trust (as defined in Regulations section 301.7701-7). Special rules for partnerships. Partnerships that conduct a trade or business in the United States are generally required to pay a withholding tax under section 1446 on any foreign partners share of effectively connected taxable income from such business. Further, in certain cases where a Form W-9 has not been received, the rules under section 1446 require a partnership to presume that a partner is a foreign person, and pay the section 1446 withholding tax. Therefore, if you are a U.S. person that is a partner in a partnership conducting a trade or business in the United States, provide Form W-9 to the partnership to establish your U.S. status and avoid section 1446 withholding on your share of partnership income. In the cases below, the following person must give Form W-9 to the partnership for purposes of establishing its U.S. status and avoiding withholding on its allocable share of net income from the partnership conducting a trade or business in the United States. In the case of a disregarded entity with a U.S. owner, the U.S. owner of the disregarded entity and not the entity; In the case of a grantor trust with a U.S. grantor or other U.S. owner, generally, the U.S. grantor or other U.S. owner of the grantor trust and not the trust; and In the case of a U.S. trust (other than a grantor trust), the U.S. trust (other than a grantor trust) and not the beneficiaries of the trust. Foreign person. If you are a foreign person or the U.S. branch of a foreign bank that has elected to be treated as a U.S. person, do not use Form W-9. Instead, use the appropriate Form W-8 or Form 8233 (see Pub. 515, Withholding of Tax on Nonresident Aliens and Foreign Entities). Nonresident alien who becomes a resident alien. Generally, only a nonresident alien individual may use the terms of a tax treaty to reduce or eliminate U.S. tax on certain types of income. However, most tax treaties contain a provision known as a saving clause. Exceptions specified in the saving clause may permit an exemption from tax to continue for certain types of income even after the payee has otherwise become a U.S. resident alien for tax purposes. contained If you are in a the U. S. saving resident clause alien of who a tax is treaty relying to on claim an exception an exemption from to Form U.S. W-9 tax that on certain specifies types the of following income, five you items. must attach a statement which 1. The you treaty claimed country. exemption Generally, from this tax must as a nonresident be the same alien. treaty under 2. The treaty article addressing the income. saving 3. The clause article and number its exceptions. (or location) in the tax treaty that contains the from 4. The tax. type and amount of income that qualifies for the exemption the 5. treaty Sufficient article. facts to justify the exemption from tax under the terms of exemption Example. from Article tax 20 for of scholarship the U.S.-China income income received tax treaty by a Chinese allows an student student will temporarily become present a resident in the alien United for tax States. purposes Under if his U. S. or law, her stay this in the the first United Protocol States to exceeds the U.S. 5-China calendar treaty years. (dated However, April 30, paragraph 1984) allows 2 of the student provisions becomes of Article a resident 20 to alien continue of the to United apply States. even after A Chinese the Chinese protocol) student who and qualifies is relying for on this this exception exception (under to claim paragraph an exemption 2 of the from first tax on W-9 his a or statement her scholarship that includes or fellowship the information income described would attach above to Form to support that exemption. appropriate If you are a completed nonresident Form alien W-8 or or a foreign Form 8233. entity, give the requester the Backup Withholding What is backup withholding? Persons making certain payments to you must under certain conditions withhold and pay to the IRS 28% of such payments. This is called backup withholding. Payments that may be subject to backup withholding include interest, tax-exempt interest, dividends, broker and barter exchange transactions, rents, royalties, nonemployee pay, payments made in settlement of payment card and third party network transactions, and certain payments from fishing boat operators. Real estate transactions are not subject to backup withholding. You will not be subject to backup withholding on payments you receive if you give the requester your correct TIN, make the proper certifications, and report all your taxable interest and dividends on your tax return. Payments you receive will be subject to backup withholding if: 1. You do not furnish your TIN to the requester, 2. You do not certify your TIN when required (see the instructions for Part II for details), 3. The IRS tells the requester that you furnished an incorrect TIN, 4. The IRS tells you that you are subject to backup withholding because you did not report all your interest and dividends on your tax return (for reportable interest and dividends only), or 5. You do not certify to the requester that you are not subject to backup withholding under 4 above (for reportable interest and dividend accounts opened after 1983 only). Certain payees and payments are exempt from backup withholding. See Exempt payee code, later, and the separate Instructions for the Requester of Form W-9 for more information. Also see Special rules for partnerships, earlier. What is FATCA Reporting? The Foreign Account Tax Compliance Act (FATCA) requires a participating foreign financial institution to report all United States account holders that are specified United States persons. Certain payees are exempt from FATCA reporting. See Exemption from FATCA reporting code, later, and the Instructions for the Requester of Form W-9 for more information. Updating Your Information You must provide updated information to any person to whom you claimed to be an exempt payee if you are no longer an exempt payee and anticipate receiving reportable payments in the future from this person. For example, you may need to provide updated information if you are a C corporation that elects to be an S corporation, or if you no longer are tax exempt. In addition, you must furnish a new Form W-9 if the name or TIN changes for the account; for example, if the grantor of a grantor trust dies. Penalties Failure to furnish TIN. If you fail to furnish your correct TIN to a requester, you are subject to a penalty of $50 for each such failure unless your failure is due to reasonable cause and not to willful neglect. Civil penalty for false information with respect to withholding. If you make a false statement with no reasonable basis that results in no backup withholding, you are subject to a $500 penalty.
Form W-9 (Rev. 11-2017) Page 3 Criminal penalty for falsifying information. Willfully falsifying certifications or affirmations may subject you to criminal penalties including fines and/or imprisonment. Misuse of TINs. If the requester discloses or uses TINs in violation of federal law, the requester may be subject to civil and criminal penalties. Specific Instructions Line 1 You must enter one of the following on this line; do not leave this line blank. The name should match the name on your tax return. If this Form W-9 is for a joint account (other than an account maintained by a foreign financial institution (FFI)), list first, and then circle, the name of the person or entity whose number you entered in Part I of Form W-9. If you are providing Form W-9 to an FFI to document a joint account, each holder of the account that is a U.S. person must provide a Form W-9. a. Individual. Generally, enter the name shown on your tax return. If you have changed your last name without informing the Social Security Administration (SSA) of the name change, enter your first name, the last name as shown on your social security card, and your new last name. Note: ITIN applicant: Enter your individual name as it was entered on your Form W-7 application, line 1a. This should also be the same as the name you entered on the Form 1040/1040A/1040EZ you filed with your application. b. Sole proprietor or single-member LLC. Enter your individual name as shown on your 1040/1040A/1040EZ on line 1. You may enter your business, trade, or doing business as (DBA) name on line 2. c. Partnership, LLC that is not a single-member LLC, C corporation, or S corporation. Enter the entitys name as shown on the entitys tax return on line 1 and any business, trade, or DBA name on line 2. d. Other entities. Enter your name as shown on required U.S. federal tax documents on line 1. This name should match the name shown on the charter or other legal document creating the entity. You may enter any business, trade, or DBA name on line 2. e. Disregarded entity. For U.S. federal tax purposes, an entity that is disregarded as an entity separate from its owner is treated as a disregarded entity. See Regulations section 301.7701-2(c)(2)(iii). Enter the owners name on line 1. The name of the entity entered on line 1 should never be a disregarded entity. The name on line 1 should be the name shown on the income tax return on which the income should be reported. For example, if a foreign LLC that is treated as a disregarded entity for U.S. federal tax purposes has a single owner that is a U.S. person, the U.S. owners name is required to be provided on line 1. If the direct owner of the entity is also a disregarded entity, enter the first owner that is not disregarded for federal tax purposes. Enter the disregarded entitys name on line 2, Business name/disregarded entity name. If the owner of the disregarded entity is a foreign person, the owner must complete an appropriate Form W-8 instead of a Form W-9. This is the case even if the foreign person has a U.S. TIN. Line 2 If you have a business name, trade name, DBA name, or disregarded entity name, you may enter it on line 2. Line 3 Check the appropriate box on line 3 for the U.S. federal tax classification of the person whose name is entered on line 1. Check only one box on line 3. IF the entity/person on line 1 is THEN check the box for a(n) Corporation Corporation Individual Individual/sole proprietor or single- Sole proprietorship, or member LLC Single-member limited liability company (LLC) owned by an individual and disregarded for U.S. federal tax purposes. LLC treated as a partnership for Limited liability company and enter U.S. federal tax purposes, the appropriate tax classification. LLC that has filed Form 8832 or (P= Partnership; C= C corporation; 2553 to be taxed as a corporation, or S= S corporation) or LLC that is disregarded as an entity separate from its owner but the owner is another LLC that is not disregarded for U.S. federal tax purposes. Partnership Partnership Trust/estate Trust/estate Line 4, Exemptions If you are exempt from backup withholding and/or FATCA reporting, enter in the appropriate space on line 4 any code(s) that may apply to you. Exempt payee code. Generally, individuals (including sole proprietors) are not exempt from backup withholding. Except as provided below, corporations are exempt from backup withholding for certain payments, including interest and dividends. Corporations are not exempt from backup withholding for payments made in settlement of payment card or third party network transactions. Corporations are not exempt from backup withholding with respect to attorneys fees or gross proceeds paid to attorneys, and corporations that provide medical or health care services are not exempt with respect to payments reportable on Form 1099-MISC. The following codes identify payees that are exempt from backup withholding. Enter the appropriate code in the space in line 4. 1An organization exempt from tax under section 501(a), any IRA, or a custodial account under section 403(b)(7) if the account satisfies the requirements of section 401(f)(2) 2The United States or any of its agencies or instrumentalities 3A state, the District of Columbia, a U.S. commonwealth or possession, or any of their political subdivisions or instrumentalities 4A foreign government or any of its political subdivisions, agencies, or instrumentalities 5A corporation 6A dealer in securities or commodities required to register in the United States, the District of Columbia, or a U.S. commonwealth or possession 7A futures commission merchant registered with the Commodity Futures Trading Commission 8A real estate investment trust 9An entity registered at all times during the tax year under the Investment Company Act of 1940 10A common trust fund operated by a bank under section 584(a) 11A financial institution 12A middleman known in the investment community as a nominee or custodian 13A trust exempt from tax under section 664 or described in section 4947
Form W-9 (Rev. 11-2017) Page 4 The following chart shows types of payments that may be exempt from backup withholding. The chart applies to the exempt payees listed above, 1 through 13. IF the payment is for THEN the payment is exempt for Interest and dividend payments All exempt payees except for 7 Broker transactions Exempt payees 1 through 4 and 6 through 11 and all C corporations. S corporations must not enter an exempt payee code because they are exempt only for sales of noncovered securities acquired prior to 2012. Barter exchange transactions and Exempt payees 1 through 4 patronage dividends Payments over $600 required to be Generally, exempt payees reported and direct sales over 1 through 52 $5,0001 Payments made in settlement of Exempt payees 1 through 4 payment card or third party network transactions 1 See Form 1099-MISC, Miscellaneous Income, and its instructions. 2 However, the following payments made to a corporation and reportable on Form 1099-MISC are not exempt from backup withholding: medical and health care payments, attorneys fees, gross proceeds paid to an attorney reportable under section 6045(f), and payments for services paid by a federal executive agency. Exemption from FATCA reporting code. The following codes identify payees that are exempt from reporting under FATCA. These codes apply to persons submitting this form for accounts maintained outside of the United States by certain foreign financial institutions. Therefore, if you are only submitting this form for an account you hold in the United States, you may leave this field blank. Consult with the person requesting this form if you are uncertain if the financial institution is subject to these requirements. A requester may indicate that a code is not required by providing you with a Form W-9 with Not Applicable (or any similar indication) written or printed on the line for a FATCA exemption code. AAn organization exempt from tax under section 501(a) or any individual retirement plan as defined in section 7701(a)(37) BThe United States or any of its agencies or instrumentalities CA state, the District of Columbia, a U.S. commonwealth or possession, or any of their political subdivisions or instrumentalities DA corporation the stock of which is regularly traded on one or more established securities markets, as described in Regulations section 1.1472-1(c)(1)(i) EA corporation that is a member of the same expanded affiliated group as a corporation described in Regulations section 1.1472-1(c)(1)(i) FA dealer in securities, commodities, or derivative financial instruments (including notional principal contracts, futures, forwards, and options) that is registered as such under the laws of the United States or any state GA real estate investment trust HA regulated investment company as defined in section 851 or an entity registered at all times during the tax year under the Investment Company Act of 1940 IA common trust fund as defined in section 584(a) JA bank as defined in section 581 KA broker LA trust exempt from tax under section 664 or described in section 4947(a)(1) MA tax exempt trust under a section 403(b) plan or section 457(g) plan Note: You may wish to consult with the financial institution requesting this form to determine whether the FATCA code and/or exempt payee code should be completed. Line 5 Enter your address (number, street, and apartment or suite number). This is where the requester of this Form W-9 will mail your information returns. If this address differs from the one the requester already has on file, write NEW at the top. If a new address is provided, there is still a chance the old address will be used until the payor changes your address in their records. Line 6 Enter your city, state, and ZIP code. Part I. Taxpayer Identification Number (TIN) Enter your TIN in the appropriate box. If you are a resident alien and you do not have and are not eligible to get an SSN, your TIN is your IRS individual taxpayer identification number (ITIN). Enter it in the social security number box. If you do not have an ITIN, see How to get a TIN below. If you are a sole proprietor and you have an EIN, you may enter either your SSN or EIN. If you are a single-member LLC that is disregarded as an entity separate from its owner, enter the owners SSN (or EIN, if the owner has one). Do not enter the disregarded entitys EIN. If the LLC is classified as a corporation or partnership, enter the entitys EIN. Note: See What Name and Number To Give the Requester, later, for further clarification of name and TIN combinations. How to get a TIN. If you do not have a TIN, apply for one immediately. To apply for an SSN, get Form SS-5, Application for a Social Security Card, from your local SSA office or get this form online at www.SSA.gov. You may also get this form by calling 1-800-772-1213. Use Form W-7, Application for IRS Individual Taxpayer Identification Number, to apply for an ITIN, or Form SS-4, Application for Employer Identification Number, to apply for an EIN. You can apply for an EIN online by accessing the IRS website at www.irs.gov/Businesses and clicking on Employer Identification Number (EIN) under Starting a Business. Go to www.irs.gov/Forms to view, download, or print Form W-7 and/or Form SS-4. Or, you can go to www.irs.gov/OrderForms to place an order and have Form W-7 and/or SS-4 mailed to you within 10 business days. If you are asked to complete Form W-9 but do not have a TIN, apply for a TIN and write Applied For in the space for the TIN, sign and date the form, and give it to the requester. For interest and dividend payments, and certain payments made with respect to readily tradable instruments, generally you will have 60 days to get a TIN and give it to the requester before you are subject to backup withholding on payments. The 60-day rule does not apply to other types of payments. You will be subject to backup withholding on all such payments until you provide your TIN to the requester. Note: Entering Applied For means that you have already applied for a TIN or that you intend to apply for one soon. Caution: A disregarded U.S. entity that has a foreign owner must use the appropriate Form W-8. Part II. Certification To establish to the withholding agent that you are a U.S. person, or resident alien, sign Form W-9. You may be requested to sign by the withholding agent even if item 1, 4, or 5 below indicates otherwise. For a joint account, only the person whose TIN is shown in Part I should sign (when required). In the case of a disregarded entity, the person identified on line 1 must sign. Exempt payees, see Exempt payee code, earlier. Signature requirements. Complete the certification as indicated in items 1 through 5 below.
Form W-9 (Rev. 11-2017) Page 5 1. Interest, dividend, and barter exchange accounts opened before 1984 and broker accounts considered active during 1983. You must give your correct TIN, but you do not have to sign the certification. 2. Interest, dividend, broker, and barter exchange accounts opened after 1983 and broker accounts considered inactive during 1983. You must sign the certification or backup withholding will apply. If you are subject to backup withholding and you are merely providing your correct TIN to the requester, you must cross out item 2 in the certification before signing the form. 3. Real estate transactions. You must sign the certification. You may cross out item 2 of the certification. 4. Other payments. You must give your correct TIN, but you do not have to sign the certification unless you have been notified that you have previously given an incorrect TIN. Other payments include payments made in the course of the requesters trade or business for rents, royalties, goods (other than bills for merchandise), medical and health care services (including payments to corporations), payments to a nonemployee for services, payments made in settlement of payment card and third party network transactions, payments to certain fishing boat crew members and fishermen, and gross proceeds paid to attorneys (including payments to corporations). 5. Mortgage interest paid by you, acquisition or abandonment of secured property, cancellation of debt, qualified tuition program payments (under section 529), ABLE accounts (under section 529A), IRA, Coverdell ESA, Archer MSA or HSA contributions or distributions, and pension distributions. You must give your correct TIN, but you do not have to sign the certification. What Name and Number To Give the Requester For this type of account: Give name and SSN of: 1. Individual The individual 2. Two or more individuals (joint The actual owner of the account or, if account) other than an account combined funds, the first individual on maintained by an FFI the account1 3. Two or more U.S. persons Each holder of the account (joint account maintained by an FFI) 4. Custodial account of a minor The minor ² (Uniform Gift to Minors Act) 5. a. The usual revocable savings trust The grantor-trustee1 (grantor is also trustee) b. So-called trust account that is not The actual owner1 a legal or valid trust under state law 6. Sole proprietorship or disregarded The owner ³ entity owned by an individual 7. Grantor trust filing under Optional The grantor* Form 1099 Filing Method 1 (see Regulations section 1.671-4(b)(2)(i) (A)) For this type of account: Give name and EIN of: 8. Disregarded entity not owned by an The owner individual 9. A valid trust, estate, or pension trust Legal entity4 10. Corporation or LLC electing The corporation corporate status on Form 8832 or Form 2553 11. Association, club, religious, The organization charitable, educational, or other tax- exempt organization 12. Partnership or multi-member LLC The partnership 13. A broker or registered nominee The broker or nominee For this type of account: Give name and EIN of: 14. Account with the Department of The public entity Agriculture in the name of a public entity (such as a state or local government, school district, or prison) that receives agricultural program payments 15. Grantor trust filing under the Form The trust 1041 Filing Method or the Optional Form 1099 Filing Method 2 (see Regulations section 1.671-4(b)(2)(i)(B)) 1 List first and circle the name of the person whose number you furnish. If only one person on a joint account has an SSN, that persons number must be furnished. 2 Circle the minors name and furnish the minors SSN. 3 You must show your individual name and you may also enter your business or DBA name on the Business name/disregarded entity name line. You may use either your SSN or EIN (if you have one), but the IRS encourages you to use your SSN. 4 List first and circle the name of the trust, estate, or pension trust. (Do not furnish the TIN of the personal representative or trustee unless the legal entity itself is not designated in the account title.) Also see Special rules for partnerships, earlier. *Note: The grantor also must provide a Form W-9 to trustee of trust. Note: If no name is circled when more than one name is listed, the number will be considered to be that of the first name listed. Secure Your Tax Records From Identity Theft Identity theft occurs when someone uses your personal information such as your name, SSN, or other identifying information, without your permission, to commit fraud or other crimes. An identity thief may use your SSN to get a job or may file a tax return using your SSN to receive a refund. To reduce your risk: Protect your SSN, Ensure your employer is protecting your SSN, and Be careful when choosing a tax preparer. If your tax records are affected by identity theft and you receive a notice from the IRS, respond right away to the name and phone number printed on the IRS notice or letter. If your tax records are not currently affected by identity theft but you think you are at risk due to a lost or stolen purse or wallet, questionable credit card activity or credit report, contact the IRS Identity Theft Hotline at 1-800-908-4490 or submit Form 14039. For more information, see Pub. 5027, Identity Theft Information for Taxpayers. Victims of identity theft who are experiencing economic harm or a systemic problem, or are seeking help in resolving tax problems that have not been resolved through normal channels, may be eligible for Taxpayer Advocate Service (TAS) assistance. You can reach TAS by calling the TAS toll-free case intake line at 1-877-777-4778 or TTY/TDD 1-800-829-4059. Protect yourself from suspicious emails or phishing schemes. Phishing is the creation and use of email and websites designed to mimic legitimate business emails and websites. The most common act is sending an email to a user falsely claiming to be an established legitimate enterprise in an attempt to scam the user into surrendering private information that will be used for identity theft.
Form W-9 (Rev. 11-2017) Page 6 The IRS does not initiate contacts with taxpayers via emails. Also, the IRS does not request personal detailed information through email or ask taxpayers for the PIN numbers, passwords, or similar secret access information for their credit card, bank, or other financial accounts. If you receive an unsolicited email claiming to be from the IRS, forward this message to phishing@irs.gov. You may also report misuse of the IRS name, logo, or other IRS property to the Treasury Inspector General for Tax Administration (TIGTA) at 1-800-366-4484. You can forward suspicious emails to the Federal Trade Commission at spam@uce.gov or report them at www.ftc.gov/complaint. You can contact the FTC at www.ftc.gov/idtheft or 877-IDTHEFT (877-438-4338). If you have been the victim of identity theft, see www.IdentityTheft.gov and Pub. 5027. Visit www.irs.gov/IdentityTheft to learn more about identity theft and how to reduce your risk. Privacy Act Notice Section 6109 of the Internal Revenue Code requires you to provide your correct TIN to persons (including federal agencies) who are required to file information returns with the IRS to report interest, dividends, or certain other income paid to you; mortgage interest you paid; the acquisition or abandonment of secured property; the cancellation of debt; or contributions you made to an IRA, Archer MSA, or HSA. The person collecting this form uses the information on the form to file information returns with the IRS, reporting the above information. Routine uses of this information include giving it to the Department of Justice for civil and criminal litigation and to cities, states, the District of Columbia, and U.S. commonwealths and possessions for use in administering their laws. The information also may be disclosed to other countries under a treaty, to federal and state agencies to enforce civil and criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism. You must provide your TIN whether or not you are required to file a tax return. Under section 3406, payers must generally withhold a percentage of taxable interest, dividend, and certain other payments to a payee who does not give a TIN to the payer. Certain penalties may also apply for providing false or fraudulent information.
CONSENT FORM
CBS RADIO INC.
Questions and requests for assistance or additional copies of the Consent Documents, the Indenture and the documents incorporated by reference into the Statement may be directed to the Information Agent at the address and telephone number set forth below. Holders should retain their Notes and not deliver any Notes to the Tabulation Agent or the Information Agent. Duly executed Consents should be sent to the Tabulation Agent at the address set forth below in accordance with the instructions set forth in the Consent Documents:
The Tabulation Agent and the Information Agent for the Consent Solicitation is
D.F. King & Co., Inc.
48 Wall Street, 22nd Floor
New York, NY 10005
Attention: Andrew Beck
E-mail: entercom@dfking.com
Toll free: (866) 796-7184
Banks and Brokers call: (212) 269-5550
Facsimile: (212) 709-3328
(For Eligible Institutions only):
Confirmation: (212) 269-5552
By Mail, by Overnight Courier or by Hand:
D.F. King & Co., Inc.
48 Wall Street, 22nd Floor
New York, NY 10005
Questions and requests for assistance may be directed to the Solicitation Agent at the address and telephone number set forth below. A Holder may also contact its broker, dealer, commercial bank, trust company or other nominee for assistance concerning the Consent Solicitation.
The Solicitation Agent for the Consent Solicitation is:
RBC Capital Markets, LLC
Three World Financial Center
200 Vesey Street, 8th floor
New York, New York 10281
Attn: Liability Management
Telephone: (212) 618-7843
Toll free: (877) 381-2099
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