Item 1.02. Termination of a Material Definitive Agreement
In connection with the Mergers, on March 1, 2021, the Company terminated all
commitments and obligations under its revolving credit facility (the "Revolving
Credit Facility"), which is governed by the Credit Agreement, dated as of
December 11, 2018, by and among the Company, Wells Fargo Bank, National
Association, Eaton Vance Management, and the lenders thereto (the "Credit
Agreement"). There were no outstanding borrowings under the Revolving Credit
Facility or the Credit Agreement at the time of termination. The Company did not
incur any termination or exit fees in connection with the termination of the
Revolving Credit Facility or the Credit Agreement.
Item 2.01 Completion of Acquisition or Disposition of Assets
Pursuant to the Merger Agreement, at the effective time of the First Merger (the
"Effective Time"), each share of non-voting common stock, par value $0.00390625
per share, of the Company ("Company Non-Voting Common Stock") and each share of
voting common stock, par value $0.00390625 per share, of the Company ("Company
Voting Common Stock" and, together with the Company Non-Voting Common Stock,
"Company Common Stock") issued and outstanding immediately before the Effective
Time (other than certain shares of Company Common Stock held by Morgan Stanley
or a subsidiary of the Company), were converted into, at the election of the
holder thereof, the right to receive the following consideration (the
consideration such holder elected, the "Merger Consideration"): (i) (a) 0.5833
shares of common stock of Morgan Stanley, par value $0.01 per share ("Morgan
Stanley Common Stock"), and (b) $28.25 in cash (the "Mixed Consideration"); (ii)
$73.00 in cash (the "Cash Election Consideration"); or (iii) (a) 0.6589 shares
of Morgan Stanley Common Stock and (b) $22.45 in cash (the "Stock Election
Consideration"). The "Parent Common Stock Reference Price" referenced in the
Merger Agreement and used for purposes of calculating the Cash Election
Consideration and the Stock Election Consideration was $76.7216 (the
volume-weighted average price, rounded to four decimal places, of one share of
Morgan Stanley Common Stock on the New York Stock Exchange for the period of ten
consecutive trading days ending February 25, 2021, as determined by using the
VWAP command for MS US Equity on the Bloomberg Terminal). Holders of Eaton Vance
Common Stock who did not make an election were paid Mixed Consideration. No
fractional shares of Morgan Stanley Common Stock were issued in the Mergers, and
holders of Eaton Vance Common Stock will receive cash in lieu of any fractional
shares of Morgan Stanley Common Stock.
Pursuant to the Merger Agreement, at the Effective Time, each outstanding and
unexercised option to purchase Company Non-Voting Common Stock (each, a "Company
Stock Option"), whether vested or unvested, was cancelled and converted into the
right to receive an amount in cash equal to (i) the positive difference, if any,
between $73.00 in cash (the "Equity Award Cash Amount") and the applicable
option exercise price, multiplied by (ii) the number of shares of Company
Non-Voting Common Stock subject to such Company Stock Option, in accordance with
the terms of the Merger Agreement. Any such Company Stock Options that were
granted to Company personnel who were, as of the Effective Time, in the service
of the Company or its subsidiaries, also
received an amount, in cash, equal to the difference, if any, between the amount
of the payment described in the previous sentence and the Black-Scholes value of
the applicable Company Stock Option.
At the Effective Time, each outstanding deferred stock unit award vested and
converted into the right to receive the Equity Award Cash Amount, increased by
accumulated dividends.
Each Company restricted stock unit that was granted by the Company following the
required stockholder approval of the Merger Agreement but prior to the Effective
Time was granted in the form of a restricted stock unit that was assumed by
Morgan Stanley at the Effective Time and at the Effective Time became a
restricted stock unit award with respect to shares of Morgan Stanley Common
Stock.
. . .
Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or
Standard; Transfer of Listing.
On the Closing Date, in connection with the consummation of the Mergers, the
Company notified The New York Stock Exchange (the "NYSE") that the Mergers had
been consummated and requested that the trading of shares of Non-Voting Common
Stock on the NYSE be suspended and that the listing of shares of Non-Voting
Common Stock on the NYSE be withdrawn. In addition, the Company requested that
the NYSE file with the SEC a notification on Form 25 to report the delisting of
Non-Voting Common Stock from the NYSE and to deregister Non-Voting Common Stock
under Section 12(b) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). The Company intends to file a Form 15 with the SEC to request
the termination of the registration of Non-Voting Common Stock under Section
12(g) of the Exchange Act and to suspend the Company's reporting obligations
under Sections 13 and 15(d) of the Exchange Act as soon as practicable.
Item 3.03. Material Modification to Rights of Security Holders.
Pursuant to the Merger Agreement and in connection with the consummation of the
First Merger, each share of Company Common Stock was converted into the right to
receive the Merger Consideration.
On the Closing Date, in connection with the consummation of the Mergers, the
Company, Merger Sub 2, Morgan Stanley, a Delaware corporation (the "Guarantor"),
and Wilmington Trust Company, as trustee (the "Trustee"), entered into the
Fourth Supplemental Indenture (the "Fourth Supplemental Indenture") to the
Indenture, dated as of October 2, 2007, between the Company and the Trustee (the
"Base Indenture"), as supplemented by (i) the First Supplemental Indenture,
dated as of October 2, 2007 (the "First Supplemental Indenture"), with respect
to the Company's 6.500% Notes due 2017 (which notes are no longer outstanding on
the date hereof), (ii) the Second Supplemental Indenture, dated as of June 25,
2013 (the "Second Supplemental Indenture"), with respect to the Company's 3.625%
Notes due 2023 (the "2023 Notes"), and (iii) the Third Supplemental Indenture,
dated as of April 6, 2017 (the "Third Supplemental Indenture" and, together with
the Base Indenture, the First Supplemental Indenture and the Second Supplemental
Indenture, the "Indenture"), with respect to the Company's 3.500% Notes due 2027
(the "2027 Notes" and, together with the 2023 Notes, the "Notes"). Pursuant to
the terms of the Fourth Supplemental Indenture, Merger Sub 2 assumed the due and
punctual payment of the principal of, and premium, if any, and interest on, the
Notes and the due and punctual performance and observance of all the covenants
and conditions of the Indenture to be performed by the Company. In addition,
pursuant to the terms and subject to the provisions of the Fourth Supplemental
Indenture, the Guarantor has irrevocably, fully and unconditionally guaranteed,
on an unsecured basis, the full and punctual payment of all amounts payable
under the Notes, and the full and punctual payment of all other amounts payable
by Merger Sub 2 under the Indenture.
The foregoing descriptions of the Indenture and the Fourth Supplemental
Indenture do not purport to be complete and are qualified in their entirety by
reference to the full text of such agreements, copies of which are attached as
Exhibits 4.1 and 4.2 to the Company's Current Report on Form 8-K filed on
October 2, 2007, Commission File Number 1-8100, Exhibit 4.1 to the Company's
Current Report on Form 8-K filed on June 25, 2013, Commission File Number
1-8100, Exhibit 4.1 to the Company's Current Report on Form 8-K filed on April
6, 2017, Commission File Number 1-8100, and Exhibit 4.1 to this Current Report
on Form 8-K, respectively, and are incorporated herein by reference.
The information set forth or incorporated by reference in the Introductory Note
and Items 2.01, 3.01, 5.01 and 5.03 of this Current Report on Form 8-K is
incorporated into this Item 3.03 by reference.
Item 5.01. Changes in Control of Registrant.
As a result of the consummation of the First Merger, pursuant to the Merger
Agreement, a change in control of the Company occurred, and the Company became a
wholly owned subsidiary of Morgan Stanley.
The information set forth in the Introductory Note and Item 2.01 of this Current
Report on Form 8-K is incorporated into this Item 5.01 by reference.
Item 5.02. Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers.
Upon completion of the First Merger, the following directors of the Company
immediately prior to the Effective Time ceased to be directors of the Company
pursuant to the terms of the Merger Agreement (and not because of any
disagreement with the Company or its operations, policies or practices): Thomas
E. Faust Jr.; Ann E. Berman; Leo I. Higdon, Jr.; Paula A. Johnson; Brian D.
Langstraat; Dorothy E. Puhy; Winthrop H. Smith, Jr.; and Richard A. Spillane,
Jr. From and after the Effective Time, until his successor is duly elected or
appointed and qualified in accordance with applicable law, Sebastiano Visentini,
who constituted the sole director of Merger Sub 1 became the sole director of
the surviving entity as of immediately following the Effective Time pursuant to
the terms of the Merger Agreement.
In addition, upon completion of the Second Merger, all of the officers of the
Company immediately prior to the effective time of the Second Merger (the
"Second Merger Effective Time") ceased serving in their capacity as officers of
the Company. From and after the Second Merger Effective Time, until their
respective successors are duly elected or appointed and qualified in accordance
with applicable law, the officers of Merger Sub 2 as of immediately prior to the
Second Merger Effective Time will be the officers of the surviving entity
pursuant to the terms of the Merger Agreement.
The information set forth in the Introductory Note of this Current Report on
Form 8-K is incorporated by reference herein.
Item 5.03. Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year
At the Effective Time, the Company's articles of incorporation and bylaws were
amended, respectively, to be the same form as the certificate of incorporation
and bylaws filed herewith as Exhibits 3.1 and 3.2, respectively, to this Form
8-K and are incorporated herein by reference.
After giving effect to the Second Merger, the articles of organization and
limited liability company agreement of Merger Sub 2 continued in full force and
effect as the organizational documents of the surviving entity in the Second
Merger, each of which is filed herewith as Exhibits 3.3 and 3.4 respectively, to
this Form 8-K and are incorporated by reference herein.
Item 8.01. Other Events
On March 1, 2021, the Company and Morgan Stanley issued a joint press release
announcing the completion of the Mergers. A copy of the joint press release is
filed as Exhibit 99.1 to this Form 8-K and is incorporated by reference herein.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
Exhibit
No. Description
3.1 Amended and Restated Articles of Incorporation of Eaton Vance Corp.
3.2 Amended and Restated Bylaws of Eaton Vance Corp.
3.3 Articles of Organization of Mirror Merger Sub 2, LLC.
3.4 Limited Liability Company Agreement of Mirror Merger Sub 2, LLC.
4.1 Fourth Supplemental Indenture, dated as of March 1, 2021, among
Mirror Merger Sub 2, LLC, Morgan Stanley, Eaton Vance Corp. and
Wilmington Trust Company, as trustee.
99.1 Joint Press Release issued by Morgan Stanley and Eaton Vance Corp.,
dated March 1, 2021.
104 Cover Page Interactive Data File - the cover page XBRL tags are
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