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FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
April 2, 1999
Commission File No.: 0-14685
GENICOM CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 51 - 0271821
(State or other jurisdiction of (I.R.S.
incorporation or Employer
organization) Identification
No.)
14800 CONFERENCE CENTER DRIVE
SUITE 400, WESTFIELDS
CHANTILLY, VIRGINIA
(Address of principal 20151
executive offices) (Zip Code)
Registrant's telephone number, including area code: (703) 802-9200
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GENICOM CORPORATION AND SUBSIDIARIES
FORM 8-K
Item 5. Other Items
(a) Seventh Amendment to Amended and Restated Credit
Agreement and Waiver:
On April 2, 1999, the Company's credit agreement with
NationsBank of Texas, N. A., as agent for a group of
banks, ("NationsBank") was amended. This amendment
establishes new terms and conditions for the loan
agreement through the current term ending September
2002. The amendment changes the financial covenants
to 1) minimum earnings before charges for interest,
total federal, state, local and foreign income, value
added and similar taxes, depreciation, and
amortization, 2) minimum net worth requirement, and 3)
a limit on 1999 capital expenditures of approximately
$19 million. In addition, the Company will be able to
borrow $10 million for short term liquidity, which can
be repaid on September 30, 1999, or extended on a
quarterly basis with consideration of 0.5% of the
liquidity facility outstanding. The interest rate on
the revolver and the additional $10 million is 3.5%
above LIBOR on Eurodollar loans. This amendment
extends the Company's current borrowing base formula
until June 2000.
In exchange for the amendment, the Company agreed to
pay an amendment fee of $1.2 million upon the earlier
of the payment in full of the credit facilities and
cancellation of all commitments, or the acceleration
by NationsBank of the Company's obligations. The
Company has further agreed to pay a continuation fee
on the last day of each fiscal quarter, beginning with
the fourth quarter of fiscal year 1999, until the
obligations are paid. The continuation fee is equal
to 0.5% of all obligations outstanding on the last day
of such fiscal quarter. NationsBank received the
rights to purchase warrants for one million shares of
GENICOM common stock at $1.94 per share. The warrants
have callable rights through March 31, 2000. The
Seventh Amendment reduces NationsBank's revolving
credit commitment to $62 million at the end of the
first fiscal quarter of 1999, $62 million at the end
of the second fiscal quarter of 1999, $58 million at
the end of the third fiscal quarter of 1999, and $52
million at the end of fiscal 1999.
(b) Amendment No. 1 to Cooperative Marketing, Support and
Development Agreement
As of February 27, 1998, GENICOM Corporation amended
its Cooperative Marketing, Support and Development
Agreement with Digital Equipment Corporation.
Item 7. Exhibits
10.1 Seventh Amendment to Amended and Restated Credit
Agreement
10.2 Amendment No.1 to Cooperative Marketing, Support
and Development Agreement
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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.
GENICOM Corporation
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Registrant
Date: April 9, 1999
/s/ Karen M. Morinelli
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Signature
Karen M. Morinelli
Vice President, Human
Resources
(Ms. Morinelli is a
Corporate Vice President
and has been duly
authorized to sign on
behalf of the Registrant)