-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VPUPYSb5jzEHWesAqqaRcqFxLZSjOARsQeQQOEmoWj14W2Fq+OEyZSxdLw3cRTBb JBioHKyUE12kUG68M1iViQ== 0001028212-05-000071.txt : 20051220 0001028212-05-000071.hdr.sgml : 20051220 20051220114111 ACCESSION NUMBER: 0001028212-05-000071 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20051220 ITEM INFORMATION: Entry into a Material Definitive Agreement ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20051220 DATE AS OF CHANGE: 20051220 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DIALYSIS CORP OF AMERICA CENTRAL INDEX KEY: 0000201653 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-HOSPITALS [8060] IRS NUMBER: 591757642 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-08527 FILM NUMBER: 051274573 BUSINESS ADDRESS: STREET 1: 27 MILLER AVENUE CITY: LEMOYNE STATE: PA ZIP: 17043 BUSINESS PHONE: 7177306164 MAIL ADDRESS: STREET 1: 27 MILLER AVENUE CITY: LEMOYNE STATE: PA ZIP: 17043 8-K 1 dca8kamd.txt DIALYSIS CORPORATION OF AMERICA FORM 8-K UNITED STATES 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) December 16, 2005 (December 15 2005) _______________ DIALYSIS CORPORATION OF AMERICA (Exact name of registrant as specified in its charter) Florida 0-8527 59-1757642 (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 1302 Concourse Drive, Suite 204, Linthicum, MD 21090 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (410) 694-0500 _______________ Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 1.01 Entry into a Material Definitive Agreement On October 24, 2005, Dialysis Corporation of America (the "Company") entered into a Credit Agreement with Keybank National Association ("Keybank"), pursuant to which Keybank has provided the Company with a $15 million secured revolving credit facility (the "Credit Agreement") by means of any combination of base rate loans and/or LIBOR loans. The Credit Agreement was reported in a Current Report on Form 8-K dated October 27, 2005. Keybank and the Company entered into Amendment No. 1 to Credit Agreement redefining consolidated net worth. The proceeds of the Credit Agreement are intended to be used for development and acquisition of new dialysis centers, working capital needs, and for other general corporate purposes. Item 2.03 Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant The information relating to the Company's entry into Amendment No. 1 to Credit Agreement is set forth in Item 1.01 above, and is incorporated in this Item 2.03 by reference. Item 9.01 Financial Statements and Exhibits (d) Exhibits (10) Material Contracts (i) Amendment No. 1 to Credit Agreement between the Company and Keybank National Association dated December 15 2005 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. DIALYSIS CORPORATION OF AMERICA /s/ Stephen W. Everett By-------------------------------- STEPHEN W. EVERETT President and Chief Executive Officer Dated: December 16, 2005 EX-10 3 cragamd.txt AMENDMENT TO CREDIT AGREEMENT - ----------------------------------------------------------------------------- - ----------------------------------------------------------------------------- DIALYSIS CORPORATION OF AMERICA as the Borrower, and KEYBANK NATIONAL ASSOCIATION, as the Lender ------------------- AMENDMENT NO. 1 to CREDIT AGREEMENT dated as of December 15, 2005 ------------------- - ----------------------------------------------------------------------------- - ----------------------------------------------------------------------------- This AMENDMENT NO. 1 TO CREDIT AGREEMENT (this "Amendment"), dated as of December 15, 2005, is entered into by and between DIALYSIS CORPORATION OF AMERICA, a Florida corporation (herein, together with its successors and assigns, the "Borrower"), and KEYBANK NATIONAL ASSOCIATION, a national banking association (herein, together with its successors and assigns, the "Lender"). PRELIMINARY STATEMENTS: (1) The Borrower and the Lender entered into the Credit Agreement, dated as of October 24, 2005 (the "Credit Agreement"; capitalized terms used herein ---------------- and not defined herein are used herein as defined in the Credit Agreement). (2) The parties hereto desire to modify certain terms and provisions of the Credit Agreement. NOW, THEREFORE, the parties hereto agree as follows: SECTION 1. AMENDMENTS. 1.1. Amendment to Definition. The definition of "Consolidated Net ----------------------- Worth" in Article I of the Credit Agreement is hereby amended and restated retroactive to the Closing Date as follows: "Consolidated Net Worth" means, at any date, the stockholders' ---------------------- equity of Borrower, determined on a Consolidated basis and in accordance with GAAP. 1.2 Amendment to Covenant. Section 6.1(d) of the Credit Agreement is --------------------- hereby amended and restated retroactive to the Closing Date as follows: (d) Consolidated Net Worth. Borrower shall not suffer or permit its ---------------------- Consolidated Net Worth, at any time, to be less than the sum of (i) $21,110,773, plus (ii) the sum of (A)(1) with respect to the period from the Closing Date through December 31, 2005, 50% of the positive Consolidated Net Income (without any reduction for net losses) for such period, and (2) with respect to each fiscal year of Borrower thereafter, commencing with the 2006 fiscal year, 50% of the positive Consolidated Net Income (without any reduction for net losses) for such fiscal year, and (B) 100% of the proceeds from any equity offering by any Company or any debt offering of any Company to the extent actually converted to into equity. SECTION 2. REPRESENTATIONS AND WARRANTIES. The Borrower represents and warrants to the Lender as follows: 2.1. Authorization, Validity and Binding Effect. This Amendment has ------------------------------------------ been duly authorized by all necessary corporate action on the part of the Borrower, has been duly executed and delivered by a duly authorized officer or officers of the Borrower, and constitutes the valid and binding agreement of the Borrower, enforceable against the Borrower in accordance with its terms. 2.2. Representations and Warranties True and Correct. The ----------------------------------------------- representations and warranties of the Borrower contained in the Credit Agreement, as amended hereby, are true and correct on and as of the date hereof as though made on and as of the date hereof, except to the extent that such representations and warranties expressly relate to a specified date, in which case such representations and warranties are hereby reaffirmed as true and correct when made. 2.3. No Event of Default. After giving effect to this Amendment, no ------------------- condition or event has occurred or exists that constitutes or that, after notice or lapse of time or both, would constitute a Default or an Event of Default. 2.4. No Claims. The Borrower is not aware of any claim or offset --------- against, or defense or counterclaim to, any of its obligations or liabilities under the Credit Agreement or any other Credit Document. SECTION 3. RATIFICATIONS. Except as expressly modified and superseded by this amendment, the terms and provisions of the Credit Agreement are ratified and confirmed and shall continue in full force and effect. SECTION 4. CONDITIONS PRECEDENT. The amendments set forth in Section 1 hereof shall become effective as of the date first written above if on or before the date hereof, the following conditions have been satisfied: (a) this Amendment shall have been executed by the Borrower and the Lender, and counterparts hereof as so executed shall have been delivered to the Lender; (b) the Borrower shall have caused each Guarantor to consent and agree to and acknowledge the terms of this Amendment; and (c) the Borrower shall have provided such other items and shall have satisfied such other conditions as may be reasonably required by the Lender. SECTION 5. MISCELLANEOUS. 5.1. Successors and Assigns. This Amendment shall be binding upon and ---------------------- inure to the benefit of the Borrower and the Lender and their respective successors and assigns. 5.2. Survival of Representations and Warranties. All representations ------------------------------------------ and warranties made in this Amendment shall survive the execution and delivery of this Amendment, and no investigation by the Lender or any subsequent Loan shall affect the representations and warranties or the right of the Lender to rely upon them. 5.3. Reference to Credit Agreement. The Credit Agreement and any and ----------------------------- all other agreements, instruments or documentation now or hereafter executed and delivered pursuant to the terms of the Credit Agreement as amended hereby, are hereby amended so that any reference therein to the Credit Agreement shall mean a reference to the Credit Agreement as amended hereby. 5.4. Expenses. As provided in the Credit Agreement, but without -------- limiting any terms or provisions thereof, the Borrower agrees to pay on demand all costs and expenses incurred by the Lender in connection with the preparation, negotiation, and execution of this Amendment, including without limitation the costs and fees of the Lender's special legal counsel, regardless of whether this Amendment becomes effective in accordance with the terms hereof, and all costs and expenses incurred by the Lender in connection with the enforcement or preservation of any rights under the Credit Agreement, as amended hereby. 5.5. Severability. Any term or provision of this Amendment held by a ------------ court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this Amendment and the effect thereof shall be confined to the term or provision so held to be invalid or unenforceable. 5.6. Applicable Law. This Amendment shall be governed by and construed -------------- in accordance with the laws of the State of Ohio, without regard to principles of conflicts of laws. 5.7. Headings. The headings, captions and arrangements used in this -------- Amendment are for convenience only and shall not affect the interpretation of this Amendment. 5.8. Entire Agreement. This Amendment is specifically limited to the ---------------- matters expressly set forth herein. This Amendment and all other instruments, agreements and documentation executed and delivered in connection with this Amendment embody the final, entire agreement among the parties hereto with respect to the subject matter hereof and supersede any and all prior commitments, agreements, representations and understandings, whether written or oral, relating to the matters covered by this Amendment, and may not be contradicted or varied by evidence of prior, contemporaneous or subsequent oral agreements or discussions of the parties hereto. There are no oral agreements among the parties hereto relating to the subject matter hereof or any other subject matter relating to the Credit Agreement. 5.9. Waiver of Claims. The Borrower, by signing below, hereby waives ---------------- and releases the Lender and its directors, officers, employees, attorneys, affiliates and subsidiaries from any and all claims, offsets, defenses and counterclaims of which Borrower is aware, such waiver and release being with full knowledge and understanding of the circumstances and effect thereof and after having consulted legal counsel with respect thereto. 5.10. Counterparts. This Amendment may be executed by the parties ------------ hereto separately in one or more counterparts, each of which when so executed shall be deemed to be an original, but all of which when taken together shall constitute one and the same agreement. Transmission by a party to another party (or its counsel) via facsimile or electronic mail of a copy of this Amendment (or a signature page of this Amendment) shall be as fully effective as delivery by such transmitting party to the other parties hereto of a counterpart of this Amendment that had been manually signed by such transmitting party. 5.11. JURY TRIAL WAIVER. THE BORROWER AND THE LENDER EACH WAIVES ANY ----------------- RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, BETWEEN THE BORROWER AND THE LENDER, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION WITH THIS AMENDMENT, THE CREDIT AGREEMENT, THE NOTE OR OTHER RELATED WRITING, INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO. [Remainder of page intentionally left blank.] IN WITNESS WHEREOF, this Amendment has been duly executed and delivered as of the date first above written. BORROWER: DIALYSIS CORPORATION OF AMERICA /S/ Stephen W. Everett By:---------------------------------- Name: Stephen W. Everett Title: President and Chief Executive Officer LENDER: KEYBANK NATIONAL ASSOCIATION /s/ J.T. Taylor By:---------------------------------- Name: J.T. Taylor Title: Senior Vice President GUARANTOR ACKNOWLEDGMENT AND AGREEMENT Each of the undersigned consents and agrees to and acknowledges the terms of the foregoing Amendment No. 1 to Credit Agreement, dated as of December 15, 2005. Each of the undersigned specifically acknowledges the terms of and consent to the waivers set forth therein. Each of the undersigned further agrees that the obligations of each of the undersigned pursuant to the Closing Date Guaranty executed by each of the undersigned shall remain in full force and effect and be unaffected hereby. Each of the undersigned, by signing below, hereby waives and releases the Lender and its respective directors, officers, employees, attorneys, affiliates and subsidiaries from any and all claims, offsets, defenses and counterclaims of which any of the undersigned is aware, such waiver and release being with full knowledge and understanding of the circumstances and effect thereof and after having consulted legal counsel with respect thereto. EACH OF THE UNDERSIGNED WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG ANY OF THE UNDERSIGNED, THE BORROWER AND/OR THE LENDER, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS AGREEMENT, THE CREDIT AGREEMENT, THE NOTE OR OTHER RELATED WRITING, INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO. IN WITNESS WHEREOF, each of the undersigned has duly executed and delivered this Guarantor Acknowledgement and Agreement as of the date first written above. DCA Medical Services, Inc. DCA of Adel, LLC DCA of Calhoun, LLC DCA of Central Valdosta, LLC DCA of Fitzgerald, LLC DCA of Hawkinsville, LLC DCA of So. Ga., LLC DCA of Royston, LLC DCA of Rockville, LLC DCA of Norwood, LLC DCA of Lemoyne, Inc. DCA of Mechanicsburg, LLC DCA of Wellsboro, Inc. Keystone Kidney Care, Inc. DCA of Warsaw, LLC DCA of Aiken, LLC DCA of Aiken II, LLC DCA of Barnwell, LLC DCA of Edgefield, LLC /S/ Stephen W. Everett By:---------------------------------- Name: Stephen W. Everett Title: President of each of the foregoing Guarantors -----END PRIVACY-ENHANCED MESSAGE-----