SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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): September 18, 1997
ARCA CORP.
(Exact name of registrant as specified in charter)
New Jersey 333-5278-NY 22-3417547
(State or other (Commission (IRS Employer
jurisdiction File Number) Identification No.)
of incorporation)
215 West Main Street
Maple Shade, New Jersey 08052
(Address of principal executive offices)
Registrant's telephone number, including area code (609) 667-0600
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ITEM 5. OTHER EVENTS.
On September 18, 1997, S.V.G. Properties, L.P., 80% of which is owned by ARCA
Corp. through its wholly owned subsidiary Spring Village Holdings, Inc.,
completed the refinancing of its long term debt. The refinancing completes
the first objective of the Company's long term business plan. Below is a
summary of the significant financial terms of the refinancing (rounded to the
nearest $1,000):
Before After
Refinancing Refinancing
----------- -----------
Total long term debt 3,595,000 3,578,000
Annual debt service (1998) 342,000 323,000
Annual interest expense (1998) 331,000 293,000
Funded expense escrows 10,000 99,000
Effective interest rate 9.2% 8.2%
Maturity 7 years 10 years
As a result of the refinancing, long term debt decreased by $17,000, annual
debt service decreased by $19,000, annual interest expense decreased by
$38,000, and funded cash reserves to cover anticipated future expensese such
as taxes, capital replacements and insurance increased by $89,000.
Now that the refinancing has been completed, the Company plans to seek new
capital to reduce total debt and to seek strategic acquisitions to enhance
shareholder value.
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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.
ARCA CORP.
/s/ Harry J. Santoro
DATED: September 24, 1997
By: Harry J. Santoro
President
