Comdisco, Inc. $500,000,000 9.5% Senior Notes Due 2003 Terms Agreement with Underwriters

Contract Categories: Business Finance › Underwriting Agreements
Summary

Comdisco, Inc. has entered into an agreement with several major financial institutions to issue $500 million in senior debt securities, specifically 9.5% notes due August 15, 2003. The underwriters, including Salomon Smith Barney, Merrill Lynch, and others, have agreed to purchase specified amounts of these notes. The agreement outlines the interest rate, payment dates, maturity, and other key terms. There are no redemption or sinking fund provisions. The offering is governed by an incorporated Underwriting Agreement, and payment will be made upon closing on August 8, 2000.

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EX-1.2 3 0003.txt TERMS AGREEMENT Exhibit 1.2 ----------- COMDISCO, INC. (A Delaware Corporation) SENIOR DEBT SECURITIES August 3, 2000 TERMS AGREEMENT To: COMDISCO, INC. 6111 North River Road Rosemont, Illinois 60018 Re: Underwriting Agreement dated August 3, 2000 Senior Debt Securities ---------------------- Title of Senior Debt Securities: 9 1/2% Notes Due August 15, 2003 Principal amount to be issued: $500,000,000 Current ratings: Moody's Investors Service, Inc.: Baa1 Standard & Poor's: BBB+ Duff & Phelps Credit Rating Co.: A- Interest rate: 9 1/2% Interest Payment Dates: February 15 and August 15 of each year, commencing February 15, 2001 Date of Maturity: August 15, 2003 Form and Denomination: Fully registered in denominations of $1,000 and integral multiples thereof. Redemption provisions: None Sinking Fund requirements: None Delayed Delivery Contracts: Not authorized Public offering price: 9 1/2% plus accrued interest, if any, from August 8, 2000 Underwriting Discount: .40% Closing Date and location: August 8, 2000 in offices of McBride Baker & Coles, 500 West Madison Street, 40th Floor, Chicago, Illinois 60661 Rating Agencies applicable Moody's Investors Service, Inc., to Sections 4 and 9 of Standard & Poor's the Underwriting Agreement: and Duff & Phelps Credit Rating Co. Payment for the Securities shall be made to the Company in same day funds payable to the order of the Company against acknowledgment of satisfactory notation of the Underwriters' interest in the Global Notes representing the Securities by the Underwriters. Each Underwriter severally agrees, subject to the terms and provisions of the above referenced Underwriting Agreement, which is incorporated herein in its entirety and made a part hereof, to purchase the principal amount of Securities set forth opposite its name.
Principal Underwriter Amount - ----------- ------ Salomon Smith Barney Inc. $300,000,000 Banc of America Securities LLC 37,500,000 Bear, Stearns & Co. Inc. 37,500,000 Deutsche Bank Securities Inc. 37,500,000 Merrill Lynch, Pierce, Fenner & Smith Incorporated 37,500,000 Banc One Capital Markets, Inc. 25,000,000 Mellon Financial Markets, LLC 25,000,000 ------------ TOTAL $500,000,000 ============
2 [SIGNATURE PAGE FOR AUGUST 3, 2000 TERMS AGREEMENT] SALOMON SMITH BARNEY INC. MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED By: /s/ Michael S. Canmann By: /s/ Michael G. O'Grady -------------------------------- ----------------------------------- Its: Authorized Signatory Its: Authorized Signatory BANC OF AMERICA SECURITIES LLC BANC ONE CAPITAL MARKETS, INC. By: /s/ Lily Chang By: /s/ Katherine Cokic -------------------------------- ------------------------------------ Its: Authorized Signatory Its: Authorized Signatory BEAR, STEARNS & CO. INC. MELLON FINANCIAL MARKETS, LLC By: /s/ Jacques de Saint Phalle By: /s/ Leo Y. Au --------------------------------- ------------------------------------ Its: Authorized Signatory Its: Authorized Signatory DEUTSCHE BANK SECURITIES INC. By: /s/ R. Scott Flieger/Daniel Benton -------------------------------------- Its: Authorized Signatory Accepted: COMDISCO, INC. By: /s/ John J. Vosicky ------------------------------------- Its: Authorized Signatory 3