-----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, S8MIGPYqwHPnF7wkyEHZwXNiE9Pfbags5ppPXdZrIL887cArHJeQqSg42gAaPdOC 7Vd4AUIOQRjmtmIdP9E85A== 0000906416-98-000007.txt : 19980325 0000906416-98-000007.hdr.sgml : 19980325 ACCESSION NUMBER: 0000906416-98-000007 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980313 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980324 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PENN TRAFFIC CO CENTRAL INDEX KEY: 0000077155 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-GROCERY STORES [5411] IRS NUMBER: 250716800 STATE OF INCORPORATION: PA FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-09930 FILM NUMBER: 98572115 BUSINESS ADDRESS: STREET 1: 1200 STATE FAIR BLVD CITY: SRYACUSE STATE: NY ZIP: 13221-4737 BUSINESS PHONE: 8145369900 MAIL ADDRESS: STREET 1: 1200 STATE FAIR BLVD CITY: SYRACUSE STATE: NY ZIP: 13221-4737 8-K 1 FORM 8-K ============================= 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): March 13, 1998 THE PENN TRAFFIC COMPANY ------------------------------------------------------ (Exact name of registrant as specified in its charter) DELAWARE ---------------------------------------------- (State or other jurisdiction of incorporation) 1-9930 25-0716800 - -------------------------- ------------------------------------ (Commissioner File Number) (IRS Employer Identification Number) 1200 State Fair Boulevard SYRACUSE, NEW YORK 13221-4737 --------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (315) 453-7284 -------------- Item 5. OTHER EVENTS The Penn Traffic Company (the "Company") has entered into Amendment No. 17 to the Loan and Security Agreement among the Company, Dairy Dell, Big M Supermarkets, Inc. and Penny Curtiss Baking Company Inc., the lenders party thereto and Fleet Bank, N.A. (as successor to NatWest USA Credit Corp.), as Agent, dated March 5, 1993 (as previously amended). A copy of Amendment No. 17 is filed as an exhibit thereto. Item 7(c). EXHIBITS 10.R Amendment No. 17, dated as of March 13, 1998, to the Loan and Security Agreement. 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. THE PENN TRAFFIC COMPANY By: /s/ Robert J. Davis ----------------------------- Name: Robert J. Davis Title: Senior Vice President- Finance, Chief Financial Officer Date: March 24, 1998 EX-10.R 2 AMENDMENT NO. 17 TO LOAN AND SECURITY AGREEMENT EXHIBIT 10.R AMENDMENT NO. 17 TO LOAN AND SECURITY AGREEMENT AMENDMENT NO. 17, dated as of March 13, 1998 (this "AMENDMENT") to that certain Loan and Security Agreement dated as of March 5, 1993, as amended by Amendment Nos. 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15 and 16 (collectively, the "LOAN AGREEMENT") among THE PENN TRAFFIC COMPANY ("Penn Traffic"), DAIRY DELL, BIG M SUPERMARKETS, INC. and PENNY CURTISS BAKING COMPANY, INC. (individually, each a "BORROWER" and collectively, the "BORROWERS"), the Lenders listed therein (collectively, the "LENDERS") and FLEET BANK, N.A. (as successor to NatWest USA Credit Corp.), as Agent for the Lenders (in such capacity, the "AGENT"), is made by, between and among the Borrowers, the Agent, and the Lenders. Capitalized terms used herein, except as otherwise defined herein, shall have the meanings given to such terms in the Loan Agreement. WHEREAS, the Borrowers have requested that the Agent and the Lenders amend the Loan Agreement to, among other things, (i) modify the existing Interest Coverage ratio set forth in Section 10.18 of the Loan Agreement; (ii) modify the Consolidated Adjusted Net Worth covenant set forth in Section 10.19 of the Loan Agreement; and (iii) modify the Consolidated EBDAIT covenant set forth in Section 10.20 of the Loan Agreement. WHEREAS, the Borrowers, the Agent and the Lenders have agreed to amend the Loan Agreement pursuant to the terms and conditions set forth herein. WHEREAS, the Borrowers have agreed to pay an amendment fee in the aggregate amount of $375,000.00 to the Agent on behalf of, and for the benefit of, those Lenders only which have executed this Agreement (the "AMENDMENT FEE"). NOW, THEREFORE, in consideration of the mutual promises, covenants and agreements hereinafter set forth, the parties hereto agree as follows: 1. AMENDMENTS TO LOAN AGREEMENT. The Loan Agreement is hereby amended as of the effective date hereof as follows: (i) Section 10.18 of the Loan Agreement shall be amended by deleting such Section 10.18 in its entirety, and by substituting, in lieu thereof, the following: "10.18 INTEREST COVERAGE. For each Coverage Period, the PT Stores Group will maintain the Interest Coverage Ratio for such Coverage Period set forth in the following table: - -------------------------------------------------------------------------------- Fiscal Quarter Fiscal Year Ratio - -------------------------------------------------------------------------------- Coverage Period ending with each Fiscal Quarter 1994 1.55:1 - -------------------------------------------------------------------------------- Coverage Period ending with each Fiscal Quarter 1995 1.60:1 - -------------------------------------------------------------------------------- Coverage Period ending with each Fiscal Quarter 1996 1.65:1 - -------------------------------------------------------------------------------- Coverage Period ending with each Fiscal Quarter 1997 1.15:1 - -------------------------------------------------------------------------------- Coverage Period ending with each Fiscal Quarter 1998 1.10:1 - -------------------------------------------------------------------------------- Coverage Period ending with First Fiscal Quarter 1999 1.00:1 - -------------------------------------------------------------------------------- Coverage Period ending with Second Fiscal Quarter 1999 1.00:1 - -------------------------------------------------------------------------------- Coverage Period ending with Third Fiscal Quarter 1999 0.95:1 - -------------------------------------------------------------------------------- Coverage Period ending with Fourth Fiscal Quarter 1999 1.00:1 - -------------------------------------------------------------------------------- Coverage Period ending with First Fiscal Quarter 2000 1.10:1 - -------------------------------------------------------------------------------- Coverage Period ending with Second Fiscal Quarter 2000 1.15:1 - -------------------------------------------------------------------------------- Coverage Period ending with Third Fiscal Quarter 2000 1.20:1 - -------------------------------------------------------------------------------- Coverage Period ending with Fourth Fiscal Quarter 2000 1.25:1" - -------------------------------------------------------------------------------- (ii) Section 10.19 of the Loan Agreement shall be amended by deleting such Section 10.19 in its entirety and by substituting, in lieu thereof, the following: "10.19 CONSOLIDATED ADJUSTED NET WORTH. The PT Stores Group will not permit Consolidated Adjusted Net Worth to be less than the following amounts as at the last day of each Fiscal Quarter set forth below: - -------------------------------------------------------------------------------- Fiscal Quarter/Fiscal Year Consolidated Adjusted Net Worth - -------------------------------------------------------------------------------- First 1994 $0 - -------------------------------------------------------------------------------- Second 1994 $0 - -------------------------------------------------------------------------------- Third 1994 $0 - -------------------------------------------------------------------------------- Fourth 1994 $0 - -------------------------------------------------------------------------------- First 1995 $1,250,000 - -------------------------------------------------------------------------------- Second 1995 $2,500,000 - -------------------------------------------------------------------------------- Third 1995 $3,750,000 - -------------------------------------------------------------------------------- Fourth 1995 $5,000,000 - -------------------------------------------------------------------------------- First 1996 $6,250,000 - -------------------------------------------------------------------------------- Second 1996 $7,500,000 - -------------------------------------------------------------------------------- Third 1996 $8,750,000 - -------------------------------------------------------------------------------- Fourth 1996 $10,000,000 - -------------------------------------------------------------------------------- First 1997 $11,250,000 - -------------------------------------------------------------------------------- Second 1997 $12,500,000 - -------------------------------------------------------------------------------- Third 1997 $8,750,000 - -------------------------------------------------------------------------------- Fourth 1997 $10,000,000 - -------------------------------------------------------------------------------- First 1998 ($10,000,000) - -------------------------------------------------------------------------------- Second 1998 ($25,000,000) - -------------------------------------------------------------------------------- Third 1998 ($40,000,000) - -------------------------------------------------------------------------------- Fourth 1998 ($55,000,000) - -------------------------------------------------------------------------------- First 1999 ($65,000,000) - -------------------------------------------------------------------------------- Second 1999 ($85,000,000) - -------------------------------------------------------------------------------- Third 1999 ($110,000,000) - -------------------------------------------------------------------------------- Fourth 1999 ($125,000,000) - -------------------------------------------------------------------------------- First 2000 ($145,000,000) - -------------------------------------------------------------------------------- Second 2000 ($155,000,000) - -------------------------------------------------------------------------------- Third 2000 ($165,000,000) - -------------------------------------------------------------------------------- Fourth 2000 ($170,000,000)" - ------------------------------------------------------------------------------- (iii) Section 10.20 of the Loan Agreement shall be amended by deleting such Section 10.20 in its entirety, and by substituting, in lieu thereof, the following: "10.20 CONSOLIDATED EBDAIT. The Borrowers will not permit Consolidated EBDAIT at the end of each Fiscal Quarter for the four most recent consecutive Fiscal Quarters of Penn Traffic (or, for such lesser period indicated below) ending on or prior to the date of determination to be less than: - -------------------------------------------------------------------------------- Fiscal Quarter/Fiscal Year Amount - -------------------------------------------------------------------------------- First Fiscal Quarter only 1998 $35,000,000 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Two consecutive Fiscal 1998 $74,000,000 Quarters ending with Second Fiscal Quarter 1998 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Three consecutive Fiscal 1998 $112,000,000 Quarters ending with Third Fiscal Quarter 1998 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Fourth Fiscal Quarter only 1998 $ 38,000,000 - -------------------------------------------------------------------------------- Two consecutive Fiscal 1999 $ 69,000,000 Quarters ending with the First Fiscal Quarter 1999 - -------------------------------------------------------------------------------- Three consecutive Fiscal 1999 $107,000,000 Quarters ending with the Second Fiscal Quarter 1999 - -------------------------------------------------------------------------------- Third 1999 $144,000,000 - -------------------------------------------------------------------------------- Fourth 1999 $155,000,000 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- First 2000 $167,000,000 - -------------------------------------------------------------------------------- Second 2000 $178,000,000 - -------------------------------------------------------------------------------- Third 2000 $189,000,000 - -------------------------------------------------------------------------------- Fourth 2000 $190,000,000" - -------------------------------------------------------------------------------- 2. REPRESENTATIONS AND WARRANTIES. As an inducement to the Agent and the Lenders to enter into this Amendment, each of the Borrowers hereby represents and warrants to the Agent and the Lenders and agrees with the Agent and the Lenders as follows: (a) It has the power and authority to enter into this Amendment and has taken all corporate action required to authorize its execution, delivery, and performance of this Amendment. This Amendment has been duly executed and delivered by it and constitutes its valid and binding obligation, enforceable against it in accordance with its terms. The execution, delivery, and performance of this Amendment will not violate its certificate of incorporation or by-laws or any agreement or legal requirements binding upon it. (b) As of the date hereof and after giving effect to the terms of this Amendment: (i) the Loan Agreement is in full force and effect and constitutes a binding obligation of the Borrowers, enforceable against the Borrowers and owing in accordance with its terms; (ii) the Obligations are due and owing by the Borrowers in accordance with their terms; and (iii) Borrowers have no defense to or setoff, counterclaim, or claim against payment of the Obligations and enforcement of the Loan Documents based upon a fact or circumstance existing or occurring on or prior to the date hereof. (c) The Obligations under the Loan Agreement as amended by this Amendment constitute "Senior Indebtedness" and "Designated Senior Indebtedness" as defined under the indentures relating to the Senior Notes and to the Subordinated Notes. 3. NO IMPLIED AMENDMENTS. Except as expressly provided herein, the Loan Agreement and the other Loan Documents are not amended or otherwise affected in any way by this Amendment. 4. ENTIRE AGREEMENT; MODIFICATIONS; BINDING EFFECT. This Amendment constitutes the entire agreement of the parties with respect to its subject matter and supersedes all prior oral or written understandings about such matter. Each of the Borrowers confirms that, in entering into this Amendment, it did not rely upon any agreement, representation, or warranty by the Agent or any Lender except those expressly set forth herein. No modification, rescission, waiver, release, or amendment of any provision of this Amendment may be made except by a written agreement signed by the parties hereto. The provisions of this Amendment are binding upon and inure to the benefit of the representatives, successors, and assigns of the parties hereto; provided, however, that no interest herein or obligation hereunder may be assigned by any Borrower without the prior written consent of the Required Lenders. 5. EFFECTIVE DATE. This Agreement shall become effective upon compliance with the conditions set forth immediately below: (i) No Event or Event of Default shall have occurred and there shall have been no material adverse change in the business or financial condition of any of the Borrowers. (ii) The Borrowers shall deliver to the Agent for the benefit of the Lenders an opinion of Borrowers' counsel in form and substance satisfactory to the Agent and its counsel (which opinion shall cover such matters as the Agent may reasonably request, including a statement that the Obligations under the Loan Agreement as amended by this Amendment constitute "Senior Indebtedness" and "Designated Senior Indebtedness" as defined under the indentures relating to the Senior Notes and to the Subordinated Notes). (iii) The Borrowers shall deliver to the Agent a certificate of the Borrowers' Chief Executive, Vice Chairman-Finance or Chief Financial Officer with respect to Section (i) above and such other instruments and documents as the Agent shall reasonably request. (iv) The Agent shall have received an original counterpart of this Amendment, duly executed and delivered by the Borrowers and the Required Lenders. (v) The Agent shall have received payment of the Amendment Fee, which shall be paid pro-rata to those Lenders which have executed this Agreement. 6. COUNTERPARTS. This Amendment may be executed in any number of counterparts, and by each party in separate counterparts, each of which is an original, but all of which shall together constitute one and the same agreement. 7. GOVERNING LAW. This Amendment is deemed to have been made in the State of New York and is governed by and interpreted in accordance with the laws of such state, provided that no doctrine of choice of law (except as may be applicable under the UCC with respect to the Security Interest) shall be used to apply the laws of any other state or jurisdiction. -----END PRIVACY-ENHANCED MESSAGE-----