SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT ON FORM 8-K
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report, March 10, 1999
Commission File Number: 0-20307
AVALON COMMUNITY SERVICES, INC.
(Exact name of Registrant as
specified in its corporate charter)
Nevada 13-3592263
(State of Incorporation) (I.R.S. Employer I.D. Number)
13401 Railway Drive, Oklahoma City, Oklahoma 73114
(Address of Principal executive offices)
(405) 752-8802
(Issuer's telephone number)
ITEM 2. Acquisition of Assets
On February 25,1999, Avalon Community Services Inc. closed a senior credit
facility with the Fleet Capital Corporation. The new loan is a four year
revolving credit facility primarily utilized to finance the expansion of the
Company's business.
The credit facility provides for an $18 million senior revolving debt
facility secured by substantially all assets of the Company. The credit facility
is subject to a 1/2% unused line fee and interest on outstanding balances at
Prime + .25% - .50 % or LIBOR + 2.0 - 3.0%. The maturity date of the credit
facility is February 25, 2003.
Initially, no amounts were extended on the credit facility and the
Company utilized existing cash reserves to retire debt that was collateralized
by assets now pledged to Fleet Capital under the new agreement. The Company
expects amounts to be borrowed under the facility within 90 days to finance new
projects and acquisitions.
ITEM 7. Financial Statements and Exhibits
a. Loan and Security Agreement dated February 25, 1999, between Fleet Capital
Corporation,Avalon Community Services Inc. and Southern Corrections Systems Inc.
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AVALON COMMUNITY SERVICES, INC. AND SUBSIDIARIES
SIGNATURES
In accordance with the requirements of the Exchange Act, the
registrant has caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
Date: March 10, 1999 AVALON COMMUNITY SERVICES, INC.
By: /S/ Jerry Sunderland
Jerry Sunderland, President
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