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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 15, 1994
APPLIED MAGNETICS CORPORATION
(Exact name of registrant as specified in its charter)
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Delaware 1-6635 95-1950506
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(State of other (Commission File Number) (IRS Employer
jurisdiction of Identification
incorporation) Number)
Registrant's telephone number, including area code: (805) 683-5353
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Item 5. Other Events
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On November 15, 1994, the Registrant issued a press release, dated
November 15, 1994, announcing that the Registrant had entered into a Commitment
Letter with the CIT Group/Business Credit, Inc., which will provide the Company
with secured financing, in the form of a revolving line of credit, for up to
$35,000,000. The closing is subject to finalization of definitive loan
documentation and other closing conditions and is expected to occur by the end
of December. The amount available for borrowing under the facility will be
subject to certain asset ratios and other considerations.
On November 18, 1994, the Registrant issued a press release, dated
November 18, 1994, announcing that the Registrant had entered into an agreement
to dismiss a 1993 securities class action suit brought against Registrant and
several of its present and former officers in U.S. District Court for the
Central District of California. Settlement of the suit is subject to the terms
of a definitive written agreement expected to be submitted to the court for
preliminary approval in December. The settlement is ultimately subject to final
court approval after notice to the class members of the terms. The Registrant
disclosed that under the terms of the settlement, it will not be required to
make any cash payments but will contribute shares of its common stock having an
aggregate value of $1,250,000. The stock, along with $2.75 million from the
Registrant's insurance carrier, will be distributed, after court approval, to a
class consisting of all persons who purchased the Registrant's common stock
during the period October 22, 1992 through October 1, 1993. The litigation will
be dismissed as to the Registrant and the named officers.
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Item 7. Financial Statements and Exhibits
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(c) Exhibits
20(a) Press Release, dated November 15, 1994, announcing the matters
described in Item 5.
21(b) Press Release, dated November 18, 1994, announcing the matters
described in Item 5.
SIGNATURE
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.
APPLIED MAGNETICS CORPORATION
Date: December 5, 1994 By: /s/Craig D. Crisman
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Craig D. Crisman
Chief Executive Officer
Chief Financial Officer
(Principal Financial Officer)
Date: December 5, 1994 By: /s/Peter Altavilla
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Peter Altavilla
Corporate Controller
(Principal Accounting Officer)
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EXHIBIT INDEX
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Page Number In
Sequential Numbering
Exhibit System
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20(a) Press Release, dated November 8, 5
1994, announcing that the
Registrant had entered into a
Commitment Letter with the CIT
Group/Business Credit, Inc.,
which will provide the Registrant
with secured financing, in
the form of a revolving line of
credit, for up to $35,000,000.
21(b) Press Release dated November 18, 6-7
1994, announcing that the
Registrant had entered into an
agreement to dismiss a 1993
securities class action suit
brought against the Registrant
and several of its present and
former officers in U.S. District
Court for the Central District
of California.
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(LOGO OF APPLIED MAGNETICS APPEARS HERE) NEWS RELEASE
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FOR IMMEDIATE RELEASE Contact: Craig D. Crisman
President and
Chief Executive Officer
805/683-5353
APPLIED MAGNETICS CORPORATION ANNOUNCES
CREDIT COMMITMENT
GOLETA, CALIFORNIA November 15, 1994 - APPLIED MAGNETICS CORPORATION
(APM:NYSE) announced today that it has entered into a commitment letter with The
CIT Group/Business Credit, Inc. under which the Company will be provided secured
financing, in the form of a revolving line of credit, for up to $35,000,000.
The closing of the transaction, which is subject to preparation and
finalization of definitive loan documentation and certain other closing
conditions, is expected to occur by the end of December. The amount available
for borrowing at any time under the facility will be subject to certain asset
ratios and other considerations.
Craig D. Crisman, President and Chief Executive Officer stated "This
proposed financing is part of Applied Magnetic's overall turnaround strategy and
will be used to fund the growth of thin-film disk head products and the ramp of
MR disk-head programs."
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(LOGO OF APPLIED MAGNETICS APPEARS HERE) NEWS RELEASE
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FOR IMMEDIATE RELEASE Contact: Raymond P. Le Blanc
Vice President, Secretary
and General Counsel
805/683-5353
APPLIED MAGNETICS CORPORATION
SETTLES CLASS ACTION LAWSUIT
GOLETA, CALIFORNIA, November 18, 1994 - APPLIED MAGNETICS CORPORATION
(APM:NYSE) today announced today that is entered into an agreement to dismiss a
1993 securities class action suit brought against the Company and several
present and former officers in U.S. District Court for the Central District of
California. Settlement of the suit is subject to the terms of a definitive
written agreement which is expected to be submitted to the court for preliminary
approval next month. The settlement is ultimately subject to final court
approval after notice to the class members of the terms.
Under the terms of the settlement, the Company will not be required to make
any cash payments but will contribute shares of its common stock having an
aggregate value of $1,250,000. The stock, along with $2.75 million from the
Company's insurance carrier, will be distributed, after court approval, to a
class consisting of all persons who purchased the Company's common stock during
the period October 22, 1992 through October 1, 1993. The litigation will be
dismissed as to the Company and the named officers.
Raymond P. Le Blanc, Vice President, Secretary and General Counsel stated
"The Company considers this litigation as being totally without merit and the
settlement does not reflect either a finding or admission of liability on the
part of the Company or the
-more-
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named officers. This arrangement was reached in order to avoid protracted and
expensive litigation which would consume valuable Company resources that can be
more productively used in pursuing other important strategic objectives."
Applied Magnetics Corporation, headquartered in Goleta, California, is a
major independent supplier of magnetic recording heads for disk drive
applications for the worldwide data storage segment of the computer industry.
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