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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): September 2, 1998
CONSOLIDATED CAPITAL OF NORTH AMERICA, INC.
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(Exact Name of Registrant as Specified in Its Charter)
Colorado 0-21821 93-0962072
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State or Other Jurisdiction Commission IRS Employer
of Incorporation or Organization File Number Identification No.
410 17th Street, Suite 400 Denver, Colorado 80202
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Address of Principal Executive Offices and Zip Code
Registrant's telephone number, including area code (888) 313-8051
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Item 5. OTHER EVENTS
Congress Financial Corporation has issued a $25 million credit facility proposal
to Consolidated Capital of North America, Inc. (the "Company") to finance the
acquisition by a subsidiary of the Company of substantially all of the assets of
privately held Toledo Pickling and Steel Sales, Inc. ("TPSS"), a Midwest-based
steel service center. The Company has entered into a letter of intent to acquire
TPSS through a newly-formed subsidiary in consideration for the assumption of
TPSS's secured debt and certain of its unsecured liabilities. TPSS expects to
have sales in excess of $80 million for the fiscal year ended September 30,
1998.
TPSS pickles, processes and sells slit coil steel, including hot rolled, cold
rolled, hot-dipped galvanized and galvanneal, electronic galvanized, and
aluminized steel coils. The Company expects to utilize TPSS as the core of an
aggressive acquisition effort in the Midwest, and also expects to grow the
business through expansion of TPSS's existing facilities, currently consisting
of a 175,000 square foot facility in Toledo, Ohio.
The consummation of the TPSS acquisition is contingent upon certain closing
conditions being met by the parties including the execution of definitive
agreements, completion of a review of the business of TPSS and the closing of
the financing with Congress Financial Corporation, which is contingent upon
similar closing conditions.
Safe Harbor Statement: The statements contained in this report that are not
historical facts may contain forward looking statements that involve a number of
know and unknown risks and uncertainties that could cause actual results to
differ materially from those discussed or anticipated by management. Potential
risks and uncertainties include, among other factors, general business
conditions, competitive market conditions, success of the Company's growth and
sales strategy, whether the Company will suffer customer attrition, whether the
transaction between the Company and TPSS will be successfully completed and
integrated, whether the Company will have sufficient resources to realize its
growth plans, fluctuations in margins, and other risks and uncertainties
currently unknown to management.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Company has caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
CONSOLIDATED CAPITAL OF NORTH AMERICA, INC.
By: /s/ Donald R. Jackson
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Secretary and Treasurer
Date: September 18, 1998
