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UNITED STATES
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) December 7, 1999
AgriBioTech, Inc.
(Exact name of issuer as specified in its charter)
Nevada 0-19352 85-0325742
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
120 Corporate Park Drive, Henderson, Nevada (89014)
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (702)566-2440
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Item 5. Other Events.
On December 7, 1999, AgriBioTech, Inc. issued the attached press release.
Item 7. Financial Statements and Exhibits.
(c) The following exhibit is filed as a part of this report:
99.1 Press Release dated December 7, 1999.
SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereto duly authorized.
Date: December 7, 1999
AGRIBIOTECH, INC.
By: /s/ Randy Ingram
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Randy Ingram
Executive Vice President and
Chief Financial Officer
FOR IMMEDIATE RELEASE
Contact:
Doug Fisher Howard Kalt
AgriBioTech, Inc. Kalt Rosen Chase & Co. LLC
702-566-2440 415-397-2686
AGRIBIOTECH, INC. REFINANCING WILL REQUIRE
ADDITIONAL EQUITY INFUSION
HENDERSON, Nevada, December 7, 1999 - AgriBioTech, Inc. [NASDAQ NMS: ABTX] said
today that it has been advised by GE Capital of the likelihood that an infusion
of capital in an amount greater than the $5 million provided for in GE Capital's
original commitment letter will be necessary to complete the syndication of a
long-term financing package. GE Capital has not specified the amount of
additional equity necessary but has estimated it to total approximately $15
million, including the $5 million referred to in the original commitment letter.
Richard Budd, chairman and chief executive officer of AgriBioTech, said that he
was disappointed in the delay, "but we have a number of viable options for
resolving this new hurdle and completing the refinancing package."
AgriBioTech also announced that, as part of its equity raising efforts, it has
sold 835,407 shares of its common stock to an institutional investor for an
aggregate of $2.5 million. The purchase price reflects the average of recent
trading prices of ABT's common stock on the NASDAQ National Market, net of a
6.5% discount.
Last month, AgriBioTech announced the signing of a commitment letter with GE
Capital to arrange a syndicate of lenders to provide ABT with a revolving line
of credit in the amount of up to $115 million and a term loan in the amount of
up to $20 million. The revolving line will replace an existing $100 million
revolving credit facility scheduled to expire in June 2001. ABT will be able to
borrow under the revolving line based upon levels of eligible inventory and
accounts receivable. The amount of the five-year term loan will be determined by
the appraised value of the real estate, plant and equipment.
The funds will be used to repay the amounts outstanding under the existing
revolving credit facility as well as approximately $10 million borrowed under
various secured debt facilities primarily incurred by subsidiaries prior to
their acquisition by ABT.
The foregoing information regarding finalization of long term debt financing are
forward looking statements. They should be considered strictly preliminary, and
there is no assurance that the loan transaction will finalize. The risks and
uncertainties associated with these statements include, but are not limited to,
the ability to close the transaction, which depends on a variety of factors
including no material change in ABT's business, overall financial condition or
operations and other factors as detailed from time to time in the Company's most
recent Form 10K and other SEC filings.
