HORIZON PHARMACIES INC
8-K/A, 1998-08-31
DRUG STORES AND PROPRIETARY STORES
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<PAGE>
                                       
                            Washington, D.C. 20549

                                  FORM 8-K/A

                                CURRENT REPORT
    PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

        DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): July 2, 1998


                            HORIZON PHARMACIES, INC.
             (Exact name of registrant as specified in its charter)

           DELAWARE                    0-22403              75-2441557
(State or other jurisdiction of      (Commission         (I.R.S. Employer
 incorporation or organization)      File Number)       Identification No.)

        275 W. PRINCETON DRIVE
           PRINCETON, TEXAS                                    75407
(Address of Principal Executive Offices)                     (Zip Code)
                                       
                                (972) 736-2424
             (Registrant's telephone number, including area code)

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- -------------------------------------------------------------------------------
<PAGE>

ITEM 5.  OTHER EVENTS

     On August 26, 1998, HORIZON Pharmacies, Inc. (the "Registrant") and 
McKesson Corporation ("McKesson"), entered into a Second Amendment to Credit 
Agreement which amends that certain Credit Agreement dated July 2, 1998 
between the parties, as amended by that certain First Amendment to Credit 
Agreement dated July 20, 1998 (collectively, the "Credit Agreement"). The 
Credit Agreement, as amended, provides that McKesson will provide the 
Registrant with a revolving loan facility in an amount not to exceed 
$15,000,000 and a term loan in the original principal amount of $3,000,000 
for general corporate purposes and acquisitions (collectively, the "Credit 
Facilities"). Availability of the revolving loan facility is subject to 
borrowing base requirements and compliance with loan covenants. In connection 
with the Credit Facilities the Registrant's wholly-owned subsidiary, HORIZON 
Home Care, Inc. ("HHC"), executed a Guaranty Agreement, and the Registrant 
and HHC both executed a Security Agreement in favor of McKesson.

ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS.

     (a)  FINANCIAL STATEMENTS OF BUSINESSES ACQUIRED.

          Not applicable.

     (b)  PRO FORMA FINANCIAL INFORMATION.

          Not applicable.

     (c)  EXHIBITS.

          The following exhibits are filed with this report:

<TABLE>
<CAPTION>
         Exhibit No.       Name of Exhibit
         -----------       ---------------
<S>                        <C>
           *10.1           Credit Agreement dated July 2, 1998 by and between 
                           HORIZON Pharmacies, Inc. and McKesson Corporation. 

           *10.2           First Amendment to Credit Agreement dated as of 
                           July 20, 1998 between HORIZON Pharmacies, Inc. and 
                           McKesson Corporation.

            10.3           Second Amendment to Credit Agreement dated as of 
                           August 26, 1998 between HORIZON Pharmacies, Inc. and 
                           McKesson Corporation filed electronically herewith. 
                           Omitted from this Agreement, as filed, are the 
                           exhibits thereto. The Registrant will furnish 
                           supplementally a copy of any such omitted exhibits 
                           to the Commission upon request.
</TABLE>
- ---------------------
* Previously filed






                                      -2-
<PAGE>
                                       
                                  SIGNATURES

     Pursuant to the requirements of Section 13 or 15(d) 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.

                                       REGISTRANT:

                                       HORIZON PHARMACIES, INC.


Date:  August 31, 1998                 By: /s/ Ricky D. McCord
                                           ----------------------------------
                                           Ricky D. McCord, President








                                      -3-

<PAGE>

                                       
                               SECOND AMENDMENT
                             TO CREDIT AGREEMENT


          This SECOND AMENDMENT TO CREDIT AGREEMENT (this "AMENDMENT") is 
dated as of August 26, 1998 between HORIZON Pharmacies, Inc., a Delaware 
corporation ("BORROWER"), and McKesson Corporation, a Delaware corporation 
("MCKESSON").

                                    RECITALS

          WHEREAS, Borrower and McKesson are parties to that certain Credit 
Agreement dated as of July 2, 1998, as amended by a First Amendment to Credit 
Agreement dated July 20, 1998 (the "CREDIT AGREEMENT").  Capitalized terms 
used herein without definition shall have the same meanings herein as set 
forth in the Credit Agreement.

          WHEREAS, Borrower and McKesson wish to correct the inadvertent 
omission of an agreed term from the Credit Agreement.

          NOW, THEREFORE, in consideration of the promises and the 
agreements, provisions and covenants herein contained, the parties hereto 
agree as follows:

SECTION 1.     AMENDMENTS TO THE CREDIT AGREEMENT

     The following Section 1.8 is hereby added to the Credit Agreement:  

          SECTION 1.8  FACILITY FEE.  Borrower agrees to pay McKesson a 
facility fee in an amount equal to [redacated -- Confidential Treatment]% per 
annum, payable quarterly in arrears, on the average daily amount by which (i) 
$15,000,000 exceeds (ii) the outstanding aggregate principal amount of 
Revolving Loans.

SECTION 2.     CONDITIONS TO EFFECTIVENESS

     This Amendment shall become effective as of the first date (the "SECOND 
AMENDMENT DATE") when the Borrower and McKesson shall have delivered to one 
another duly executed counterparts of this Amendment.  When and if this 
Amendment becomes effective, the amendments set forth in Section 1 shall be 
deemed effective as of July 2, 1998.

SECTION 3.     MISCELLANEOUS

          A.  REFERENCE TO AND EFFECT ON THE CREDIT AGREEMENT AND THE OTHER 

<PAGE>

LOAN AGREEMENTS.

          (i)   On and after the Second Amendment Date, each reference in the 
Credit Agreement to "this Agreement", "hereunder", "hereof", "herein" or 
words of like import referring to the Credit Agreement, and each reference in 
the other Loan Documents to the "Credit Agreement", "thereunder", "thereof" 
or words of like import referring to the Credit Agreement shall mean and be a 
reference to the Amended Agreement.

          (ii)  Except as specifically amended by this Amendment, the Credit 
Agreement and the other Loan Documents shall remain in full force and effect 
and are hereby ratified and confirmed.

          (iii) The execution, delivery and performance of this Amendment 
shall not, except as expressly provided herein, constitute a waiver of any 
provision of, or operate as a waiver of any right, power or remedy of 
McKesson under, the Credit Agreement or any of the other Loan Documents nor 
to create any course of dealing or otherwise obligate McKesson to forebear or 
execute similar amendments or any waiver in similar circumstances in the 
future.

          B.  HEADINGS.  Section and subsection headings in this Amendment 
are included herein for convenience of reference only and shall not 
constitute a part of this Amendment for any other purpose or be given any 
substantive effect.

          C.  APPLICABLE LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND SHALL 
BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE 
OF CALIFORNIA, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

          D.  COUNTERPARTS.  This Amendment may be executed in any number of 
counterparts, each of which shall be deemed an original, but all such 
counterparts together shall constitute but one and the same instrument.  Each 
of the parties hereto understands and agrees that this document (and any 
other document required herein) may be delivered by any party thereto either 
in the form of an executed original or an executed original sent by facsimile 
transmission to be followed promptly by mailing of a hard copy original, and 
that receipt by a party of a facsimile transmitted document purportedly 
bearing the signature of the other party shall bind the other party with the 
same force and effect as the delivery of a hard copy original.  Any failure 
by a party to receive the hard copy executed original of such document shall 
not diminish the binding effect of receipt of the facsimile transmitted 
executed original of such document of the other party.

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Amendment 
to be duly executed and delivered by their respective officers thereunto duly 
authorized as of the date first written above.

                                       HORIZON PHARMACIES, INC.

                                       By: 
                                           ----------------------------------
                                       Title 
                                             --------------------------------


                                       McKESSON CORPORATION


                                       By: 
                                           ----------------------------------
                                       Title 
                                             --------------------------------



                    ACKNOWLEDGMENT AND CONSENT OF GUARANTOR

               The undersigned in its capacity as a guarantor under that 
certain Guaranty dated as of July 2, 1998 made in favor of McKesson hereby 
(i) acknowledges and consents to the execution, delivery and performance by 
Borrower of the foregoing Second Amendment to Credit Agreement (the 
"Amendment"), (ii) acknowledges that the undersigned's consent is being 
sought purely as a protective measure and understands that the terms of the 
Credit Agreement dated as of July 2, 1998 may be amended without prior notice 
to or consent of the undersigned and without discharging or otherwise 
affecting the liability of the undersigned under the Guaranty, and (iii) 
reaffirms that it will continue to be bound by all of the provisions of the 
Guaranty and that such Guaranty will remain in full force and effect 
notwithstanding the execution and delivery by Borrower of the First Amendment 
referred to above.

                                       HORIZON HOME CARE, INC.


                                       By: 
                                           ----------------------------------
                                       Its 
                                           ----------------------------------



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