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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K/A
[X] CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
Date of Report: May 29, 2003
Commission File Number 1-3634
CONE MILLS CORPORATION
(Exact name of registrant as specified in its charter)
North Carolina 56-0367025
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(State or other jurisdiction) (I.R.S. Employer Identification No.)
804 Green Valley Road, Suite 300, Greensboro, N.C. 27408
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 336-379-6220
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PART II
Item 5. Other Events and Required FD Disclosure
On May 27, 2003, Cone Mills Corporation ("Cone") amended agreements
with its lenders extending its existing credit facility and senior note
obligations through March 15, 2004. With the amendments, the outstanding balance
of the senior note is $22 million with an interest rate of 14.2%, and the
existing revolving credit agreement has been split into two components. The
first component is a $25 million, 12% senior note and the second component is a
$31 million revolving credit facility priced at LIBOR + 6.75% (currently
approximately 8.10%).
The agreements call for monthly amortizations of $833,333, beginning in July
2003. As a part of the extension, Cone settled the Equity Appreciation Rights,
which were contingent rights that were granted as a part of the November 2001
agreements, for $4.1 million. The rights were paid 50% in cash ($2.1 million),
the entering into new senior notes of $1.8 million and the election by two
lenders to receive approximately 169,000 shares of Cone common stock. The
company will recognize a pre-tax charge of $4.1 million in its second quarter
financial statements to reflect the settlement of these contingent rights. As of
the date of closing, the company had cash and availability under its credit
facilities in excess of $20 million.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
4.2.25 Amendment of 1992 Note Agreement dated as of May 27, 2003, by and among
the Registrant and The Prudential Insurance Company.
4.3.12 Amendment No. 12 to Credit Agreement dated as of May 27, 2003 by and
among the Registrant, as Borrower, Bank of America, N.A., Each of
the Lenders Signatory Hereto, and Bank of America, N.A., as Agent.
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 thereunto duly authorized.
CONE MILLS CORPORATION
(Registrant)
Date: May 29, 2003 /s/Neil W. Koonce
Neil W. Koonce
Vice President, General Counsel
and Secretary
Exhibit
No. Description
4.2.25 Amendment of 1992 Note Agreement dated as of May 27, 2003, by and among
the Registrant and The Prudential Insurance Company.
4.3.12 Amendment No. 12 to Credit Agreement dated as of May 27, 2003 by and
among the Registrant, as Borrower, Bank of America, N.A., Each of the
Lenders Signatory Hereto, and Bank of America, N.A., as Agent.
*99.1 Press release issued by Cone Mills Corporation on May 28, 2003 filed as
Exhibit 99.1 to Registrant's report on Form 8-K dated May 28, 2003.
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*Incorporated by reference to the statement or report indicated.