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) August 16, 1996
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KOGER EQUITY, INC.
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(Exact name of registrant as specified in its charter)
Florida 1-9997 59-2898045
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(State of incorporation (Commission (IRS Employer
or organization) File Number) Identification No.)
3986 Boulevard Center Drive
Jacksonville, Florida 32207
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number: (904) 398-3403
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N/A
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
Reference is made to a copy of the Koger Equity, Inc. News Release,
dated August 16, 1996, which is filed as Exhibit 99 to this report, which
exhibit is incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
Exhibit Number Description of Exhibit
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99 Koger Equity, Inc. News Release,
dated August 16, 1996
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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 thereunto duly authorized.
KOGER EQUITY, INC.
Date: August 16, 1996 By:
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W. Lawrence Jenkins
Title: Vice President and
Corporate Secretary
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EXHIBIT INDEX
The following designated exhibit is filed herewith:
Exhibit
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99 Koger Equity, Inc. News Release,
dated August 16, 1996
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EXHIBIT 99
Koger Equity, Inc.
Post Office Box 4339
Jacksonville, Florida 32201
904-398-3403
NEWS
KOGER EQUITY, INC. ANNOUNCES FINANCIAL DEVELOPMENTS
Jacksonville, Florida, August 16, 1996 -- Jacksonville-based Koger Equity, Inc.
(AMEX:KE) announced that it has signed a loan application with The Northwestern
Mutual Life Insurance Company for a $190 million non-recourse loan which will be
secured by ten office parks. This loan will be divided into (i) a tranche in the
amount of $100.5 million with a ten year maturity and an interest rate of 8.25
percent and (ii) a tranche in the amount of $89.5 million with a maturity of 12
years and an interest rate of 8.33 percent. The Company is also seeking to
refinance the $62 million balance of its debt and to establish a new bank
revolving credit facility of approximately $50 million to finance growth
opportunities. It looks forward to completing the refinancings (which will
eliminate restrictive covenants in the Company's existing debt) and arranging
the new credit facility by the end of the year or in the first quarter of 1997.
Koger Equity also announced that it has entered into an agreement with the
Internal Revenue Service settling matters with respect to the IRS's customary
examination of the Company's 1992 and 1993 Federal income tax returns and the
Koger Properties, Inc. ("KPI") final Federal income tax return through the
effective date of the merger of KPI and the Company. Under the terms of the
settlement, the amount of KPI's net operating tax loss carryforwards at the date
of the merger has been settled at $30 million, and is useable at the rate of
$7.9 million per year. Koger Equity's net operating tax loss carryforward
available to offset REIT taxable income in 1996 is approximately $31.4 million.
The Company regards the foregoing settlement as a favorable resolution of issues
which were the subject of the IRS audit and in line with its tax strategy
developed in connection with the KPI merger.
Victor A. Hughes, Jr., Koger Equity Chairman and Chief Executive Officer, said,
"As previously announced, the board intends to reinstitute a dividend beginning
next year. The favorable IRS settlement with respect to net operating tax loss
carryforwards will not affect the tax loss carryforwards useable by the Company
in 1996 or 1997 or its plan to reinstitute a dividend in 1997. The board expects
to set a dividend record date in the fourth quarter for payment of an initial
quarterly dividend early in the first quarter of 1997."
Mr. Hughes also said, "Our Company has made good progress through the first six
months of the year, a fact which has been noticed by the securities markets. The
closing price of Koger Equity's common stock on the American Stock Exchange on
June 30 was $13 3/8, reflecting a total return
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of 25.8% for the first six months of 1996, compared to 6.82% for all equity
REITs and 11.21% for our comparable group of office REITs over the same period.
From June 30, 1995, to June 30, 1996, the total return for the Company's common
stock was 52.9% and with the closing price on August 15, 1996, of $14.75, total
return from June 30, 1995, increased to 68.6%. The outlook for the balance of
the year remains very favorable with funds from operations projected to
approximate $32 million for 1996."
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The foregoing news release contains forward-looking statements, together with
related data and projections, about the Company's projected 1996 financial
results and its proposed debt refinancing. The actual results for 1996 and of
such refinancing activities could differ materially from those projected because
of factors affecting the financial markets, reactions of the Company's existing
or prospective lenders and investors, the ability of the Company to renew and
enter into new leases on favorable terms, and other risk factors. See
"Management's Discussion and Analysis of Financial Condition and Results of
Operations -- Cautionary Statement Relevant to Forward-Looking Information for
Purpose of the 'Safe Harbor' Provisions of the Private Securities Litigation
Reform Act of 1995" in the Company's Annual Report on Form 10-K for the fiscal
year ended December 31, 1995.
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