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): February 18, 2003
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COBRA ELECTRONICS CORPORATION
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(Exact Name of Registrant as Specified in Its Charter)
Delaware 0-511 36-2479991
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(State or Other Jurisdiction (Commission File Number) (IRS Employer
of Incorporation) Identification No.)
6500 West Cortland Street, Chicago, Illinois 60707
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (773) 889-8870
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N/A
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(Former Name or Former Address, if Changed Since Last Report)
Item 5. Other Events and Required FD Disclosure.
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On February 18, 2003, Cobra Electronics Corporation (the "Company") entered into
the Second Amendment (the "Amendment") to the Loan and Security Agreement dated
January 31, 2002 (the "Loan Agreement"), by and among LaSalle Bank National
Association, as agent, the financial institutions from time to time a party
thereto, as lenders, and the Company, as borrower. The purpose of this amendment
was to modify the financial covenants contained in the Loan Agreement relating
to the Company's earnings and capital expenditure limitations. The Amendment
modifies the covenant relating to earnings of the Company, which had required
minimum twelve-month EBIT (as defined in the Loan Agreement) of $5 million
calculated at the end of each quarter, to reduce the EBIT requirement for each
calendar quarter until March 31, 2004, when the requirement is restored to $5
million. The Amendment modifies the capital expenditure covenant to permit
capital expenditures up to $6 million during the fiscal year ending December 31,
2003. The maximum amount of capital expenditures otherwise permitted under the
Loan Agreement is $5 million during any fiscal year. In addition, the Amendment
adjusted the rate at which loans outstanding under the Loan Agreement bear
interest and modified the amount of the applicable letter of credit fees. From
the date of the Amendment until March 31, 2004, the applicable interest rates
and letter of credit fees were increased by 0.25% per annum. A copy of such
amendment is filed as an exhibit hereto and incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
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(a) Financial Statements of Businesses Acquired.
Not applicable.
(b) Pro Forma Financial Information.
Not applicable.
(c) Exhibits.
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10-1 Second Amendment to the Loan and Security Agreement dated January 31,
2002, by and among LaSalle Bank National Association, as Agent, the
Financial Institutions from time to time a party thereto, as Lenders,
and the Company, as Borrower.
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.
COBRA ELECTRONICS CORPORATION
Date: February 25, 2003 By: /s/ Michael Smith
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Michael Smith
Senior Vice President and Chief
Financial Officer
EXHIBIT INDEX
The following exhibits are filed herewith:
Exhibit No.
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10-1 Second Amendment to the Loan and Security Agreement dated
January 31, 2002, by and among LaSalle Bank National
Association, as Agent, the Financial Institutions from time
to time a party thereto, as Lenders, and the Company, as
Borrower.