SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Item 5
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 26, 2001
MERCATOR SOFTWARE, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 0-22667 06-1132156
(State of incorporation (Commission File Number) (IRS Employer
or organization) Identification No.)
45 DANBURY ROAD, WILTON, CONNECTICUT 06897
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (203) 761-8600
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INFORMATION TO BE INCLUDED IN THE REPORT
ITEM 5. OTHER EVENTS
On September 26, 2001, the registrant announced as follows:
FOR IMMEDIATE DISTRIBUTION
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Without Need to Borrow, Mercator Obtains Extension of Credit Provision
BANK RELAXES DEADLINE IN LIGHT OF IMPROVED FINANCIAL CIRCUMSTANCES
WILTON, Conn. - September 26, 2001 - Mercator (R) Software, Inc., (NASDAQ:
MCTR), today announced that its credit facility lender has agreed to extend the
requirement for additional financing. The agreement reflects Mercator's improved
financial circumstances in light of actions it has taken to reduce costs and
improve operations, including two rounds of a reduction in work force and the
implementation of the company's vertical market strategy. As a result of these
measures, the company has significantly reduced its cash burn and has not had to
borrow from its credit facility.
As disclosed in the company's June 2001 filing with the Securities and Exchange
Commission, the company finalized a $15 million credit facility with a lending
institution requiring the Company to raise $5 million in additional equity or
subordinated debt by September 30. Under the new terms of the credit facility,
the bank has amended the covenant, allowing the Company to complete its efforts
by November 15.
Mercator Chairman, CEO and President Roy C. King said, "Our efforts to reduce
costs and improve operations are working, and we have not had to borrow from our
line of credit. We have engaged an investment banker and are actively pursuing
growth capital to improve our ability to compete in the application integration
marketplace."
About Mercator
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Mercator Software's intelligent business integration solutions unify any
internal operations and connect them with partners and customers, while
leveraging current technology investments. Over 5000 businesses in financial
services, healthcare, utilities, manufacturing, retail and distribution use
Mercator software to maximize their performance. Additional information about
Mercator (Nasdaq: MCTR) may be found at www.mercator.com.
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MERCATOR IS A REGISTERED TRADEMARK OF MERCATOR SOFTWARE, INC.
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Legal Notice Regarding Forward-Looking Statements
Statements in this press release that are not purely historical are forward-
looking statements, including statements regarding Mercator Software's beliefs,
expectations, hopes or intentions regarding the future. Forward-looking
statements in this release include, but are not limited to, statements regarding
the growth of the enterprise application market, the demand for the company's
application integration solutions and the speed of deployment of new products,
including combined Mercator e-business integration broker products. It is
important to note that actual outcomes and the company's actual results could
differ materially from those in such forward-looking statements. Factors that
could cause actual results to differ materially include risks and uncertainties
such as changes in demand for application integration or e-business integration
software and the company's Mercator e-business integration broker suite of
products in particular, the ability of the company to expand its international
operations, the ability of the company to manage expanded global operations, the
ability of the company to continue to add resellers and other distribution
channels, and the success of third parties in utilizing and marketing the
company's products, the Company's ability to raise financing, or seasonality in
operating results. Readers should also refer to the risk disclosures outlined
in the company's reports filed with the Securities and Exchange Commission. All
forward-looking statements and reasons why results might differ included in this
release are made as of the date hereof, based on information available to the
company as of the date hereof, and the company assumes no obligation to update
any such forward-looking statement or reasons why results might differ.
Contact:
Jonathan Cohen
Vice President, Corporate Communications
(203) 563-1214
jcohen@mercator.com
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SIGNATURE
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, hereunto duly authorized.
MERCATOR SOFTWARE, INC.
Date: October 1, 2001 By: /s/ Roy C. King
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Roy C. King
Chairman, President and
Chief Executive Officer
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