Form 8-K
8-K — Kyndryl Holdings, Inc.
Accession: 0001104659-26-111380
Filed: 2026-09-28
Period: 2026-09-24
CIK: 0001867072
SIC: 7373 (SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN)
Item: Other Events
Item: Financial Statements and Exhibits
Documents
8-K — tm2626148d1_8k.htm (Primary)
EX-1.1 — EXHIBIT 1.1 (tm2626148d1_ex1-1.htm)
EX-4.2 — EXHIBIT 4.2 (tm2626148d1_ex4-2.htm)
EX-4.3 — EXHIBIT 4.3 (tm2626148d1_ex4-3.htm)
EX-5.1 — EXHIBIT 5.1 (tm2626148d1_ex5-1.htm)
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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): September 24, 2026
Kyndryl
Holdings, Inc.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction
of incorporation)
001-40853
(Commission
File Number)
86-1185492
(I.R.S. Employer
Identification No.)
One Vanderbilt Avenue, 15th Floor
New York, New York 10017
(Address of principal executive offices, and Zip Code)
855-596-3795
(Registrant’s telephone number, including area code)
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 (see General
Instruction A.2. below):
¨ 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))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading symbol(s)
Name of each exchange on which registered
Common stock, par value $0.01 per share
KD
New York Stock Exchange
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 8.01 Other Events
On September 24, 2026, Kyndryl Holdings, Inc. (the
“Company”) entered into an Underwriting Agreement (the “Underwriting Agreement”) by and among the Company and
J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC as representatives of the underwriters named
therein (the “Underwriters”), pursuant to which the Company agreed to sell to the Underwriters $600,000,000 aggregate principal
amount of its 7.800% Senior Notes due 2029 (the “2029 Notes”) and $400,000,000 aggregate principal amount of its 7.875% Senior
Notes due 2032 (the “2032 Notes” and, together with the 2029 Notes, the “Securities”). The Securities were offered
and sold pursuant to the Company’s shelf registration statement on Form S-3 (File No. 333-276713), filed on January 26, 2024. The
Company intends to use the net proceeds of the offering to repay at maturity the $700 million outstanding aggregate principal amount of
the Company’s 2.05% senior notes due October 2026. The Company intends to use any remaining net proceeds from the offering, together
with cash on hand, to repay the outstanding balance under the Company’s revolving credit agreement, and for related fees and expenses.
On September 28, 2026, the Company and The Bank
of New York Mellon Trust Company, N.A., as trustee, entered into a Third Supplemental Indenture relating to the 2029 Notes, dated as of
September 28, 2026 (the “Third Supplemental Indenture”) and a Fourth Supplemental Indenture relating to the 2032 Notes, dated
as of September 28, 2026 (the “Fourth Supplemental Indenture” and, together with the Third Supplemental Indenture, the “Supplemental
Indentures”), to the Indenture, dated as of October 15, 2021 (the “Base Indenture,” and together with the Supplemental
Indentures, the “Indenture”), providing for the issuance of the Securities.
Each
series of the Securities is the Company’s senior unsecured obligations and ranks equally in right of payment among themselves and
with all of the Company’s other existing and future senior unsecured indebtedness. Neither series of the Securities will be guaranteed
by any of the Company’s subsidiaries. The 2029 Notes bear interest at 7.800% per annum and will mature on September 28, 2029 and
the 2032 Notes bear interest at 7.875% per annum and will mature on January 15, 2032. Interest on the 2029 Notes is payable on March 28
and September 28 of each year, beginning on March 28, 2027. Interest on the 2032 Notes is payable on January 15 and July 15 of each year,
beginning on January 15, 2027. The interest rate payable on the Securities will be subject to adjustment from time to time if any of Moody’s,
S&P or Fitch (in each case, as defined in the Indenture) (or, in each case, a substitute rating agency therefor), downgrades (or subsequently
upgrades) the debt rating applicable to the Securities. At any time and from time to time prior to August 28, 2029 with respect to the
2029 Notes and December 15, 2031 with respect to the 2032 Notes (each such date, with respect to the 2029 Notes or the 2032 Notes, as
applicable, the “Par Call Date”), the Company may redeem the Securities of each series, in whole or in part, at a “make-whole”
redemption price as described in the Indenture. At any time and from time to time on or after the applicable Par Call Date, the Company
may redeem some or all of the Securities of each series at a redemption price equal to 100% of the principal amount of such series of
the Securities to be redeemed plus accrued and unpaid interest thereon to the redemption date as described in the Indenture.
The Indenture contains certain restrictions, including
a limitation that restricts the Company’s ability and the ability of its wholly-owned U.S. subsidiaries to incur liens and enter
into sale and leaseback transactions. The Indenture also restricts the ability of the Company to consolidate, merge or transfer all or
substantially all of their assets, and requires the Company to offer to repurchase the Securities upon certain change of control events.
The foregoing descriptions of the Underwriting
Agreement, the Indenture and the Securities are qualified in their entirety by reference to the Underwriting Agreement, which is filed
herewith as Exhibit 1.1, the Base Indenture, which was filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on
October 15, 2021, the Third Supplemental Indenture (including the form of the 2029 Notes attached thereto), which is filed herewith as
Exhibit 4.2, and the Fourth Supplemental Indenture (including the form of the 2032 Notes attached thereto), which is filed herewith as
Exhibit 4.3, each incorporated by reference herein. The form of the 2029 Notes and the form of the 2032 Notes are filed as Exhibit 4.4
and Exhibit 4.5, respectively, to this Current Report on Form 8-K and are incorporated by reference herein.
A copy of the opinion letter of Willkie Farr &
Gallagher LLP, relating to the validity of the Securities, is attached hereto as Exhibit 5.1.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Number
Description of Exhibit
1.1
Underwriting
Agreement, dated as of September 24, 2026, by and among Kyndryl Holdings, Inc. and J.P. Morgan Securities LLC, Citigroup Global
Markets Inc. and Morgan Stanley & Co. LLC, as representatives of the underwriters named in Schedule 1 therein.
4.1
Indenture, dated as of October 15, 2021, between Kyndryl Holdings, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated herein by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K, filed with the SEC on October 15, 2021).
4.2
Third Supplemental Indenture, dated as of September 28, 2026, between Kyndryl Holdings, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee.
4.3
Fourth Supplemental Indenture, dated as of September 28, 2026, between Kyndryl Holdings, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee.
4.4
Form of 7.800% Senior Notes due 2029 (included as Exhibit A to Exhibit 4.2).
4.5
Form of 7.875% Senior Notes due 2032 (included as Exhibit A to Exhibit 4.3).
5.1
Opinion of Willkie Farr & Gallagher LLP.
23.1
Consent of Willkie Farr & Gallagher LLP (included in Exhibit 5.1).
104
Cover Page Interactive Data File (embedded in the Inline XBRL document)
SIGNATURES
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: September 28, 2026
KYNDRYL HOLDINGS, INC.
By:
/s/
Ellen Johnson
Name:
Ellen Johnson
Title:
Chief Financial Officer
EX-1.1 — EXHIBIT 1.1
EX-1.1
Filename: tm2626148d1_ex1-1.htm · Sequence: 2
Exhibit 1.1
$600,000,000
$400,000,000
Kyndryl Holdings, Inc.
7.800% Senior Notes due 2029
7.875% Senior Notes due 2032
Underwriting Agreement
September 24, 2026
J.P. Morgan Securities LLC
Citigroup Global Markets Inc.
Morgan Stanley & Co. LLC
As Representatives of the several Underwriters listed
in Schedule 1 hereto
c/o
J.P. Morgan Securities LLC
270 Park Avenue
New York, New York 10017
Citigroup Global Markets Inc.
388 Greenwich Street
New York, New York 10013
Morgan Stanley & Co. LLC
1585 Broadway
New York, New York 10036
Ladies and Gentlemen:
Kyndryl Holdings, Inc.,
a Delaware corporation (the “Company”), proposes to issue and sell to the several Underwriters listed
in Schedule 1 hereto (the “Underwriters”), for whom you are acting as representatives (the “Representatives”),
$600,000,000 principal amount of its 7.800% Senior Notes due 2029 (the “2029 Notes”) and $400,000,000 principal
amount of its 7.875% Senior Notes due 2032 (the “2032 Notes” and, together with the 2029 Notes, the “Securities”).
The Securities will be issued pursuant to an Indenture, dated as of October 15, 2021 (the “Base Indenture”),
between the Company and The Bank of New York Mellon Company, N.A., as trustee (the “Trustee”), as supplemented
by a Third Supplemental Indenture with respect to the 2029 Notes to be dated as of September 28, 2026, between the Company and the
Trustee (the “Third Supplemental Indenture” and together with the Base Indenture, the “2029 Indenture”)
and a Fourth Supplemental Indenture with respect to the 2032 Notes to be dated as of September 28, 2026, between the Company and
the Trustee (the “Fourth Supplemental Indenture” and together with the Base Indenture, the “2032
Indenture”).
1
The Company hereby confirms its agreement with
the several Underwriters concerning the purchase and sale of the Securities, as follows:
1. Registration Statement.
The Company has prepared and filed with the Securities
and Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended, and the rules and
regulations of the Commission thereunder (collectively, the “Securities Act”), a registration statement on Form S-3
(File No. 333-276713), including a prospectus, relating to the Securities. Such registration statement, as amended at the time it
became effective, including the information, if any, deemed pursuant to Rule 430A, 430B or 430C under the Securities Act to be part
of the registration statement at the time of its effectiveness (“Rule 430 Information”), is referred to
herein as the “Registration Statement”. As used herein, the term “Preliminary Prospectus”
means each prospectus included in such registration statement (and any amendments thereto) before effectiveness, any prospectus filed
with the Commission pursuant to Rule 424(a) under the Securities Act and the prospectus included in the Registration Statement
at the time of its effectiveness that omits Rule 430 Information, and the term “Prospectus” means the prospectus
in the form first used (or made available upon request of purchasers pursuant to Rule 173 under the Securities Act) in connection
with confirmation of sales of the Securities. Any reference in this agreement (this “Agreement”) to the Registration
Statement, any Preliminary Prospectus or the Prospectus shall be deemed to refer to and include the documents incorporated by reference
therein pursuant to Item 12 of Form S-3 under the Securities Act, as of the effective date of the Registration Statement or the date
of such Preliminary Prospectus or the Prospectus, as the case may be and any reference to “amend”, “amendment”
or “supplement” with respect to the Registration Statement, any Preliminary Prospectus or the Prospectus shall be deemed to
refer to and include any documents filed after such date under the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the Commission thereunder (collectively, the “Exchange Act”) that are deemed to be incorporated
by reference therein. Capitalized terms used but not defined herein shall have the meanings given to such terms in the Registration Statement
and the Prospectus.
At or prior to 3:15 P.M., New York City time, on
September 24, 2026, the time when sales of the Securities were first made (the “Time of Sale”), the Company
had prepared the following information (collectively, the “Time of Sale Information”): a Preliminary Prospectus
dated September 24, 2026, and each “free-writing prospectus” (as defined pursuant to Rule 405 under the Securities
Act) listed on Annex A hereto.
2. Purchase and Sale of the Securities.
(a) The
Company agrees to issue and sell the Securities to the several Underwriters as provided in this Agreement, and each Underwriter, on the
basis of the representations, warranties and agreements set forth herein and subject to the conditions set forth herein, agrees, severally
and not jointly, to purchase from the Company (i) the respective principal amount of 2029 Notes set forth opposite such Underwriter’s
name in Schedule 1 hereto at a price equal to 99.427% of the principal amount of the 2029 Notes plus accrued interest, if any, from September 28,
2026 to the Closing Date and (ii) the respective principal amount of 2032 Notes set forth opposite such Underwriter’s name
in Schedule 1 hereto at a price equal to 98.171% of the principal amount of the 2032 Notes plus accrued interest, if any, from September 28,
2026 to the Closing Date. The Company will not be obligated to deliver any of the Securities except upon payment for all the Securities
to be purchased as provided herein.
2
(b) The
Company understands that the Underwriters intend to make a public offering of the Securities as soon after the effectiveness of this Agreement
as in the judgment of the Representatives is advisable, and initially to offer the Securities on the terms set forth in the Time of Sale
Information. The Company acknowledges and agrees that the Underwriters may offer and sell Securities to or through any affiliate of an
Underwriter and that any such affiliate may offer and sell Securities purchased by it to or through any Underwriter.
(c) Payment
for and delivery of the Securities will be made at the offices of Cravath, Swaine & Moore LLP, Two Manhattan West, 375 Ninth
Avenue, New York, NY 10001, at 10:00 A.M., New York City time, on September 28, 2026, or at such other time or place on the same
or such other date, not later than the fifth business day thereafter, as the Representatives and the Company may agree upon in writing.
The time and date of such payment and delivery is referred to herein as the “Closing Date.”
(d) Payment
for the Securities shall be made by wire transfer in immediately available funds to the account(s) specified by the Company to the
Representatives against delivery to the nominee of The Depository Trust Company (“DTC”), for the account of
the Underwriters, of one or more global notes representing each of the 2029 Notes and the 2032 Notes (collectively, the “Global
Notes”), with any transfer taxes payable in connection with the sale of the Securities duly paid by the Company. The Global
Notes will be made available for inspection by the Representatives not later than 1:00 P.M., New York City time, on the business day prior
to the Closing Date.
(e) The
Company acknowledges and agrees that each Underwriter is acting solely in the capacity of an arm’s length contractual counterparty
to the Company with respect to the offering of Securities contemplated hereby (including in connection with determining the terms of the
offering) and not as a financial advisor or a fiduciary to, or an agent of, the Company or any other person. Additionally, neither the
Representatives nor any other Underwriter is advising the Company or any other person as to any legal, tax, investment, accounting or
regulatory matters in any jurisdiction. The Company shall consult with its own advisors concerning such matters and shall be responsible
for making its own independent investigation and appraisal of the transactions contemplated hereby, and the Underwriters shall have no
responsibility or liability to the Company with respect thereto. Any review by the Representatives or any Underwriter of the Company,
the transactions contemplated hereby or other matters relating to such transactions will be performed solely for the benefit of the Representatives
or such Underwriter, as the case may be, and shall not be on behalf of the Company or any other person.
3
3. Representations and Warranties of the Company. The Company
represents and warrants to each Underwriter that:
(a) Preliminary
Prospectus. No order preventing or suspending the use of any Preliminary Prospectus has been issued by the Commission, and each Preliminary
Prospectus, at the time of filing thereof, complied in all material respects with the Securities Act and did not contain any untrue statement
of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading; provided that the Company makes no representation or warranty with respect to any statements
or omissions made in reliance upon and in conformity with information relating to any Underwriter furnished to the Company in writing
by such Underwriter through the Representatives expressly for use in any Preliminary Prospectus, which, for the avoidance of doubt, such
information consists only of the Underwriter Provided Information as defined in Section 7(b).
(b) Time
of Sale Information. The Time of Sale Information, at the Time of Sale, did not, and at the Closing Date, will not, contain any untrue
statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading; provided that the Company makes no representation or warranty with respect to any statements
or omissions made in reliance upon and in conformity with information relating to any Underwriter furnished to the Company in writing
by such Underwriter through the Representatives expressly for use in the Preliminary Prospectus, the Time of Sale Information or the Prospectus,
which, for the avoidance of doubt, such information consists only of the Underwriter Provided Information as defined in Section 7(b).
No statement of material fact included in the Prospectus has been omitted from the Time of Sale Information and no statement of material
fact included in the Time of Sale Information that is required to be included in the Prospectus has been omitted therefrom.
(c) Issuer
Free Writing Prospectus. The Company (including its agents and representatives, other than the Underwriters in their capacity as such)
has not prepared, made, used, authorized, approved or referred to and will not prepare, make, use, authorize, approve or refer to any
“written communication” (as defined in Rule 405 under the Securities Act) that constitutes an offer to sell or solicitation
of an offer to buy the Securities (each such communication by the Company or its agents and representatives (other than a communication
referred to in clauses (i), (ii) and (iii) below) an “Issuer Free Writing Prospectus”) other than
(i) any document not constituting a prospectus pursuant to Section 2(a)(10)(a) of the Securities Act or Rule 134 under
the Securities Act, (ii) the Preliminary Prospectus, (iii) the Prospectus, (iv) the documents listed on Annex A hereto,
including a Pricing Term Sheet substantially in the form of Annex B hereto, which constitute part of the Time of Sale Information, and
(v) any electronic road show or other written communications, in each case used in accordance with Section 4(c) hereof.
Each such Issuer Free Writing Prospectus complies in all material respects with the Securities Act, has been or will be (within the time
period specified in Rule 433) filed in accordance with the Securities Act (to the extent required thereby) and, when taken together
with the Preliminary Prospectus filed prior to the first use of such Issuer Free Writing Prospectus, at the Time of Sale, did not, and
at the Closing Date will not, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were made, not misleading; provided that the Company
makes no representation or warranty with respect to any statements or omissions made in each such Issuer Free Writing Prospectus in reliance
upon and in conformity with information relating to any Underwriter furnished to the Company in writing by such Underwriter through the
Representatives expressly for use in any Issuer Free Writing Prospectus, which, for the avoidance of doubt, such information consists
only of the Underwriter Provided Information as defined in Section 7(b).
4
(d) Registration
Statement and Prospectus. The Registration Statement is an “automatic shelf registration statement” as defined under Rule 405
of the Securities Act that has been filed with the Commission not earlier than three years prior to the date hereof, and no notice of
objection of the Commission to the use of such registration statement or any post-effective amendment thereto pursuant to Rule 401(g)(2) under
the Securities Act has been received by the Company. No order suspending the effectiveness of the Registration Statement has been issued
by the Commission and no proceeding for that purpose or pursuant to Section 8A of the Securities Act against the Company or related
to the offering has been initiated or, to the knowledge of the Company, threatened by the Commission; as of the applicable effective date
of the Registration Statement and any amendment thereto, the Registration Statement complied and will comply in all material respects
with the Securities Act and the Trust Indenture Act of 1939, as amended, and the rules and regulations of the Commission thereunder
(collectively, the “Trust Indenture Act”), and did not and will not contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein not misleading;
and as of the date of the Prospectus and any amendment or supplement thereto and as of the Closing Date, the Prospectus will not contain
any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading; provided that the Company makes no representation or warranty
with respect to (i) that part of the Registration Statement that constitutes the Statement of Eligibility and Qualification (Form T-1)
of the Trustee under the Trust Indenture Act or (ii) any statements or omissions made in reliance upon and in conformity with information
relating to any Underwriter furnished to the Company in writing by such Underwriter through the Representatives expressly for use in the
Registration Statement and the Prospectus and any amendment or supplement thereto, which, for the avoidance of doubt, such information
consists only of the Underwriter Provided Information as defined in Section 7(b).
(e) Incorporated
Documents. The documents incorporated by reference in each of the Registration Statement, the Prospectus and the Time of Sale Information,
when they were filed with the Commission, conformed in all material respects to the requirements of the Exchange Act, and none of such
documents contained any untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading; and any further documents so filed and incorporated by reference
in the Registration Statement, the Prospectus or the Time of Sale Information, when such documents become effective or are filed with
the Commission, as the case may be, will conform in all material respects to the requirements of the Securities Act or the Exchange Act,
as applicable, and will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading.
5
(f) Financial
Statements. The financial statements and the related notes thereto included or incorporated by reference in each of the Registration
Statement, the Time of Sale Information and the Prospectus comply in all material respects with the applicable requirements of the Securities
Act and the Exchange Act, as applicable, and present fairly in all material respects the financial position of the Company and its subsidiaries
as of the dates indicated and the results of their operations and the changes in their cash flows for the periods specified; such financial
statements have been prepared in conformity with generally accepted accounting principles (“GAAP”) applied on
a consistent basis throughout the periods covered thereby, and the supporting schedules, if any, of the Company included or incorporated
by reference in each of the Registration Statement, the Prospectus and the Time of Sale Information present fairly the information required
to be stated therein; and the other financial information included or incorporated by reference in each of the Registration Statement,
the Time of Sale Information and the Prospectus has been derived from the accounting records of the Company and its subsidiaries and presents
fairly in all material respects the information shown thereby. The interactive data in eXtensible Business Reporting Language included
or incorporated by reference in the Registration Statement, the Prospectus and the Time of Sale Information fairly presents the information
called for in all material respects and is prepared in accordance with the Commission’s rules and guidelines applicable thereto.
(g) No
Material Adverse Change. Since the date of the most recent financial statements of the Company included or incorporated by reference
in each of the Registration Statement, the Time of Sale Information and the Prospectus (i) there has not been any material change
in the capital stock or long-term debt of the Company and its subsidiaries taken as a whole, or any dividend or distribution of any kind
declared, set aside for payment, paid or made by the Company on any class of capital stock, or any material adverse change, or any development
involving a prospective material adverse change, in or affecting the business, properties, management, financial position or results of
operations of the Company and its subsidiaries taken as a whole; (ii) the Company and its subsidiaries have not entered into any
transaction or agreement that is material to the Company and its subsidiaries taken as a whole, or incurred any liability or obligation,
direct or contingent, that is material to the Company and its subsidiaries taken as a whole; and (iii) the Company and its subsidiaries
taken as a whole have not sustained any material loss or interference with its business from fire, explosion, flood or other calamity,
whether or not covered by insurance, or from any labor disturbance or dispute or any action, order or decree of any court or arbitrator
or governmental or regulatory authority, except in each case as otherwise disclosed in each of the Registration Statement, the Time of
Sale Information and the Prospectus.
(h) Organization
and Good Standing. The Company and each of its significant subsidiaries have been duly organized and are validly existing and in good
standing under the laws of their respective jurisdictions of organization, are duly qualified to do business and are in good standing
in each jurisdiction in which their respective ownership or lease of property or the conduct of their respective businesses as currently
conducted requires such qualification, and have all power and authority necessary to own or hold their respective properties and to conduct
the businesses in which they currently are engaged, except where the failure to be so qualified, in good standing or have such power or
authority would not, individually or in the aggregate, have a material adverse effect on the business, properties, management, financial
position or results of operations of the Company and its subsidiaries taken as a whole or on the performance by the Company of its obligations
under this Agreement and the Securities (a “Material Adverse Effect”). The subsidiaries listed in Schedule 2
to this Agreement are the only significant subsidiaries of the Company.
6
(i) Capitalization.
The Company has the capitalization as set forth in each of the Registration Statement, the Time of Sale Information and the Prospectus
under the heading “Capitalization”; and all the outstanding shares of capital stock or other equity interests of each subsidiary
of the Company have been duly and validly authorized and issued, are fully paid and non-assessable (except, in the case of any foreign
subsidiary, for directors’ qualifying shares and except as otherwise described in each of the Registration Statement, the Time of
Sale Information and the Prospectus) and are owned directly or indirectly by the Company, free and clear of any lien, charge, encumbrance,
security interest, restriction on voting or transfer or any other claim of any third party (collectively, “Liens”)
other than Permitted Liens (as defined in the Registration Statement, the Time of Sale Information and the Prospectus).
(j) Due
Authorization. The Company has full right, power and authority to execute and deliver this Agreement, the Securities, the 2029 Indenture
and the 2032 Indenture (collectively, the “Transaction Documents”) and to perform its obligations hereunder
and thereunder; and all action required to be taken for the due and proper authorization, execution and delivery of each of the Transaction
Documents and the consummation of the transactions contemplated thereby has been duly and validly taken.
(k) The
Indenture. The Base Indenture has been duly authorized, executed and delivered by the Company and constitutes a valid and legally
binding agreement of the Company enforceable against the Company in accordance with its terms, except as enforceability may be limited
by applicable bankruptcy, fraudulent conveyance, re-organization moratorium, insolvency or similar laws affecting the enforcement of creditors’
rights generally or by equitable principles relating to enforceability (collectively, the “Enforceability Exceptions”);
each of the Third Supplemental Indenture and the Fourth Supplemental Indenture has been duly authorized by the Company and on the Closing
Date will be duly executed and delivered by the Company and, when duly executed and delivered in accordance with its terms by each of
the parties thereto, will constitute a valid and legally binding agreement of the Company enforceable against the Company in accordance
with its terms, except as enforceability may be limited by the Enforceability Exceptions; and on the Closing Date the Base Indenture and
each of the Third Supplemental Indenture and the Fourth Supplemental Indenture will conform in all material respects to the requirements
of the Trust Indenture Act.
(l) The
Securities. Each of the 2029 Notes and the 2032 Notes have been duly authorized by the Company and, when duly executed, authenticated,
issued and delivered as provided in each of the 2029 Indenture and the 2032 Indenture, respectively, and paid for as provided herein,
will be duly and validly issued and outstanding and will constitute valid and legally binding obligations of the Company enforceable against
the Company in accordance with their terms, subject to the Enforceability Exceptions, and will be entitled to the benefits of the 2029
Indenture and the 2032 Indenture, respectively.
7
(m) Underwriting
Agreement. This Agreement has been duly authorized, executed and delivered by the Company.
(n) Descriptions
of the Transaction Documents. Each Transaction Document conforms in all material respects to the description thereof contained in
each of the Registration Statement, the Time of Sale Information and the Prospectus.
(o) No
Violation or Default. Neither the Company nor any of its significant subsidiaries is (i) in violation of its charter or by-laws
or similar organizational documents; (ii) in default, and no event has occurred that, with notice or lapse of time or both, would
constitute such a default, in the due performance or observance of any term, covenant or condition contained in any indenture, mortgage,
deed of trust, loan agreement or other agreement or instrument to which the Company or any of its significant subsidiaries is a party
or by which the Company or any of its significant subsidiaries is bound or to which any property or asset of the Company or any of its
significant subsidiaries is subject; or (iii) in violation of any law or statute or any judgment, order, rule or regulation
of any court or arbitrator or governmental or regulatory authority, except, in the case of clauses (ii) and (iii) above, for
any such default or violation that would not, individually or in the aggregate, have a Material Adverse Effect.
(p) No
Conflicts. The execution, delivery and performance by the Company of each of the Transaction Documents, the issuance and sale of the
Securities and compliance by the Company with the terms thereof and the consummation of the transactions contemplated by the Transaction
Documents will not (i) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default
under, result in the termination, modification or acceleration of, or result in the creation or imposition of any lien, charge or encumbrance
upon any property, right or asset of the Company or any of its subsidiaries pursuant to, any indenture, mortgage, deed of trust, loan
agreement or other agreement or instrument to which the Company or any of its subsidiaries is a party or by which the Company or any of
its subsidiaries is bound or to which any property, right or asset of the Company or any of its subsidiaries is subject, (ii) result
in any violation of the provisions of the charter or by-laws or similar organizational documents of the Company or any of its significant
subsidiaries or (iii) result in the violation of any law or statute or any judgment, order, rule or regulation of any court
or arbitrator or governmental or regulatory authority, except, in each of the case of clauses (i) and (iii) above, for any such
conflict, breach, violation, default, lien, charge or encumbrance that would not, individually or in the aggregate, have a Material Adverse
Effect.
(q) No
Consents Required. No consent, approval, authorization, order, registration or qualification of or with any court or arbitrator or
governmental or regulatory authority is required for the execution, delivery and performance by the Company of each of the Transaction
Documents to which each is a party, the issuance and sale of the Securities and compliance by the Company with the terms thereof and the
consummation of the transactions contemplated by the Transaction Documents, except for (i) the registration of the Securities under
the Securities Act, (ii) the qualification of each of the 2029 Indenture and the 2032 Indenture under the Trust Indenture Act and
(iii) such consents, approvals, authorizations, orders and registrations or qualifications as may be required under applicable state
securities laws in connection with the purchase and distribution of the Securities by the Underwriters.
8
(r) Legal
Proceedings. Except as described in each of the Registration Statement, the Time of Sale Information and the Prospectus, there are
no legal, governmental or regulatory investigations, actions, demands, claims, suits, arbitrations, inquiries or proceedings (“Actions”)
pending to which the Company or any of its subsidiaries is or may be a party or to which any property of the Company or any of its subsidiaries
is or may be the subject that, individually, or in the aggregate, would reasonably be expected to have a Material Adverse Effect; and
except as described in each of the Registration Statement, the Time of Sale Information and the Prospectus, to the knowledge of the Company,
no such Actions are threatened or contemplated by any governmental or regulatory authority or threatened by others.
(s) Independent
Accountants. PricewaterhouseCoopers LLP, who have certified the consolidated financial statements of the Company, are independent
public accountants with respect to the Company within the applicable rules and regulations adopted by the Commission and the Public
Company Accounting Oversight Board (United States) and as required by the Securities Act.
(t) Title
to Real and Personal Property. The Company and its subsidiaries have good and valid title in fee simple to, or have valid rights to
lease or otherwise use, all items of real and personal property that are material to the respective businesses of the Company and its
subsidiaries, in each case free and clear of all liens, encumbrances, claims and defects and imperfections of title, in the case of all
other real and personal property, except for those that (i) do not materially interfere with the use made and proposed to be made
of such property by the Company and its subsidiaries or (ii) could not reasonably be expected, individually or in the aggregate,
to have a Material Adverse Effect.
(u) Intellectual
Property. To the knowledge of the Company, the Company and its subsidiaries own or have the right to use all patents, patent applications,
trademarks, service marks, trade names, trademark registrations, service mark registrations, domain names and other source indicators,
copyrights and copyrightable works, know-how, trade secrets, systems, procedures, proprietary or confidential information and all other
worldwide intellectual property, industrial property and proprietary rights (collectively, “Intellectual Property”)
necessary in the conduct of their respective businesses, except for any such default or violation that would not, individually or in the
aggregate, have a Material Adverse Effect; (ii) to the knowledge of the Company, the Company and its subsidiaries’ conduct
of their respective businesses does not infringe, misappropriate or otherwise violate any Intellectual Property of any person except for
any such default or violation that would not, individually or in the aggregate, have a Material Adverse Effect; (iii) to the knowledge
of the Company, the Company and its subsidiaries have not received any written notice of any claim of infringement, misappropriation or
other violation relating to Intellectual Property of any person, except for any such claim or violation that would not, individually or
in the aggregate, have a Material Adverse Effect; and (iv) to the knowledge of the Company, the Intellectual Property of the Company
and its subsidiaries is not being infringed, misappropriated or otherwise violated by any person.
9
(v) No
Undisclosed Relationships. No material relationship, direct or indirect, exists between or among the Company or any of its subsidiaries,
on the one hand, and the directors, officers, stockholders, customers, suppliers or other affiliates of the Company or any of its subsidiaries,
on the other, that is required by the Securities Act to be described in each of the Registration Statement and the Prospectus and that
is not so described in such documents and in the Time of Sale Information.
(w) Investment
Company Act. The Company is not, and after giving effect to the offering and sale of the Securities and the application of the proceeds
thereof as described in each of the Registration Statement, the Time of Sale Information and the Prospectus, will not be, an “investment
company” or an entity “controlled” by an “investment company” within the meaning of the Investment Company
Act of 1940, as amended, and the rules and regulations of the Commission thereunder (collectively, the “Investment Company
Act”).
(x) Taxes.
In each case, except as would not, individually or in the aggregate, have a Material Adverse Effect, the Company and its subsidiaries
have paid all federal, state, local and foreign taxes and filed all tax returns required to be paid or filed through the date hereof;
and except as otherwise disclosed in each of the Registration Statement, the Time of Sale Information and the Prospectus or properly reflected
in the financial statements, there is no material tax deficiency that has been, or could reasonably be expected to be, asserted against
the Company or any of its subsidiaries or any of their respective properties or assets.
(y) Licenses
and Permits. The Company and its subsidiaries possess all licenses, sub- licenses, certificates, permits and other authorizations
issued by, and have made all declarations and filings with, the appropriate federal, state, local or foreign governmental or regulatory
authorities that are necessary for the ownership or lease of their respective properties or the conduct of their respective businesses
as described in each of the Registration Statement, the Time of Sale Information and the Prospectus, except where the failure to possess
or make the same would not, individually or in the aggregate, have a Material Adverse Effect; and neither the Company nor any of its subsidiaries
has received notice of any revocation or modification of any such license, sub-license, certificate, permit or authorization or has any
reason to believe that any such license, sub-license, certificate, permit or authorization will not be renewed in the ordinary course,
except where such revocation, modification or non-renewal would not, individually or in the aggregate, have a Material Adverse Effect.
(z) No
Labor Disputes. No labor disturbance by or dispute with employees of the Company or any of its subsidiaries exists or, to the knowledge
of the Company, is contemplated or threatened and the Company is not aware of any existing or imminent labor disturbance by, or dispute
with, the employees of any of the Company’s or any of the Company’s subsidiaries’ principal suppliers, contractors or
customers, except as would not have a Material Adverse Effect.
10
(aa) Certain
Environmental Matters. (i) The Company and its subsidiaries (x) are in compliance with all, and have not violated any, applicable
federal, state, local and foreign laws (including common law), rules, regulations, requirements, decisions, judgments, decrees, orders
and other legally enforceable requirements relating to pollution or the protection of human health or safety, the environment, natural
resources, hazardous or toxic substances or wastes, pollutants or contaminants (collectively, “Environmental Laws”);
(y) have received and are in compliance with all, and have not violated any, permits, licenses, certificates or other authorizations
or approvals required of them under any Environmental Laws to conduct their respective businesses; and (z) have not received notice
of any actual or potential liability or obligation under or relating to, or any actual or potential violation of, any Environmental Laws,
including for the investigation or remediation of any disposal or release of hazardous or toxic substances or wastes, pollutants or contaminants,
and have no knowledge of any event or condition that would reasonably be expected to result in any such notice, and (ii) there are
no costs or liabilities associated with Environmental Laws of or relating to the Company or its subsidiaries, except in the case of each
of (i) and (ii) above, for any such matter as would not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect; and (iii) (x) there is no proceeding that is pending, or that is known to be contemplated, against
the Company or any of its subsidiaries under any Environmental Laws in which a governmental entity is also a party, other than such proceeding
regarding which it is reasonably believed no monetary sanctions of $300,000 or more will be imposed, (y) the Company and its subsidiaries
are not aware of any facts or issues regarding compliance with Environmental Laws, or liabilities or other obligations under Environmental
Laws or concerning hazardous or toxic substances or wastes, pollutants or contaminants, that would have a Material Adverse Effect, and
(z) none of the Company or its subsidiaries anticipates material capital expenditures relating to any Environmental Laws.
(bb) Compliance
with ERISA. (i) Each employee benefit plan, within the meaning of Section 3(3) of the Employee Retirement Income Security
Act of 1974, as amended (“ERISA”), for which the Company or any member of its “Controlled Group”
(defined as any entity, whether or not incorporated, that is under common control with the Company within the meaning of Section 4001(a)(14)
of ERISA or any entity that would be regarded as a single employer with the Company under Section 414(b),(c),(m) or (o) of
the Internal Revenue Code of 1986, as amended (the “Code”)) would have any liability (each, a “Plan”)
has been maintained in compliance with its terms and the requirements of any applicable statutes, orders, rules and regulations,
including but not limited to ERISA and the Code; (ii) no prohibited transaction, within the meaning of Section 406 of ERISA
or Section 4975 of the Code, has occurred with respect to any Plan, excluding transactions effected pursuant to a statutory or administrative
exemption; (iii) for each Plan that is subject to the funding rules of Section 412 of the Code or Section 302 of ERISA,
no Plan has failed (whether or not waived), or is reasonably expected to fail, to satisfy the minimum funding standards (within the meaning
of Section 302 of ERISA or Section 412 of the Code) applicable to such Plan; (iv) each Plan that is intended to be qualified
under Section 401(a) of the Code is so qualified, and nothing has occurred, whether by action or by failure to act, which would
cause the loss of such qualification; (v) neither the Company nor any member of the Controlled Group has incurred, nor reasonably
expects to incur, any liability under Title IV of ERISA (other than contributions to the Plan or premiums to the Pension Benefit Guarantee
Corporation, in the ordinary course and without default) in respect of a Plan (including a “multiemployer plan” within the
meaning of Section 4001(a)(3) of ERISA); and (vi) a material increase in the aggregate amount of contributions required
to be made to all Plans by the Company or its Controlled Group affiliates in the current fiscal year of the Company and its Controlled
Group affiliates compared to the amount of such contributions made in the Company’s and its Controlled Group affiliates’ most
recently completed fiscal year has not occurred or is reasonably likely to occur, except in each case with respect to the events or conditions
set forth in (i) through (vi) hereof, as would not, individually or in the aggregate, have a Material Adverse Effect.
11
(cc) Disclosure
Controls. Except as disclosed in the Registration Statement, the Time of Sale Information and the Prospectus with respect to the material
weaknesses in the Company’s internal control over financial reporting, the Company and its subsidiaries maintain an effective system
of “disclosure controls and procedures” (as defined in Rule 13a-15(e) of the Exchange Act) that has been designed
to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded,
processed, summarized and reported within the time periods specified in the Commission’s rules and forms, including controls
and procedures designed to ensure that such information is accumulated and communicated to the Company’s management as appropriate
to allow timely decisions regarding required disclosure. The Company and its subsidiaries have carried out evaluations of the effectiveness
of their disclosure controls and procedures as required by Rule 13a-15 of the Exchange Act.
(dd) Accounting
Controls. The Company and its subsidiaries maintain systems of “internal control over financial reporting” (as defined
in Rule 13a-15(f) of the Exchange Act) to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with GAAP. The Company and its subsidiaries maintain internal
accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s
general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in
conformity with GAAP and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s
general or specific authorization; (iv) the recorded accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences; and (v) interactive data in eXtensible Business Reporting
Language included or incorporated by reference in the Registration Statement, the Prospectus and the Time of Sale Information is prepared
in accordance with the Commission’s rules and guidelines applicable thereto. Except as disclosed in each of the Registration
Statement, the Time of Sale Information and the Prospectus, there are no material weaknesses in the Company’s internal controls.
(ee) Insurance.
The Company and its subsidiaries have insurance covering their respective properties, operations, personnel and businesses, including
business interruption insurance, which insurance is in amounts and insures against such losses and risks as are expected to be adequate
to protect the Company and its subsidiaries and their respective businesses; and neither the Company nor any of its subsidiaries has (i) received
notice from any insurer or agent of such insurer that material capital improvements or other expenditures are required or necessary to
be made in order to continue such insurance or (ii) any reason to believe that it will not be able to renew its existing material
insurance coverage as and when such coverage expires or to obtain similar coverage at reasonable cost from similar insurers as may be
necessary to continue its business.
12
(ff) No
Unlawful Payments. Neither the Company nor any of its subsidiaries, nor any director, officer or employee thereof, nor, to the Company’s
knowledge, any agent, affiliate or other person associated with or acting on behalf of the Company or any of its subsidiaries or affiliates
has taken or will take any action described in clauses (i) through (iv) below, and no person has (i) used any corporate
funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity; (ii) made or taken
an act in furtherance of an offer, promise or authorization of any direct or indirect unlawful payment or benefit, or any payment, gift
or other transfer of value intended to improperly influence the official action of any person or to otherwise secure any improper advantage,
to any foreign or domestic government official or employee, including of any government-owned or controlled entity or of a public international
organization, or any person acting in an official capacity for or on behalf of any of the foregoing, or any political party or party official
or candidate for political office; (iii) violated or is in violation of any provision of the Foreign Corrupt Practices Act of 1977,
as amended, or any applicable law or regulation implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International
Business Transactions, or committed an offence under the Bribery Act 2010 of the United Kingdom, or any other applicable anti-bribery
or anti-corruption law; or (iv) made, offered, agreed, requested received, or taken an act in furtherance of any unlawful bribe or
other unlawful benefit, including, without limitation, any rebate, payoff, influence payment, kickback or other unlawful or improper payment
or benefit. The Company and its subsidiaries have instituted, maintain and enforce, and will continue to maintain and enforce, policies
and procedures designed to promote and ensure compliance with all applicable anti-bribery and anti-corruption laws. The Company will not
directly or indirectly use the proceeds of the offering of the Securities hereunder, or lend, contribute or otherwise make available such
proceeds to any subsidiary, joint venture partner or other person or entity, in violation of any anti-bribery or anti-corruption laws.
(gg) Compliance
with Anti-Money Laundering Laws. The operations of the Company and its subsidiaries are and have been conducted at all times in compliance
in all material respects with all applicable anti-money laundering laws, rules, and regulations, including the applicable financial recordkeeping
and reporting requirements contained therein, including any applicable provisions of the Currency and Foreign Transactions Reporting Act
of 1970, as amended, the applicable provisions of the USA PATRIOT Act of 2001, the Money Laundering Control Act of 1986, the Anti-Money
Laundering Act of 2020, the applicable money laundering statutes of all jurisdictions where the Company or any of its subsidiaries conducts
business, the applicable rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered
or enforced by any governmental agency (collectively, the “Anti-Money Laundering Laws”), and no action, suit
or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of its subsidiaries
with respect to the Anti-Money Laundering Laws is pending or, to the knowledge of the Company, threatened. The Company will not directly
or indirectly use the proceeds of the offering of the Securities hereunder, or lend, contribute or otherwise make available such proceeds
to any subsidiary, joint venture partner or other person or entity, in violation of any Anti-Money Laundering Laws.
13
(hh) No
Conflicts with Sanctions Laws. Neither the Company nor any of its subsidiaries, nor any of the Company’s or any of its subsidiaries’
directors, officers, or employees, nor, to the knowledge of the Company, any agents, affiliates, representatives, or other person associated
with or acting on behalf of the Company or any of its subsidiaries is currently the subject or the target, or owned or (where relevant
under applicable Sanctions) controlled by one or more persons that are the subject or the target of any sanctions administered or enforced
by the U.S. government, (including, without limitation, the Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”)
or the U.S. Department of State and including, without limitation, the designation as a “specially designated national” or
“blocked person”), the United Nations Security Council (“UNSC”), the European Union, His Majesty’s
Treasury (“HMT”), or other relevant sanctions authority (collectively, “Sanctions”),
nor is the Company or any of its subsidiaries located, organized or resident in a country or territory that is the subject or target of
Sanctions, including, without limitation, the Crimea Region of Ukraine, the so-called Donetsk People’s Republic, the so-called Luhansk
People’s Republic, or any other covered region of Ukraine identified pursuant to Executive Order 14065, Cuba, Iran, North Korea
and Syria (with respect to Syria, only until July 1, 2025) (each, a “Sanctioned Country”); and the Company
will not directly or indirectly use the proceeds of the offering of the Securities hereunder, or lend, contribute or otherwise make available
such proceeds to any subsidiary, joint venture partner or other person or entity (i) to fund or facilitate any activities of or business
with any person that, at the time of such funding or facilitation, is the subject or target of Sanctions, (ii) to fund or facilitate
any activities of or business in any Sanctioned Country or (iii) in any other manner that will result in a violation by any person
(including any person participating in the transaction, whether as initial purchaser, underwriter, advisor, investor or otherwise) of
Sanctions. Since April 24, 2019, the Company and its subsidiaries have not knowingly engaged in, and will not engage in, any dealings
or transactions with any person, or in any country or territory, that at the time of the dealing or transaction is, or whose government
is, the subject or the target of Sanctions or in any Sanctioned Country, in violation of Sanctions.
(ii) No
Restrictions on Subsidiaries. No significant subsidiary of the Company is currently prohibited, directly or indirectly, under any
agreement or other instrument to which it is a party or is subject, from paying any dividends to the Company, from making any other distribution
on such subsidiary’s capital stock or similar ownership interest, from repaying to the Company any loans or advances to such subsidiary
from the Company or from transferring any of such subsidiary’s properties or assets to the Company or any other subsidiary of the
Company, except for any such restrictions (a) contained in the Credit Agreements (as defined in the Prospectus), or (b) that
will be permitted by each of the 2029 Indenture and the 2032 Indenture.
(jj) No
Registration Rights. No person has the right to require the Company or any of its subsidiaries to register any securities for sale
under the Securities Act by reason of the filing of the Registration Statement with the Commission or the issuance and sale of the Securities.
14
(kk) No
Broker’s Fees. Neither the Company nor any of its subsidiaries is a party to any contract, agreement or understanding with any
person (other than this Agreement) that would give rise to a valid claim against any of them or any Underwriter for a brokerage commission,
finder’s fee or like payment in connection with the offering and sale of the Securities.
(ll) No
Stabilization. The Company has not taken, directly or indirectly, any action designed to or that could reasonably be expected to cause
or result in any stabilization or manipulation of the price of the Securities.
(mm) Margin
Rules. Neither the issuance, sale and delivery of the Securities nor the application of the proceeds thereof by the Company as described
in each of the Registration Statement, the Time of Sale Information and the Prospectus will violate Regulation T, U or X of the Board
of Governors of the Federal Reserve System or any other regulation of such Board of Governors.
(nn) Forward-Looking
Statements. No forward-looking statement (within the meaning of Section 27A of the Securities Act and Section 21E of the
Exchange Act) included or incorporated by reference in any of the Registration Statement, the Time of Sale Information or the Prospectus
has been made or reaffirmed without a reasonable basis or has been disclosed other than in good faith.
(oo) Statistical
and Market Data. Nothing has come to the attention of the Company that has caused the Company to believe that the statistical and
market-related data included or incorporated by reference in each of the Registration Statement, the Time of Sale Information and the
Prospectus is not based on or derived from sources that are reliable and accurate in all material respects.
(pp) Cybersecurity;
Data Protection. Except as would not reasonably be expected to have a Material Adverse Effect, the Company and its subsidiaries’
information technology assets and equipment, computers, systems, networks, hardware, software, websites, applications and databases (collectively,
“IT Systems”) are adequate for, and operate and perform as required in connection with the operation of the
business of the Company and its subsidiaries as currently conducted. The Company and its subsidiaries have implemented and maintained
commercially reasonable controls, policies, procedures, and safeguards intended to maintain and protect their material confidential information
and the integrity, operation, redundancy and security of all IT Systems and data (including all personal, personally identifiable, sensitive,
confidential or regulated data (“Personal Data”)) used in connection with their businesses, and except as would
not reasonably be expected to have a Material Adverse Effect, there have been no breaches, violations, outages or unauthorized uses of
or accesses to same. Except as would not be reasonably expected to have a Material Adverse Effect, the Company and its subsidiaries are
presently in compliance with all applicable laws or statutes and all judgments, orders, rules and regulations of any court or arbitrator
or governmental or regulatory authority, internal policies and contractual obligations relating to the privacy and security of IT Systems
and Personal Data and to the protection of such IT Systems and Personal Data from unauthorized use, access, misappropriation or modification.
15
(qq) Sarbanes-Oxley
Act. There is and has been no failure on the part of the Company or any of the Company’s directors or officers, in their capacities
as such, to comply in all material respects with any provision of the Sarbanes-Oxley Act of 2002, as amended, and the rules and regulations
promulgated in connection therewith (the “Sarbanes-Oxley Act”), including Section 402 related to loans
and Sections 302 and 906 related to certifications.
(rr) Status
under the Securities Act. The Company is not an ineligible issuer and is a well-known seasoned issuer, in each case as defined under
the Securities Act, in each case at the times specified in the Securities Act in connection with the offering of the Securities.
4. Further Agreements of the Company. The Company covenants
and agrees with each Underwriter that:
(a) Required
Filings. The Company will file the final Prospectus with the Commission within the time periods specified by Rule 424(b) and
Rule 430A, 430B or 430C under the Securities Act, will file any Issuer Free Writing Prospectus (including the Pricing Term Sheet
referred to in Annex B hereto) to the extent required by Rule 433 under the Securities Act, and the Company will file promptly all
reports and any definitive proxy or information statements required to be filed by the Company with the Commission pursuant to Section 13(a),
13(c), 14 or 15(d) of the Exchange Act subsequent to the date of the Prospectus and during the Prospectus Delivery Period (as defined
below); and the Company will furnish copies of the Prospectus and each Issuer Free Writing Prospectus (to the extent not previously delivered)
to the Underwriters in New York City prior to 10:00 A.M., New York City time, on the business day next succeeding the date of this Agreement
in such quantities as the Representatives may reasonably request. The Company will pay the registration fees for this offering within
the time period required by Rule 456(b)(1)(i) under the Securities Act (without giving effect to the proviso therein) and in
any event prior to the Closing Date.
(b) Delivery
of Copies. The Company will deliver, without charge, (i) to the Representatives, a conformed electronic copy of the Registration
Statement as originally filed and each amendment thereto, in each case including all exhibits and consents filed therewith and documents
incorporated by reference therein (unless publicly available on the Company’s website or the website of the Commission), to the
extent reasonably requested by the Representatives; and (ii) to each Underwriter, during the Prospectus Delivery Period, electronic
copies of the Prospectus (including all amendments and supplements thereto and documents incorporated by reference therein) and each Issuer
Free Writing Prospectus as the Representatives may reasonably request. As used herein, the term “Prospectus Delivery Period”
means such period of time after the first date of the public offering of the Securities as in the opinion of counsel for the Underwriters
a prospectus relating to the Securities is required by law to be delivered (or required to be delivered but for Rule 172 under the
Securities Act) in connection with sales of the Securities by any Underwriter or dealer.
(c) Amendments
or Supplements; Issuer Free Writing Prospectuses. Before using, authorizing, approving, referring to or filing any Issuer Free Writing
Prospectus, and before filing any amendment or supplement to the Registration Statement or the Prospectus, whether before or after the
time that the Registration Statement becomes effective the Company will furnish to the Representatives and counsel for the Underwriters
a copy of the proposed Issuer Free Writing Prospectus, amendment or supplement for review and will not use, authorize, approve, refer
to or file any such Issuer Free Writing Prospectus or file any such proposed amendment or supplement to which the Representatives reasonably
object, unless in the reasonable judgment of the Company and its counsel, such proposed amendment or supplement is necessary to comply
with law or to make the statements contained in the Registration Statement, Time of Sale Information, Prospectus or any Issuer Free Writing
Prospectus, not misleading.
16
(d) Notice
to the Representatives. During the Prospectus Delivery Period, the Company will advise the Representatives promptly, and confirm such
advice in writing via electronic mail, (i) when any amendment to the Registration Statement has been filed or becomes effective;
(ii) when any supplement to the Prospectus or any Issuer Free Writing Prospectus or any amendment to the Prospectus or any Issuer
Free Writing Prospectus has been filed; (iii) of any request by the Commission for any amendment to the Registration Statement or
any amendment or supplement to the Prospectus or the receipt of any comments from the Commission relating to the Registration Statement
or any other request by the Commission for any additional information related to the Registration Statement; (iv) of the issuance
by the Commission or any other governmental or regulatory authority of any order suspending the effectiveness of the Registration Statement
or preventing or suspending the use of any Preliminary Prospectus, the Prospectus, any Time of Sale Information or any Issuer Free Writing
Prospectus or the initiation or threatening of any proceeding for that purpose or pursuant to Section 8A of the Securities Act; (v) of
the occurrence of any event or development within the Prospectus Delivery Period as a result of which the Prospectus, any of the Time
of Sale Information or any Issuer Free Writing Prospectus as then amended or supplemented would include any untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing when
the Prospectus, the Time of Sale Information or any such Issuer Free Writing Prospectus is delivered to a purchaser, not misleading; and
(vi) of the receipt by the Company of any notice with respect to any suspension of the qualification of the Securities for offer
and sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; and the Company will use its reasonable
best efforts to prevent the issuance of any such order suspending the effectiveness of the Registration Statement, preventing or suspending
the use of any Preliminary Prospectus, any of the Time of Sale Information, Issuer Free Writing Prospectus or the Prospectus, or
suspending any such qualification of the Securities and, if any such order is issued, will use its reasonable best efforts to obtain as
soon as possible the withdrawal thereof.
(e) Time
of Sale Information. If at any time prior to the Closing Date (i) any event shall occur or condition shall exist as a result
of which any of the Time of Sale Information as then amended or supplemented would include any untrue statement of a material fact or
omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they
were made, not misleading or (ii) it is necessary to amend or supplement the Time of Sale Information to comply with law, the Company
will promptly notify the Underwriters thereof and forthwith prepare and, subject to paragraph (c) above, file with the Commission
(to the extent required) and furnish to the Underwriters and to such dealers as the Representatives may designate, such amendments or
supplements to the Time of Sale Information (or any document to be filed with the Commission and incorporated by reference therein) as
may be necessary so that the statements in any of the Time of Sale Information as so amended or supplemented (including such documents
to be incorporated by reference therein) will not, in the light of the circumstances under which they were made, be misleading or so that
any of the Time of Sale Information will comply with law.
17
(f) Ongoing
Compliance. If during the Prospectus Delivery Period (i) any event shall occur or condition shall exist as a result of which
the Prospectus as then amended or supplemented would include any untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements therein, in the light of the circumstances existing when the Prospectus is delivered to a purchaser,
not misleading or (ii) it is necessary to amend or supplement the Prospectus to comply with law, the Company will promptly notify
the Underwriters thereof and forthwith prepare and, subject to paragraph (c) above, file with the Commission and furnish to the Underwriters
and to such dealers as the Representatives may designate, such amendments or supplements to the Prospectus (or any document to be filed
with the Commission and incorporated by reference therein) as may be necessary so that the statements in the Prospectus as so amended
or supplemented (including such documents to be incorporated by reference therein) will not, in the light of the circumstances existing
when the Prospectus is delivered to a purchaser, be misleading or so that the Prospectus will comply with law.
(g) Blue
Sky Compliance. The Company will qualify the Securities for offer and sale under the securities or Blue Sky laws of such jurisdictions
as the Representatives shall reasonably request and will continue such qualifications in effect so long as required for distribution of
the Securities; provided that the Company shall not be required to (i) qualify as a foreign corporation or other entity or
as a dealer in securities in any such jurisdiction where it would not otherwise be required to so qualify, (ii) file any general
consent to service of process in any such jurisdiction or (iii) subject itself to taxation in any such jurisdiction if it is not
otherwise so subject.
(h) Earning
Statement. The Company will make generally available to its security holders and the Representatives as soon as practicable an earning
statement that satisfies the provisions of Section 11(a) of the Securities Act and Rule 158 of the Commission promulgated
thereunder covering a period of at least twelve months beginning with the first fiscal quarter of the Company occurring after the “effective
date” (as defined in Rule 158) of the Registration Statement; provided that the Company will be deemed to have complied
with such requirement by filing with the Commission a report that satisfies the requirements for an “earning statement” under
Rule 158 of the Securities Act.
(i) Clear
Market. During the period from the date hereof through the Closing Date, the Company will not, without the prior written consent of
the Representatives, offer, sell, contract to sell or otherwise dispose of any debt securities issued or guaranteed by the Company and
having a tenor of more than one year.
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(j) Use
of Proceeds. The Company will apply the net proceeds from the sale of the Securities as described in each of the Registration Statement,
the Time of Sale Information and the Prospectus under the heading “Use of Proceeds.”
(k) DTC.
The Company will assist the Underwriters in arranging for the Securities to be eligible for clearance and settlement through DTC.
(l) No
Stabilization. The Company will not take, directly or indirectly, any action designed to or that could reasonably be expected to cause
or result in any stabilization or manipulation of the price of the Securities.
(m) Record
Retention. The Company will, pursuant to reasonable procedures developed in good faith, retain copies of each Issuer Free Writing
Prospectus that is not filed with the Commission in accordance with Rule 433 under the Securities Act.
5. Certain
Agreements of the Underwriters. Each Underwriter hereby represents and agrees that it has not and will not use, authorize use of,
refer to, or participate in the planning for use of, any “free writing prospectus”, as defined in Rule 405 under the
Securities Act (which term includes use of any written information furnished to the Commission by the Company and not incorporated by
reference into the Registration Statement and any press release issued by the Company) other than (i) a free writing prospectus that,
solely as a result of use by such Underwriter, would not trigger an obligation to file such free writing prospectus with the Commission
pursuant to Rule 433, (ii) any Issuer Free Writing Prospectus listed on Annex A or prepared pursuant to Section 3(c) or
Section 4(c) above (including any electronic road show), or (iii) any free writing prospectus prepared by such Underwriter
and approved by the Company in advance in writing. Notwithstanding the foregoing, the Underwriters may use the Pricing Term Sheet referred
to in Annex B hereto without the consent of the Company.
6. Conditions
of Underwriters’ Obligations. The obligation of each Underwriter to purchase Securities on the Closing Date as provided herein
is subject to the performance by the Company of its covenants and other obligations hereunder and to the following additional conditions:
(a) Registration
Compliance; No Stop Order. No order suspending the effectiveness of the Registration Statement shall be in effect, and no proceeding
for such purpose, pursuant to Rule 401(g)(2) or pursuant to Section 8A under the Securities Act shall be pending before
or, to the knowledge of the Company, threatened by the Commission; the Prospectus and each Issuer Free Writing Prospectus shall have been
timely filed with the Commission under the Securities Act (in the case of an Issuer Free Writing Prospectus, to the extent required by
Rule 433 under the Securities Act) and in accordance with Section 4(b) hereof; and all requests by the Commission for additional
information subject to this Underwriting Agreement shall have been complied with to the reasonable satisfaction of the Representatives.
(b) Representations
and Warranties. The representations and warranties of the Company contained herein shall be true and correct on the date hereof and
on and as of the Closing Date; and the statements of the Company and its officers made in any certificates delivered pursuant to this
Agreement shall be true and correct on and as of the Closing Date.
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(c) No
Downgrade. Subsequent to the earlier of (A) the Time of Sale and (B) the execution and delivery of this Agreement, (i) no
downgrading shall have occurred in the rating accorded the Securities or any other debt securities or preferred stock issued or guaranteed
by the Company by any “nationally recognized statistical rating organization,” as such term is defined under Section 3(a)(62)
under the Exchange Act and (ii) no such organization shall have publicly announced that it has under surveillance or review, or has
changed its outlook with respect to, its rating of the Securities or of any other debt securities or preferred stock issued or guaranteed
by the Company or any of its subsidiaries (other than an announcement with positive implications of a possible upgrading).
(d) No
Material Adverse Change. No event or condition of a type described in Section 3(g) hereof shall have occurred or shall exist,
which event or condition is not described in each of the Time of Sale Information (excluding any amendment or supplement thereto) and
the Prospectus (excluding any amendment or supplement thereto) the effect of which in the judgment of the Representatives makes it impracticable
or inadvisable to proceed with the offering, sale or delivery of the Securities on the terms and in the manner contemplated by this Agreement,
the Time of Sale Information and the Prospectus.
(e) Officer’s
Certificate. The Representatives shall have received on and as of the Closing Date a certificate of a duly authorized officer of the
Company who has specific knowledge of the Company’s financial matters and is satisfactory to the Representatives (i) confirming
that such officer has carefully reviewed the Registration Statement, the Time of Sale Information and the Prospectus and, to the knowledge
of such officer, the representations set forth in Sections 3(b) and 3(d) hereof are true and correct, (ii) confirming that
the other representations and warranties of the Company in this Agreement are true and correct and that the Company has complied with
all agreements and satisfied all conditions on its part to be performed or satisfied hereunder at or prior to the Closing Date and (iii) to
the effect set forth in paragraphs (a), (c) and (d) above.
(f) Comfort
Letters. On the date of this Agreement and on the Closing Date, PricewaterhouseCoopers LLP shall have furnished to the Representatives,
at the request of the Company, letters, dated the respective dates of delivery thereof and addressed to the Underwriters, in form and
substance reasonably satisfactory to the Representatives, containing statements and information of the type customarily included in accountants’
“comfort letters” to underwriters with respect to the financial statements and certain financial information contained or
incorporated by reference in each of the Registration Statement, the Time of Sale Information and the Prospectus; provided that
the letter delivered on the Closing Date shall use a “cut-off” date no more than three business days prior to the Closing
Date.
(g) Opinion
and 10b-5 Statement of Counsel for the Company. Willkie Farr & Gallagher LLP, counsel for the Company, shall have furnished
to the Representatives, at the request of the Company, their written opinion and 10b-5 statement, dated the Closing Date and addressed
to the Underwriters, in form and substance reasonably satisfactory to the Representatives, to the effect set forth in Annex C-1 and C-2,
respectively, hereto.
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(h) Opinion
and 10b-5 Statement of Counsel for the Underwriters. The Representatives shall have received on and as of the Closing Date an opinion
and 10b-5 statement, addressed to the Underwriters, of Cravath, Swaine & Moore LLP, counsel for the Underwriters, with respect
to such matters as the Representatives may reasonably request, and such counsel shall have received such documents and information as
they may reasonably request to enable them to pass upon such matters.
(i) No
Legal Impediment to Issuance. No action shall have been taken and no statute, rule, regulation or order shall have been enacted, adopted
or issued by any federal, state or foreign governmental or regulatory authority that would, as of the Closing Date, prevent the issuance
or sale of the Securities; and no injunction or order of any federal, state or foreign court shall have been issued that would, as of
the Closing Date, prevent the issuance or sale of the Securities.
(j) Good
Standing. The Representatives shall have received on and as of the Closing Date satisfactory evidence of the good standing of the
Company, in each case in writing or any standard form of telecommunication from the appropriate governmental authorities of such jurisdictions.
(k) DTC.
The Securities shall be eligible for clearance and settlement through DTC.
(l) Indenture
and Securities. Each of the 2029 Indenture and the 2032 Indenture shall have been duly executed and delivered by a duly authorized
officer of the Company and the Trustee, and the Securities shall have been duly executed and delivered by a duly authorized officer of
the Company and duly authenticated by the Trustee.
(m) Additional
Documents. On or prior to the Closing Date, the Company shall have furnished to the Representatives such further certificates and
documents as the Representatives may reasonably request.
All opinions, letters, certificates and evidence
mentioned above or elsewhere in this Agreement shall be deemed to be in compliance with the provisions hereof only if they are in form
and substance reasonably satisfactory to counsel for the Underwriters.
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7. Indemnification and Contribution.
(a) Indemnification
of the Underwriters. The Company agrees to indemnify and hold harmless each Underwriter, its employees, affiliates, directors and
officers and each person, if any, who controls such Underwriter within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act, from and against any and all losses, claims, damages and liabilities (including, without limitation, reasonable and
documented legal fees and other reasonable and documented expenses incurred in connection with any suit, action or proceeding or any claim
asserted, as such fees and expenses are incurred), joint or several, that arise out of, or are based upon, (i) any untrue statement
or alleged untrue statement of a material fact contained in the Registration Statement or caused by any omission or alleged omission to
state therein a material fact required to be stated therein or necessary in order to make the statements therein, not misleading, or (ii) any
untrue statement or alleged untrue statement of a material fact contained in the Prospectus (or any amendment or supplement thereto),
any Issuer Free Writing Prospectus or any Time of Sale Information, or caused by any omission or alleged omission to state therein a material
fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading,
in each case except insofar as such losses, claims, damages or liabilities arise out of, or are based upon, any untrue statement or omission
or alleged untrue statement or omission made in reliance upon and in conformity with any information relating to any Underwriter furnished
to the Company in writing by such Underwriter through the Representatives expressly for use therein, which, for the avoidance of doubt,
such information consists only of the Underwriter Provided Information as defined in Section 7(b).
(b) Indemnification
of the Company. Each Underwriter agrees, severally and not jointly, to indemnify and hold harmless the Company, its directors and
officers and each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act to the same extent as the indemnity set forth in paragraph (a) above, but only with respect to any losses, claims,
damages or liabilities (including, without limitation, reasonable and documented legal fees and other reasonable and documented expenses
incurred in connection with any suit, action or proceeding or any claim asserted, as such fees and expenses are incurred) that arise out
of, or are based upon, any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity
with any information relating to such Underwriter furnished to the Company in writing by such Underwriter through the Representatives
expressly for use in the Registration Statement, the Prospectus (or any amendment or supplement thereto), any Issuer Free Writing Prospectus
or any Time of Sale Information, it being understood and agreed that the only such information (“Underwriter Provided Information”)
consists of the following language in the Preliminary Prospectus and the Prospectus: the third sentence in the eighth paragraph; the first
and second sentences in the ninth paragraph; and the first sentence in the tenth paragraph under the heading “Underwriting (Conflicts
of Interest)”.
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(c) Notice
and Procedures. If any suit, action, proceeding (including any governmental or regulatory investigation), claim or demand shall be
brought or asserted against any person in respect of which indemnification may be sought pursuant to either paragraph (a) or (b) above,
such person (the “Indemnified Person”) shall promptly notify the person against whom such indemnification may
be sought (the “Indemnifying Person”) in writing; provided that the failure to notify the Indemnifying
Person shall not relieve it from any liability that it may have under paragraph (a) or (b) above except to the extent that it
has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such failure; and provided, further,
that the failure to notify the Indemnifying Person shall not relieve it from any liability that it may have to an Indemnified Person otherwise
than under paragraph (a) or (b) above. If any such proceeding shall be brought or asserted against an Indemnified Person and
it shall have notified the Indemnifying Person thereof, the Indemnifying Person shall retain counsel reasonably satisfactory to the Indemnified
Person (who shall not, without the consent of the Indemnified Person, be counsel to the Indemnifying Person) to represent the Indemnified
Person and any others entitled to indemnification pursuant to this Section 7 that the Indemnifying Person may designate in such proceeding
and shall pay the fees and expenses of such proceeding and shall pay the fees and expenses of such counsel related to such proceeding,
as incurred. In any such proceeding, any Indemnified Person shall have the right to retain its own counsel, but the fees and expenses
of such counsel shall be at the expense of such Indemnified Person unless (i) the Indemnifying Person and the Indemnified Person
shall have mutually agreed to the contrary; (ii) the Indemnifying Person has failed within a reasonable time to retain counsel reasonably
satisfactory to the Indemnified Person; (iii) the Indemnified Person shall have reasonably concluded that there may be legal defenses
available to it that are different from or in addition to those available to the Indemnifying Person; or (iv) the named parties in
any such proceeding (including any impleaded parties) include both the Indemnifying Person and the Indemnified Person and representation
of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them. It is understood
and agreed that the Indemnifying Person shall not, in connection with any proceeding or related proceeding in the same jurisdiction, be
liable for the reasonable and documented fees and expenses of more than one separate firm (in addition to any local counsel) for all Indemnified
Persons, and that all such reasonable and documented fees and expenses shall be paid or reimbursed as they are incurred. Any such separate
firm for any Underwriter, its affiliates, directors and officers and any control persons of such Underwriter shall be designated in writing
by the Representatives and any such separate firm for the Company, its directors and officers and any control persons of the Company shall
be designated in writing by the Company. The Indemnifying Person shall not be liable for any settlement of any proceeding effected without
its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the Indemnifying Person agrees
to indemnify each Indemnified Person from and against any loss or liability by reason of such settlement or judgment. No Indemnifying
Person shall, without the written consent of the Indemnified Person, effect any settlement of any pending or threatened proceeding in
respect of which any Indemnified Person is or could have been a party and indemnification could have been sought hereunder by such Indemnified
Person, unless such settlement (x) includes an unconditional release of such Indemnified Person, in form and substance reasonably
satisfactory to such Indemnified Person, from all liability on claims that are the subject matter of such proceeding and (y) does
not include any statement as to or any admission of fault, culpability or a failure to act by or on behalf of any Indemnified Person.
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(d) Contribution.
If the indemnification provided for in paragraph (a) or (b) above is unavailable to an Indemnified Person or insufficient
in respect of any losses, claims, damages or liabilities referred to therein, then each Indemnifying Person under such paragraph, in lieu
of indemnifying such Indemnified Person thereunder, shall contribute to the amount paid or payable by such Indemnified Person as a result
of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received
by the Company on the one hand and the Underwriters on the other from the offering of the Securities or (ii) if the allocation provided
by clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) but also the relative fault of the Company on the one hand and the Underwriters on the other in connection
with the statements or omissions that resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable
considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be
in the same respective proportions as the net proceeds (before deducting expenses) received by the Company from the sale of the Securities
and the total underwriting discounts and commissions received by the Underwriters in connection therewith, in each case as set forth in
the table on the cover of the Prospectus, bear to the aggregate offering price of the Securities. The relative fault of the Company on
the one hand and the Underwriters on the other shall be determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the
Company or by the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.
(e) Limitation
on Liability. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 7
were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method
of allocation that does not take account of the equitable considerations referred to in paragraph (d) above. The amount paid or payable
by an Indemnified Person as a result of the losses, claims, damages and liabilities referred to in paragraph (d) above shall be deemed
to include, subject to the limitations set forth above, any legal or other expenses incurred by such Indemnified Person in connection
with any such action or claim. Notwithstanding the provisions of this Section 7, in no event shall an Underwriter be required to
contribute any amount in excess of the amount by which the total underwriting discounts and commissions received by such Underwriter with
respect to the offering of the Securities exceeds the amount of any damages that such Underwriter has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of
such fraudulent misrepresentation. The Underwriters’ obligations to contribute pursuant to this Section 7 are several in proportion
to their respective purchase obligations hereunder and not joint.
(f) Non-Exclusive
Remedies. The remedies provided for in this Section 7 are not exclusive and shall not limit any rights or remedies that may otherwise
be available to any Indemnified Person at law or in equity.
8. Effectiveness
of Agreement. This Agreement shall become effective as of the date first written above.
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9. Termination.
This Agreement may be terminated in the absolute discretion of the Representatives, by notice to the Company, if after the execution and
delivery of this Agreement and on or prior to the Closing Date (i) trading generally shall have been suspended or materially limited
on the New York Stock Exchange or the over-the-counter market; (ii) trading of any securities issued or guaranteed by the Company
shall have been suspended on any exchange or in any over-the-counter market; (iii) a general moratorium on commercial banking activities
shall have been declared by federal or New York State authorities; or (iv) there shall have occurred any outbreak or escalation of
hostilities or any change in financial markets or any calamity or crisis, either within or outside the United States, that, in the reasonable
judgment of the Representatives, is material and adverse and makes it impracticable or inadvisable to proceed with the offering, sale
or delivery of the Securities on the terms and in the manner contemplated by this Agreement, the Time of Sale Information and the Prospectus.
10. Defaulting Underwriter.
(a) If,
on the Closing Date, any Underwriter defaults on its obligation to purchase the Securities that it has agreed to purchase hereunder, the
non-defaulting Underwriters may in their discretion arrange for the purchase of such Securities by other persons satisfactory to the Company
on the terms contained in this Agreement. If, within 36 hours after any such default by any Underwriter, the non-defaulting Underwriters
do not arrange for the purchase of such Securities, then the Company shall be entitled to a further period of 36 hours within which to
procure other persons satisfactory to the non-defaulting Underwriters to purchase such Securities on such terms. If other persons become
obligated or agree to purchase the Securities of a defaulting Underwriter, either the non-defaulting Underwriters or the Company may postpone
the Closing Date for up to five full business days in order to effect any changes that in the opinion of counsel for the Company or counsel
for the Underwriters may be necessary in the Registration Statement, the Time of Sale Information and the Prospectus or in any other document
or arrangement, and the Company agrees to promptly prepare any amendment or supplement to the Registration Statement, the Time of Sale
Information and the Prospectus that effects any such changes. As used in this Agreement, the term “Underwriter” includes,
for all purposes of this Agreement unless the context otherwise requires, any person not listed in Schedule 1 hereto that, pursuant to
this Section 10, purchases Securities that a defaulting Underwriter agreed but failed to purchase.
(b) If,
after giving effect to any arrangements for the purchase of the Securities of a defaulting Underwriter or Underwriters by the non-defaulting
Underwriters and the Company as provided in paragraph (a) above, the aggregate principal amount of such Securities that remains unpurchased
does not exceed one-eleventh of the aggregate principal amount of all the Securities, then the Company shall have the right to require
each non-defaulting Underwriter to purchase the principal amount of Securities that such Underwriter agreed to purchase hereunder plus
such Underwriter’s pro rata share (based on the principal amount of Securities that such Underwriter agreed to purchase hereunder)
of the Securities of such defaulting Underwriter or Underwriters for which such arrangements have not been made.
(c) If,
after giving effect to any arrangements for the purchase of the Securities of a defaulting Underwriter or Underwriters by the non-defaulting
Underwriters and the Company as provided in paragraph (a) above, the aggregate principal amount of such Securities that remains unpurchased
exceeds one-eleventh of the aggregate principal amount of all the Securities, or if the Company shall not exercise the right described
in paragraph (b) above, then this Agreement shall terminate without liability on the part of the non-defaulting Underwriters. Any
termination of this Agreement pursuant to this Section 10 shall be without liability on the part of the Company, except that the
Company will continue to be liable for the payment of expenses as set forth in Section 11 hereof and except that the provisions of
Section 7 hereof shall not terminate and shall remain in effect.
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(d) Nothing
contained herein shall relieve a defaulting Underwriter of any liability it may have to the Company or any non-defaulting Underwriter
for damages caused by its default.
11. Payment of Expenses.
(a) Whether
or not the transactions contemplated by this Agreement are consummated or this Agreement is terminated, the Company agrees to pay or cause
to be paid all costs and expenses incident to the performance of its obligations hereunder, including without limitation, (i) the
costs incident to the authorization, issuance, sale, preparation and delivery of the Securities and any taxes payable in that connection;
(ii) the costs incident to the preparation, printing and filing under the Securities Act of the Registration Statement, the Preliminary
Prospectus, any Issuer Free Writing Prospectus, any Time of Sale Information and the Prospectus (including all exhibits, amendments and
supplements thereto) and the distribution thereof; (iii) the costs of reproducing and distributing each of the Transaction Documents;
(iv) the fees and expenses of the Company’s counsel and independent accountants; (v) the fees and expenses incurred in
connection with the registration or qualification and determination of eligibility for investment of the Securities under the laws of
such jurisdictions as the Representatives may designate and the preparation, printing and distribution of a Blue Sky Memorandum (including
the reasonable and documented related fees and expenses of counsel for the Underwriters); (vi) any fees charged by rating agencies
for rating the Securities; (vii) the fees and expenses of the Trustee and any paying agent (including related fees and expenses of
any counsel to such parties); (viii) all expenses and application fees incurred in connection with, any filing with, and clearance
of the offering by, the Financial Industry Regulatory Authority (including any documented expenses of counsel to the Underwriters not
to exceed $25,000 in the aggregate), and the approval of the Securities for book-entry transfer by DTC and (ix) all expenses incurred
by the Company in connection with any “road show” presentation to potential investors. Except as provided in Section 7
and this Section 11, the Underwriters shall pay all of their own costs and expenses in connection with the transactions contemplated
hereby, including, without limitation, the fees and expenses of their counsel.
(b) If
(i) this Agreement is terminated pursuant to Section 9, (ii) the Company for any reason fails to tender the Securities
for delivery to the Underwriters or (iii) the Underwriters decline to purchase the Securities for any reason permitted under this
Agreement, the Company agrees to reimburse the Underwriters for all out-of-pocket costs and expenses (including the fees and expenses
of their counsel) reasonably incurred by the Underwriters in connection with this Agreement and the offering contemplated hereby.
12. Persons
Entitled to Benefit of Agreement. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective
successors and the officers and directors and any controlling persons referred to herein, and the affiliates of each Underwriter referred
to in Section 7 hereof. Nothing in this Agreement is intended or shall be construed to give any other person any legal or equitable
right, remedy or claim under or in respect of this Agreement or any provision contained herein. No purchaser of Securities from any Underwriter
shall be deemed to be a successor merely by reason of such purchase.
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13. Survival.
The respective indemnities, rights of contribution, representations, warranties and agreements of the Company and the Underwriters contained
in this Agreement or made by or on behalf of the Company or the Underwriters pursuant to this Agreement or any certificate delivered pursuant
hereto shall survive the delivery of and payment for the Securities and shall remain in full force and effect, regardless of any termination
of this Agreement or any investigation made by or on behalf of the Company or the Underwriters.
14. Certain
Defined Terms. For purposes of this Agreement, (a) except where otherwise expressly provided, the term “affiliate”
has the meaning set forth in Rule 405 under the Securities Act; (b) the term “business day” means
any day other than a day on which banks are permitted or required to be closed in New York City; (c) the term “subsidiary”
has the meaning set forth in Rule 405 under the Securities Act; and (d) the term “significant subsidiary”
has the meaning set forth in Rule 1-02 of Regulation S-X under the Exchange Act.
15. Compliance
with USA Patriot Act. In accordance with the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)), the Underwriters are required to obtain, verify and record information that identifies their respective clients, including the
Company, which information may include the name and address of their respective clients, as well as other information that will allow
the Underwriters to properly identify their respective clients.
16. Miscellaneous.
(a) Authority
of the Representatives. Any action by the Underwriters hereunder may be taken by the Representatives on behalf of the Underwriters,
and any such action taken by the Representatives shall be binding upon the Underwriters.
(b) Notices.
All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given if mailed or transmitted
and confirmed by any standard form of telecommunication. Notices to the Underwriters shall be given to the Representatives at:
· J.P. Morgan Securities LLC, 270
Park Avenue, New York, New York 10017, Attention: Investment Grade Syndicate Desk, Facsimile: (212) 834-6081;
· Citigroup
Global Markets Inc., 388 Greenwich Street, New York, New York 10013, Attention: General Counsel, Facsimile: (646) 291-1469;
· Morgan Stanley & Co. LLC, 1585 Broadway, 19th Floor,
New York, New York 10036, Attention: Investment Banking Division, Facsimile: (212) 507-8999;
with a copy to: Cravath, Swaine & Moore LLP, Two Manhattan
West, 375 Ninth Avenue, New York, New York 10001, Attention: Doug Dolan, Facsimile: (212) 474-3700.
27
Notices to the Company shall be given to it at:
· Kyndryl Holdings, Inc., One Vanderbilt Avenue, 15th Floor,
New York, New York 10017; Attention: General Counsel and Corporate Secretary.
with a copy to: Joshua Watts, Treasurer
(c) Governing
Law. This Agreement and any claim, controversy or dispute arising under or related to this Agreement shall be governed by and construed
in accordance with the laws of the State of New York.
(d) Submission
to Jurisdiction. The Company hereby submits to the exclusive jurisdiction of the U.S. federal and New York state courts in the Borough
of Manhattan in The City of New York in any suit or proceeding arising out of or relating to this Agreement or the transactions contemplated
hereby. The Company waives any objection which it may now or hereafter have to the laying of venue of any such suit or proceeding in such
courts. The Company agrees that final judgment in any such suit, action or proceeding brought in such court shall be conclusive and binding
upon the Company and may be enforced in any court to the jurisdiction of which Company is subject by a suit upon such judgment.
(e) Waiver
of Jury Trial. Each of the parties hereto hereby waives any right to trial by jury in any suit or proceeding arising out of or relating
to this Agreement.
(f) Recognition of the U.S. Special Resolution Regimes.
(i) In
the event that any Underwriter that is a Covered Entity becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer
from such Underwriter of this Agreement, and any interest and obligation in or under this Agreement, will be effective to the same extent
as the transfer would be effective under the U.S. Special Resolution Regime if this Agreement, and any such interest and obligation, were
governed by the laws of the United States or a state of the United States.
(ii) In
the event that any Underwriter that is a Covered Entity or a BHC Act Affiliate of such Underwriter becomes subject to a proceeding under
a U.S. Special Resolution Regime, Default Rights under this Agreement that may be exercised against such Underwriter are permitted to
be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if this Agreement
were governed by the laws of the United States or a state of the United States.
As used in this Section 16(f):
“BHC Act Affiliate” has the meaning
assigned to the term “affiliate” in, and shall be interpreted in accordance with, 12 U.S.C. § 1841(k).
“Covered Entity” means any of the
following:
(i) a “covered entity” as that term
is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);
28
(ii) a “covered bank” as that term
is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or
(iii) a “covered FSI” as that term
is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).
“Default Right” has the meaning assigned
to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.
“U.S. Special Resolution Regime”
means each of (i) the Federal Deposit Insurance Act and the regulations promulgated thereunder and (ii) Title II of the Dodd-Frank
Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder.
(g) Counterparts.
This Agreement may be signed in counterparts (which may include counterparts delivered by any standard form of telecommunication),
each of which shall be an original and all of which together shall constitute one and the same instrument. Counterparts may be delivered
via facsimile, electronic mail (including any electronic signature covered by the U.S. federal ESIGN Act of 2000, Uniform Electronic Transactions
Act, the Electronic Signatures and Records Act or other applicable law, e.g., www.docusign.com) or other transmission method and any counterpart
so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.
(h) Amendments
or Waivers. No amendment or waiver of any provision of this Agreement, nor any consent or approval to any departure therefrom, shall
in any event be effective unless the same shall be in writing and signed by the parties hereto.
(i) Headings.
The headings herein are included for convenience of reference only and are not intended to be part of, or to affect the meaning or
interpretation of, this Agreement.
[Signature Pages Follow]
29
If the foregoing is in accordance with your understanding,
please indicate your acceptance of this Agreement by signing in the space provided below.
Very truly yours,
KYNDRYL HOLDINGS, INC.,
By
/s/ Ellen Johnson
Name:
Ellen Johnson
Title:
Chief Financial Officer
[Signature Page – Kyndryl Underwriting
Agreement]
Accepted: As of the date first written above
Very truly yours,
J.P. MORGAN SECURITIES LLC
For itself and on behalf of the several Underwriters
By:
/s/ Som Bhattacharyya
Name:
Som Bhattacharyya
Title:
Executive Director
[Signature Page – Kyndryl Underwriting
Agreement]
Accepted: As of the date first written above
Very truly yours,
CITIGROUP GLOBAL MARKETS INC.
For itself and on behalf of the several Underwriters
By:
/s/ Adam Bordner
Name:
Adam D. Bordner
Title:
Managing Director
[Signature Page – Kyndryl Underwriting
Agreement]
Accepted: As of the date first written above
Very truly yours,
MORGAN STANLEY & CO. LLC
For itself and on behalf of the several Underwriters
By:
/s/ Tammy Serbee
Name:
Tammy Serbee
Title:
Managing Director
[Signature Page – Kyndryl Underwriting
Agreement]
Schedule 1
Underwriter
Principal Amount of
2029 Notes
Principal Amount of
2032 Notes
J.P. Morgan Securities LLC
$ 123,000,000
$ 82,000,000
Citigroup Global Markets Inc.
$ 99,000,000
$ 66,000,000
Morgan Stanley & Co. LLC
$ 99,000,000
$ 66,000,000
Mizuho Securities USA LLC
$ 37,500,000
$ 25,000,000
MUFG Securities Americas Inc.
$ 37,500,000
$ 25,000,000
Scotia Capital (USA) Inc.
$ 37,500,000
$ 25,000,000
SMBC Nikko Securities America, Inc.
$ 37,500,000
$ 25,000,000
BBVA Securities Inc.
$ 21,000,000
$ 14,000,000
Deutsche Bank Securities Inc.
$ 21,000,000
$ 14,000,000
Santander US Capital Markets LLC
$ 21,000,000
$ 14,000,000
TD Securities (USA) LLC
$ 21,000,000
$ 14,000,000
BNP Paribas Securities Corp.
$ 15,000,000
$ 10,000,000
BofA Securities, Inc.
$ 15,000,000
$ 10,000,000
Lloyds Securities Inc.
$ 15,000,000
$ 10,000,000
Total
$ 600,000,000
$ 400,000,000
ANNEX A
Additional Time of Sale Information
1. Term sheet containing the terms of the Securities, substantially
in the form of Annex B.
ANNEX B
PRICING TERM SHEET
[See attached]
Filed Pursuant to Rule 433
Registration No. 333-276713
September 24, 2026
Relating to Preliminary Prospectus Supplement
dated September 24, 2026
PRICING TERM SHEET
Kyndryl Holdings, Inc.
$600,000,000 7.800% Senior Notes due 2029
$400,000,000 7.875% Senior Notes due 2032
This pricing term sheet (this “Pricing
Term Sheet”) is qualified in its entirety by reference to the preliminary prospectus supplement, dated September 24,
2026 (the “Preliminary Prospectus Supplement”), and the related base prospectus, dated January 26, 2024
(the “Base Prospectus” and, together with the Preliminary Prospectus Supplement, including the documents incorporated
by reference in the Preliminary Prospectus Supplement and the Base Prospectus, the “Prospectus”), of Kyndryl
Holdings, Inc. The information in this Pricing Term Sheet supplements the Preliminary Prospectus Supplement and updates and supersedes
the information in the Preliminary Prospectus Supplement to the extent it is inconsistent with the information in the Preliminary Prospectus
Supplement. Capitalized terms used but not defined herein shall have the meaning ascribed to them in the Preliminary Prospectus Supplement.
Issuer:
Kyndryl Holdings, Inc. (the “Issuer”)
Security Description:
$600,000,000 7.800% Senior Notes due 2029 (the “2029 Notes”)
$400,000,000 7.875% Senior Notes due 2032 (the “2032 Notes” and, together with the 2029 Notes, the “Notes”)
Principal Amount:
2029 Notes: $600,000,000
2032 Notes: $400,000,000
Coupon:
2029 Notes: 7.800%
2032 Notes: 7.875%
Maturity Date:
2029 Notes: September 28, 2029
2032 Notes: January 15, 2032
Offering Price:
2029 Notes: 99.827% plus accrued interest, if any, from September 28, 2026
2032 Notes: 98.821% plus accrued interest, if any, from September 28, 2026
Yield to Maturity:
2029 Notes: 7.866%
2032 Notes: 8.158%
Benchmark Treasury:
2029 Notes: 4.375% due September 15, 2029
2032 Notes: 4.375% due August 31, 2031
Spread to Benchmark Treasury:
2029 Notes: 287.5 basis points
2032 Notes: 312.5 basis points
Benchmark Treasury Price/Yield:
2029 Notes: 98-10 ⅛ / 4.991%
2032 Notes: 97-05 / 5.033%
Interest Payment Dates:
2029 Notes: March 28 and September 28 of each year, commencing on March 28, 2027
2032 Notes: January 15 and July 15 of each year, commencing on January 15, 2027
Interest Rate Adjustment:
The interest rate payable on each series of Notes will be subject to adjustment from time to time if any of Moody’s, S&P or Fitch (or, in each case, a substitute rating agency therefor), downgrades (or subsequently upgrades) the debt rating applicable to such Notes, as set forth under the caption “Description of Notes—Interest Rate Adjustment” in the Preliminary Prospectus Supplement.
Optional Redemption:
2029 Notes: Prior to August 28, 2029 (one month prior to their maturity date) (the “2029 Notes Par Call Date”), the Issuer may redeem the 2029 Notes at its option, in whole or in part, at any time and from time to time, at a redemption price (expressed as a percentage of principal amount and rounded to three decimal places) equal to the greater of:
(1) (a) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the redemption date (assuming the 2029 Notes matured on the 2029 Notes Par Call Date) on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 45 basis points less (b) interest accrued to the date of redemption, and
(2) 100% of the principal amount of the 2029 Notes to be redeemed,
plus, in either case, accrued and unpaid interest thereon to the redemption date.
On or after the 2029 Notes Par Call Date, the Issuer may redeem the 2029 Notes, in whole or in part, at any time and from time to time, at a redemption price equal to 100% of the principal amount of the 2029 Notes being redeemed plus accrued and unpaid interest thereon to the redemption date.
2032 Notes: Prior to December 15, 2031 (one month prior to their maturity date) (the “2032 Notes Par Call Date”), the Issuer may redeem the 2032 Notes at its option, in whole or in part, at any time and from time to time, at a redemption price (expressed as a percentage of principal amount and rounded to three decimal places) equal to the greater of:
(1) (a) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the redemption date (assuming the 2032 Notes matured on the 2032 Notes Par Call Date) on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 50 basis points less (b) interest accrued to the date of redemption, and
(2) 100% of the principal amount of the 2032 Notes to be redeemed,
plus, in either case, accrued and unpaid interest thereon to the redemption date.
On or after the 2032 Notes Par Call Date, the Issuer may redeem the 2032 Notes, in whole or in part, at any time and from time to time, at a redemption price equal to 100% of the principal amount of the 2032 Notes being redeemed plus accrued and unpaid interest thereon to the redemption date.
Use of Proceeds:
The Issuer intends to use the net proceeds of this offering to repay at maturity the $700 million outstanding aggregate principal amount of its 2.05% senior notes due October 2026. The Issuer intends to use any remaining net proceeds from this offering, together with cash on hand, to repay the Outstanding Balance under its Revolving Credit Agreement, and for related fees and expenses.
Trade Date:
September 24, 2026
Settlement Date:
September 28, 2026 (T+2)
CUSIP / ISIN:
2029 Notes: 50155Q AP5 / US50155QAP54
2032 Notes: 50155Q AQ3 / US50155QAQ38
Denominations:
$2,000 and integral multiples of $1,000 in excess thereof
Joint Book-Running Managers:
J.P. Morgan Securities LLC
Citigroup Global Markets Inc.
Morgan Stanley & Co. LLC
Mizuho Securities USA LLC
MUFG Securities Americas Inc.
Scotia Capital (USA) Inc.
SMBC Nikko Securities America, Inc.
Co-Managers:
BBVA Securities Inc.
Deutsche Bank Securities Inc.
Santander US Capital Markets LLC
TD Securities (USA) LLC
BNP Paribas Securities Corp.
BofA Securities, Inc.
Lloyds Securities Inc.
It is expected that delivery of the Notes will be made against payment
therefor on or about September 28, 2026, which will be the second business day following the date of pricing of the Notes (this settlement
cycle being referred to as “T+2”). Under Rule 15c6-1 of the Exchange Act, trades in the secondary market generally are
required to settle in one business day, unless the parties to any such trade expressly agree otherwise. Accordingly, purchasers who wish
to trade the Notes on any day prior to the business day before delivery of the Notes will be required, by virtue of the fact that the
Notes initially will settle in T+2, to specify an alternate settlement cycle at the time of any such trade to prevent a failed settlement,
and should consult their advisors.
The Issuer has filed a registration statement (including a base prospectus)
and the Preliminary Prospectus Supplement with the U.S. Securities and Exchange Commission (the “SEC”) for the
offering to which this communication relates. Before you invest, you should read the Preliminary Prospectus Supplement, the accompanying
base prospectus in that registration statement, this pricing term sheet and other documents the Issuer has filed with the SEC for more
complete information about the Issuer and this offering. You may obtain these documents for free by visiting EDGAR on the SEC’s
website at www.sec.gov. Alternatively, the Issuer, any underwriter or any dealer participating in the offering will arrange to send you
the Preliminary Prospectus Supplement, the final prospectus supplement (when available) and the accompanying base prospectus if you request
it by calling J.P. Morgan Securities LLC at 1-212-834-4533, Citigroup Global Markets Inc. at 1-800-831-9146 or Morgan Stanley &
Co. LLC at 1-866-718-1649.
Any disclaimers or other notices that may appear below are not
applicable to this communication and should be disregarded. Such disclaimers were automatically generated as a result of this communication
being sent via Bloomberg or another email system.
EX-4.2 — EXHIBIT 4.2
EX-4.2
Filename: tm2626148d1_ex4-2.htm · Sequence: 3
Exhibit 4.2
KYNDRYL HOLDINGS, INC.,
as Company
and
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
as Trustee
THIRD SUPPLEMENTAL INDENTURE
Dated as of September 28, 2026
to
INDENTURE
Dated as of October 15, 2021
Relating to
$600,000,000 of 7.800% Senior Notes due 2029
TABLE OF CONTENTS
Page
Article One
Definitions and Other Provisions of General Application
Section 1.01.
References
1
Section 1.02.
Definitions
2
Article Two
General Terms and Conditions of the Notes
Section 2.01.
Designation and Principal Amount
7
Section 2.02.
Maturity
8
Section 2.03.
Form and Payment
8
Section 2.04.
Interest
9
Section 2.05.
Interest Rate Adjustment
9
Section 2.06.
Other Terms and Conditions
12
Article Three
Redemption
Section 3.01.
Optional Redemption of the Notes
13
Article Four
Additional Covenants
Section 4.01.
Purchase of Notes upon a Change of Control Repurchase Event
15
Section 4.02.
Limitation on Liens
16
Section 4.03.
Limitation on Sale and Leaseback Transactions
18
Article Five
Additional
Events of Default
Section 5.01.
Additional Events of Default
19
Article Six
Miscellaneous
Section 6.01.
Supplemental Indentures Without Consent of Holders
20
i
Section 6.02.
Application of Third Supplemental Indenture
20
Section 6.03.
Trust Indenture Act
20
Section 6.04.
Conflict with Base Indenture
20
Section 6.05.
Governing Law
20
Section 6.06.
Successors
20
Section 6.07.
Counterparts
21
Section 6.08.
Trustee Disclaimer
21
ii
THIRD SUPPLEMENTAL INDENTURE
THIRD SUPPLEMENTAL
INDENTURE, dated as of September 28, 2026 (this “Third Supplemental Indenture”), between Kyndryl Holdings, Inc.
(the “Company”), a Delaware corporation, and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”),
to the Base Indenture (as defined below).
RECITALS
WHEREAS,
the Company has heretofore executed and delivered to the Trustee an Indenture, dated as of October 15, 2021 (as heretofore amended
and supplemented, the “Base Indenture” and, together with this Third Supplemental Indenture, the “Indenture”),
providing for the issuance from time to time of its notes and other evidences of senior debt securities, to be issued in one or more series
as therein provided;
WHEREAS,
pursuant to the terms of the Base Indenture, on the date hereof, the Company desires to provide for the establishment of a new series
of securities to be known as its 7.800% Senior Notes due 2029 (the “Notes”), the form and substance of such notes and
the terms, provisions and conditions thereof to be set forth as provided in the Base Indenture and herein;
WHEREAS,
the conditions set forth in the Base Indenture for the execution and delivery of this Third Supplemental Indenture have been met; and
WHEREAS,
the Company has requested and hereby requests that the Trustee join with it in the execution and delivery of this Third Supplemental Indenture,
and all acts and requirements necessary to make this Third Supplemental Indenture a legal, valid and binding agreement of the parties,
in accordance with its terms, and a valid supplement to, the Base Indenture with respect to the Notes have been done and performed.
WITNESSETH:
NOW, THEREFORE,
for and in consideration of the premises contained herein, each party agrees for the benefit of each other party and for the equal and
ratable benefit of the Holders of the Notes, as follows:
Article One
Definitions and Other Provisions of General
Application
Section 1.01. References.
Capitalized terms used but not defined in this Third Supplemental Indenture shall have the meanings ascribed to them in the Base Indenture.
References in this Third Supplemental Indenture to article and section numbers shall be deemed to be references to article and section
numbers of this Third Supplemental Indenture unless otherwise specified.
Section 1.02. Definitions.
For purposes of this Third Supplemental Indenture, the following terms have the meanings ascribed to them as follows:
“Additional Notes” means any additional
Notes that may be issued from time to time pursuant to Section 2.01(b).
“Attributable Debt” means, with
respect to any sale and leaseback transaction, at the time of determination, the lesser of: (a) the fair value of the assets subject
to such a transaction (as determined in good faith by the Board of Directors); and (b) the present value (discounted at a rate per
annum equal to the average interest borne by each series of debt securities issued under the Base Indenture (which may include debt securities
in addition to the Notes offered hereby) determined on a weighted-average basis and compounded semi-annually) of the obligations of the
lessee for rental payments (other than amounts required to be paid on account of property taxes as well as maintenance, repairs, insurance,
water rates and other items which do not constitute payments for property rights) during the term of the related lease. In the case of
any lease which is terminable by the lessee upon the payment of a penalty, such present value shall be the lesser of (i) the present
value determined assuming termination upon the first date such lease may be terminated (in which case the present value shall also include
the amount of the penalty, but shall not include any rent that would be required to be paid under such lease subsequent to the first date
upon which it may be terminated) or (ii) the present value assuming no such termination.
“Base Indenture” has the meaning
provided in the Recitals.
“Change of Control” means the
occurrence of any of the following:
(1) the
direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series
of related transactions, of all or substantially all of the Company’s assets and the assets of the Company’s Subsidiaries
taken as a whole to any “person” (as that term is used in Section 13(d)(3) of the Exchange Act) other than to the
Company or one of the Company’s Subsidiaries;
(2) the
adoption of a plan relating to the Company’s liquidation or dissolution; or
(3) the
consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any “person”
(as defined above), including any group defined as a person for the purpose of Section 13(d)(3) of the Exchange Act, becomes
the beneficial owner, directly or indirectly, of more than 50% of the then-outstanding number of shares of the Company’s Voting
Stock, provided, however, that a person shall not be deemed the beneficial owner of, or to own beneficially, (A) any
securities tendered pursuant to a tender or exchange offer made by or on behalf of such person or any of such person’s affiliates
until such tendered securities are accepted for purchase or exchange thereunder, or (B) any securities if such beneficial ownership
(i) arises solely as a result of a revocable proxy delivered in response to a proxy or consent solicitation made pursuant to the
applicable rules and regulations under the Exchange Act, and (ii) is not also then reportable on Schedule 13D (or any successor
schedule) under the Exchange Act.
2
Notwithstanding the foregoing, a transaction will not be considered
to be a Change of Control if (a) the Company becomes a direct or indirect wholly-owned subsidiary of another person and (b) immediately
following that transaction, a majority of Voting Stock of such person is held by the direct or indirect holders of the Company’s
Voting Stock immediately prior to such transaction and in substantially the same proportion as immediately prior to such transaction.
“Change of Control Offer” has
the meaning provided in Section 4.01(a).
“Change of Control Payment Date”
has the meaning provided in Section 4.01(a).
“Change of Control Repurchase Event”
means the occurrence of both a Change of Control and a Ratings Event.
“Company” means the corporation
named as the “Company” in the Preamble until a successor Person shall have become such pursuant to the applicable provisions
of the Indenture, and thereafter “Company” shall mean such successor Person.
“Consolidated Subsidiary” means,
as of the time of determination and with respect to any Person, any Subsidiary of that Person whose financial data is, in accordance with
GAAP, reflected in that Person’s consolidated financial statements.
“Consolidated Total Assets” means,
as of the time of determination, total assets of the Company and its Consolidated Subsidiaries as reflected on the Company’s most
recent consolidated balance sheet prepared in accordance with GAAP contained in an annual report on Form 10-K or a quarterly report
on Form 10-Q or any amendment thereto pursuant to the Exchange Act filed by the Company prior to the time as of which “Consolidated
Total Assets” is being determined or, if the Company is not required to so file, as reflected on the Company’s most recent
consolidated balance sheet prepared in accordance with GAAP.
“Depositary” has the meaning provided
in Section 2.03(d).
“Fitch” means Fitch Ratings, Inc.
and its successors.
“GAAP” means generally accepted
accounting principles in the United States of America in effect from time to time.
“Hedging Obligations” means, with
respect to any specified Person, the obligations of such Person under: (1) interest rate swap agreements (whether from fixed to floating
or from floating to fixed), interest rate cap agreements and interest rate collar agreements; (2) other agreements or arrangements
designed to manage interest rates or interest rate risk; and (3) other agreements or arrangements designed to protect such Person
against fluctuations in currency exchange rates or commodity prices.
“incur” means issue, incur, create,
assume, guarantee or otherwise become liable for.
“Indebtedness” means, with respect
to any Person, obligations (other than Nonrecourse Obligations) of such Person for borrowed money (including, without limitation, indebtedness
for borrowed money evidenced by notes, bonds, debentures or similar instruments).
3
“Indenture” has the meaning provided
in the Recitals.
“Initial Notes” means the aggregate
principal amount of Notes issued on the date hereof, as specified on the first paragraph of Section 2.01.
“Interest Payment Date” has the
meaning provided in Section 2.04.
“Investment Grade” means a rating
of Baa3 or better by Moody’s (or its equivalent under any successor rating categories of Moody’s); a rating of BBB- or better
by Fitch (or its equivalent under any successor rating categories of Fitch); a rating of BBB- or better by S&P (or its equivalent
under any successor rating categories of S&P); and the equivalent investment grade credit rating from any additional Rating Agency
or Rating Agencies selected by the Company.
“Lien” means any lien, security
interest, pledge, charge or encumbrance of any kind (including any conditional sale or other title retention agreement, any lease in the
nature thereof, and any agreement to give any security interest).
“Moody’s” means Moody’s
Investors Service, Inc. and its successors.
“Non-recourse Obligation” means
indebtedness or other obligations substantially related to (1) (A) the acquisition of assets not previously owned by the Company
or any of its direct or indirect Subsidiaries, or (B) the financing of a project involving the development or expansion of the Company’s
properties or any of its direct or indirect Subsidiaries, in each case as to which the obligee with respect to such Indebtedness or obligation
has no recourse to the Company or any of its direct or indirect Subsidiaries or such Subsidiary’s assets other than the assets which
were acquired with the proceeds of such transaction or the project financed with the proceeds of such transaction (and the proceeds thereof)
or (2) a receivables financing (including through the sale of receivables to lenders or to special purpose entities formed to borrow
from lenders against such receivables or the proceeds thereof).
“Notes” has the meaning provided
in the Recitals. For the avoidance of doubt, “Notes” shall include any Additional Notes.
“Par Call Date” means August 28,
2029.
“Permitted Liens” means:
(1) Liens
securing Hedging Obligations designed to protect the Company from fluctuations in interest rates, currencies, equities or the price of
commodities and not for speculative purposes;
(2) Liens
in favor of customs and revenue authorities or financial institutions in respect of customs duties in connection with the importation
of goods;
(3) Liens
arising by reason of deposits necessary to qualify the Company or any of its Subsidiaries to conduct business, maintain self-insurance
or obtain the benefit of, or comply with, any law, including Liens incurred in the ordinary course of business in connection with workers’
compensation, unemployment insurance or other forms of governmental insurance or benefits;
4
(4) Liens
of any landlord on fixtures located on premises leased by the Company or any of its Subsidiaries, and tenants’ rights under leases,
easements and similar Liens not materially impairing the use or value of the Property involved;
(5) easements,
zoning restrictions, building restrictions, rights-of-way and similar encumbrances or charges on real property imposed by law or arising
in the ordinary course of business that are of a nature generally existing with respect to Properties of a similar character;
(6) Liens
in connection with bankers’ acceptance financing or used in the ordinary course of trade practices, statutory lessor and vendor
privilege Liens and Liens in connection with good faith bids, tenders and deposits;
(7) Liens
arising under consignment or similar arrangements for the sale of goods;
(8) Liens
incurred or pledges or deposits made under workmen’s compensation laws unemployment insurance laws or similar legislation, or good
faith deposits in connection with bids, tenders, contracts or leases, or deposits to secure the Company’s public or statutory obligations,
or deposits for the payment of rent;
(9) judgment
Liens not giving rise to a default or Event of Default so long as such Lien is adequately bonded and any appropriate legal proceedings
that may have been initiated for the review of such judgment, decree or order shall not have been finally terminated or the period within
which such proceedings may be initiated shall not have expired;
(10) Liens
upon specific items of inventory or other goods and proceeds of any person securing such Person’s obligations in respect of banker’s
acceptances issued or credited for the account of such Person to facilitate the purchase, shipment or storage of such inventory or goods;
(11) Liens
securing reimbursement obligations with respect to letters of credit in the ordinary course of business that encumber cash, documents
and other Property relating to such letters of credit and proceeds thereof;
(12) Liens
in favor of the Company or any of its wholly-owned U.S. Subsidiaries; and
(13) customary
Liens granted in favor of a trustee to secure fees and other amounts owing to such trustee under an indenture.
“Property” means any property
or asset, whether real, personal or mixed, or tangible or intangible, including shares of capital stock.
“Prospectus Supplement” means
that certain final prospectus supplement dated September 24, 2026, related to the offering and sale of the Notes.
5
“Rating” has the meaning provided
in Section 2.05.
“Rating Agency” means, with respect
to the Notes, (1) each of Moody’s, Fitch and S&P; and (2) if any two of Moody’s, Fitch and S&P cease to
rate the Notes or fail to make a rating of such Notes publicly available, a “nationally recognized statistical rating organization”
within the meaning of Section 3(a)(62) of the Exchange Act, selected by the Company as a replacement agency for Moody’s, Fitch
or S&P, or all of them, as the case may be.
“Ratings Event” means, with respect
to the Notes, during the period commencing on the date of the Company’s first public announcement of any Change of Control (or pending
Change of Control) (the “Rating Date”) and ending 60 days following consummation of such Change of Control, the rating
of the Notes shall be reduced by at least two of the three Rating Agencies and such Notes are rated below Investment Grade by at least
two of the three Rating Agencies and are not, within such period, subsequently upgraded by such Rating Agencies to an Investment Grade
rating; provided, however, that a Ratings Event otherwise arising by virtue of a particular reduction in rating will not
be deemed to have occurred in respect of a particular Change of Control (and thus will not be deemed a Ratings Event for purposes of the
definition of Change of Control Repurchase Event) if the Rating Agencies making the reduction in rating to which this definition would
otherwise apply do not announce or confirm to the Company in writing at the Company’s request that the reduction was the result,
in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the applicable Change of Control
(whether or not the applicable Change of Control has occurred at the time of the Ratings Event).
“S&P” means S&P Global
Ratings, a division of S&P Global, Inc., and its successors.
“Substitute Rating Agency” has
the meaning provided in Section 2.05.
“Third Supplemental Indenture”
has the meaning provided in the Preamble.
“Treasury Rate” means, with respect
to any Redemption Date, the yield determined by the Company in accordance with the following two paragraphs.
The Treasury Rate shall be determined by the Company
after 4:15 p.m., New York City time (or after such time as yields on U.S. government securities are posted daily by the Board of Governors
of the Federal Reserve System), on the third Business Day preceding the Redemption Date based upon the yield or yields for the most recent
day that appear after such time on such day in the most recent statistical release published by the Board of Governors of the Federal
Reserve System designated as “Selected Interest Rates (Daily) - H.15” (or any successor designation or publication) (“H.15”)
under the caption “U.S. government securities–Treasury constant maturities–Nominal” (or any successor caption
or heading) (“H.15 TCM”). In determining the Treasury Rate, the Company shall select, as applicable: (1) the yield
for the Treasury constant maturity on H.15 exactly equal to the period from the Redemption Date to the Par Call Date (the “Remaining
Life”); or (2) if there is no such Treasury constant maturity on H.15 exactly equal to the Remaining Life, the two yields
– one yield corresponding to the Treasury constant maturity on H.15 immediately shorter than and one yield corresponding to the
Treasury constant maturity on H.15 immediately longer than the Remaining Life – and shall interpolate to the Par Call Date on a
straight-line basis (using the actual number of days) using such yields and rounding the result to three decimal places; or (3) if
there is no such Treasury constant maturity on H.15 shorter than or longer than the Remaining Life, the yield for the single Treasury
constant maturity on H.15 closest to the Remaining Life. For purposes of this paragraph, the applicable Treasury constant maturity or
maturities on H.15 shall be deemed to have a maturity date equal to the relevant number of months or years, as applicable, of such Treasury
constant maturity from the Redemption Date.
6
If on the third Business Day preceding the Redemption
Date H.15 TCM is no longer published, the Company shall calculate the Treasury Rate based on the rate per annum equal to the semi-annual
equivalent yield to maturity at 11:00 a.m., New York City time, on the second Business Day preceding such Redemption Date of the United
States Treasury security maturing on, or with a maturity that is closest to, the Par Call Date, as applicable. If there is no United States
Treasury security maturing on the Par Call Date but there are two or more United States Treasury securities with a maturity date equally
distant from the Par Call Date, one with a maturity date preceding the Par Call Date and one with a maturity date following the Par Call
Date, the Company shall select the United States Treasury security with a maturity date preceding the Par Call Date. If there are two
or more United States Treasury securities maturing on the Par Call Date or two or more United States Treasury securities meeting the criteria
of the preceding sentence, the Company shall select from among these two or more United States Treasury securities the United States Treasury
security that is trading closest to par based upon the average of the bid and asked prices for such United States Treasury securities
at 11:00 a.m., New York City time. In determining the Treasury Rate in accordance with the terms of this paragraph, the semi-annual yield
to maturity of the applicable United States Treasury security shall be based upon the average of the bid and asked prices (expressed as
a percentage of principal amount) at 11:00 a.m., New York City time, of such United States Treasury security, and rounded to three decimal
places.
“Trustee” has the meaning provided
in the Preamble.
“U.S. Subsidiary” means any subsidiary
that is organized under the laws of the United States or any state thereof or the District of Columbia.
“Voting Stock” of any specified
“person” (as that term is used in Section 13(d)(3) of the Exchange Act) as of any date means the capital stock of
such person that is at the time entitled to vote generally in the election of the board of directors of such person.
Article Two
General Terms and Conditions of the Notes
Section 2.01. Designation
and Principal Amount.
(a) There
is hereby authorized and designated a new series of securities: the 7.800% Senior Notes due 2029. The Notes may be authenticated and delivered
under the Indenture in an unlimited aggregate principal amount. The Notes issued on the date hereof pursuant to the terms of the Indenture
shall be in an aggregate principal amount of $600,000,000. The amount shall be set forth in the written order of the Company for the authentication
and delivery of the Notes pursuant to Section 3.01 of the Base Indenture. The Notes will be senior unsecured obligations of the Company
and will rank on the same basis with all of the Company’s other senior unsecured indebtedness from time to time outstanding.
7
(b) In
addition, without the consent of the Holders of the Notes, the Company may from time to time, without notice to or the consent of such
Holders, create and issue Additional Notes having the same terms as, and ranking equally and ratably with, the Notes (except for the issue
date, the public offering price and, if applicable, the payment of interest accruing prior to the issue date of such Additional Notes
and the first payment of interest following the issue date of such Additional Notes); provided that if such Additional Notes are
not fungible with the Notes offered hereby for U.S. federal securities laws or U.S. federal income tax purposes, such Additional Notes
will have one or more separate CUSIP numbers. Such Additional Notes may be consolidated and form a single series with, and will have the
same terms as to ranking, redemption, waivers, amendments or otherwise, as the Notes, and will vote together as one class on all matters
with respect to the Notes.
Section 2.02. Maturity.
Unless an earlier redemption has occurred, the principal
amount of the Notes shall mature and be due and payable, together with any accrued interest thereon, on September 28, 2029. If the
maturity date of the Notes falls on a day that is not a Business Day, payment of principal, premium, if any, and interest for the Notes
then due will be paid on the next Business Day. No interest on that payment will accrue from and after the maturity date.
Section 2.03. Form and
Payment.
(a) The
Notes shall be issued as global notes in fully registered book-entry form without coupons in denominations of $2,000 and integral multiples
of $1,000 in excess thereof.
(b) The
Notes and the Trustee’s Certificates of Authentication to be endorsed thereon are to be substantially in the form of Exhibit A,
which form is hereby incorporated in and made a part of this Third Supplemental Indenture.
(c) The
terms and provisions contained in the Notes shall constitute, and are hereby expressly made, a part of this Third Supplemental Indenture,
and the Company and the Trustee, by their execution and delivery of this Third Supplemental Indenture, expressly agree to such terms and
provisions and to be bound thereby.
(d) Principal,
premium, if any, and/or interest, if any, on the global notes representing the Notes shall be made to The Depository Trust Company (together
with any successor thereto, the “Depositary”).
(e) The
global notes representing the Notes shall be deposited with, or on behalf of, the Depositary and shall be registered in the name of the
Depositary or a nominee of the Depositary. No global note may be transferred except as a whole by a nominee of the Depositary to the Depositary
or to another nominee of the Depositary, or by the Depositary or such nominee to a successor of the Depositary or a nominee of such successor.
8
Section 2.04. Interest.
Subject to adjustment pursuant to Section 2.05,
interest on the Notes shall accrue at the rate of 7.800% per annum, payable semi-annually in arrears on March 28 and September 28
of each year, beginning on March 28, 2027. Each such interest payment date is referred to as an “Interest Payment Date”.
Interest on the Notes shall be payable to the Holders
in whose names the Notes are registered at the close of business on the preceding March 14 and September 14. Interest on the
Notes will accrue from and including September 28, 2026, to, but excluding, the first Interest Payment Date and then from and including
the immediately preceding Interest Payment Date to which interest has been paid or duly provided for to, but excluding, the next Interest
Payment Date or maturity date, as the case may be. Interest on the Notes shall be computed on the basis of a 360-day year comprised of
twelve 30-day months. If any Interest Payment Date or other payment date for the Notes is not a Business Day, then payment of principal,
premium, if any, or interest shall be made on the next succeeding Business Day with the same force and effect as if made on the date such
payment was due, and no interest on such payment shall accrue on that payment for the period from and after that Interest Payment Date
or other payment date, as the case may be, to the date of that payment on the next succeeding Business Day.
Section 2.05. Interest
Rate Adjustment.
The interest rate payable on the Notes will be
subject to adjustment from time to time (1) if any of Moody’s, S&P or Fitch downgrades (or subsequently upgrades) the debt
rating applicable to the Notes (a “Rating”) or (2) if any of Moody’s, S&P or Fitch ceases to rate the
Notes or fails to make a Rating of the Notes publicly available, and a “nationally recognized statistical rating organization”
within the meaning of Section 3(a)(62) under the Exchange Act selected by the Company as a replacement agency for Moody’s,
S&P or Fitch (a “Substitute Rating Agency”) downgrades (or subsequently upgrades) a Rating of the Notes, in each
case as set forth below.
If the Rating from Moody’s (or a Substitute
Rating Agency therefor) applicable to the Notes is decreased to a Rating set forth in the immediately following table (or the equivalent
Rating, in the case of any Substitute Rating Agency), the interest rate payable on the Notes will increase such that it will equal the
interest rate payable on the Notes set forth in Section 2.04 plus the percentage per annum set forth in the following table
opposite that Rating (plus, if applicable, the percentage per annum set forth opposite the applicable Rating in the table under each of
“S&P Rating” and “Fitch Rating”):
Moody’s Rating
Percentage
Ba1
0.250 %
Ba2
0.500 %
Ba3
0.750 %
B1 or below
1.000 %
9
If the Rating from S&P (or a Substitute Rating
Agency therefor) applicable to the Notes is decreased to a Rating set forth in the immediately following table (or the equivalent Rating,
in the case of any Substitute Rating Agency), the interest rate payable on the Notes will increase such that it will equal the interest
rate payable on the Notes set forth in Section 2.04 plus the percentage per annum set forth in the following table opposite
that Rating (plus, if applicable, the percentage per annum set forth opposite the applicable Rating in the table under each of “Moody’s
Rating” and “Fitch Rating”):
S&P Rating
Percentage
BB+
0.250 %
BB
0.500 %
BB-
0.750 %
B+ or below
1.000 %
If the Rating from Fitch (or a Substitute Rating
Agency therefor) applicable to the Notes is decreased to a Rating set forth in the immediately following table (or the equivalent Rating,
in the case of any Substitute Rating Agency), the interest rate payable on the Notes will increase such that it will equal the interest
rate payable on the Notes set forth in Section 2.04 plus the percentage per annum set forth in the following table opposite
that Rating (plus, if applicable, the percentage per annum set forth opposite the applicable Rating in the table under each of “Moody’s
Rating” and “S&P Rating”):
Fitch Rating
Percentage
BB+
0.250 %
BB
0.500 %
BB-
0.750 %
B+ or below
1.000 %
For purposes of making adjustments to the interest
rate payable on the Notes, the following rules of interpretation will apply:
(a) If
at any time the Rating on the Notes has been increased as a result of a decrease in Rating by any of Moody’s, S&P or Fitch (or,
in any case, a Substitute Rating Agency) and if any of Moody’s, S&P or Fitch (or, in any case, a Substitute Rating Agency therefor)
subsequently increases its Rating applicable to the Notes to any of the threshold Ratings set forth above, the interest rate payable on
the Notes will be decreased such that the interest rate payable on the Notes equals the interest rate set forth in Section 2.04
plus the percentage per annum set forth opposite the Ratings from the tables above in effect immediately following the increase in Rating.
Each adjustment required by any decrease or increase in a Rating set forth above, whether occasioned by the action of Moody’s, S&P
or Fitch (or, in any case, a Substitute Rating Agency therefor), shall be made independent of any and all other adjustments. In no event
shall (1) the interest rate payable on the Notes be reduced to below the interest rate set forth in Section 2.04 or (2) the
total increase in the interest rate payable on the Notes exceed 2.000% per annum above the interest rate set forth in Section 2.04.
If Moody’s (or a Substitute Rating Agency therefor) subsequently increases its Rating applicable to the Notes to Baa3 (or its equivalent,
in the case of a Substitute Rating Agency) or higher, S&P (or a Substitute Rating Agency therefor) subsequently increases its Rating
applicable to the Notes to BBB- (or its equivalent, in the case of a Substitute Rating Agency) or higher and Fitch (or a Substitute Rating
Agency therefor) subsequently increases its Rating applicable to the Notes to BBB- (or its equivalent, in the case of a Substitute Rating
Agency) or higher, the interest rate payable on the Notes will be decreased to the interest rate set forth in Section 2.04.
In addition, the interest rate payable on the Notes will permanently cease to be subject to any adjustment described in this Section 2.05
(notwithstanding any subsequent decrease in the Ratings by any or all rating agencies) if the Notes become rated Baa1, BBB+ and BBB+ (or
the equivalent of any such Rating, in the case of a Substitute Rating Agency) or higher by any two of Moody’s, S&P and Fitch
(or, in any case, a Substitute Rating Agency therefor).
10
(b) If
at any time Moody’s, S&P or Fitch (or, in any case, a Substitute Rating Agency therefor) ceases to provide a Rating of the Notes
for any reason, the Company shall use commercially reasonable efforts to obtain a Rating of the Notes from a Substitute Rating Agency,
to the extent one exists, and if a Substitute Rating Agency exists, for purposes of determining any increase or decrease in the interest
rate payable on the Notes pursuant to the tables above (1) such Substitute Rating Agency will be substituted for the ratings agency
which has since ceased to provide such Rating, (2) the relative rating scale used by such Substitute Rating Agency to assign ratings
to senior unsecured debt shall be determined in good faith by an independent investment banking institution of national standing appointed
by the Company and, for purposes of determining the applicable Ratings included in the applicable table above with respect to such Substitute
Rating Agency, such Ratings will be deemed to be the equivalent Ratings used by the Rating Agency which has since ceased to provide such
Rating in such table and (3) the interest rate payable on the Notes will increase or decrease, as the case may be, such that the
interest rate payable on the Notes equals the interest rate set forth in Section 2.04 plus the appropriate percentage per
annum, if any, set forth opposite the Rating from such Substitute Rating Agency in the applicable table above (taking into account the
provisions of clause (2) of this clause (b)), plus any applicable percentage per annum resulting from a decreased Rating by the other
ratings agencies.
(c) For
so long as only one of Moody’s, S&P or Fitch (or, in any case, a Substitute Rating Agency therefor) provides a Rating of the
Notes, the interest rate payable on the Notes will increase or decrease, as the case may be, such that the interest rate payable on the
Notes equals the interest rate set forth in Section 2.04 plus twice any applicable percentage per annum resulting from a decreased
Rating by the rating agency continuing to provide a Rating. Any subsequent increase or decrease in the interest rate payable on the Notes
necessitated by a reduction or increase in the Rating by the agency continuing to provide a Rating shall be twice the percentage per annum
set forth in the applicable table above; provided, that the total increase in the interest rate payable on the Notes shall not exceed
2.000% per annum above the interest rate set forth in Section 2.04. No adjustments in the interest rate payable on the Notes
shall be made solely as a result of any of Moody’s, S&P or Fitch (or, in any case, a Substitute Rating Agency therefor) ceasing
to provide a Rating of the Notes. If all of Moody’s, S&P and Fitch (or, in any case, a Substitute Rating Agency therefor) cease
to provide a Rating, and no Substitute Rating Agency has provided a Rating, the interest rate payable on the Notes will increase to, or
remain at, as the case may be, 2.000% per annum above the interest rate set forth in Section 2.04.
(d) Any
interest rate increase or decrease, as described above, will take effect from the first day of the interest period commencing after the
date on which a rating change occurs that requires an adjustment in the interest rate. If Moody’s, S&P or Fitch (or, in any
case, a Substitute Rating Agency therefor) changes its Rating of the Notes more than once during any particular interest period, the last
change by such agency during such interest period will control for purposes of any interest rate increase or decrease with respect to
the Notes described above relating to such Rating Agency’s action. If the interest payable on the Notes is increased as described
above, the term “interest,” as used with respect to the Notes, will be deemed to include any such additional interest unless
the context otherwise requires.
11
(e) For
purposes of this Section 2.05, the term “interest period” shall mean the period from and including an Interest
Payment Date (or if prior to the first Interest Payment Date, from and including September 28, 2026) to but excluding the next succeeding
Interest Payment Date.
The Company shall give the Trustee and the Holders
prompt written notice upon becoming aware of any increase or decrease, pursuant to this Section 2.05, in the interest rate
payable on the Notes, which notice shall set forth the amount of such increase or decrease, the basis therefor and the date from which
such increase or decrease shall take effect. The Company’s actions and determinations in determining whether a ratings downgrade
has occurred or a change in interest rate is warranted shall be conclusive and binding for all purposes, absent manifest error and the
Trustee may rely upon such determination. The Trustee shall not be responsible for determining the new interest rate, or be liable in
connection with any ratings downgrade or change in interest rate or for determining whether manifest error has occurred with regard to
the Company’s actions.
Section 2.06. Other
Terms and Conditions.
(a) The
Defeasance and Covenant Defeasance provisions of Article Thirteen of the Base Indenture will apply to the Notes and the covenants
set forth in Article Four shall be subject to the provisions of Section 13.03 of the Base Indenture. The provisions of Article Four
of the Base Indenture will apply to the Notes.
(b) The
Notes will be subject to the Events of Default provided in Section 5.01 of the Base Indenture, as supplemented by Section 5.01.
(c) The
Trustee will initially be the Security Registrar and Paying Agent for the Notes.
(d) The
Notes will be subject to the covenants provided in Article Ten of the Base Indenture, as supplemented by Article Four.
12
Article Three
Redemption
Section 3.01. Optional
Redemption of the Notes.
(a) Subject
to Section 6.04, the provisions of Article Eleven of the Base Indenture, as supplemented by the provisions of this Third
Supplemental Indenture, shall apply to the Notes.
(b) Prior
to the Par Call Date, the Company may redeem the Notes at its option, in whole or in part, at any time and from time to time, at a Redemption
Price (expressed as a percentage of principal amount and rounded to three decimal places) equal to the greater of:
(i) (A) the
sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the Redemption Date (assuming
the Notes matured on the Par Call Date) on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury
Rate plus 45 basis points less (B) interest accrued to the date of redemption, and
(ii) 100%
of the principal amount of the Notes to be redeemed,
plus, in either case, accrued and unpaid interest
thereon to the Redemption Date.
(c) On
or after the Par Call Date, the Company may redeem the Notes, in whole or in part, at any time and from time to time, at a Redemption
Price equal to 100% of the principal amount of the Notes being redeemed plus accrued and unpaid interest thereon to the Redemption Date.
(d) The
Company’s actions and determinations in determining the Redemption Price shall be conclusive and binding for all purposes, absent
manifest error.
(e) On
and after any Redemption Date for the Notes, interest will cease to accrue on such Notes or any portion thereof called for redemption,
unless the Company defaults in the payment of the Redemption Price and accrued interest, if any. On or before the relevant Redemption
Date for the Notes, the Company shall deposit with the Trustee or a Paying Agent, funds sufficient to pay the Redemption Price of such
Notes to be redeemed on such Redemption Date, and (except if the Redemption Date shall be an Interest Payment Date) accrued interest,
if any. If less than all of the Notes are to be redeemed, the Notes to be redeemed shall be selected in accordance with the procedures
of the Depositary; provided, however, that in no event shall Notes of a principal amount of $2,000 or less be redeemed in
part.
(f) Notice
of any redemption will be mailed or electronically delivered (or otherwise transmitted in accordance with DTC procedures) at least 10
days but not more than 60 days before the Redemption Date to each holder of Notes to be redeemed. Such notice shall state the Redemption
Price (if known) or the formula pursuant to which the Redemption Price is to be determined if the Redemption Price cannot be determined
at the time the notice is given. If the Redemption Price cannot be determined at the time such notice is to be given, the actual Redemption
Price, calculated as described above in clause (b) or (c) of this Section 3.01, as applicable, shall be set forth
in an Officer’s Certificate delivered to the Trustee no later than two Business Days prior to the Redemption Date. Notice of redemption
having been given as provided in the Indenture, the Notes called for redemption shall become due and payable on the relevant Redemption
Date and at the applicable Redemption Price, plus accrued and unpaid interest, if any, to, but not including, the Redemption Date.
13
(g) If
the Redemption Date is on or after an interest record date and on or before the related interest payment date, the accrued and unpaid
interest, if any, will be paid to the person in whose name the applicable Note is registered at the close of business on such interest
record date, and no additional interest is payable to holders whose Notes will be subject to redemption by the Company.
(h) In
the case of a partial redemption, selection of the Notes for redemption will be made by lot. No Notes of a principal amount of $2,000
or less will be redeemed in part. The principal amount of a Note remaining outstanding after redemption in part will be $2,000 or an integral
multiple of $1,000 in excess thereof. If any Note is to be redeemed in part only, the notice of redemption that relates to the Note will
state the portion of the principal amount of the Note to be redeemed. Except in the case of a global note, a new Note in a principal amount
equal to the unredeemed portion of the Note will be issued in the name of the holder of the Note upon surrender for cancellation of the
original Note. For so long as the Notes are held by DTC (or another depositary), DTC (or such other depositary) will determine the allocation
of the redemption price among beneficial owners of such Notes in accordance with DTC’s (or such other depositary’s) applicable
procedures.
(i) Unless
the Company defaults in payment of the Redemption Price, on and after the Redemption Date interest will cease to accrue on the Notes or
portions thereof called for redemption.
(j) Except
as described above, the Notes will not be redeemable by the Company prior to their maturity date and will not be entitled to the benefit
of any sinking fund.
(k) The
Company will notify the Trustee of the Redemption Price promptly after the calculation thereof, and the Trustee shall have no responsibility
for, or liability in connection with, any calculation or determination in respect of the Redemption Price of any Note (or any component
thereof) or determining whether manifest error has occurred with regard to the Company’s actions and determinations in determining
the Redemption Price, and shall be entitled to receive, and fully-protected in relying upon, an Officer’s Certificate from the Company
that states such Redemption Price.
14
Article Four
Additional Covenants
Section 4.01. Purchase
of Notes upon a Change of Control Repurchase Event.
(a) If
a Change of Control Repurchase Event occurs with respect to the Notes, unless the Company shall have exercised its right to redeem the
Notes as set forth in Section 3.01 of this Third Supplemental Indenture, the Company shall be required to make an offer (the
“Change of Control Offer”) to each Holder of the Notes to repurchase all or any part (equal to $2,000 and in integral
multiples of $1,000 in excess thereof) of such Holder’s Notes, at a repurchase price in cash equal to 101% of the aggregate principal
amount of the Notes repurchased, plus accrued and unpaid interest, if any, on the Notes repurchased to, but not including, the date of
repurchase (subject to the right of the holders of record on the relevant record date to receive interest due on the relevant Interest
Payment Date). Within 30 days following any Change of Control Repurchase Event with respect to the Notes or, at the Company’s option,
prior to any Change of Control, but after the public announcement of the transaction or transactions that constitute or may constitute
the Change of Control, the Company shall electronically deliver or mail a notice to each Holder, with a copy to the Trustee, describing
the transaction or transactions that constitute or may constitute the Change of Control Repurchase Event and offering to repurchase the
Notes on the payment date specified in the notice, which date shall be no earlier than 30 days and no later than 60 days from the date
such notice is electronically delivered or mailed (the “Change of Control Payment Date”). The notice shall, if electronically
delivered or mailed prior to the date of consummation of the Change of Control, state that the offer to purchase is conditioned on the
Change of Control Repurchase Event occurring on or prior to the Change of Control Payment Date specified in the notice.
(b) On
the Change of Control Payment Date, the Company shall, to the extent lawful:
(i) accept
for payment all the Notes or portions of the Notes properly tendered pursuant to the Change of Control Offer;
(ii) deposit
with the Paying Agent an amount equal to the aggregate amount required to be paid by the Company as a result of the Change of Control
Repurchase Event in respect of all the Notes or portions of the Notes properly tendered; and
(iii) deliver
or cause to be delivered to the Trustee the Notes properly accepted, together with an Officer’s Certificate stating the aggregate
principal amount of Notes or portions of Notes being purchased by the Company.
(c) The
Paying Agent will promptly deliver to each Holder of Notes properly tendered the payment for the Notes, and the Trustee will promptly
authenticate and deliver (or cause to be transferred by book-entry) to each Holder a new Note equal in principal amount to any unpurchased
portion of any such Notes surrendered; provided, that each new Note will be in a minimum principal amount of $2,000 or an integral multiple
of $1,000 in excess thereof.
15
(d) Notwithstanding
the foregoing, the Company will not be required to make an offer to repurchase the Notes upon a Change of Control Repurchase Event if
a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the
Company and such third party purchases all Notes properly tendered and not withdrawn under its offer.
(e) If
Holders of not less than 90% in aggregate principal amount of Outstanding Notes validly tender and do not withdraw such Notes in an offer
to repurchase the applicable Notes upon a Change of Control Repurchase Event and the Company, or any third party making an offer to repurchase
such Notes upon a Change of Control Repurchase Event in lieu of the Company pursuant to Section 4.01(d) hereof, purchases
all of the Notes validly tendered and not withdrawn by such Holders, the Company shall have the right, upon not less than 10 nor more
than 60 days’ prior notice, given not more than 30 days following the Change of Control Payment Date, to redeem all Notes that remain
Outstanding following such purchase at a Redemption Price in cash equal to 101% of the principal amount thereof, plus accrued and unpaid
interest, if any, to the Redemption Date (subject to the right of the Holders of record on the relevant record date to receive interest
due on the relevant Interest Payment Date).
(f) The
Company will comply with the requirements of Rule 14e-1 under the Exchange Act, and any other securities laws and regulations thereunder,
to the extent those laws and regulations are applicable in connection with the repurchase of Notes as a result of a Change of Control
Repurchase Event. To the extent that the provisions of any securities laws or regulations conflict with this Section 4.01,
the Company will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under
this Section 4.01 by virtue of any such conflict.
(g) The
Trustee shall have no responsibility for any calculation or determination in respect of the Change of Control Repurchase Event or repurchase
price of any Notes, or any component thereof, and shall be entitled to receive, and fully-protected in relying upon, an Officer’s
Certificate from the Company stating that such Change of Control Repurchase Event has occurred and specifying such repurchase price.
Section 4.02. Limitation
on Liens.
(a) The
Company shall not incur, nor shall the Company permit any of its wholly-owned U.S. Subsidiaries to incur, any Liens upon any Property
of the Company or any of its wholly-owned U.S. Subsidiaries, whether now owned or hereafter created or acquired, in order to secure Indebtedness
of the Company or any of its wholly-owned U.S. Subsidiaries, in each case, unless prior to or at the same time, the Notes are equally
and ratably secured with (or, at the Company’s option, senior to) such secured Indebtedness until such time as such Indebtedness
is no longer secured by such Lien.
(b) The
foregoing restriction, however, will not apply to:
(1) Liens
on Property or Indebtedness existing with respect to any Person at the time such Person becomes the Company’s Subsidiary or a Subsidiary
of any of the Company’s Subsidiaries, provided that such Lien was not incurred in anticipation of such Person becoming a
Subsidiary;
16
(2) Liens
on Property or Indebtedness existing at the time of acquisition by the Company or any of the Company’s Subsidiaries or a Subsidiary
of any of the Company’s Subsidiaries of such Property or Indebtedness (which may include Property previously leased by the Company
or any of the Company’s Subsidiaries and leasehold interests on such Property; provided that the lease terminates prior to
or upon the acquisition) or Liens on Property or Indebtedness to secure the payment of all or any part of the purchase price of such Property
or Indebtedness, or Liens on Property or Indebtedness to secure any Indebtedness incurred prior to, at the time of, or within 12 months
after, the latest of the acquisition of such Property or Indebtedness or, in the case of Property, the completion of construction, the
completion of improvements or the commencement of substantial commercial operation of such Property for the purpose of financing all or
any part of the purchase price of the Property and related costs and expenses, the construction or the making of the improvements;
(3) Liens
securing the Company’s Indebtedness or the Indebtedness of any of the Company’s Subsidiaries owing to the Company or any of
the Company’s Subsidiaries;
(4) Liens
existing on the date of issuance of the Initial Notes;
(5) Liens
on Property or assets of a Person existing at the time such Person is merged into or consolidated with the Company or any of the Company’s
Subsidiaries, at the time such Person becomes the Company’s Subsidiary, or at the time of a sale, lease or other disposition of
all or substantially all of the Properties or assets of a Person to the Company or any of the Company’s Subsidiaries; provided
that such Lien was not incurred in anticipation of the merger, consolidation, sale, lease, other disposition or other such transaction;
(6) Liens
created in connection with or to secure a Non-recourse Obligation or a project financed thereby;
(7) Liens
created to secure the Notes;
(8) Liens
imposed by law or arising by operation of law, including, without limitation, landlords’, mailmen’s, suppliers’, vendors’,
carriers’, warehousemen’s and mechanic’s Liens and other similar Liens, Liens for master’s and crew’s wages
and other similar laws, arising in the ordinary course of business, in each case for sums not yet overdue by more than 60 calendar days
or being contested in good faith by appropriate proceedings or other Liens arising out of judgments or awards against such Person with
respect to which such Person shall then be proceeding with an appeal or other proceedings for review and Liens arising solely by virtue
of any statutory or common law provision relating to banker’s Liens, rights of set-off or similar rights and remedies as to deposit
accounts or other funds maintained with a creditor depository institution;
17
(9) Liens
for taxes, assessments or other governmental charges or levies on Property not yet due or payable or subject to penalties for non-payment
or which are being contested in good faith by appropriate proceedings;
(10) Liens
to secure the performance of obligations with respect to statutory or regulatory requirements, bids, trade contracts, leases, statutory
obligations, surety and appeal bonds, performance or return-of-money bonds and other obligations of a like nature;
(11) Permitted
Liens; or
(12) any
extensions, renewals or replacements of any Lien referred to in clauses (1) through (11) without increase of the principal of the
Indebtedness secured by such Lien (except to the extent of any fees or other costs associated with any such extension, renewal or replacement);
provided, however, that any Liens permitted by any of clauses (1) through (11) shall not extend to or cover any of
the Company’s Property or the Property of any of the Company’s Subsidiaries, as the case may be, other than the Property specified
in such clauses and improvements to such Property.
(c) Notwithstanding
the restrictions set forth in Section 4.02(a), the Company and its wholly-owned U.S. Subsidiaries may incur Indebtedness secured
by Liens, which would otherwise be subject to the foregoing restrictions without equally and ratably securing the Notes, provided
that, after giving effect to such Indebtedness, the aggregate amount of all Indebtedness secured by Liens (not including Liens permitted
under clauses (1) through (12) of Section 4.02(b) hereof), together with all Attributable Debt outstanding pursuant
to Section 4.03(b) hereof, does not exceed 15% of Consolidated Total Assets calculated as of the date of the creation
or incurrence of the Lien. The Company and its wholly-owned U.S. Subsidiaries may also, without equally and ratably securing the Notes,
create or incur Liens that renew, substitute or replace (including successive renewals, substitutions or replacements), in whole or in
part, any Lien permitted pursuant to the preceding sentence.
Section 4.03. Limitation
on Sale and Leaseback Transactions.
(a) The
Company shall not, nor shall the Company permit any of its wholly-owned U.S. Subsidiaries to, enter into any sale and leaseback transaction
for the sale and leasing back of any Property, whether now owned or hereafter acquired, unless:
(1) such
transaction was entered into prior to the date of issuance of the Initial Notes;
(2) such
transaction was for the sale and leasing back to the Company or any of its wholly-owned U.S. Subsidiaries of any Property by one of the
Company’s Subsidiaries;
18
(3) such
transaction involves a lease for not more than three years (or which may be terminated by the Company or its Subsidiaries within a period
of not more than three years);
(4) the
Company would be entitled to incur Indebtedness secured by a Lien with respect to such sale and leaseback transaction without equally
and ratably securing the Notes pursuant to Section 4.02(b); or
(5) the
Company applies an amount equal to the net proceeds from the sale of such Property to the purchase of other Property or assets used or
useful in the Company’s business or to the retirement of long-term Indebtedness within 12 months before or after the effective date
of any such sale and leaseback transaction; provided that, in lieu of applying such amount to the retirement of long-term Indebtedness,
the Company may deliver debt securities (which may include the Notes) to the applicable trustee for cancellation, such debt securities
to be credited at the cost thereof to it.
(b) Notwithstanding
the restrictions set forth in Section 4.03(a) hereof, the Company and its wholly-owned U.S. Subsidiaries may enter into
any sale and leaseback transaction which would otherwise be subject to the foregoing restrictions if, after giving effect thereto, the
aggregate amount of all Attributable Debt with respect to such transactions (not including Attributable Debt permitted under clauses (1) through
(5) of Section 4.03(a) hereof), together with all Indebtedness outstanding pursuant to Section 4.02(c) hereof,
does not exceed 15% of Consolidated Total Assets calculated as of the closing date of the sale and leaseback transaction.
Article Five
Additional Events of Default
Section 5.01. Additional
Events of Default. In addition to the Events of Default set forth in Section 5.01 of the Base Indenture, an “Event of
Default” with respect to the Notes occurs if:
(a) failure
by the Company to repurchase the Notes tendered for repurchase following the occurrence of a Change of Control Repurchase Event in conformity
with Section 4.01 hereof; or
(b) (i) a
failure to make any payment at maturity, including any applicable grace period, on any Indebtedness of the Company (other than Indebtedness
the Company owes to any of its Subsidiaries) outstanding in an amount in excess of $250 million and continuance of this failure to pay
or (ii) a default on any Indebtedness of the Company (other than Indebtedness the Company owes to any of its Subsidiaries), which
default results in the acceleration of such Indebtedness in an amount in excess of $250 million without such Indebtedness having been
discharged or the acceleration having been cured, waived, rescinded or annulled, in the case of clause (i) or (ii) above, for
a period of 30 days after written notice thereof to the Company by the Trustee or to the Company and the Trustee by the Holders of not
less than 25% in principal amount of Outstanding Notes (including any Additional Notes); provided, however, that if any
failure, default or acceleration referred to in clause (i) or (ii) above ceases or is cured, waived, rescinded or annulled,
then the Event of Default will be deemed cured.
19
Article Six
Miscellaneous
Section 6.01. Supplemental
Indentures Without Consent of Holders. In addition to Section 9.01 of the Base Indenture, without the consent of any Holders,
the Company and the Trustee, at any time and from time to time, may enter into one or more indentures supplemental hereto, in form reasonably
satisfactory to the Trustee, to conform any provision in this Third Supplemental Indenture to the “Description of Notes” in
the Prospectus Supplement to the extent that such provision was intended to be a verbatim recitation of a provision in the “Description
of Notes” in the Prospectus Supplement.
Section 6.02. Application
of Third Supplemental Indenture.
The Indenture, as supplemented by this Third Supplemental
Indenture, is in all respects ratified and confirmed. This Third Supplemental Indenture shall be deemed part of the Indenture in the manner
and to the extent herein and therein provided.
Section 6.03. Trust
Indenture Act.
If any provision hereof limits, qualifies or conflicts
with the duties imposed by the Trust Indenture Act, the imposed duties shall control.
Section 6.04. Conflict
with Base Indenture.
To the extent not expressly amended or modified by
this Third Supplemental Indenture, the Base Indenture shall remain in full force and effect. If any provision of this Third Supplemental
Indenture relating to the Notes is inconsistent with any provision of the Base Indenture, the provision of this Third Supplemental Indenture
shall control.
Section 6.05. Governing
Law.
THIS THIRD SUPPLEMENTAL INDENTURE SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
Section 6.06. Successors.
All agreements of the Company in the Base Indenture,
this Third Supplemental Indenture and the Notes shall bind its successors. All agreements of the Trustee in the Base Indenture and this
Third Supplemental Indenture shall bind its successors.
20
Section 6.07. Counterparts.
This instrument may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one
and the same instrument.
The exchange of copies of this Third Supplemental
Indenture and of signature pages by facsimile or electronic (i.e., “pdf” or “tif”) transmission shall constitute
effective execution and delivery of this Third Supplemental Indenture as to the parties hereto and may be used in lieu of the original
Third Supplemental Indenture for all purposes. The exchange of copies of this Third Supplemental Indenture and of signature pages that
are executed by manual signatures that are scanned, photocopied or faxed or by other electronic signing created on an electronic platform
(such as DocuSign) or by digital signing (such as Adobe Sign), in each case that is approved by the Trustee, shall constitute effective
execution and delivery of this Third Supplemental Indenture for all purposes. Signatures of the parties hereto that are executed by manual
signatures that are scanned, photocopied or faxed or by other electronic signing created on an electronic platform (such as DocuSign)
or by digital signing (such as Adobe Sign), in each case that is approved by the Trustee, shall be deemed to be their original signatures
for all purposes of this Third Supplemental Indenture as to the parties hereto and may be used in lieu of the original.
Anything in this Third Supplemental Indenture or
the Notes to the contrary notwithstanding, for the purposes of the transactions contemplated by this Third Supplemental Indenture, any
Notes and any document to be signed in connection with the Third Supplemental Indenture or the Notes (including any Securities, a Trustee’s
certificate of authentication and amendments, supplements, waivers, consents and other modifications, Officer’s Certificates, Company
Orders and Opinions of Counsel and other issuance, authentication and delivery documents) or the transactions contemplated hereby may
be signed by manual signatures that are scanned, photocopied or faxed or other electronic signatures created on an electronic platform
(such as DocuSign) or by digital signature (such as Adobe Sign), in each case that is approved by the Trustee, and contract formations
on electronic platforms approved by the Trustee, and the keeping of records in electronic form, are hereby authorized, and each shall
be of the same legal effect, validity or enforceability as a manually executed signature in ink or the use of a paper-based recordkeeping
system, as the case may be.
Section 6.08. Trustee
Disclaimer.
The Trustee makes no representation as to the validity,
adequacy or sufficiency of this Third Supplemental Indenture and the Notes other than as to the validity of the execution and delivery
of the Third Supplemental Indenture by the Trustee and the authentication of the Notes by the Trustee. The recitals and statements herein
and in the Notes are deemed to be those of the Company and not the Trustee and the Trustee assumes no responsibility for the same and
the Trustee does not make any representation with respect to such matters. The Trustee or any Authenticating Agent shall not be accountable
for the use or application by the Company of Notes or the proceeds thereof.
[Remainder of page intentionally left blank]
21
IN WITNESS WHEREOF, the Company has caused this Indenture
to be duly executed.
KYNDRYL HOLDINGS, INC.
By:
/s/ Joshua Watts
Name:
Joshua
Watts
Title:
Treasurer
[Kyndryl Holdings, Inc.
- Signature Page to Third Supplemental Indenture]
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
as Trustee
By:
/s/ Terence Rawlins
Name:
Terence Rawlins
Title:
Vice President
[Kyndryl Holdings, Inc. - Signature Page to
Third Supplemental Indenture]
Exhibit A
FORM OF GLOBAL NOTE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO DTC, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS
OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO
ON THE REVERSE HEREOF.
KYNDRYL HOLDINGS, INC. 7.800% Senior Notes
due 2029
CUSIP No.: 50155Q AP5
No. R-[●]
ISIN No.: US50155QAP54
$[●]
As revised by the
Schedule of Increases or
Decreases attached
hereto
KYNDRYL HOLDINGS, INC., a Delaware corporation
(the “Company”), for value received promises to pay to [________________] or registered assigns the principal sum of
[●] DOLLARS, as revised by the Schedule of Increases or Decreases attached hereto, on September 28, 2029 (the “Stated
Maturity”).
Interest Payment Dates: March 28 and September 28
(each, an “Interest Payment Date”), commencing on March 28, 2027, and upon the Stated Maturity.
Interest Record Dates: March 14 and September 14
(each, a “Regular Record Date”).
Reference is made to the further provisions of
this Note contained herein, which will for all purposes have the same effect as if set forth at this place.
1
IN WITNESS WHEREOF, the Company has caused this Note
to be duly executed.
Dated: September 28, 2026
KYNDRYL HOLDINGS, INC.
By:
Name:
Title:
[Signature Page to Note]
This is one of the Notes designated herein and
referred to in the within-mentioned Indenture.
Dated: September 28, 2026
THE BANK
OF NEW YORK MELLON TRUST COMPANY, N.A.,
as Trustee
By:
Name:
Title:
[Signature Page to Note]
(REVERSE OF NOTE)
KYNDRYL HOLDINGS, INC. 7.800% Senior Notes
due 2029
1. Interest.
Kyndryl Holdings, Inc. (the “Company”)
promises to pay interest on the principal amount of this Note at the rate per annum described above, subject to the adjustment of such
rate in accordance with Section 2.05 of the Third Supplemental Indenture. Cash interest on the Notes will accrue from the most recent
date to which interest has been paid; or, if no interest has been paid, from September 28, 2026. Interest on this Note will be paid
to but excluding the relevant Interest Payment Date or on such earlier date as the principal amount shall become due in accordance with
the provisions hereof. The Company will pay interest semi-annually in arrears on each Interest Payment Date, beginning on March 28,
2027, and on the Stated Maturity. If any Interest Payment Date, Stated Maturity or other payment date with respect to the Notes is not
a Business Day, the required payment of principal, premium, if any, or interest will be due on the next succeeding Business Day as if
made on the date that such payment was due, and no interest will accrue on that payment for the period from and after that Interest Payment
Date, Stated Maturity or other payment date, as the case may be, to the date of that payment on the next succeeding Business Day. Interest
will be computed on the basis of a 360-day year consisting of twelve 30-day months.
As provided in Section 2.05 of the Third Supplemental
Indenture, the interest rate payable on this Note will be subject to adjustment from time to time (1) if any of Moody’s, S&P
or Fitch downgrades (or subsequently upgrades) the debt rating applicable to the Notes (a “Rating”) or (2) if
any of Moody’s, S&P or Fitch ceases to rate the Notes or fails to make a Rating of the Notes publicly available, and a “nationally
recognized statistical rating organization” within the meaning of Section 3(a)(62) under the Exchange Act selected by the Company
as a replacement agency for Moody’s, S&P or Fitch downgrades (or subsequently upgrades) a Rating of the Notes.
The Company shall pay interest on overdue principal
from time to time on demand at the rate borne by the Notes and at the same rate on overdue installments of interest (without regard to
any applicable grace periods) to the extent lawful from the dates such amounts are due until such amounts are paid or made available for
payment.
2. Paying
Agent.
Initially, The Bank of New York Mellon Trust Company,
N.A. (the “Trustee”) will act as paying agent. The Company may change any paying agent without notice to the Holders.
3. Indenture;
Defined Terms.
This Note is one of the 7.800% Senior Notes due 2029
(the “Notes”) issued under the Indenture, dated as of October 15, 2021 (as amended, modified or supplemented from
time to time in accordance therewith, the “Base Indenture” and, as supplemented by the Third Supplemental Indenture,
dated as of September 28, 2026, the “Third Supplemental Indenture”, and, together with the Base Indenture, the
“Indenture”), by and between the Company and the Trustee, as trustee. This Note is a “Security” and the
Notes are “Securities” under the Indenture.
4
For purposes of this Note, unless otherwise defined
herein, capitalized terms herein are used as defined in the Indenture. The terms of the Notes include those stated in the Indenture and
those made part of the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C. Sections 77aaa-77bbbb) (the “TIA”)
as in effect on the date on which the Indenture is qualified under the TIA. Notwithstanding anything to the contrary herein, the Notes
are subject to all such terms, and holders of Notes are referred to the Indenture and the TIA for a statement of them. To the extent the
terms of the Indenture and this Note are inconsistent, the terms of the Indenture shall govern.
4. Denominations;
Transfer; Exchange.
The Notes are in registered form, without coupons,
in denominations of $2,000 and integral multiples of $1,000 in excess thereof. A Holder shall register the transfer or exchange of Notes
in accordance with the Indenture. The Company may require a Holder, among other things, to furnish appropriate endorsements and transfer
documents and to pay certain transfer taxes or similar governmental charges payable in connection therewith as permitted by the Indenture.
The Company need not issue, authenticate, register the transfer of or exchange any Notes or portions thereof for a period of fifteen (15)
days before the sending of a notice of redemption, nor need the Company register the transfer or exchange of any Note selected for redemption
in whole or in part.
5. Amendment;
Modification; Waiver.
The Indenture permits, with certain exceptions as
therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders
of the Securities of each series affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders
of not less than a majority in principal amount of the Securities of each series at the time Outstanding affected thereby. The Indenture
contains provisions permitting the Holders of not less than a majority in principal amount of the Securities of a series at the time Outstanding
with respect to which a default under the Indenture shall have occurred and be continuing, on behalf of the Holders of all Securities
of such series, to waive, with certain exceptions, such past default with respect to such series and its consequences. The Indenture also
permits the Holders of not less than a majority in principal amount of the Securities of a series at the time Outstanding, on behalf of
the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture. Any such consent
or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of
any Security issued upon the registration of transfer hereof or in exchange therefor or in lieu hereof, whether or not notation of such
consent or waiver is made upon this Note. Without notice to or consent of any Holder, the Indenture also permits the amendment or supplement
thereof to, among other things, cure any ambiguity, error, defect or inconsistency, or make any other change that does not adversely affect
the interests of the Holders.
5
6.
Optional Redemption.
The Company may redeem the Notes in whole or in part,
at its option, at any time or from time to time prior to maturity on at least 10 days, but not more than 60 days, prior notice electronically
delivered or mailed to the registered address of each Holder of the Notes (the “Redemption Date”) pursuant to the following
terms:
Prior to the Par Call Date, the Company may redeem
the Notes at its option, in whole or in part, at any time and from time to time, at a Redemption Price (expressed as a percentage of principal
amount and rounded to three decimal places) equal to the greater of:
(i) (a) the
sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the Redemption Date (assuming
the Notes matured on the Par Call Date) on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury
Rate plus 45 basis points less (b) interest accrued to the date of redemption, and
(ii) 100%
of the principal amount of the Notes to be redeemed,
plus, in either case, accrued and unpaid interest
thereon to the Redemption Date.
On or after the Par Call Date, the Company may redeem
the Notes, in whole or in part, at any time and from time to time, at a Redemption Price equal to 100% of the principal amount of the
Notes being redeemed plus accrued and unpaid interest thereon to the Redemption Date.
The Company’s actions and determinations in
determining the Redemption Price shall be conclusive and binding for all purposes, absent manifest error.
On and after the Redemption Date for the Notes, interest
will cease to accrue on the Notes or any portion thereof called for redemption, unless the Company defaults in the payment of the Redemption
Price and accrued interest, if any. On or before the Redemption Date for the Notes, the Company shall deposit with the Trustee or a Paying
Agent, funds sufficient to pay the Redemption Price of the Notes to be redeemed on the Redemption Date, and (except if the Redemption
Date shall be an Interest Payment Date) accrued interest, if any. If less than all of the Notes are to be redeemed, the Notes to be redeemed
shall be selected in accordance with the procedures of the Depositary; provided, however, that in no event shall Notes of
a principal amount of $2,000 or less be redeemed in part.
Notice of any redemption will be mailed or electronically
delivered (or otherwise transmitted in accordance with DTC procedures) at least 10 days but not more than 60 days before the Redemption
Date to each Holder of Notes to be redeemed. Such notice shall state, among other things, the Redemption Date, the Redemption Price and
the place or places that payment shall be made upon presentation and surrender of Notes to be redeemed. If the Redemption Price cannot
be determined at the time such notice is to be given, the actual Redemption Price, calculated as set forth in the Indenture, shall be
set forth in an Officer’s Certificate of the Company delivered to the Trustee no later than two Business Days prior to the Redemption
Date. Notice of redemption having been given as provided in the Indenture, the Notes called for redemption shall become due and payable
on the Redemption Date and at the applicable Redemption Price, plus accrued and unpaid interest, if any, to, but not including, the Redemption
Date.
6
Any redemption or notice of any redemption may, at
the Company’s discretion, be subject to one or more conditions precedent, including, but not limited to, completion of an equity
offering or change of control, issuance of indebtedness or other transaction or event. If any redemption is subject to satisfaction of
one or more conditions precedent, the notice of redemption in respect thereof shall describe each such condition, and if applicable, shall
state that, in the Company’s discretion, the Redemption Date may be delayed until such time as any or all such conditions shall
be satisfied (or waived by the Company in its sole discretion), or that such redemption may not occur and such notice may be rescinded
in the event that any or all such conditions shall not have been satisfied (or waived by the Company in its sole discretion) by the Redemption
Date as stated in such notice, or by the Redemption Date as so delayed. The Company may provide in such notice that payment of the applicable
Redemption Price and the performance of the Company’s obligations with respect to such redemption may be performed by another Person.
If the Redemption Date is on or after an interest
record date and on or before the related interest payment date, the accrued and unpaid interest, if any, will be paid to the person in
whose name the applicable Note is registered at the close of business on such interest record date, and no additional interest is payable
to holders whose Notes will be subject to redemption by the Company.
7.
Offer to Repurchase Upon Change of Control Repurchase
Event.
If a Change of Control Repurchase Event occurs with
respect to the Notes, unless the Company shall have exercised its right to redeem the Notes, the Company shall be required to make an
offer (the “Change of Control Offer”) to each Holder of the Notes to repurchase all or any part (equal to $2,000 and
in integral multiples of $1,000 in excess thereof) of that Holder’s Notes on the terms set forth in the Third Supplemental Indenture
and in the Notes. In the Change of Control Offer, the Company shall be required to offer payment in cash equal to 101% of the aggregate
principal amount of the Notes repurchased, plus accrued and unpaid interest, if any, on the Notes repurchased to, but not including, the
date of repurchase (subject to the right of the holders of record on the relevant record date to receive interest due on the relevant
Interest Payment Date).
Within 30 days following any Change of Control Repurchase
Event with respect to the Notes or, at the option of the Company, prior to any Change of Control, but after the public announcement of
the transaction or transactions that constitute or may constitute the Change of Control, the Company shall electronically deliver or mail
a notice to each Holder,
with a copy to the Trustee, describing the transaction or transactions
that constitute or may constitute the Change of Control Repurchase Event and offering to repurchase the Notes on the payment date specified
in the notice, which date shall be no earlier than 30 days and no later than 60 days from the date such notice is electronically delivered
or mailed (the “Change of Control Payment Date”). The notice shall, if electronically delivered or mailed prior to
the date of consummation of the Change of Control, state that the offer to purchase is conditioned on the Change of Control Repurchase
Event occurring on or prior to the Change of Control Payment Date specified in the notice.
7
On the Change of Control Payment Date, the Company
shall, to the extent lawful:
(i) accept
for payment all the Notes or portions of the Notes properly tendered pursuant to the Change of Control Offer;
(ii) deposit
with the Paying Agent an amount equal to the Change of Control Payment in respect of all the Notes or portions of the Notes properly tendered;
and
(iii) deliver
or cause to be delivered to the Trustee the Notes properly accepted, together with an Officer’s Certificate stating the aggregate
principal amount of Notes or portions of Notes being purchased by the Company.
If Holders of not less than 90% in aggregate principal
amount of the Outstanding Notes validly tender and do not withdraw such Notes in an offer to repurchase the Notes upon a Change of Control
Repurchase Event and the Company, or any third party making an offer to repurchase the Notes upon a Change of Control Repurchase Event
in lieu of the Company, purchases all of the Notes validly tendered and not withdrawn by such Holders, the Company shall have the right,
upon not less than 10 nor more than 60 days’ prior notice, given not more than 30 days following the Change of Control Payment Date,
to redeem all Notes that remain Outstanding following such purchase at a Redemption Price in cash equal to 101% of the principal amount
thereof, plus accrued and unpaid interest, if any, to the Redemption Date (subject to the right of the Holders of record on the relevant
Record Date to receive interest due on the relevant Interest Payment Date).
8. Defaults
and Remedies.
If an Event of Default with respect to the Notes
occurs and is continuing, then in every such case the Trustee or the Holders of not less than 25% in principal amount of the Outstanding
Notes may declare the principal amount of all the Notes to be due and payable immediately, by a notice in writing to the Company (and
to the Trustee if given by Holders), and upon any such declaration such principal amount (or specified amount) shall become immediately
due and payable.
The Indenture permits, subject to certain limitations
therein provided, Holders of not less than a majority in aggregate principal amount of the Outstanding Notes to direct the time, method
and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on the Trustee,
with respect to the Notes.
9.
Authentication.
This Note shall not be valid until the Trustee signs
the certificate of authentication on this Note by manual or PDF or other electronically imaged (such as DocuSign or Adobe Sign) signature.
8
10.
Abbreviations.
Customary abbreviations may be used in the name of
a Holder of a Note or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants
with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).
11.
CUSIP Numbers.
Pursuant to a recommendation promulgated by the Committee
on Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the Notes as a convenience to the
Holders of the Notes. No representation is made as to the accuracy of such numbers as printed on the Notes and reliance may be placed
only on the other identification numbers printed hereon.
12. Governing
Law.
The laws of the State of New York shall govern the
Indenture and this Note.
9
ASSIGNMENT FORM
To assign this Note, fill in the form below:
I or we assign and transfer this Note to
(Print or type assignee’s name, address and
zip code)
(Insert assignee’s soc. sec. or tax I.D. No.)
and irrevocably appoint agent
to transfer this Note on the books of the Company. The agent may substitute another to act for him.
Date: ___________________ Your
Signature: ___________________
Sign exactly as your name appears on the other side of this Note.
Signature Guarantee:
Signature
Signature must be guaranteed
Signature
Signatures must be guaranteed by an “eligible
guarantor institution” meeting the requirements of the Registrar, which requirements include membership or participation in the
Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may
be determined by the Registrar in addition to, or in substitution for, STAMP, all in accordance with the United States Securities Exchange
Act of 1934, as amended.
10
SCHEDULE OF INCREASES OR DECREASES
The following increases or decreases in this Security have been made:
Date of Exchange
Amount of
decrease in
principal
amount of this
Security
Amount of
increase in
principal
amount of this
Security
Principal
Amount of
amount of this
Security
following such
decrease (or
increase)
Signature
of
authorized
signatory of
Trustee
11
REPURCHASE EXERCISE NOTICE UPON A CHANGE OF
CONTROL
To: Kyndryl Holdings, Inc.
The undersigned registered owner of this Security
hereby acknowledges receipt of a notice from Kyndryl Holdings, Inc. (the “Company”) as to the occurrence of a
Change of Control Repurchase Event with respect to the Company and hereby directs the Company to pay, or cause the Trustee to pay, _________________
an amount in cash equal to 101% of the aggregate principal amount of the Notes, or the portion thereof (which is $2,000 principal amount
or an integral multiple of $1,000 in excess thereof) below designated, to be repurchased plus accrued and unpaid interest to, but excluding,
the repurchase date, except as provided in the Indenture. The undersigned hereby agrees that the Notes will be repurchased as of the Change
of Control Payment Date pursuant to the terms and conditions thereof and the Indenture.
Dated:_________________________________
Signature: ______________________________
Principal amount to be repurchased (at least $2,000 or an
integral multiple of $1,000 in excess thereof): _______________________________
Remaining principal amount following such repurchase:
By:
Authorized Signatory
12
EX-4.3 — EXHIBIT 4.3
EX-4.3
Filename: tm2626148d1_ex4-3.htm · Sequence: 4
Exhibit 4.3
KYNDRYL HOLDINGS, INC.,
as Company
and
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
as Trustee
FOURTH SUPPLEMENTAL INDENTURE
Dated as of September 28, 2026
to
INDENTURE
Dated as of October 15, 2021
Relating to
$400,000,000 of 7.875% Senior Notes due 2032
TABLE OF CONTENTS
Page
Article One
Definitions and Other Provisions of General Application
Section 1.01.
References
1
Section 1.02.
Definitions
2
Article Two
General Terms and Conditions of the Notes
Section 2.01.
Designation and Principal Amount
7
Section 2.02.
Maturity
8
Section 2.03.
Form and Payment
8
Section 2.04.
Interest
9
Section 2.05.
Interest Rate Adjustment
9
Section 2.06.
Other Terms and Conditions
12
Article Three
Redemption
Section 3.01.
Optional Redemption of the Notes
13
Article Four
Additional Covenants
Section 4.01.
Purchase of Notes upon a Change of Control Repurchase Event
15
Section 4.02.
Limitation on Liens
16
Section 4.03.
Limitation on Sale and Leaseback Transactions
18
Article Five
Additional Events of Default
Section 5.01.
Additional Events of Default
19
Article Six
Miscellaneous
Section 6.01.
Supplemental Indentures Without Consent of Holders
20
i
Section 6.02.
Application of Fourth Supplemental Indenture
20
Section 6.03.
Trust Indenture Act
20
Section 6.04.
Conflict with Base Indenture
20
Section 6.05.
Governing Law
20
Section 6.06.
Successors
20
Section 6.07.
Counterparts
21
Section 6.08.
Trustee Disclaimer
21
ii
FOURTH SUPPLEMENTAL INDENTURE
FOURTH SUPPLEMENTAL
INDENTURE, dated as of September 28, 2026 (this “Fourth Supplemental Indenture”), between Kyndryl Holdings, Inc.
(the “Company”), a Delaware corporation, and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”),
to the Base Indenture (as defined below).
RECITALS
WHEREAS,
the Company has heretofore executed and delivered to the Trustee an Indenture, dated as of October 15, 2021 (as heretofore amended
and supplemented, the “Base Indenture” and, together with this Fourth Supplemental Indenture, the “Indenture”),
providing for the issuance from time to time of its notes and other evidences of senior debt securities, to be issued in one or more series
as therein provided;
WHEREAS,
pursuant to the terms of the Base Indenture, on the date hereof, the Company desires to provide for the establishment of a new series
of securities to be known as its 7.875% Senior Notes due 2032 (the “Notes”), the form and substance of such notes and
the terms, provisions and conditions thereof to be set forth as provided in the Base Indenture and herein;
WHEREAS,
the conditions set forth in the Base Indenture for the execution and delivery of this Fourth Supplemental Indenture have been met; and
WHEREAS,
the Company has requested and hereby requests that the Trustee join with it in the execution and delivery of this Fourth Supplemental
Indenture, and all acts and requirements necessary to make this Fourth Supplemental Indenture a legal, valid and binding agreement of
the parties, in accordance with its terms, and a valid supplement to, the Base Indenture with respect to the Notes have been done and
performed.
WITNESSETH:
NOW, THEREFORE,
for and in consideration of the premises contained herein, each party agrees for the benefit of each other party and for the equal and
ratable benefit of the Holders of the Notes, as follows:
Article One
Definitions and Other Provisions of General
Application
Section 1.01. References.
Capitalized terms used but not defined in this Fourth Supplemental Indenture shall have the meanings ascribed to them in the Base Indenture.
References in this Fourth Supplemental Indenture to article and section numbers shall be deemed to be references to article and section
numbers of this Fourth Supplemental Indenture unless otherwise specified.
Section 1.02. Definitions.
For purposes of this Fourth Supplemental Indenture, the following terms have the meanings ascribed to them as follows:
“Additional Notes” means any additional
Notes that may be issued from time to time pursuant to Section 2.01(b).
“Attributable Debt” means, with
respect to any sale and leaseback transaction, at the time of determination, the lesser of: (a) the fair value of the assets subject
to such a transaction (as determined in good faith by the Board of Directors); and (b) the present value (discounted at a rate per
annum equal to the average interest borne by each series of debt securities issued under the Base Indenture (which may include debt securities
in addition to the Notes offered hereby) determined on a weighted-average basis and compounded semi-annually) of the obligations of the
lessee for rental payments (other than amounts required to be paid on account of property taxes as well as maintenance, repairs, insurance,
water rates and other items which do not constitute payments for property rights) during the term of the related lease. In the case of
any lease which is terminable by the lessee upon the payment of a penalty, such present value shall be the lesser of (i) the present
value determined assuming termination upon the first date such lease may be terminated (in which case the present value shall also include
the amount of the penalty, but shall not include any rent that would be required to be paid under such lease subsequent to the first date
upon which it may be terminated) or (ii) the present value assuming no such termination.
“Base Indenture” has the meaning
provided in the Recitals.
“Change of Control” means the
occurrence of any of the following:
(1) the
direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series
of related transactions, of all or substantially all of the Company’s assets and the assets of the Company’s Subsidiaries
taken as a whole to any “person” (as that term is used in Section 13(d)(3) of the Exchange Act) other than to the
Company or one of the Company’s Subsidiaries;
(2) the
adoption of a plan relating to the Company’s liquidation or dissolution; or
(3) the
consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any “person”
(as defined above), including any group defined as a person for the purpose of Section 13(d)(3) of the Exchange Act, becomes
the beneficial owner, directly or indirectly, of more than 50% of the then-outstanding number of shares of the Company’s Voting
Stock, provided, however, that a person shall not be deemed the beneficial owner of, or to own beneficially, (A) any
securities tendered pursuant to a tender or exchange offer made by or on behalf of such person or any of such person’s affiliates
until such tendered securities are accepted for purchase or exchange thereunder, or (B) any securities if such beneficial ownership
(i) arises solely as a result of a revocable proxy delivered in response to a proxy or consent solicitation made pursuant to the
applicable rules and regulations under the Exchange Act, and (ii) is not also then reportable on Schedule 13D (or any successor
schedule) under the Exchange Act.
Notwithstanding the foregoing, a transaction will not be considered
to be a Change of Control if (a) the Company becomes a direct or indirect wholly-owned subsidiary of another person and (b) immediately
following that transaction, a majority of Voting Stock of such person is held by the direct or indirect holders of the Company’s
Voting Stock immediately prior to such transaction and in substantially the same proportion as immediately prior to such transaction.
2
“Change of Control Offer” has
the meaning provided in Section 4.01(a).
“Change of Control Payment Date”
has the meaning provided in Section 4.01(a).
“Change of Control Repurchase Event”
means the occurrence of both a Change of Control and a Ratings Event.
“Company” means the corporation
named as the “Company” in the Preamble until a successor Person shall have become such pursuant to the applicable provisions
of the Indenture, and thereafter “Company” shall mean such successor Person.
“Consolidated Subsidiary” means,
as of the time of determination and with respect to any Person, any Subsidiary of that Person whose financial data is, in accordance with
GAAP, reflected in that Person’s consolidated financial statements.
“Consolidated Total Assets” means,
as of the time of determination, total assets of the Company and its Consolidated Subsidiaries as reflected on the Company’s most
recent consolidated balance sheet prepared in accordance with GAAP contained in an annual report on Form 10-K or a quarterly report
on Form 10-Q or any amendment thereto pursuant to the Exchange Act filed by the Company prior to the time as of which “Consolidated
Total Assets” is being determined or, if the Company is not required to so file, as reflected on the Company’s most recent
consolidated balance sheet prepared in accordance with GAAP.
“Depositary” has the meaning provided
in Section 2.03(d).
“Fitch” means Fitch Ratings, Inc.
and its successors.
“GAAP” means generally accepted
accounting principles in the United States of America in effect from time to time.
“Hedging Obligations” means, with
respect to any specified Person, the obligations of such Person under: (1) interest rate swap agreements (whether from fixed to floating
or from floating to fixed), interest rate cap agreements and interest rate collar agreements; (2) other agreements or arrangements
designed to manage interest rates or interest rate risk; and (3) other agreements or arrangements designed to protect such Person
against fluctuations in currency exchange rates or commodity prices.
“incur” means issue, incur, create,
assume, guarantee or otherwise become liable for.
“Indebtedness” means, with respect
to any Person, obligations (other than Nonrecourse Obligations) of such Person for borrowed money (including, without limitation, indebtedness
for borrowed money evidenced by notes, bonds, debentures or similar instruments).
3
“Indenture” has the meaning provided
in the Recitals.
“Initial Notes” means the aggregate
principal amount of Notes issued on the date hereof, as specified on the first paragraph of Section 2.01.
“Interest Payment Date” has the
meaning provided in Section 2.04.
“Investment Grade” means a rating
of Baa3 or better by Moody’s (or its equivalent under any successor rating categories of Moody’s); a rating of BBB- or better
by Fitch (or its equivalent under any successor rating categories of Fitch); a rating of BBB- or better by S&P (or its equivalent
under any successor rating categories of S&P); and the equivalent investment grade credit rating from any additional Rating Agency
or Rating Agencies selected by the Company.
“Lien” means any lien, security
interest, pledge, charge or encumbrance of any kind (including any conditional sale or other title retention agreement, any lease in the
nature thereof, and any agreement to give any security interest).
“Moody’s” means Moody’s
Investors Service, Inc. and its successors.
“Non-recourse Obligation” means
indebtedness or other obligations substantially related to (1) (A) the acquisition of assets not previously owned by the Company
or any of its direct or indirect Subsidiaries, or (B) the financing of a project involving the development or expansion of the Company’s
properties or any of its direct or indirect Subsidiaries, in each case as to which the obligee with respect to such Indebtedness or obligation
has no recourse to the Company or any of its direct or indirect Subsidiaries or such Subsidiary’s assets other than the assets which
were acquired with the proceeds of such transaction or the project financed with the proceeds of such transaction (and the proceeds thereof)
or (2) a receivables financing (including through the sale of receivables to lenders or to special purpose entities formed to borrow
from lenders against such receivables or the proceeds thereof).
“Notes” has the meaning provided
in the Recitals. For the avoidance of doubt, “Notes” shall include any Additional Notes.
“Par Call Date” means December 15,
2031.
“Permitted Liens” means:
(1) Liens
securing Hedging Obligations designed to protect the Company from fluctuations in interest rates, currencies, equities or the price of
commodities and not for speculative purposes;
(2) Liens
in favor of customs and revenue authorities or financial institutions in respect of customs duties in connection with the importation
of goods;
(3) Liens
arising by reason of deposits necessary to qualify the Company or any of its Subsidiaries to conduct business, maintain self-insurance
or obtain the benefit of, or comply with, any law, including Liens incurred in the ordinary course of business in connection with workers’
compensation, unemployment insurance or other forms of governmental insurance or benefits;
4
(4) Liens
of any landlord on fixtures located on premises leased by the Company or any of its Subsidiaries, and tenants’ rights under leases,
easements and similar Liens not materially impairing the use or value of the Property involved;
(5) easements,
zoning restrictions, building restrictions, rights-of-way and similar encumbrances or charges on real property imposed by law or arising
in the ordinary course of business that are of a nature generally existing with respect to Properties of a similar character;
(6) Liens
in connection with bankers’ acceptance financing or used in the ordinary course of trade practices, statutory lessor and vendor
privilege Liens and Liens in connection with good faith bids, tenders and deposits;
(7) Liens
arising under consignment or similar arrangements for the sale of goods;
(8) Liens
incurred or pledges or deposits made under workmen’s compensation laws unemployment insurance laws or similar legislation, or good
faith deposits in connection with bids, tenders, contracts or leases, or deposits to secure the Company’s public or statutory obligations,
or deposits for the payment of rent;
(9) judgment
Liens not giving rise to a default or Event of Default so long as such Lien is adequately bonded and any appropriate legal proceedings
that may have been initiated for the review of such judgment, decree or order shall not have been finally terminated or the period within
which such proceedings may be initiated shall not have expired;
(10) Liens
upon specific items of inventory or other goods and proceeds of any person securing such Person’s obligations in respect of banker’s
acceptances issued or credited for the account of such Person to facilitate the purchase, shipment or storage of such inventory or goods;
(11) Liens
securing reimbursement obligations with respect to letters of credit in the ordinary course of business that encumber cash, documents
and other Property relating to such letters of credit and proceeds thereof;
(12) Liens
in favor of the Company or any of its wholly-owned U.S. Subsidiaries; and
(13) customary
Liens granted in favor of a trustee to secure fees and other amounts owing to such trustee under an indenture.
“Property” means any property
or asset, whether real, personal or mixed, or tangible or intangible, including shares of capital stock.
“Prospectus Supplement” means
that certain final prospectus supplement dated September 24, 2026, related to the offering and sale of the Notes.
5
“Rating” has the meaning provided
in Section 2.05.
“Rating Agency” means, with respect
to the Notes, (1) each of Moody’s, Fitch and S&P; and (2) if any two of Moody’s, Fitch and S&P cease to
rate the Notes or fail to make a rating of such Notes publicly available, a “nationally recognized statistical rating organization”
within the meaning of Section 3(a)(62) of the Exchange Act, selected by the Company as a replacement agency for Moody’s, Fitch
or S&P, or all of them, as the case may be.
“Ratings Event” means, with respect
to the Notes, during the period commencing on the date of the Company’s first public announcement of any Change of Control (or pending
Change of Control) (the “Rating Date”) and ending 60 days following consummation of such Change of Control, the rating
of the Notes shall be reduced by at least two of the three Rating Agencies and such Notes are rated below Investment Grade by at least
two of the three Rating Agencies and are not, within such period, subsequently upgraded by such Rating Agencies to an Investment Grade
rating; provided, however, that a Ratings Event otherwise arising by virtue of a particular reduction in rating will not
be deemed to have occurred in respect of a particular Change of Control (and thus will not be deemed a Ratings Event for purposes of the
definition of Change of Control Repurchase Event) if the Rating Agencies making the reduction in rating to which this definition would
otherwise apply do not announce or confirm to the Company in writing at the Company’s request that the reduction was the result,
in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the applicable Change of Control
(whether or not the applicable Change of Control has occurred at the time of the Ratings Event).
“S&P” means S&P Global
Ratings, a division of S&P Global, Inc., and its successors.
“Substitute Rating Agency” has
the meaning provided in Section 2.05.
“Fourth Supplemental Indenture”
has the meaning provided in the Preamble.
“Treasury Rate” means, with respect
to any Redemption Date, the yield determined by the Company in accordance with the following two paragraphs.
The Treasury Rate shall be determined by the Company
after 4:15 p.m., New York City time (or after such time as yields on U.S. government securities are posted daily by the Board of Governors
of the Federal Reserve System), on the third Business Day preceding the Redemption Date based upon the yield or yields for the most recent
day that appear after such time on such day in the most recent statistical release published by the Board of Governors of the Federal
Reserve System designated as “Selected Interest Rates (Daily) - H.15” (or any successor designation or publication) (“H.15”)
under the caption “U.S. government securities–Treasury constant maturities–Nominal” (or any successor caption
or heading) (“H.15 TCM”). In determining the Treasury Rate, the Company shall select, as applicable: (1) the yield
for the Treasury constant maturity on H.15 exactly equal to the period from the Redemption Date to the Par Call Date (the “Remaining
Life”); or (2) if there is no such Treasury constant maturity on H.15 exactly equal to the Remaining Life, the two yields
– one yield corresponding to the Treasury constant maturity on H.15 immediately shorter than and one yield corresponding to the
Treasury constant maturity on H.15 immediately longer than the Remaining Life – and shall interpolate to the Par Call Date on a
straight-line basis (using the actual number of days) using such yields and rounding the result to three decimal places; or (3) if
there is no such Treasury constant maturity on H.15 shorter than or longer than the Remaining Life, the yield for the single Treasury
constant maturity on H.15 closest to the Remaining Life. For purposes of this paragraph, the applicable Treasury constant maturity or
maturities on H.15 shall be deemed to have a maturity date equal to the relevant number of months or years, as applicable, of such Treasury
constant maturity from the Redemption Date.
6
If on the third Business Day preceding the Redemption
Date H.15 TCM is no longer published, the Company shall calculate the Treasury Rate based on the rate per annum equal to the semi-annual
equivalent yield to maturity at 11:00 a.m., New York City time, on the second Business Day preceding such Redemption Date of the United
States Treasury security maturing on, or with a maturity that is closest to, the Par Call Date, as applicable. If there is no United States
Treasury security maturing on the Par Call Date but there are two or more United States Treasury securities with a maturity date equally
distant from the Par Call Date, one with a maturity date preceding the Par Call Date and one with a maturity date following the Par Call
Date, the Company shall select the United States Treasury security with a maturity date preceding the Par Call Date. If there are two
or more United States Treasury securities maturing on the Par Call Date or two or more United States Treasury securities meeting the criteria
of the preceding sentence, the Company shall select from among these two or more United States Treasury securities the United States Treasury
security that is trading closest to par based upon the average of the bid and asked prices for such United States Treasury securities
at 11:00 a.m., New York City time. In determining the Treasury Rate in accordance with the terms of this paragraph, the semi-annual yield
to maturity of the applicable United States Treasury security shall be based upon the average of the bid and asked prices (expressed as
a percentage of principal amount) at 11:00 a.m., New York City time, of such United States Treasury security, and rounded to three decimal
places.
“Trustee” has the meaning provided
in the Preamble.
“U.S. Subsidiary” means any subsidiary
that is organized under the laws of the United States or any state thereof or the District of Columbia.
“Voting Stock” of any specified
“person” (as that term is used in Section 13(d)(3) of the Exchange Act) as of any date means the capital stock of
such person that is at the time entitled to vote generally in the election of the board of directors of such person.
Article Two
General Terms and Conditions of the Notes
Section 2.01. Designation
and Principal Amount.
(a) There
is hereby authorized and designated a new series of securities: the 7.875% Senior Notes due 2032. The Notes may be authenticated and delivered
under the Indenture in an unlimited aggregate principal amount. The Notes issued on the date hereof pursuant to the terms of the Indenture
shall be in an aggregate principal amount of $400,000,000. The amount shall be set forth in the written order of the Company for the authentication
and delivery of the Notes pursuant to Section 3.01 of the Base Indenture. The Notes will be senior unsecured obligations of the Company
and will rank on the same basis with all of the Company’s other senior unsecured indebtedness from time to time outstanding.
7
(b) In
addition, without the consent of the Holders of the Notes, the Company may from time to time, without notice to or the consent of such
Holders, create and issue Additional Notes having the same terms as, and ranking equally and ratably with, the Notes (except for the issue
date, the public offering price and, if applicable, the payment of interest accruing prior to the issue date of such Additional Notes
and the first payment of interest following the issue date of such Additional Notes); provided that if such Additional Notes are
not fungible with the Notes offered hereby for U.S. federal securities laws or U.S. federal income tax purposes, such Additional Notes
will have one or more separate CUSIP numbers. Such Additional Notes may be consolidated and form a single series with, and will have the
same terms as to ranking, redemption, waivers, amendments or otherwise, as the Notes, and will vote together as one class on all matters
with respect to the Notes.
Section 2.02. Maturity.
Unless an earlier redemption has occurred, the principal
amount of the Notes shall mature and be due and payable, together with any accrued interest thereon, on January 15, 2032. If the
maturity date of the Notes falls on a day that is not a Business Day, payment of principal, premium, if any, and interest for the Notes
then due will be paid on the next Business Day. No interest on that payment will accrue from and after the maturity date.
Section 2.03. Form and
Payment.
(a) The
Notes shall be issued as global notes in fully registered book-entry form without coupons in denominations of $2,000 and integral multiples
of $1,000 in excess thereof.
(b) The
Notes and the Trustee’s Certificates of Authentication to be endorsed thereon are to be substantially in the form of Exhibit A,
which form is hereby incorporated in and made a part of this Fourth Supplemental Indenture.
(c) The
terms and provisions contained in the Notes shall constitute, and are hereby expressly made, a part of this Fourth Supplemental Indenture,
and the Company and the Trustee, by their execution and delivery of this Fourth Supplemental Indenture, expressly agree to such terms
and provisions and to be bound thereby.
(d) Principal,
premium, if any, and/or interest, if any, on the global notes representing the Notes shall be made to The Depository Trust Company (together
with any successor thereto, the “Depositary”).
(e) The
global notes representing the Notes shall be deposited with, or on behalf of, the Depositary and shall be registered in the name of the
Depositary or a nominee of the Depositary. No global note may be transferred except as a whole by a nominee of the Depositary to the Depositary
or to another nominee of the Depositary, or by the Depositary or such nominee to a successor of the Depositary or a nominee of such successor.
8
Section 2.04. Interest.
Subject to adjustment pursuant to Section 2.05,
interest on the Notes shall accrue at the rate of 7.875% per annum, payable semi-annually in arrears on January 15 and July 15
of each year, beginning on January 15, 2027. Each such interest payment date is referred to as an “Interest Payment Date”.
Interest on the Notes shall be payable to the Holders
in whose names the Notes are registered at the close of business on the preceding January 1 and July 1. Interest on the Notes
will accrue from and including September 28, 2026, to, but excluding, the first Interest Payment Date and then from and including
the immediately preceding Interest Payment Date to which interest has been paid or duly provided for to, but excluding, the next Interest
Payment Date or maturity date, as the case may be. Interest on the Notes shall be computed on the basis of a 360-day year comprised of
twelve 30-day months. If any Interest Payment Date or other payment date for the Notes is not a Business Day, then payment of principal,
premium, if any, or interest shall be made on the next succeeding Business Day with the same force and effect as if made on the date such
payment was due, and no interest on such payment shall accrue on that payment for the period from and after that Interest Payment Date
or other payment date, as the case may be, to the date of that payment on the next succeeding Business Day.
Section 2.05. Interest
Rate Adjustment.
The interest rate payable on the Notes will be
subject to adjustment from time to time (1) if any of Moody’s, S&P or Fitch downgrades (or subsequently upgrades) the debt
rating applicable to the Notes (a “Rating”) or (2) if any of Moody’s, S&P or Fitch ceases to rate the
Notes or fails to make a Rating of the Notes publicly available, and a “nationally recognized statistical rating organization”
within the meaning of Section 3(a)(62) under the Exchange Act selected by the Company as a replacement agency for Moody’s,
S&P or Fitch (a “Substitute Rating Agency”) downgrades (or subsequently upgrades) a Rating of the Notes, in each
case as set forth below.
If the Rating from Moody’s (or a Substitute
Rating Agency therefor) applicable to the Notes is decreased to a Rating set forth in the immediately following table (or the equivalent
Rating, in the case of any Substitute Rating Agency), the interest rate payable on the Notes will increase such that it will equal the
interest rate payable on the Notes set forth in Section 2.04 plus the percentage per annum set forth in the following table
opposite that Rating (plus, if applicable, the percentage per annum set forth opposite the applicable Rating in the table under each of
“S&P Rating” and “Fitch Rating”):
Moody’s Rating
Percentage
Ba1
0.250 %
Ba2
0.500 %
Ba3
0.750 %
B1 or below
1.000 %
9
If the Rating from S&P (or a Substitute Rating
Agency therefor) applicable to the Notes is decreased to a Rating set forth in the immediately following table (or the equivalent Rating,
in the case of any Substitute Rating Agency), the interest rate payable on the Notes will increase such that it will equal the interest
rate payable on the Notes set forth in Section 2.04 plus the percentage per annum set forth in the following table opposite
that Rating (plus, if applicable, the percentage per annum set forth opposite the applicable Rating in the table under each of “Moody’s
Rating” and “Fitch Rating”):
S&P Rating
Percentage
BB+
0.250 %
BB
0.500 %
BB-
0.750 %
B+ or below
1.000 %
If the Rating from Fitch (or a Substitute Rating
Agency therefor) applicable to the Notes is decreased to a Rating set forth in the immediately following table (or the equivalent Rating,
in the case of any Substitute Rating Agency), the interest rate payable on the Notes will increase such that it will equal the interest
rate payable on the Notes set forth in Section 2.04 plus the percentage per annum set forth in the following table opposite
that Rating (plus, if applicable, the percentage per annum set forth opposite the applicable Rating in the table under each of “Moody’s
Rating” and “S&P Rating”):
Fitch Rating
Percentage
BB+
0.250 %
BB
0.500 %
BB-
0.750 %
B+ or below
1.000 %
For purposes of making adjustments to the interest
rate payable on the Notes, the following rules of interpretation will apply:
(a) If
at any time the Rating on the Notes has been increased as a result of a decrease in Rating by any of Moody’s, S&P or Fitch (or,
in any case, a Substitute Rating Agency) and if any of Moody’s, S&P or Fitch (or, in any case, a Substitute Rating Agency therefor)
subsequently increases its Rating applicable to the Notes to any of the threshold Ratings set forth above, the interest rate payable on
the Notes will be decreased such that the interest rate payable on the Notes equals the interest rate set forth in Section 2.04
plus the percentage per annum set forth opposite the Ratings from the tables above in effect immediately following the increase in Rating.
Each adjustment required by any decrease or increase in a Rating set forth above, whether occasioned by the action of Moody’s, S&P
or Fitch (or, in any case, a Substitute Rating Agency therefor), shall be made independent of any and all other adjustments. In no event
shall (1) the interest rate payable on the Notes be reduced to below the interest rate set forth in Section 2.04 or (2) the
total increase in the interest rate payable on the Notes exceed 2.000% per annum above the interest rate set forth in Section 2.04.
If Moody’s (or a Substitute Rating Agency therefor) subsequently increases its Rating applicable to the Notes to Baa3 (or its equivalent,
in the case of a Substitute Rating Agency) or higher, S&P (or a Substitute Rating Agency therefor) subsequently increases its Rating
applicable to the Notes to BBB- (or its equivalent, in the case of a Substitute Rating Agency) or higher and Fitch (or a Substitute Rating
Agency therefor) subsequently increases its Rating applicable to the Notes to BBB- (or its equivalent, in the case of a Substitute Rating
Agency) or higher, the interest rate payable on the Notes will be decreased to the interest rate set forth in Section 2.04.
In addition, the interest rate payable on the Notes will permanently cease to be subject to any adjustment described in this Section 2.05
(notwithstanding any subsequent decrease in the Ratings by any or all rating agencies) if the Notes become rated Baa1, BBB+ and BBB+ (or
the equivalent of any such Rating, in the case of a Substitute Rating Agency) or higher by any two of Moody’s, S&P and Fitch
(or, in any case, a Substitute Rating Agency therefor).
10
(b) If
at any time Moody’s, S&P or Fitch (or, in any case, a Substitute Rating Agency therefor) ceases to provide a Rating of the Notes
for any reason, the Company shall use commercially reasonable efforts to obtain a Rating of the Notes from a Substitute Rating Agency,
to the extent one exists, and if a Substitute Rating Agency exists, for purposes of determining any increase or decrease in the interest
rate payable on the Notes pursuant to the tables above (1) such Substitute Rating Agency will be substituted for the ratings agency
which has since ceased to provide such Rating, (2) the relative rating scale used by such Substitute Rating Agency to assign ratings
to senior unsecured debt shall be determined in good faith by an independent investment banking institution of national standing appointed
by the Company and, for purposes of determining the applicable Ratings included in the applicable table above with respect to such Substitute
Rating Agency, such Ratings will be deemed to be the equivalent Ratings used by the Rating Agency which has since ceased to provide such
Rating in such table and (3) the interest rate payable on the Notes will increase or decrease, as the case may be, such that the
interest rate payable on the Notes equals the interest rate set forth in Section 2.04 plus the appropriate percentage per
annum, if any, set forth opposite the Rating from such Substitute Rating Agency in the applicable table above (taking into account the
provisions of clause (2) of this clause (b)), plus any applicable percentage per annum resulting from a decreased Rating by the other
ratings agencies.
(c) For
so long as only one of Moody’s, S&P or Fitch (or, in any case, a Substitute Rating Agency therefor) provides a Rating of the
Notes, the interest rate payable on the Notes will increase or decrease, as the case may be, such that the interest rate payable on the
Notes equals the interest rate set forth in Section 2.04 plus twice any applicable percentage per annum resulting from a decreased
Rating by the rating agency continuing to provide a Rating. Any subsequent increase or decrease in the interest rate payable on the Notes
necessitated by a reduction or increase in the Rating by the agency continuing to provide a Rating shall be twice the percentage per annum
set forth in the applicable table above; provided, that the total increase in the interest rate payable on the Notes shall not exceed
2.000% per annum above the interest rate set forth in Section 2.04. No adjustments in the interest rate payable on the Notes
shall be made solely as a result of any of Moody’s, S&P or Fitch (or, in any case, a Substitute Rating Agency therefor) ceasing
to provide a Rating of the Notes. If all of Moody’s, S&P and Fitch (or, in any case, a Substitute Rating Agency therefor) cease
to provide a Rating, and no Substitute Rating Agency has provided a Rating, the interest rate payable on the Notes will increase to, or
remain at, as the case may be, 2.000% per annum above the interest rate set forth in Section 2.04.
(d) Any
interest rate increase or decrease, as described above, will take effect from the first day of the interest period commencing after the
date on which a rating change occurs that requires an adjustment in the interest rate. If Moody’s, S&P or Fitch (or, in any
case, a Substitute Rating Agency therefor) changes its Rating of the Notes more than once during any particular interest period, the last
change by such agency during such interest period will control for purposes of any interest rate increase or decrease with respect to
the Notes described above relating to such Rating Agency’s action. If the interest payable on the Notes is increased as described
above, the term “interest,” as used with respect to the Notes, will be deemed to include any such additional interest unless
the context otherwise requires.
11
(e) For
purposes of this Section 2.05, the term “interest period” shall mean the period from and including an Interest
Payment Date (or if prior to the first Interest Payment Date, from and including September 28, 2026) to but excluding the next succeeding
Interest Payment Date.
The Company shall give the Trustee and the Holders
prompt written notice upon becoming aware of any increase or decrease, pursuant to this Section 2.05, in the interest rate
payable on the Notes, which notice shall set forth the amount of such increase or decrease, the basis therefor and the date from which
such increase or decrease shall take effect. The Company’s actions and determinations in determining whether a ratings downgrade
has occurred or a change in interest rate is warranted shall be conclusive and binding for all purposes, absent manifest error and the
Trustee may rely upon such determination. The Trustee shall not be responsible for determining the new interest rate, or be liable in
connection with any ratings downgrade or change in interest rate or for determining whether manifest error has occurred with regard to
the Company’s actions.
Section 2.06. Other
Terms and Conditions.
(a) The
Defeasance and Covenant Defeasance provisions of Article Thirteen of the Base Indenture will apply to the Notes and the covenants
set forth in Article Four shall be subject to the provisions of Section 13.03 of the Base Indenture. The provisions of Article Four
of the Base Indenture will apply to the Notes.
(b) The
Notes will be subject to the Events of Default provided in Section 5.01 of the Base Indenture, as supplemented by Section 5.01.
(c) The
Trustee will initially be the Security Registrar and Paying Agent for the Notes.
(d) The
Notes will be subject to the covenants provided in Article Ten of the Base Indenture, as supplemented by Article Four.
12
Article Three
Redemption
Section 3.01. Optional
Redemption of the Notes.
(a) Subject
to Section 6.04, the provisions of Article Eleven of the Base Indenture, as supplemented by the provisions of this Fourth
Supplemental Indenture, shall apply to the Notes.
(b) Prior
to the Par Call Date, the Company may redeem the Notes at its option, in whole or in part, at any time and from time to time, at a Redemption
Price (expressed as a percentage of principal amount and rounded to three decimal places) equal to the greater of:
(i) (A) the
sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the Redemption Date (assuming
the Notes matured on the Par Call Date) on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury
Rate plus 50 basis points less (B) interest accrued to the date of redemption, and
(ii) 100%
of the principal amount of the Notes to be redeemed,
plus, in either case, accrued and unpaid interest
thereon to the Redemption Date.
(c) On
or after the Par Call Date, the Company may redeem the Notes, in whole or in part, at any time and from time to time, at a Redemption
Price equal to 100% of the principal amount of the Notes being redeemed plus accrued and unpaid interest thereon to the Redemption Date.
(d) The
Company’s actions and determinations in determining the Redemption Price shall be conclusive and binding for all purposes, absent
manifest error.
(e) On
and after any Redemption Date for the Notes, interest will cease to accrue on such Notes or any portion thereof called for redemption,
unless the Company defaults in the payment of the Redemption Price and accrued interest, if any. On or before the relevant Redemption
Date for the Notes, the Company shall deposit with the Trustee or a Paying Agent, funds sufficient to pay the Redemption Price of such
Notes to be redeemed on such Redemption Date, and (except if the Redemption Date shall be an Interest Payment Date) accrued interest,
if any. If less than all of the Notes are to be redeemed, the Notes to be redeemed shall be selected in accordance with the procedures
of the Depositary; provided, however, that in no event shall Notes of a principal amount of $2,000 or less be redeemed in
part.
(f) Notice
of any redemption will be mailed or electronically delivered (or otherwise transmitted in accordance with DTC procedures) at least 10
days but not more than 60 days before the Redemption Date to each holder of Notes to be redeemed. Such notice shall state the Redemption
Price (if known) or the formula pursuant to which the Redemption Price is to be determined if the Redemption Price cannot be determined
at the time the notice is given. If the Redemption Price cannot be determined at the time such notice is to be given, the actual Redemption
Price, calculated as described above in clause (b) or (c) of this Section 3.01, as applicable, shall be set forth
in an Officer’s Certificate delivered to the Trustee no later than two Business Days prior to the Redemption Date. Notice of redemption
having been given as provided in the Indenture, the Notes called for redemption shall become due and payable on the relevant Redemption
Date and at the applicable Redemption Price, plus accrued and unpaid interest, if any, to, but not including, the Redemption Date.
13
(g) If
the Redemption Date is on or after an interest record date and on or before the related interest payment date, the accrued and unpaid
interest, if any, will be paid to the person in whose name the applicable Note is registered at the close of business on such interest
record date, and no additional interest is payable to holders whose Notes will be subject to redemption by the Company.
(h) In
the case of a partial redemption, selection of the Notes for redemption will be made by lot. No Notes of a principal amount of $2,000
or less will be redeemed in part. The principal amount of a Note remaining outstanding after redemption in part will be $2,000 or an integral
multiple of $1,000 in excess thereof. If any Note is to be redeemed in part only, the notice of redemption that relates to the Note will
state the portion of the principal amount of the Note to be redeemed. Except in the case of a global note, a new Note in a principal amount
equal to the unredeemed portion of the Note will be issued in the name of the holder of the Note upon surrender for cancellation of the
original Note. For so long as the Notes are held by DTC (or another depositary), DTC (or such other depositary) will determine the allocation
of the redemption price among beneficial owners of such Notes in accordance with DTC’s (or such other depositary’s) applicable
procedures.
(i) Unless
the Company defaults in payment of the Redemption Price, on and after the Redemption Date interest will cease to accrue on the Notes or
portions thereof called for redemption.
(j) Except
as described above, the Notes will not be redeemable by the Company prior to their maturity date and will not be entitled to the benefit
of any sinking fund.
(k) The
Company will notify the Trustee of the Redemption Price promptly after the calculation thereof, and the Trustee shall have no responsibility
for, or liability in connection with, any calculation or determination in respect of the Redemption Price of any Note (or any component
thereof) or determining whether manifest error has occurred with regard to the Company’s actions and determinations in determining
the Redemption Price, and shall be entitled to receive, and fully-protected in relying upon, an Officer’s Certificate from the Company
that states such Redemption Price.
14
Article Four
Additional Covenants
Section 4.01. Purchase
of Notes upon a Change of Control Repurchase Event.
(a) If
a Change of Control Repurchase Event occurs with respect to the Notes, unless the Company shall have exercised its right to redeem the
Notes as set forth in Section 3.01 of this Fourth Supplemental Indenture, the Company shall be required to make an offer (the
“Change of Control Offer”) to each Holder of the Notes to repurchase all or any part (equal to $2,000 and in integral
multiples of $1,000 in excess thereof) of such Holder’s Notes, at a repurchase price in cash equal to 101% of the aggregate principal
amount of the Notes repurchased, plus accrued and unpaid interest, if any, on the Notes repurchased to, but not including, the date of
repurchase (subject to the right of the holders of record on the relevant record date to receive interest due on the relevant Interest
Payment Date). Within 30 days following any Change of Control Repurchase Event with respect to the Notes or, at the Company’s option,
prior to any Change of Control, but after the public announcement of the transaction or transactions that constitute or may constitute
the Change of Control, the Company shall electronically deliver or mail a notice to each Holder, with a copy to the Trustee, describing
the transaction or transactions that constitute or may constitute the Change of Control Repurchase Event and offering to repurchase the
Notes on the payment date specified in the notice, which date shall be no earlier than 30 days and no later than 60 days from the date
such notice is electronically delivered or mailed (the “Change of Control Payment Date”). The notice shall, if electronically
delivered or mailed prior to the date of consummation of the Change of Control, state that the offer to purchase is conditioned on the
Change of Control Repurchase Event occurring on or prior to the Change of Control Payment Date specified in the notice.
(b) On
the Change of Control Payment Date, the Company shall, to the extent lawful:
(i) accept
for payment all the Notes or portions of the Notes properly tendered pursuant to the Change of Control Offer;
(ii) deposit
with the Paying Agent an amount equal to the aggregate amount required to be paid by the Company as a result of the Change of Control
Repurchase Event in respect of all the Notes or portions of the Notes properly tendered; and
(iii) deliver
or cause to be delivered to the Trustee the Notes properly accepted, together with an Officer’s Certificate stating the aggregate
principal amount of Notes or portions of Notes being purchased by the Company.
(c) The
Paying Agent will promptly deliver to each Holder of Notes properly tendered the payment for the Notes, and the Trustee will promptly
authenticate and deliver (or cause to be transferred by book-entry) to each Holder a new Note equal in principal amount to any unpurchased
portion of any such Notes surrendered; provided, that each new Note will be in a minimum principal amount of $2,000 or an integral multiple
of $1,000 in excess thereof.
15
(d) Notwithstanding
the foregoing, the Company will not be required to make an offer to repurchase the Notes upon a Change of Control Repurchase Event if
a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the
Company and such third party purchases all Notes properly tendered and not withdrawn under its offer.
(e) If
Holders of not less than 90% in aggregate principal amount of Outstanding Notes validly tender and do not withdraw such Notes in an offer
to repurchase the applicable Notes upon a Change of Control Repurchase Event and the Company, or any third party making an offer to repurchase
such Notes upon a Change of Control Repurchase Event in lieu of the Company pursuant to Section 4.01(d) hereof, purchases
all of the Notes validly tendered and not withdrawn by such Holders, the Company shall have the right, upon not less than 10 nor more
than 60 days’ prior notice, given not more than 30 days following the Change of Control Payment Date, to redeem all Notes that remain
Outstanding following such purchase at a Redemption Price in cash equal to 101% of the principal amount thereof, plus accrued and unpaid
interest, if any, to the Redemption Date (subject to the right of the Holders of record on the relevant record date to receive interest
due on the relevant Interest Payment Date).
(f) The
Company will comply with the requirements of Rule 14e-1 under the Exchange Act, and any other securities laws and regulations thereunder,
to the extent those laws and regulations are applicable in connection with the repurchase of Notes as a result of a Change of Control
Repurchase Event. To the extent that the provisions of any securities laws or regulations conflict with this Section 4.01,
the Company will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under
this Section 4.01 by virtue of any such conflict.
(g) The
Trustee shall have no responsibility for any calculation or determination in respect of the Change of Control Repurchase Event or repurchase
price of any Notes, or any component thereof, and shall be entitled to receive, and fully-protected in relying upon, an Officer’s
Certificate from the Company stating that such Change of Control Repurchase Event has occurred and specifying such repurchase price.
Section 4.02. Limitation
on Liens.
(a) The
Company shall not incur, nor shall the Company permit any of its wholly-owned U.S. Subsidiaries to incur, any Liens upon any Property
of the Company or any of its wholly-owned U.S. Subsidiaries, whether now owned or hereafter created or acquired, in order to secure Indebtedness
of the Company or any of its wholly-owned U.S. Subsidiaries, in each case, unless prior to or at the same time, the Notes are equally
and ratably secured with (or, at the Company’s option, senior to) such secured Indebtedness until such time as such Indebtedness
is no longer secured by such Lien.
(b) The
foregoing restriction, however, will not apply to:
(1) Liens
on Property or Indebtedness existing with respect to any Person at the time such Person becomes the Company’s Subsidiary or a Subsidiary
of any of the Company’s Subsidiaries, provided that such Lien was not incurred in anticipation of such Person becoming a
Subsidiary;
16
(2) Liens
on Property or Indebtedness existing at the time of acquisition by the Company or any of the Company’s Subsidiaries or a Subsidiary
of any of the Company’s Subsidiaries of such Property or Indebtedness (which may include Property previously leased by the Company
or any of the Company’s Subsidiaries and leasehold interests on such Property; provided that the lease terminates prior to
or upon the acquisition) or Liens on Property or Indebtedness to secure the payment of all or any part of the purchase price of such Property
or Indebtedness, or Liens on Property or Indebtedness to secure any Indebtedness incurred prior to, at the time of, or within 12 months
after, the latest of the acquisition of such Property or Indebtedness or, in the case of Property, the completion of construction, the
completion of improvements or the commencement of substantial commercial operation of such Property for the purpose of financing all or
any part of the purchase price of the Property and related costs and expenses, the construction or the making of the improvements;
(3) Liens
securing the Company’s Indebtedness or the Indebtedness of any of the Company’s Subsidiaries owing to the Company or any of
the Company’s Subsidiaries;
(4) Liens
existing on the date of issuance of the Initial Notes;
(5) Liens
on Property or assets of a Person existing at the time such Person is merged into or consolidated with the Company or any of the Company’s
Subsidiaries, at the time such Person becomes the Company’s Subsidiary, or at the time of a sale, lease or other disposition of
all or substantially all of the Properties or assets of a Person to the Company or any of the Company’s Subsidiaries; provided
that such Lien was not incurred in anticipation of the merger, consolidation, sale, lease, other disposition or other such transaction;
(6) Liens
created in connection with or to secure a Non-recourse Obligation or a project financed thereby;
(7) Liens
created to secure the Notes;
(8) Liens
imposed by law or arising by operation of law, including, without limitation, landlords’, mailmen’s, suppliers’, vendors’,
carriers’, warehousemen’s and mechanic’s Liens and other similar Liens, Liens for master’s and crew’s wages
and other similar laws, arising in the ordinary course of business, in each case for sums not yet overdue by more than 60 calendar days
or being contested in good faith by appropriate proceedings or other Liens arising out of judgments or awards against such Person with
respect to which such Person shall then be proceeding with an appeal or other proceedings for review and Liens arising solely by virtue
of any statutory or common law provision relating to banker’s Liens, rights of set-off or similar rights and remedies as to deposit
accounts or other funds maintained with a creditor depository institution;
17
(9) Liens
for taxes, assessments or other governmental charges or levies on Property not yet due or payable or subject to penalties for non-payment
or which are being contested in good faith by appropriate proceedings;
(10) Liens
to secure the performance of obligations with respect to statutory or regulatory requirements, bids, trade contracts, leases, statutory
obligations, surety and appeal bonds, performance or return-of-money bonds and other obligations of a like nature;
(11) Permitted
Liens; or
(12) any
extensions, renewals or replacements of any Lien referred to in clauses (1) through (11) without increase of the principal of the
Indebtedness secured by such Lien (except to the extent of any fees or other costs associated with any such extension, renewal or replacement);
provided, however, that any Liens permitted by any of clauses (1) through (11) shall not extend to or cover any of
the Company’s Property or the Property of any of the Company’s Subsidiaries, as the case may be, other than the Property specified
in such clauses and improvements to such Property.
(c) Notwithstanding
the restrictions set forth in Section 4.02(a), the Company and its wholly-owned U.S. Subsidiaries may incur Indebtedness secured
by Liens, which would otherwise be subject to the foregoing restrictions without equally and ratably securing the Notes, provided
that, after giving effect to such Indebtedness, the aggregate amount of all Indebtedness secured by Liens (not including Liens permitted
under clauses (1) through (12) of Section 4.02(b) hereof), together with all Attributable Debt outstanding pursuant
to Section 4.03(b) hereof, does not exceed 15% of Consolidated Total Assets calculated as of the date of the creation
or incurrence of the Lien. The Company and its wholly-owned U.S. Subsidiaries may also, without equally and ratably securing the Notes,
create or incur Liens that renew, substitute or replace (including successive renewals, substitutions or replacements), in whole or in
part, any Lien permitted pursuant to the preceding sentence.
Section 4.03. Limitation
on Sale and Leaseback Transactions.
(a) The
Company shall not, nor shall the Company permit any of its wholly-owned U.S. Subsidiaries to, enter into any sale and leaseback transaction
for the sale and leasing back of any Property, whether now owned or hereafter acquired, unless:
(1) such
transaction was entered into prior to the date of issuance of the Initial Notes;
(2) such
transaction was for the sale and leasing back to the Company or any of its wholly-owned U.S. Subsidiaries of any Property by one of the
Company’s Subsidiaries;
18
(3) such
transaction involves a lease for not more than three years (or which may be terminated by the Company or its Subsidiaries within a period
of not more than three years);
(4) the
Company would be entitled to incur Indebtedness secured by a Lien with respect to such sale and leaseback transaction without equally
and ratably securing the Notes pursuant to Section 4.02(b); or
(5) the
Company applies an amount equal to the net proceeds from the sale of such Property to the purchase of other Property or assets used or
useful in the Company’s business or to the retirement of long-term Indebtedness within 12 months before or after the effective date
of any such sale and leaseback transaction; provided that, in lieu of applying such amount to the retirement of long-term Indebtedness,
the Company may deliver debt securities (which may include the Notes) to the applicable trustee for cancellation, such debt securities
to be credited at the cost thereof to it.
(b) Notwithstanding
the restrictions set forth in Section 4.03(a) hereof, the Company and its wholly-owned U.S. Subsidiaries may enter into
any sale and leaseback transaction which would otherwise be subject to the foregoing restrictions if, after giving effect thereto, the
aggregate amount of all Attributable Debt with respect to such transactions (not including Attributable Debt permitted under clauses (1) through
(5) of Section 4.03(a) hereof), together with all Indebtedness outstanding pursuant to Section 4.02(c) hereof,
does not exceed 15% of Consolidated Total Assets calculated as of the closing date of the sale and leaseback transaction.
Article Five
Additional Events of Default
Section 5.01. Additional
Events of Default. In addition to the Events of Default set forth in Section 5.01 of the Base Indenture, an “Event of
Default” with respect to the Notes occurs if:
(a) failure
by the Company to repurchase the Notes tendered for repurchase following the occurrence of a Change of Control Repurchase Event in conformity
with Section 4.01 hereof; or
(b) (i) a
failure to make any payment at maturity, including any applicable grace period, on any Indebtedness of the Company (other than Indebtedness
the Company owes to any of its Subsidiaries) outstanding in an amount in excess of $250 million and continuance of this failure to pay
or (ii) a default on any Indebtedness of the Company (other than Indebtedness the Company owes to any of its Subsidiaries), which
default results in the acceleration of such Indebtedness in an amount in excess of $250 million without such Indebtedness having been
discharged or the acceleration having been cured, waived, rescinded or annulled, in the case of clause (i) or (ii) above, for
a period of 30 days after written notice thereof to the Company by the Trustee or to the Company and the Trustee by the Holders of not
less than 25% in principal amount of Outstanding Notes (including any Additional Notes); provided, however, that if any
failure, default or acceleration referred to in clause (i) or (ii) above ceases or is cured, waived, rescinded or annulled,
then the Event of Default will be deemed cured.
19
Article Six
Miscellaneous
Section 6.01. Supplemental
Indentures Without Consent of Holders. In addition to Section 9.01 of the Base Indenture, without the consent of any Holders,
the Company and the Trustee, at any time and from time to time, may enter into one or more indentures supplemental hereto, in form reasonably
satisfactory to the Trustee, to conform any provision in this Fourth Supplemental Indenture to the “Description of Notes”
in the Prospectus Supplement to the extent that such provision was intended to be a verbatim recitation of a provision in the “Description
of Notes” in the Prospectus Supplement.
Section 6.02. Application
of Fourth Supplemental Indenture.
The Indenture, as supplemented by this Fourth Supplemental
Indenture, is in all respects ratified and confirmed. This Fourth Supplemental Indenture shall be deemed part of the Indenture in the
manner and to the extent herein and therein provided.
Section 6.03. Trust
Indenture Act.
If any provision hereof limits, qualifies or conflicts
with the duties imposed by the Trust Indenture Act, the imposed duties shall control.
Section 6.04. Conflict
with Base Indenture.
To the extent not expressly amended or modified by
this Fourth Supplemental Indenture, the Base Indenture shall remain in full force and effect. If any provision of this Fourth Supplemental
Indenture relating to the Notes is inconsistent with any provision of the Base Indenture, the provision of this Fourth Supplemental Indenture
shall control.
Section 6.05. Governing
Law.
THIS FOURTH SUPPLEMENTAL INDENTURE SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
Section 6.06. Successors.
All agreements of the Company in the Base Indenture,
this Fourth Supplemental Indenture and the Notes shall bind its successors. All agreements of the Trustee in the Base Indenture and this
Fourth Supplemental Indenture shall bind its successors.
20
Section 6.07. Counterparts.
This instrument may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one
and the same instrument.
The exchange of copies of this Fourth Supplemental
Indenture and of signature pages by facsimile or electronic (i.e., “pdf” or “tif”) transmission shall constitute
effective execution and delivery of this Fourth Supplemental Indenture as to the parties hereto and may be used in lieu of the original
Fourth Supplemental Indenture for all purposes. The exchange of copies of this Fourth Supplemental Indenture and of signature pages that
are executed by manual signatures that are scanned, photocopied or faxed or by other electronic signing created on an electronic platform
(such as DocuSign) or by digital signing (such as Adobe Sign), in each case that is approved by the Trustee, shall constitute effective
execution and delivery of this Fourth Supplemental Indenture for all purposes. Signatures of the parties hereto that are executed by manual
signatures that are scanned, photocopied or faxed or by other electronic signing created on an electronic platform (such as DocuSign)
or by digital signing (such as Adobe Sign), in each case that is approved by the Trustee, shall be deemed to be their original signatures
for all purposes of this Fourth Supplemental Indenture as to the parties hereto and may be used in lieu of the original.
Anything in this Fourth Supplemental Indenture or
the Notes to the contrary notwithstanding, for the purposes of the transactions contemplated by this Fourth Supplemental Indenture, any
Notes and any document to be signed in connection with the Fourth Supplemental Indenture or the Notes (including any Securities, a Trustee’s
certificate of authentication and amendments, supplements, waivers, consents and other modifications, Officer’s Certificates, Company
Orders and Opinions of Counsel and other issuance, authentication and delivery documents) or the transactions contemplated hereby may
be signed by manual signatures that are scanned, photocopied or faxed or other electronic signatures created on an electronic platform
(such as DocuSign) or by digital signature (such as Adobe Sign), in each case that is approved by the Trustee, and contract formations
on electronic platforms approved by the Trustee, and the keeping of records in electronic form, are hereby authorized, and each shall
be of the same legal effect, validity or enforceability as a manually executed signature in ink or the use of a paper-based recordkeeping
system, as the case may be.
Section 6.08. Trustee
Disclaimer.
The Trustee makes no representation as to the validity,
adequacy or sufficiency of this Fourth Supplemental Indenture and the Notes other than as to the validity of the execution and delivery
of the Fourth Supplemental Indenture by the Trustee and the authentication of the Notes by the Trustee. The recitals and statements herein
and in the Notes are deemed to be those of the Company and not the Trustee and the Trustee assumes no responsibility for the same and
the Trustee does not make any representation with respect to such matters. The Trustee or any Authenticating Agent shall not be accountable
for the use or application by the Company of Notes or the proceeds thereof.
[Remainder of page intentionally left blank]
21
IN WITNESS WHEREOF, the Company has caused this Indenture
to be duly executed.
KYNDRYL HOLDINGS, INC.
By:
/s/ Joshua Watts
Name:
Joshua Watts
Title:
Treasurer
[Kyndryl Holdings, Inc. - Signature Page to
Fourth Supplemental Indenture]
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
as Trustee
By:
/s/ Terence Rawlins
Name:
Terence Rawlins
Title:
Vice President
[Kyndryl Holdings, Inc. - Signature Page to
Fourth Supplemental Indenture]
Exhibit A
FORM OF GLOBAL NOTE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO DTC, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS
OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO
ON THE REVERSE HEREOF.
KYNDRYL HOLDINGS, INC. 7.875% Senior Notes
due 2032
CUSIP No.: 50155Q AQ3
No. R-[●]
ISIN No.: US50155QAQ38
$[●]
As revised by the
Schedule of Increases or
Decreases attached
hereto
KYNDRYL HOLDINGS, INC., a Delaware corporation
(the “Company”), for value received promises to pay to [________________] or registered assigns the principal sum of
[●] DOLLARS, as revised by the Schedule of Increases or Decreases attached hereto, on January 15, 2032 (the “Stated
Maturity”).
Interest Payment Dates: January 15 and July 15
(each, an “Interest Payment Date”), commencing on January 15, 2027, and upon the Stated Maturity.
Interest Record Dates: January 1 and July 1
(each, a “Regular Record Date”).
Reference is made to the further provisions of
this Note contained herein, which will for all purposes have the same effect as if set forth at this place.
1
IN WITNESS WHEREOF, the Company has caused this Note
to be duly executed.
Dated: September 28, 2026
KYNDRYL HOLDINGS, INC.
By:
Name:
Title:
[Signature Page to Note]
This is one of the Notes designated herein and
referred to in the within-mentioned Indenture.
Dated: September 28, 2026
THE BANK
OF NEW YORK MELLON TRUST COMPANY, N.A.,
as Trustee
By:
Name:
Title:
[Signature Page to Note]
(REVERSE OF NOTE)
KYNDRYL HOLDINGS, INC. 7.875% Senior Notes
due 2032
1. Interest.
Kyndryl Holdings, Inc. (the “Company”)
promises to pay interest on the principal amount of this Note at the rate per annum described above, subject to the adjustment of such
rate in accordance with Section 2.05 of the Fourth Supplemental Indenture. Cash interest on the Notes will accrue from the most recent
date to which interest has been paid; or, if no interest has been paid, from September 28, 2026. Interest on this Note will be paid
to but excluding the relevant Interest Payment Date or on such earlier date as the principal amount shall become due in accordance with
the provisions hereof. The Company will pay interest semi-annually in arrears on each Interest Payment Date, beginning on January 15,
2027, and on the Stated Maturity. If any Interest Payment Date, Stated Maturity or other payment date with respect to the Notes is not
a Business Day, the required payment of principal, premium, if any, or interest will be due on the next succeeding Business Day as if
made on the date that such payment was due, and no interest will accrue on that payment for the period from and after that Interest Payment
Date, Stated Maturity or other payment date, as the case may be, to the date of that payment on the next succeeding Business Day. Interest
will be computed on the basis of a 360-day year consisting of twelve 30-day months.
As provided in Section 2.05 of the Fourth
Supplemental Indenture, the interest rate payable on this Note will be subject to adjustment from time to time (1) if any of Moody’s,
S&P or Fitch downgrades (or subsequently upgrades) the debt rating applicable to the Notes (a “Rating”) or (2) if
any of Moody’s, S&P or Fitch ceases to rate the Notes or fails to make a Rating of the Notes publicly available, and a “nationally
recognized statistical rating organization” within the meaning of Section 3(a)(62) under the Exchange Act selected by the Company
as a replacement agency for Moody’s, S&P or Fitch downgrades (or subsequently upgrades) a Rating of the Notes.
The Company shall pay interest on overdue principal
from time to time on demand at the rate borne by the Notes and at the same rate on overdue installments of interest (without regard to
any applicable grace periods) to the extent lawful from the dates such amounts are due until such amounts are paid or made available for
payment.
2.
Paying Agent.
Initially, The Bank of New York Mellon Trust Company,
N.A. (the “Trustee”) will act as paying agent. The Company may change any paying agent without notice to the Holders.
3.
Indenture; Defined Terms.
This Note is one of the 7.875% Senior Notes due 2032
(the “Notes”) issued under the Indenture, dated as of October 15, 2021 (as amended, modified or supplemented from
time to time in accordance therewith, the “Base Indenture” and, as supplemented by the Fourth Supplemental Indenture,
dated as of September 28, 2026, the “Fourth Supplemental Indenture”, and, together with the Base Indenture, the
“Indenture”), by and between the Company and the Trustee, as trustee. This Note is a “Security” and the
Notes are “Securities” under the Indenture.
4
For purposes of this Note, unless otherwise defined
herein, capitalized terms herein are used as defined in the Indenture. The terms of the Notes include those stated in the Indenture and
those made part of the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C. Sections 77aaa-77bbbb) (the “TIA”)
as in effect on the date on which the Indenture is qualified under the TIA. Notwithstanding anything to the contrary herein, the Notes
are subject to all such terms, and holders of Notes are referred to the Indenture and the TIA for a statement of them. To the extent the
terms of the Indenture and this Note are inconsistent, the terms of the Indenture shall govern.
4.
Denominations; Transfer; Exchange.
The Notes are in registered form, without coupons,
in denominations of $2,000 and integral multiples of $1,000 in excess thereof. A Holder shall register the transfer or exchange of Notes
in accordance with the Indenture. The Company may require a Holder, among other things, to furnish appropriate endorsements and transfer
documents and to pay certain transfer taxes or similar governmental charges payable in connection therewith as permitted by the Indenture.
The Company need not issue, authenticate, register the transfer of or exchange any Notes or portions thereof for a period of fifteen (15)
days before the sending of a notice of redemption, nor need the Company register the transfer or exchange of any Note selected for redemption
in whole or in part.
5.
Amendment; Modification; Waiver.
The Indenture permits, with certain exceptions as
therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders
of the Securities of each series affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders
of not less than a majority in principal amount of the Securities of each series at the time Outstanding affected thereby. The Indenture
contains provisions permitting the Holders of not less than a majority in principal amount of the Securities of a series at the time Outstanding
with respect to which a default under the Indenture shall have occurred and be continuing, on behalf of the Holders of all Securities
of such series, to waive, with certain exceptions, such past default with respect to such series and its consequences. The Indenture also
permits the Holders of not less than a majority in principal amount of the Securities of a series at the time Outstanding, on behalf of
the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture. Any such consent
or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of
any Security issued upon the registration of transfer hereof or in exchange therefor or in lieu hereof, whether or not notation of such
consent or waiver is made upon this Note. Without notice to or consent of any Holder, the Indenture also permits the amendment or supplement
thereof to, among other things, cure any ambiguity, error, defect or inconsistency, or make any other change that does not adversely affect
the interests of the Holders.
5
6.
Optional Redemption.
The Company may redeem the Notes in whole or in part,
at its option, at any time or from time to time prior to maturity on at least 10 days, but not more than 60 days, prior notice electronically
delivered or mailed to the registered address of each Holder of the Notes (the “Redemption Date”) pursuant to the following
terms:
Prior to the Par Call Date, the Company may redeem
the Notes at its option, in whole or in part, at any time and from time to time, at a Redemption Price (expressed as a percentage of principal
amount and rounded to three decimal places) equal to the greater of:
(i) (a) the
sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the Redemption Date (assuming
the Notes matured on the Par Call Date) on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury
Rate plus 50 basis points less (b) interest accrued to the date of redemption, and
(ii) 100%
of the principal amount of the Notes to be redeemed,
plus, in either case, accrued and unpaid interest
thereon to the Redemption Date.
On or after the Par Call Date, the Company may redeem
the Notes, in whole or in part, at any time and from time to time, at a Redemption Price equal to 100% of the principal amount of the
Notes being redeemed plus accrued and unpaid interest thereon to the Redemption Date.
The Company’s actions and determinations in
determining the Redemption Price shall be conclusive and binding for all purposes, absent manifest error.
On and after the Redemption Date for the Notes, interest
will cease to accrue on the Notes or any portion thereof called for redemption, unless the Company defaults in the payment of the Redemption
Price and accrued interest, if any. On or before the Redemption Date for the Notes, the Company shall deposit with the Trustee or a Paying
Agent, funds sufficient to pay the Redemption Price of the Notes to be redeemed on the Redemption Date, and (except if the Redemption
Date shall be an Interest Payment Date) accrued interest, if any. If less than all of the Notes are to be redeemed, the Notes to be redeemed
shall be selected in accordance with the procedures of the Depositary; provided, however, that in no event shall Notes of
a principal amount of $2,000 or less be redeemed in part.
Notice of any redemption will be mailed or electronically
delivered (or otherwise transmitted in accordance with DTC procedures) at least 10 days but not more than 60 days before the Redemption
Date to each Holder of Notes to be redeemed. Such notice shall state, among other things, the Redemption Date, the Redemption Price and
the place or places that payment shall be made upon presentation and surrender of Notes to be redeemed. If the Redemption Price cannot
be determined at the time such notice is to be given, the actual Redemption Price, calculated as set forth in the Indenture, shall be
set forth in an Officer’s Certificate of the Company delivered to the Trustee no later than two Business Days prior to the Redemption
Date. Notice of redemption having been given as provided in the Indenture, the Notes called for redemption shall become due and payable
on the Redemption Date and at the applicable Redemption Price, plus accrued and unpaid interest, if any, to, but not including, the Redemption
Date.
6
Any redemption or notice of any redemption may, at
the Company’s discretion, be subject to one or more conditions precedent, including, but not limited to, completion of an equity
offering or change of control, issuance of indebtedness or other transaction or event. If any redemption is subject to satisfaction of
one or more conditions precedent, the notice of redemption in respect thereof shall describe each such condition, and if applicable, shall
state that, in the Company’s discretion, the Redemption Date may be delayed until such time as any or all such conditions shall
be satisfied (or waived by the Company in its sole discretion), or that such redemption may not occur and such notice may be rescinded
in the event that any or all such conditions shall not have been satisfied (or waived by the Company in its sole discretion) by the Redemption
Date as stated in such notice, or by the Redemption Date as so delayed. The Company may provide in such notice that payment of the applicable
Redemption Price and the performance of the Company’s obligations with respect to such redemption may be performed by another Person.
If the Redemption Date is on or after an interest
record date and on or before the related interest payment date, the accrued and unpaid interest, if any, will be paid to the person in
whose name the applicable Note is registered at the close of business on such interest record date, and no additional interest is payable
to holders whose Notes will be subject to redemption by the Company.
7.
Offer to Repurchase Upon Change of Control Repurchase
Event.
If a Change of Control Repurchase Event occurs with
respect to the Notes, unless the Company shall have exercised its right to redeem the Notes, the Company shall be required to make an
offer (the “Change of Control Offer”) to each Holder of the Notes to repurchase all or any part (equal to $2,000 and
in integral multiples of $1,000 in excess thereof) of that Holder’s Notes on the terms set forth in the Fourth Supplemental Indenture
and in the Notes. In the Change of Control Offer, the Company shall be required to offer payment in cash equal to 101% of the aggregate
principal amount of the Notes repurchased, plus accrued and unpaid interest, if any, on the Notes repurchased to, but not including, the
date of repurchase (subject to the right of the holders of record on the relevant record date to receive interest due on the relevant
Interest Payment Date).
Within 30 days following any Change of Control Repurchase
Event with respect to the Notes or, at the option of the Company, prior to any Change of Control, but after the public announcement of
the transaction or transactions that constitute or may constitute the Change of Control, the Company shall electronically deliver or mail
a notice to each Holder,
with a copy to the Trustee, describing the transaction or transactions
that constitute or may constitute the Change of Control Repurchase Event and offering to repurchase the Notes on the payment date specified
in the notice, which date shall be no earlier than 30 days and no later than 60 days from the date such notice is electronically delivered
or mailed (the “Change of Control Payment Date”). The notice shall, if electronically delivered or mailed prior to
the date of consummation of the Change of Control, state that the offer to purchase is conditioned on the Change of Control Repurchase
Event occurring on or prior to the Change of Control Payment Date specified in the notice.
7
On the Change of Control Payment Date, the Company
shall, to the extent lawful:
(i) accept
for payment all the Notes or portions of the Notes properly tendered pursuant to the Change of Control Offer;
(ii) deposit
with the Paying Agent an amount equal to the Change of Control Payment in respect of all the Notes or portions of the Notes properly tendered;
and
(iii) deliver
or cause to be delivered to the Trustee the Notes properly accepted, together with an Officer’s Certificate stating the aggregate
principal amount of Notes or portions of Notes being purchased by the Company.
If Holders of not less than 90% in aggregate principal
amount of the Outstanding Notes validly tender and do not withdraw such Notes in an offer to repurchase the Notes upon a Change of Control
Repurchase Event and the Company, or any third party making an offer to repurchase the Notes upon a Change of Control Repurchase Event
in lieu of the Company, purchases all of the Notes validly tendered and not withdrawn by such Holders, the Company shall have the right,
upon not less than 10 nor more than 60 days’ prior notice, given not more than 30 days following the Change of Control Payment Date,
to redeem all Notes that remain Outstanding following such purchase at a Redemption Price in cash equal to 101% of the principal amount
thereof, plus accrued and unpaid interest, if any, to the Redemption Date (subject to the right of the Holders of record on the relevant
Record Date to receive interest due on the relevant Interest Payment Date).
8.
Defaults and Remedies.
If an Event of Default with respect to the Notes
occurs and is continuing, then in every such case the Trustee or the Holders of not less than 25% in principal amount of the Outstanding
Notes may declare the principal amount of all the Notes to be due and payable immediately, by a notice in writing to the Company (and
to the Trustee if given by Holders), and upon any such declaration such principal amount (or specified amount) shall become immediately
due and payable.
The Indenture permits, subject to certain limitations
therein provided, Holders of not less than a majority in aggregate principal amount of the Outstanding Notes to direct the time, method
and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on the Trustee,
with respect to the Notes.
9.
Authentication.
This Note shall not be valid until the Trustee signs
the certificate of authentication on this Note by manual or PDF or other electronically imaged (such as DocuSign or Adobe Sign) signature.
8
10.
Abbreviations.
Customary abbreviations may be used in the name of
a Holder of a Note or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants
with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).
11.
CUSIP Numbers.
Pursuant to a recommendation promulgated by the Committee
on Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the Notes as a convenience to the
Holders of the Notes. No representation is made as to the accuracy of such numbers as printed on the Notes and reliance may be placed
only on the other identification numbers printed hereon.
12.
Governing Law.
The laws of the State of New York shall govern the
Indenture and this Note.
9
ASSIGNMENT FORM
To assign this Note, fill in the form below:
I or we assign and transfer this Note to
(Print or type assignee’s name, address and
zip code)
(Insert assignee’s soc. sec. or tax I.D. No.)
and irrevocably appoint agent
to transfer this Note on the books of the Company. The agent may substitute another to act for him.
Date: ___________________ Your
Signature: ___________________
Sign exactly as your name appears on the other side of this Note.
Signature Guarantee:
Signature
Signature must be guaranteed
Signature
Signatures must be guaranteed by an “eligible
guarantor institution” meeting the requirements of the Registrar, which requirements include membership or participation in the
Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may
be determined by the Registrar in addition to, or in substitution for, STAMP, all in accordance with the United States Securities Exchange
Act of 1934, as amended.
10
SCHEDULE OF INCREASES OR DECREASES
The following increases or decreases in this Security have been made:
Date of Exchange
Amount of
decrease in
principal
amount of this
Security
Amount of
increase in
principal
amount of this
Security
Principal
Amount of
amount of this
Security
following such
decrease (or
increase)
Signature
of
authorized
signatory of
Trustee
11
REPURCHASE EXERCISE NOTICE UPON A CHANGE OF
CONTROL
To: Kyndryl Holdings, Inc.
The undersigned registered owner of this Security
hereby acknowledges receipt of a notice from Kyndryl Holdings, Inc. (the “Company”) as to the occurrence of a
Change of Control Repurchase Event with respect to the Company and hereby directs the Company to pay, or cause the Trustee to pay, _________________
an amount in cash equal to 101% of the aggregate principal amount of the Notes, or the portion thereof (which is $2,000 principal amount
or an integral multiple of $1,000 in excess thereof) below designated, to be repurchased plus accrued and unpaid interest to, but excluding,
the repurchase date, except as provided in the Indenture. The undersigned hereby agrees that the Notes will be repurchased as of the Change
of Control Payment Date pursuant to the terms and conditions thereof and the Indenture.
Dated:_________________________________
Signature: ______________________________
Principal amount to be repurchased (at least $2,000 or an
integral multiple of $1,000 in excess thereof): _______________________________
Remaining principal amount following such repurchase:
By:
Authorized Signatory
12
EX-5.1 — EXHIBIT 5.1
EX-5.1
Filename: tm2626148d1_ex5-1.htm · Sequence: 5
Exhibit 5.1
787 Seventh Avenue
New York, NY 10019-6099
Tel: 212 728 8000
Fax: 212 728 8111
September 28, 2026
Kyndryl Holdings, Inc.
One Vanderbilt Avenue, 15th Floor
New York, New York 10017
Re: Offering of Senior Notes
Ladies and Gentlemen:
We have acted as special counsel to Kyndryl Holdings, Inc.,
a Delaware corporation (the “Company”), in connection with the sale by the Company of $600,000,000 aggregate principal
amount of its 7.800% Senior Notes due 2029 (the “2029 Notes”) and $400,000,000 aggregate principal amount of its 7.875%
Senior Notes due 2032 (the “2032 Notes” and, together with the 2029 Notes, the “Notes”), pursuant
to that certain Underwriting Agreement, dated September 24, 2026 (the “Underwriting Agreement”), by and among
the Company and J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC, as representatives of
the underwriters named therein (the “Underwriters”). The Notes were issued pursuant to an indenture, dated as of October 15,
2021 (the “Base Indenture”), between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee (the
“Trustee”), as supplemented by a Third Supplemental Indenture relating to the 2029 Notes (the “Third Supplemental
Indenture”) and a Fourth Supplemental Indenture relating to the 2032 Notes (the “Fourth Supplemental Indenture”
and, together with the Third Supplemental Indenture, the “Supplemental Indentures”), each dated as of September 28,
2026, between the Company and the Trustee. The Base Indenture as supplemented by the Supplemental Indentures is herein referred to as
the “Indenture.” The Notes are being offered pursuant to Rule 415 under the Securities Act of 1933, as amended
(the “Securities Act”). This opinion is being delivered in connection with that certain Registration Statement on Form S-3
(No. 333-276713), originally filed with the Securities and Exchange Commission (the “Commission”) on January 26,
2024 (the “Registration Statement”) and the related prospectus contained in the Registration Statement, as supplemented
by the final prospectus supplement relating to the Notes, dated September 24, 2026, filed with the Commission pursuant to Rule 424
under the Securities Act (as so supplemented, the “Prospectus”).
We have examined such documents
as we have considered necessary for purposes of this opinion, including (i) the Registration Statement, (ii) the Prospectus,
(iii) the Indenture, (iv) copies of the certificate of incorporation and by-laws of the Company, (v) the Underwriting Agreement,
(vi) the form of global certificate evidencing the 2029 Notes, (vii) the form of global certificate evidencing the 2032 Notes,
(viii) a certificate of the Secretary of the Company, dated September 28, 2026, including the exhibits thereto, (ix) a
certificate, dated September 16, 2026, and a facsimile bringdown thereof, dated September 28, 2026, from the Office of the Secretary
of the State of Delaware as to the existence and good standing in the State of Delaware of the Company and (x) such other documents
and matters of law as we have deemed necessary in connection with the opinions hereinafter expressed.
Brussels
Chicago Dallas Frankfurt Hamburg Houston London Los Angeles
Milan
Munich New York Palo Alto Paris Rome San Francisco Washington
Kyndryl Holdings, Inc.
Page 2
As to questions of fact material
to the opinions expressed below, we have relied without independent check or verification upon certificates and comparable documents of
public officials and officers and representatives of the Company and statements of fact contained in the documents we have examined. In
our examination and in rendering our opinions contained herein, we have assumed (i) the genuineness of all signatures of all parties;
(ii) the authenticity of all corporate records, documents, agreements, instruments and certificates submitted to us as originals
and the conformity to original documents and agreements of all documents and agreements submitted to us as conformed, certified or photostatic
copies; (iii) the due organization, valid existence and good standing of all parties (other than the Company) under all applicable
laws; (iv) the legal right and power of all parties (other than the Company) under all applicable laws and regulations to enter into,
execute and deliver such documents, agreements and instruments; (v) the due authorization, execution and delivery of the Registration
Statement and due authorization of all documents, agreements and instruments (including the Indenture) by all parties thereto (other than
the Company) and the binding effect of such documents, agreements and instruments on all parties (other than the Company); (vi) that
all consents, approvals and authorizations by any governmental authority required to be obtained by all parties (other than the Company)
have been obtained by such parties; and (vii) the capacity of natural persons. In addition, we have reviewed the originals or copies
certified or otherwise identified to our satisfaction of all such corporate records of the Company and such other instruments and other
certificates of public officials, officers and representatives of the Company and such other persons, and we have made such investigations
of law, as we have deemed appropriate as a basis for the opinion expressed below.
Based on the foregoing, and
subject to the further assumptions and qualifications set forth below, it is our opinion that the Notes have been duly authorized and,
when they have been duly executed and authenticated in accordance with the provisions of the Indenture and delivered to and paid for by
the Underwriters in accordance with the terms of the Underwriting Agreement, will be valid, binding and enforceable obligations of the
Company, entitled to the benefits of the Indenture.
The opinions expressed herein
are limited to the laws of the State of New York, the General Corporation Law of the State of Delaware and the federal laws of the United
States as in effect on the date of this letter and typically applicable to transactions of the type contemplated in this letter and to
the specific legal matters expressly addressed herein, and no opinion is expressed or implied with respect to the laws of any other jurisdiction
or any legal matter not expressly addressed herein.
The opinions set forth above
are qualified in that the legality or enforceability of the documents referred to therein may be (a) subject to applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting creditors' rights generally, (b) limited insofar as the remedies
of specific performance and injunctive and other forms of equitable relief may be subject to equitable defenses and the discretion of
the court before which any enforcement thereof may be sought, and (c) subject to general principles of equity (regardless of whether
enforceability is considered in a proceeding at law or in equity) including principles of commercial reasonableness or conscionability
and an implied covenant of good faith and fair dealing. Insofar as provisions of any of the documents referenced in this letter provide
for indemnification or contribution, the enforcement thereof may be limited by public policy considerations.
Kyndryl Holdings, Inc.
Page 3
We hereby consent to the use
of our name in the Prospectus, under the heading “Legal Matters,” as counsel for the Company who has passed on the validity
of the Notes and to the filing of this opinion as Exhibit 5.1 to the Company’s Current Report on Form 8-K dated September 28,
2026. In giving such consent, we do not thereby admit that we are within the category of persons whose consent is required under Section 7
of the Securities Act.
The opinion expressed herein
is rendered on and as of the date hereof, and we assume no obligation to advise you, or to make any investigations, as to any legal developments
or factual matters arising subsequent to the date hereof that might affect the opinion expressed herein.
Very truly yours,
/s/ Willkie Farr & Gallagher LLP
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Sep. 24, 2026
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Holdings, Inc.
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Entity Tax Identification Number
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DE
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Balance Type:
na
Period Type:
duration
X
- Definition
Commission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
+ References
No definition available.
+ Details
Name:
dei_EntityFileNumber
Namespace Prefix:
dei_
Data Type:
dei:fileNumberItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Two-character EDGAR code representing the state or country of incorporation.
+ References
No definition available.
+ Details
Name:
dei_EntityIncorporationStateCountryCode
Namespace Prefix:
dei_
Data Type:
dei:edgarStateCountryItemType
Balance Type:
na
Period Type:
duration
X
- Definition
The exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
+ Details
Name:
dei_EntityRegistrantName
Namespace Prefix:
dei_
Data Type:
xbrli:normalizedStringItemType
Balance Type:
na
Period Type:
duration
X
- Definition
The Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
+ Details
Name:
dei_EntityTaxIdentificationNumber
Namespace Prefix:
dei_
Data Type:
dei:employerIdItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Local phone number for entity.
+ References
No definition available.
+ Details
Name:
dei_LocalPhoneNumber
Namespace Prefix:
dei_
Data Type:
xbrli:normalizedStringItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 13e
-Subsection 4c
+ Details
Name:
dei_PreCommencementIssuerTenderOffer
Namespace Prefix:
dei_
Data Type:
xbrli:booleanItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14d
-Subsection 2b
+ Details
Name:
dei_PreCommencementTenderOffer
Namespace Prefix:
dei_
Data Type:
xbrli:booleanItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Title of a 12(b) registered security.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b
+ Details
Name:
dei_Security12bTitle
Namespace Prefix:
dei_
Data Type:
dei:securityTitleItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Name of the Exchange on which a security is registered.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection d1-1
+ Details
Name:
dei_SecurityExchangeName
Namespace Prefix:
dei_
Data Type:
dei:edgarExchangeCodeItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14a
-Subsection 12
+ Details
Name:
dei_SolicitingMaterial
Namespace Prefix:
dei_
Data Type:
xbrli:booleanItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Trading symbol of an instrument as listed on an exchange.
+ References
No definition available.
+ Details
Name:
dei_TradingSymbol
Namespace Prefix:
dei_
Data Type:
dei:tradingSymbolItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Securities Act
-Number 230
-Section 425
+ Details
Name:
dei_WrittenCommunications
Namespace Prefix:
dei_
Data Type:
xbrli:booleanItemType
Balance Type:
na
Period Type:
duration