U.S. 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 17, 2000
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Commission file number 0-22464
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KOALA CORPORATION
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(Exact name of small business issuer
as specified in its charter)
Colorado 84-1238908
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(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
11600 E. 53rd Avenue, Unit D, Denver, CO 80239
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(Address of principal executive offices)
(303) 574-1000
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(Issuer's telephone number)
Not Applicable
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(Former name, former address, and former fiscal year, if
changed since last report)
ITEM 5. OTHER EVENTS
On November 17, 2000, Koala Corporation (the "Company") entered into a
Revolving Credit and Security Agreement (the "Credit Agreement") with U.S. Bank
National Association, as agent for the lenders, and the other parties to the
agreement, which (1) replaces the Company's current line of credit and provides
for an increase in the secured line of credit to $45 million under the same
terms and conditions as the prior agreement, and (2) establishes a borrowing
platform for future bank syndication partners. The line of credit is secured by
substantially all of the assets of the Company. The line of credit may be used
for short-term working capital needs and future acquisitions. There are no
compensating balance requirements and the credit facility requires compliance
with financial loan covenants related to debt levels compared to annualized cash
flows from operations and interest coverage. The credit facility terminates and
is payable in full on March 1, 2003. Interest payments are required at least
every three months. The Company may select the index rate (either LIBOR or Agent
Bank Reference Rate) upon which interest rate is determined. The current
interest rate is 9.22% per annum. A commitment fee in the amount of .25% is
payable quarterly in arrears based on the average daily unused portion of the
line. There was $37,970,000 outstanding under the credit facility as of November
20, 2000.
Statements made in this current report that are not historical facts
may be forward looking statements. Such statements include projections regarding
future earnings results and are based upon the Company's current expectations
and assumptions, which are subject to a number of risks and uncertainties.
Actual results may differ materially from those projected in any forward-looking
statement. There are a number of important factors that could cause actual
results to differ materially from those anticipated by any forward-looking
information. A description of risks and uncertainties attendant to Koala
Corporation and its industry and other factors which could affect the Company's
financial results are included in the Company's filings with the Securities and
Exchange Commission including its most recent Annual Report on Form 10-KSB and
Quarterly Report on Form 10-Q.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION
AND EXHIBITS
(c) Exhibits.
10.1 Revolving Credit Agreement, dated November 17, 2000, among
Koala Corporation, U.S. Bank National Association, as agent
for the lenders, and the Other Lenders Party Hereto.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
KOALA CORPORATION
Date: November 20, 2000 By: /s/ Mark A. Betker
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Mark A. Betker, Chairman and Chief
Executive Officer