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FIRST SUPPLEMENTAL INDENTURE

Addendum or Modifications

FIRST SUPPLEMENTAL INDENTURE | Document Parties: MAIDEN HOLDINGS, LTD. | MAIDEN HOLDINGS NORTH AMERICA, LTD | MAIDEN HOLDINGS, LTD | Senior Financial Services | Wilmington Trust Company You are currently viewing:
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MAIDEN HOLDINGS, LTD. | MAIDEN HOLDINGS NORTH AMERICA, LTD | MAIDEN HOLDINGS, LTD | Senior Financial Services | Wilmington Trust Company

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Title: FIRST SUPPLEMENTAL INDENTURE
Governing Law: New York     Date: 6/24/2011
Industry: Insurance (Prop. and Casualty)     Sector: Financial

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Exhibit 4.2

 

FIRST SUPPLEMENTAL INDENTURE

 

Dated as of June 24, 2011

 

Supplementing that Certain

 

INDENTURE

 

Dated as of June 24, 2011

 

Among

 

MAIDEN HOLDINGS NORTH AMERICA, LTD., as Issuer

 

MAIDEN HOLDINGS, LTD., as Guarantor

 

and

 

WILMINGTON TRUST COMPANY, as Trustee

 

 

8.25% NOTES DUE 2041

 

 

 

 

 


 

 

TABLE OF CONTENTS

 

Page

ARTICLE I.

DEFINITIONS

 

SECTION 1.1.

Certain Terms Defined in the Indenture

2

SECTION 1.2.

Definitions

2

 

 

 

ARTICLE II.

FORM AND TERMS OF THE NOTES

 

SECTION 2.1.

Form and Dating

3

SECTION 2.2.

Certain Terms of the Notes

5

SECTION 2.3.

Optional Redemption

6

SECTION 2.4.

Payment of Additional Amounts

6

SECTION 2.5.

Redemption for Changes in Withholding Taxes

8

SECTION 2.6.

Limitation on Liens on Stock of Subsidiaries

8

SECTION 2.7.

Limitations on Disposition of Stock of Designated Subsidiaries

9

 

 

 

ARTICLE III.

GUARANTEE

 

SECTION 3.1.

Applicability of Guarantee

10

SECTION 3.2.

Limitation of Guarantor’s Liability

10

 

 

 

ARTICLE IV.

MISCELLANEOUS

 

SECTION 4.1.

Relationship with Indenture

10

SECTION 4.2.

Trust Indenture Act Controls

10

SECTION 4.3.

Governing Law

11

SECTION 4.4.

Multiple Counterparts

11

SECTION 4.5.

Severability

11

SECTION 4.6.

Ratification

11

SECTION 4.7.

Headings

11

SECTION 4.8.

Effectiveness

11

 

EXHIBIT A— Form of 8.25% Note due 2041 A-1

 

 

i


 

 

FIRST SUPPLEMENTAL INDENTURE

 

This First Supplemental Indenture, dated as of June 24, 2011(this “ First Supplemental Indenture ”), among MAIDEN HOLDINGS NORTH AMERICA, LTD., a corporation duly organized and existing under the laws of the State of Delaware (the “ Company ”), having its principal executive office located at 6000 Midlantic Drive, Suite 200S, Mount Laurel, New Jersey 08054; MAIDEN HOLDINGS, LTD., a company duly organized and existing under the laws of Bermuda, as guarantor (the “ Guarantor ”), having its principal executive office located at 131 Front Street, 2 nd Floor, Hamilton HM12 Bermuda; and Wilmington Trust Company, a banking corporation duly organized and existing under the laws of the State of Delaware, as trustee (the “ Trustee ”), supplements that certain Indenture, dated as of June 24, 2011, among the Company, the Guarantor and the Trustee (the “ Indenture ”).

 

RECITALS OF THE COMPANY

 

WHEREAS, the Company has duly authorized the execution and delivery of the Indenture to provide for the issuance from time to time of its unsecured debentures, notes or other evidences of indebtedness to be issued in one or more series as provided for in the Indenture;

 

WHEREAS, the Guarantor has duly authorized the execution and delivery of the Indenture in order to fully and unconditionally guarantee the Company’s obligations under the Indenture;

 

WHEREAS, the Indenture provides that the Securities shall be in the form as may be established by or pursuant to a Board Resolution and set forth in an Officers’ Certificate or as may be established in one or more supplemental indentures thereto, in each case with such appropriate insertions, omissions, substitutions, and other variations as are required or permitted by the Indenture; and

 

WHEREAS, the Company has determined to issue and deliver, and the Trustee shall authenticate, a series of Securities designated as the Company’s “8.25% Notes due 2041” (hereinafter called the “ Notes ”) pursuant to the terms of this First Supplemental Indenture and substantially in the form as herein set forth, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by the Indenture and this First Supplemental Indenture.

 

NOW, THEREFORE, THIS FIRST SUPPLEMENTAL INDENTURE WITNESSETH:

 

For and in consideration of the premises stated herein and the purchase of the Notes by the Holders thereof, the parties hereto hereby enter into this First Supplemental Indenture, for the equal and proportionate benefit of all Holders of the Notes, as follows:

 

 

 


 

 

ARTICLE I.

 

DEFINITIONS

 

 

SECTION 1.1.

Certain Terms Defined in the Indenture .

 

For purposes of this First Supplemental Indenture, all capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Indenture, as amended and supplemented hereby.

 

 

SECTION 1.2.

Definitions .

 

For the benefit of the Holders of the Notes, Section 101 of the Indenture shall be amended by adding or substituting, as applicable, the following new definitions:

 

Consolidated Net Worth ” means, at any date, the sum of all amounts which would be included under stockholders’ equity on a consolidated balance sheet of an applicable entity and its subsidiaries determined in accordance with United States generally accepted accounting principles on such date or, in the event such date is not a fiscal quarter end, as of the immediately preceding fiscal quarter end.

 

Designated Subsidiary ” means any present or future consolidated Subsidiary of the Guarantor, the Consolidated Net Worth of which constitutes at least 10% of the Guarantor’s Consolidated Net Worth.

 

Global Notes ” means, individually and collectively, each of the Notes in the form of global Securities registered in the name of the Depositary or its nominee, substantially in the form of Exhibit A attached hereto.

 

Guarantor ” means the Person named as the “Guarantor” in the first paragraph of this First Supplemental Indenture.

 

Indebtedness ” means, without duplication and solely for the purposes of Section 2.6 herein, with respect to any Person, whether or not contingent:

 

(1)           the principal of and any premium and interest on (a) indebtedness of such Person for money borrowed or (b) indebtedness evidenced by notes, debentures, bonds or other similar instruments for the payment of which such person is responsible or liable;

 

(2)           all capitalized lease obligations of such Person;

 

(3)           all obligations of such Person issued or assumed as the deferred purchased price of property, all conditional sale obligations and all obligations under any title retention agreement (but excluding trade accounts payable arising in the ordinary course of business);

 

(4)           all obligations of such Person for the reimbursement of any obligor on any banker’s acceptance, bank guarantees, surety bonds or similar credit transaction; and

 

 

2


 

 

(5)           any amendments, modifications, refundings, renewals or extensions of any indebtedness or obligation described as “Indebtedness” in clauses (1) through (4) above;

 

if and to the extent any of the preceding items (other than letters of credit) would appear as a liability upon a balance sheet of such person prepared in accordance with United States generally accepted accounting principles; provided, however , the term ‘‘Indebtedness’’ includes all of the following items, whether or not any such items would appear as a liability on a balance sheet of such Person prepared in accordance with such generally accepted accounting principles:

 

 

(i)

all Indebtedness of others secured by any mortgage, pledge, lien, security interest or other encumbrance on any property or asset of such Person (whether or not such Indebtedness is assumed by such Person);

 

 

(ii)

to the extent not otherwise included, any guarantee by such person of Indebtedness of any other Person; and

 

 

(iii)

preferred stock or other equity interests providing for mandatory redemption or sinking fund or similar payments issued by any subsidiary of such Person.

 

Payor ” means, in respect of the Notes, each of the Company, the Guarantor and any of their respective successors.

 

Relevant Tax Jurisdiction ” means the jurisdiction, other than the United States, where the Payor is organized or otherwise considered to be a resident for tax purposes, any jurisdiction, other than the United States, from or through which the Payor makes a payment on the Notes, or, in each case, any political organization or governmental authority thereof or therein having the power to tax.

 

ARTICLE II.

 

FORM AND TERMS OF THE NOTES

 

 

SECTION 2.1.

Form and Dating .

 

The Notes and the Trustee’s certificate of authentication shall be substantially in the form of Exhibit A attached hereto.  The Notes shall be executed on behalf of the Company by two of the officers of the Company specified in Section 303 of the Indenture.  The Notes may have notations, legends or endorsements required by law, stock exchange rules or usage.  Each Note shall be dated the date of its authentication.  The Notes and any beneficial interest in the Notes shall be in minimum denominations of $25.00 and integral multiples of $25.00 in excess thereof.

 

 

3


 

 

The terms and notations contained in the Notes shall constitute, and are hereby expressly made, a part of the Indenture as supplemented by this First Supplemental Indenture; and the Company and the Trustee, by their execution and delivery of this First Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby; provided that, to the extent of any inconsistency between the terms and provisions in the Indenture, as supplemented by this First Supplemental Indenture, and those contained in the Notes, the Indenture, as supplemented by this First Supplemental Indenture, shall govern.

 

(a)            Global Notes .  The Notes designated herein shall be issued initially in the form of one or more fully-registered permanent global Securities, which shall be held by the Trustee as custodian for The Depository Trust Company, New York, New York (the “ Depositary ”), and registered in the name of Cede & Co., the Depositary’s nominee, duly executed by the Company, authenticated by the Trustee and with the Guarantee endorsed thereon as hereinafter provided.  The aggregate principal amount of outstanding Notes may from time to time be increased or decreased by adjustments made on the records of the Trustee and the Depositary or its nominee as hereinafter provided.

 

Unless and until the Global Notes are exchanged in whole or in part for the individual Notes represented thereby pursuant to Section 305 of the Indenture, such Global Notes may not be transferred except as a whole by the Depositary to its nominee or by its nominee to the Depositary or another nominee of the Depositary or by the Depositary or any of its nominees to a successor depositary or any nominee of such successor depositary.  Upon the occurrence of the events specified in Section 305 of the Indenture in relation thereto, the Company shall execute, and the Trustee shall, upon receipt of a Company Order for authentication, authenticate and deliver, Notes in definitive form in an aggregate principal amount equal to the principal amount of the Global Notes in exchange for such Global Note.

 

(b)            Book-Entry Provisions .  This Section 2.1(b) shall apply only to the Global Notes deposited with or on behalf of the Depositary.

 

The Company shall execute and the Trustee shall, in accordance with this Section 2.1(b), authenticate and deliver the Global Notes that shall be registered in the name of the Depositary or the nominee of the Depositary and shall be held by the Trustee as custodian for the Depositary.

 

Participants of the Depositary shall have no rights either under the Indenture or with respect to any Global Notes.  The Depositary shall be treated by the Company, the Trustee and any agent of the Company or the Trustee as the absolute owner of such Global Note for all purposes under the Indenture.  Notwithstanding the foregoing, nothing herein shall prevent the Company or the Trustee from giving effect to any written certification, proxy or other authorization furnished by the Depositary or impair, as between the Depositary and its participants, the operation of customary practices of such Depositary governing the exercise of the rights of an owner of a beneficial interest in the Global Notes.

 

(c)            Definitive Notes .  Definitive Notes issued in physical, certificated form, registered in the name of the beneficial owner thereof, shall be substantially in the form of Exhibit A attached hereto, but without including the text referred to therein as applying only to Global Notes.  Except as provided above in subsection (a), owners of beneficial interests in the Global Notes will not be entitled to receive physical delivery of certificated Notes.

 

(d)            Transfer and Exchange of the Notes .  The transfer and exchange of beneficial interests in the Global Notes shall be effected through the Depositary, in accordance with the Indenture and the procedures of the Depositary therefor.  Beneficial interests in the Global Notes may be transferred to Persons who take delivery thereof in the form of a beneficial interest in the Global Notes.

 

 

4


 

 

(e)            Paying Agent .  The Company appoints the Trustee as the initial agent of the Company for the payment of the principal of (and premium, if any) and interest on  and any Additional Amounts with respect to the Notes, and the Corporate Trust Office of the Trustee in Wilmington, Delaware, be and hereby is, designated as the office or agency where the Notes may be presented for payment and where notices to or demands upon the Company in respect of the Notes and this First Supplemental Indenture and the Indenture pursuant to which the Notes are to be issued may be made.

 

 

SECTION 2.2.

Certain Terms of the Notes .

 

The following terms relating to the Notes are hereby established:

 

(a)            Title .   The Notes shall constitute a series of Securities having the title “8.25% Notes due 2041.”

 

(b)            Principal Amount .   The aggregate principal amount of the Notes that may be initially authenticated and delivered under the Indenture (except for Notes authenticated and delivered upon registration of, transfer of, or in exchange for, or in lieu of, other Notes pursuant to Sections 304, 305, 306, 905 or 1107 of the Indenture) shall be ONE HUNDRED AND SEVEN MILLION, FIVE HUNDRED THOUSAND DOLLARS ($107,500,000).  The Company may, from time to time, without notice to, or the consent of, the Holders of the Notes, issue and sell additional Securities (“ Additional Securities ”) ranking equally and ratably with the Notes in all respects (other than the issue date, and to the extent applicable, issue price, initial date of interest accrual and initial interest payment date of such Additional Securities), provided that such Additional Securities are fungible with the previously issued Notes for U.S. federal income tax purposes.  Any such Additional Securities shall be consolidated and form a single series with the Notes for all purposes under the Indenture, including voting.

 

(c)            Maturity Date .   The entire outstanding principal of the Notes shall be payable on June 15, 2041.

 

(d)            Interest Rate . The rate at which the Notes shall bear interest shall be 8.25% per annum, computed on the basis of a 360-day year comprised of twelve 30-day months; the date from which interest shall accrue on the Notes shall be June 24, 2011, or the most recent Interest Payment Date to which interest has been paid or duly provided for; the Interest Payment Dates for the Notes shall be the 15 th day of March, June, September and December of each year, commencing on September 15, 2011; the interest so payable, and punctually paid or duly provided for, on any Interest Payment Date, will be paid, in immediately available funds, to the Persons in whose names the Notes (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the 1 st day of March, June, September and December (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date.  Any such interest not punctually paid or duly provided for shall forthwith cease to be payable to the respective Holders on such Regular Record Date, and such defaulted interest may be paid to the Persons in whose names the Notes (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such defaulted interest to be fixed by the Trustee, notice whereof shall be given to Holders of Notes not less than 10 days prior to such Special Record Date, or may be paid at any time in any other lawful manner not inconsistent with requirements of any securities exchange on which the Notes may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture.  Payment of principal of, and premium, if any, and interest on, and any Additional Amounts with respect to, the Notes will be made at the Corporate Trust Office of the Trustee or such other office or agency of the Company as may be designated for such purpose, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided , however , that each installment of interest, premium, if any, and principal on, and any Additional Amounts with respect to, the Notes may at the Company’s option be paid in immediately available funds by wire transfer to an account maintained by the payee located in the United States.

 

 

5


 

 

(e)            Currency .  The currency of denomination of the Notes is United States dollars.  Payment of principal of and interest and premium, if any, on, and any Additional Amounts with respect to, the Notes will be made in United States dollars.

 

 

SECTION 2.3.

Optional Redemption .

 

(a)            Applicability of Article Eleven .  The provisions of Article Eleven of the Indenture shall apply to the Notes, as supplemented by Sections 2.3(a) and (b) below.

 

(b)            Redemption Price .  The Notes shall be redeemable, for cash, in whole or in part, on or after June 15, 2016, at the option of the Company, at any time and from time to time, until the Maturity Date at a Redemption Price equal to 100% of the principal amount of the Notes to be redeemed, plus (i) accrued but unpaid interest on the principal amount of Notes being redeemed to, but not including, the Redemption Date and (ii) Additional Amounts, if any (subject, in each case, to the rights of Holders of Notes on the applicable Regular Record Date to receive interest due on the applicable Interest Payment Date).

 

(c)            Interest Payable .  On and after any 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.

 

 

SECTION 2.4.

Payment of Additional Amounts .

 

(a)            Additional Amounts .  If any taxes, assessments or other governmental charges are imposed by the Relevant Tax Jurisdiction in respect of any payments under the Notes, the Payor shall pay to each Holder of the Notes, to the extent it may lawfully do so, such Additional Amounts as may be necessary in order that the net amounts paid to such Holder will be not less than the amount specified in the Notes to which such Holder is otherwise entitled.

 

 

6


 

 

(b)            Exceptions to Payments of Additional Amounts .  Notwithstanding the foregoing clause (a), the Payor shall not be required to make any payment of Additional Amounts for or on account of:

 

(1)           any tax, assessment or other governmental charge which would not have been imposed but for (i) the existence of any present or former connection between such Holder (or between a fiduciary, settlor, beneficiary, member or shareholder of, or possessor of a power over, such Holder, if such Holder is an estate, trust, partnership, limited liability company or corporation) and the Relevant Tax Jurisdiction (other than by reason of the mere ownership of, or receipt of payment under, the Notes), including, without limitation, such Holder (or such fiduciary, settlor, beneficiary, member, shareholder or possessor) being or having been a citizen or resident thereof or being or having been present or engaged in trade or business therein or having or having had a permanent establishment therein or (ii) the presentation of a Note (where presentation is required) for payment on a date more than 30 days after (x) the date on which such payment became due and payable or (y) the date on which payment thereof is duly provided for, whichever occurs later;

 

(2)           any estate, inheritance, gift, sales, transfer, personal property or similar tax, assessment or other governmental charge;

 

(3)           any tax, assessment or other governmental charge which is payable otherwise than by withholding from payment of (or in respect of) principal of, premium, if any, or any interest on, the Notes;

 

(4)           any tax, assessment or other governmental charge that is imposed or withheld by reason of the failure by the Holder or the beneficial owner of the Notes to comply with a request of the Payor addressed to such Holder to provide information, documents or other evidence concerning the nationality, residence or identity of such Holder or such beneficial owner which is required by a statute, treaty, regulation or a


 
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