SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 24, 1999
ElderTrust
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(Exact name of registrant as specified in its charter)
Maryland 001-13807 23-2932973
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(State or other jurisdiction of (Commission File Number) (IRS Employer Identification No.)
incorporation)
101 East State Street, Suite 100, Kennett Square, Pennsylvania 19348
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(Address of principal executive offices)
Registrant's telephone number, including area code: (610) 925-4200
Not Applicable
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(Former name or former address, if changed since last report)
Item 5. Other Events.
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On November 24, 1999, ElderTrust announced that it had adopted
a new dividend policy. The policy, which is subject to completion of the
tentative agreement with German American Capital Corp. to extend the Bank Credit
Facility from January 1, 2000 to June 30, 2001, will take effect with the
dividend to be declared in January 2000 for the quarter ending December 31,
1999. This new policy reflects the expected decrease in cash available for
distribution resulting from the increased interest costs and principal
amortization on the Company's new debt obligations. The new dividend policy
anticipates the dividend will be $1.20 per year, or $0.30 per quarter, per
common share outstanding.
On November 24, 1999, the Company also announced that it had
successfully completed new mortgage financing of $30 million secured by four
existing properties. One of the loans is secured by two properties. The new
mortgage debt has a three-year term and a variable interest rate based on
one-month LIBOR. Approximately $28 million of the total debt was used to reduce
the Company's outstanding Bank Credit Facility to a current balance of
approximately $40 million. The remaining funds were used to cover
transaction-related expenses and escrow requirements.
In addition, the Company announced that it had reinstituted
its share buyback program on a limited basis. The Company's Board of Trustees
authorized the repurchase of up to $500,000 of the Company's common shares from
time to time in open market purchases or privately-negotiated transactions.
Item 7. Financial Statements and Exhibits.
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(c) Exhibits
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99.1 Company press release of November 24, 1999
2.
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 hereunto duly authorized.
ELDERTRUST
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(Registrant)
/s/ D. Lee McCreary, Jr.
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D. Lee McCreary, Jr.
President and Chief Executive Officer
Date: December 7, 1999
3.