UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
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Current Report
Pursuant to section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported):
MARCH 29, 2002
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MUZAK LLC
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(Exact Name of Registrants as Specified in their charter)
Delaware 333-78571-01 04-3433729
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(State or Other Jurisdiction of (Commission File Number) (IRS Employer Identification No.)
Incorporated or Organization)
3318 LAKEMONT BLVD
FORT MILL, SC 29708
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(Address of principal executive offices, including zip code)
(803) 396-3000
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(Registrant's telephone number, including area code)
Item 9. Regulation FD Disclosure
Muzak LLC has obtained a waiver of its violation of the maximum consolidated
capital expenditures covenant under the Senior Credit Facility from the
requisite lenders for the period ending December 31, 2001. In addition, Muzak
LLC has increased its aggregate revolving commitments under the Senior Credit
Facility by $20.0 million, for a total commitment of $55.0 million, and amended
certain financial covenants for 2002 and 2003. Additionally, the existing equity
holders, including ABRY Partners LLC, contributed $10.0 million in the form of
junior subordinated unsecured notes to Muzak, the proceeds of which were used to
repay outstanding revolving loan balances. As a result of this increased
commitment and the amended financial covenants, Muzak currently has
approximately $40.0 million available under its Senior Credit Facility and has
enhanced its financial flexibility.
Muzak LLC will have a conference call on April 1, 2002 at 3:00 p.m. (Eastern
Standard Time) to discuss fourth quarter 2001 results. The call in number is
1-877-531-2988. A replay of the call will be available for 72 hours beginning at
8:00 p.m. on April 1, 2002. The replay number is 1-800-475-6701 and the access
code is 633626.
Through Audio Architecture and Audio Marketing, the art of capturing the
emotional power of music and putting it to work for clients seeking to enhance
their brand image, Muzak serves approximately 335,000 customer locations in the
United States and 14 foreign countries. More than 100 million people hear the
Company's products each day. The Company delivers music, videos, messaging and
sound system design through more than 200 sales and service locations.
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The above statements regarding future financial position, strategy, and plans
and objectives are forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve risks and uncertainties, including, but not
limited to those related to the Company's substantial leverage and debt service
requirements, the restrictions imposed by the terms of the Company's debt
agreement, the Company's history of net losses, the Company's dependence on
satellite delivery of its products, the terms of the Company's agreements, the
Company's ability to identify, complete, and integrate acquisitions, the ability
of the Company to obtain future financings to fund internal growth, the effects
of competition and technological change, the availability of cost-effective
programming, the Company's dependence on license agreements, the impact of
legislation and regulation, risks related to general economic conditions and the
other factors discussed in the Company's filings with the Securities and
Exchange Commission. Actual results could differ from these forward-looking
statements.