Attached files
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| EX-10.13 - LOAN AGREEMENT BETWEEN BB&T AND REGISTRANT - SYNALLOY CORP | ex10.htm |
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SECURITIES
AND EXCHANGE COMMISSION
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WASHINGTON,
D.C. 20549
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FORM
8-K
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CURRENT
REPORT
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PURSUANT
TO SECTION 13 OR 15(D) OF THE
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SECURITIES
EXCHANGE ACT OF 1934
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Date
of Report (Date of earliest event
reported) June 30,
2010
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SYNALLOY
CORPORATION
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(Exact
name of registrant as specified in its charter)
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Delaware
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0-19687
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57-0426694
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(State
or other jurisdiction of incorporation)
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(Commission
File Number)
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(IRS
Employer Identification No.)
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Croft Industrial Park, P.O. Box 5627, Spartanburg,
SC 29304
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29304
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(Address
of principal executive offices)
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(Zip
Code)
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Registrant's
telephone number, including area code: (864)
585-3605
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INAPPLICABLE
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(Former
name or former address if changed since last report)
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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))
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1
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ITEM
1.01.
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ENTRY
INTO A MATERIAL DEFINITIVE AGREEMENT
On
June 30, 2010, the Company entered into a Credit Agreement with a regional
bank to provide a $20,000,000 line of credit that expires on June 30,
2013. The Company’s previous debt facility, with a different
lender, was going to expire at the end of 2010. Interest on the
new Credit Agreement is calculated using the One Month LIBOR Rate, plus a
pre-defined spread, which is determined by the Company’s Total Funded Debt
to EBITDA ratio. Borrowings under the line of credit are limited to an
amount equal to a borrowing base calculation that includes eligible
accounts receivable, inventories and cash surrender value of the Company’s
life insurance. Additionally, the credit facility requires an agreement
not to pledge the fixed assets of the Company. Covenants under
the new agreement include maintaining a certain Funded Debt to EBITDA
ratio, a minimum tangible net worth, and total liabilities to tangible net
worth ratio. The Company will also be limited to a maximum amount of
capital expenditures per year, which is in line with the Company’s
currently projected needs. Management does not believe that
these covenants and restrictions will have an adverse effect on its
operations.
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ITEM
2.03.
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CREATION
OF MATERIAL DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN
OFF-BALANCE SHEET ARRANGEMENT
See disclosure under Item
1.01.
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ITEM
9.01.
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FINANCIAL
STATEMENTS AND EXHIBITS
Ex 10.13 Loan Agreement Between Branch Banking and
Trust Company and Registrant dated June 30,
2010
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2
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on behalf by the undersigned hereunto duly
authorized.
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SYNALLOY
CORPORATION
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By: /s/ Richard D.
Sieradzki
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Richard
D. Sieradzki
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Chief
Financial Officer and Principal Accounting
Officer
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Dated:
July 6,
2010
3
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Exhibit
Number
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Name
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10.13
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Loan
Agreement Between Branch Banking and Trust Company and Synalloy
Corporation
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4