-----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, P+AyWicFVnQg7bOLzqug7zBV9KW1sZcr15angJjvS0P2VGF1YId1PTFZaYtebfie KWMW1XR6c5ZuNJ3H0S/bIQ== 0000950123-97-010133.txt : 19971209 0000950123-97-010133.hdr.sgml : 19971209 ACCESSION NUMBER: 0000950123-97-010133 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971114 ITEM INFORMATION: ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19971208 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: KTI INC CENTRAL INDEX KEY: 0000931581 STANDARD INDUSTRIAL CLASSIFICATION: COGENERATION SERVICES & SMALL POWER PRODUCERS [4991] IRS NUMBER: 222665282 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-25490 FILM NUMBER: 97734171 BUSINESS ADDRESS: STREET 1: 7000 BLVD E CITY: GUTTENBERG STATE: NJ ZIP: 07093 BUSINESS PHONE: 2018547777 MAIL ADDRESS: STREET 1: 7000 BOULEVARD EAST CITY: GUTTENBERG STATE: NJ ZIP: 07093 8-K 1 KTI, INC. 1 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 14, 1997 KTI, INC. (Exact name of Registrant as specified in Charter) New Jersey 33-85234 22-2665282 (State or other juris- (Commission (IRS Employer diction of incorporation) File Number Identification Number) 7000 Boulevard East, Guttenberg, New Jersey 07093 (Address of principal executive office) (Zip Code) Registrant's telephone number including area code- (201) 854-7777 Not Applicable (Former name and former address, as changed since last report) 2 ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS. On November 14, 1997, the Company completed the acquisition of three recycling facilities located in Franklin Park, Illinois, a suburb of Chicago, Charlestown, Massachusetts, a suburb of Boston, and in Newark, New Jersey. The facilities will be operated by wholly owned subsidiaries of the Company under the name of KTI Recycling. The three facilities are capable of processing approximately 50,000 tons of post consumer and commercial recyclables per month. The facilities were purchased as part of an asset purchase from Prins Recycling Corp. and its subsidiaries ("Prins") pursuant to an order of the Bankruptcy Court for the District of New Jersey entered on November 6, 1997. In addition to the facilities, the Company purchased substantially all of the remaining assets of Prins, including cash, accounts receivable and causes of action. Certain assets and contracts were rejected by Prins as not economically attractive. Certain causes of action arising under the Bankruptcy Code were not purchased. The purchase price was approximately $13.6 million. The purchase was financed in part by a term loan of $7.5 million provided by Key Bank, National Association, bearing interest at said Bank's base rate plus 1.25% per annum, amortized with level monthly principal payments amortized over 60 months. The term loan is secured by a mortgage on the Franklin Park, Illinois facilities, all property and equipment at three facilities not pledged to third parties and the accounts receivable generated by the three facilities. The balance of the purchase price was paid by internal cash on hand and by a temporary draw of a portion of the Company's revolving line of credit of $11 million, provided by Key Bank, National Association. A subsidiary of the Company had operated Prins from May 1, 1997 until the closing of the purchase. Pursuant to an agreement with PNC Bank, National Association, the Company received a one-time management fee of $700,000, paid by said Bank. ITEM 5. OTHER EVENTS The Company completed an amendment to its Amended and Restated Revolving and Term Loan Agreement with Key Bank, National Association, adding the Term Loan provision referred to above, effective as of November 14, 1997. 3 ITEM 7. EXHIBITS (a) Financial statements of the business acquired. It is impractical to provide the required financial statements for Prins Recycling Corp. as audited financial statements are not available at this time. The required financial statements will be filed under an amendment to this form as soon as practical, following receipt of audited financial statements, but not later than January 16, 1998. (b) Pro Forma Financial information It is impractical to provide the required pro forma financial information as audited financial statements for Prins Recycling Corp. are not available at this time. The required pro forma financial information will be filed under an amendment to this form as soon as practical, following receipt of audited financial statements, but not later than January 16, 1998. (c) Exhibits Exhibit Number Description - -------------- ----------- 4.1 Release dated November 14, 1997 4 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. KTI, Inc. (the Registrant) Dated: December 4, 1997 By: /s/ Martin J. Sergi ---------------------------- Name: Martin J. Sergi Title: President EX-99.4.1 2 RELEASE DATED 11/14/1997 1 NEWS RELEASE FOR IMMEDIATE RELEASE KTI COMPLETES ACQUISITION OF RECYCLING PLANTS IN BOSTON, CHICAGO AND NEWARK. Guttenberg, N. J., (November 14, 1997) -- KTI, Inc. (Nasdaq:KTIE) announced today it has completed the acquisition of recycling plants in Boston, Chicago and Newark. The newly acquired facilities, which will operate as KTI Recycling, are capable of processing and marketing approximately 50,000 tons per month of post consumer and commercial recyclables at the three state-of-the-art high capacity plants. Purchased from a bankruptcy court, the plants are the former assets of Prins Recycling Corp. The acquisition was valued at $13.6 million. At the height of operations under the former operators, the facilities generated approximately $50 million in annual revenue. KTI President and Chief Financial Officer Martin J. Sergi, said, "This acquisition is part of our strategy of vertical integration by adding municipal and commercial recycling programs to our comprehensive solid waste disposal services. We expect this new operation will be a valuable contributor to KTI's financial results." KTI is an award winning environmental company engaged in integrated waste processing and management in diversified services and markets. The company handles over two million tons of material a year and is best known for its expertise in the waste-to-energy sector. KTI was organized in 1983 to develop and own waste-to-energy facilities with the dual purpose of providing a means of disposal for non-hazardous municipal solid waste and of generating electricity from alternative fuel sources. Since then, KTI's operations have expanded to include the development of an integrated waste management business providing not only municipal solid waste handling and disposal services, but also wood waste processing, ash and municipal waste recycling, specialty waste disposal, transportation facilitation services and transfer station operations. In Maine, KTI owns and operates two waste-to-energy facilities which convert non-hazardous solid waste from residential, commercial and industrial sources into electric power, Maine Energy Recovery Company in Biddeford, and Penobscot Energy Recovery Company in Orrington. KTI has developed and operates a wood waste processing and recycling facility in Lewiston, Maine. In Telogia, Fla., KTI operates a 14-megawatt power plant and in nearby Cairo, Ga. owns a wood chipping plant. KTI also holds a majority interest in America's only commercially operational municipal waste ash recycling facility in Nashville, Tenn., owns a Maryland company specializing in marketing post-industrial recycled plastics, a paper and metals recycling company in Biddeford, Maine and a world wide secondary fiber marketing company based in Portland, Ore. 2 For further information, contact Marty Sergi at KTI, Inc. (201) 854-7777 or Frank N. Hawkins, Jr. or Julie Marshall at Hawk Associates, Inc. at (305) 852-2383. Copies of KTI press releases, SEC filings, current price quotes, stock charts, analysts' comments and other valuable information for investors may be found on the website http://www.hawkassociates.com. -----END PRIVACY-ENHANCED MESSAGE-----