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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): August 21, 2000
MICROTEL INTERNATIONAL, INC.
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(Exact Name of Registrant as Specified in Its Charter)
DELAWARE 1-10346 77-0226211
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(State or other jurisdiction of (Commission File (IRS Employer)
incorporation or organization) Number) Identification No.)
9485 HAVEN AVENUE, SUITE 100, CALIFORNIA 91730
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (909) 297-2699
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS.
NEW CREDIT FACILITY
On August 16, 2000, the Company entered into a credit agreement with
Wells Fargo Business Credit, Inc. ("Wells") to provide the Company with a
maximum credit line of $3,000,000 secured by a pledge of the Company's
domestic assets. The facility includes a term loan secured by machinery and
equipment and a revolving credit line relating to a percentage of the
Company's receivables and inventory. The company's foreign subsidiaries
currently have credit facilities in England provided by Lloyds Bank and in
France provided Banc National du Paris and in Japan by Johan Tokyo Credit
Bank. The interest rate on the Wells loan is the prime rate plus two percent
but the agreement provides for up to one full percent reduction in the rate
as early as December 31, 2000, based upon achieving certain targeted profit
levels in the third and fourth quarters.
The prior credit facility with Congress Financial Corporation expired
and all funds owed to Congress Financial Corporation have been paid off.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
MICROTEL INTERNATIONAL, INC.
By: /s/ Randolph D. Foote
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Randolph D. Foote
Chief Financial Officer
Date: August 21, 2000
