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):
May 24, 1999 (May 7, 1999)
Regan Holding Corp.
(Exact name of registrant as specified in its charter)
California
(State or other jurisdiction of incorporation
0-4366 68-0211359
(Commission File Number) (I.R.S. Employer
Identification No.)
1179 N. McDowell Blvd., Petaluma, California 94954
(Address of principal executive offices) (zip code)
(707) 778-8638
(Registrant's telephone number, including area code)
(Former name or former address, if changed since last report)
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ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
On May 7, 1999, the Company purchased the building which houses its
headquarters and an adjacent parcel of land in Petaluma, California for $4.3
million. The Company paid $2.2 million of the purchase price in cash and entered
into a loan payable for the remaining $2.1 million. The loan has a ten year term
and is payable in monthly installments plus one balloon payment of approximately
$1.8 million, due on May 10, 2009. The loan bears interest at 0.5% per annum
above the Prime Rate, as published in the West Coast Edition of the Wall Street
Journal. The loan is fully guaranteed by each of the Company's subsidiaries. In
addition, the loan agreement contains certain covenants with which the Company
must comply, including restrictions on indebtedness or investments outside the
ordinary course of business and restrictions on dividends or other changes in
the Company's capital structure. Pursuant to the loan agreement, the Company was
required to place approximately $650,000 in reserve to cover loan payments in
the event of default and to provide for certain repair costs.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION
AND EXHIBITS
(a) Financial statements of the business acquired
Not Applicable
(b) Pro Forma financial information
To follow within sixty (60) days of the date hereof
(c) Exhibits
Exhibit 10.1 Agreement of Purchase and Sale, dated March 8, 1999, by
and among Regan Holding Corp., North McDowell Investments
and Jane Crocker*
Exhibit 10.2 Business Loan Agreement, dated May 6, 1999, by and
between Regan Holding Corp. and National Bank of the
Redwoods*
Exhibit 10.3 Promissory Note, dated May 6, 1999, by and between Regan
Holding Corp. and National Bank of the Redwoods*
*Incorporated herein by reference from the registrant's quarterly
report on Form 10-Q for the quarter ended March 31, 1999.
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SIGNATURES
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.
Date: May 24, 1999 REGAN HOLDING CORP.
By: /s/ Gregory C Egger
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Name: Gregory C Egger
Title: Chief Marketing Officer
