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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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): October 16, 1998
LITCHFIELD FINANCIAL CORPORATION
(Exact Name of Registrant as Specified in its Charter)
Massachusetts 0-19822 04-3023928
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(State or other jurisdiction of (Commission File (IRS Employer
incorporation or organization) Number) (Identification Number)
430 Main Street
Williamstown, MA 01267 05352
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(Address of principal (Zip Code)
executive offices)
Registrant's telephone number, including area code: (413) 458-1000
(Former name or former address, if changed since last report.)
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Item 5. Other Events.
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In conjunction with the sale of its 8.25% Series A Notes due November 1,
2003, the Company executed a Supplemental Indenture with the Bank of New York,
as Trustee, attached hereto as Exhibit 4.2.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
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(c) Exhibits
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4.2 Supplemental Indenture, dated as of October 16, 1998, between the
Company and The Bank of New York, Trustee.
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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 hereunto duly authorized.
LITCHFIELD FINANCIAL CORPORATION
Dated: October 21, 1998 By: /s/ RICHARD A. STRATTON
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Richard A. Stratton, President,
Chief Executive Officer and
Director
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LITCHFIELD FINANCIAL CORPORATION
AND
THE BANK OF NEW YORK,
TRUSTEE
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SUPPLEMENTAL INDENTURE
Dated as of October 16, 1998
8.25% Series A Notes due 2003
Supplemental to Indenture dated as of July 15, 1998
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SUPPLEMENTAL INDENTURE, dated as of October 16, 1998 (the "Supplemental
Indenture"), to the Indenture, dated as of July 15, 1998 (the "Indenture"),
between Litchfield Financial Corporation, a corporation duly organized under the
laws of the Commonwealth of Massachusetts (the "Company"), having its principal
office at 430 Main Street, Williamstown, Massachusetts 01267, and The Bank of
New York, a New York banking corporation (the "Trustee"), having a corporate
trust office at 101 Barclay Street, New York, NY 10286.
RECITALS OF THE COMPANY
WHEREAS, the Company has duly authorized the execution and delivery of the
Indenture to provide for the issuance from time to time of one or more series of
its notes (the "Notes") to be issued in one or more series as in the Indenture
provided;
WHEREAS, the Company desires and has requested the Trustee to join it in
the execution and delivery of this Supplemental Indenture in order to establish
and provide for the issuance by the Company of a series of Notes designated as
its 8.25% Series A Notes due 2003 in the aggregate principal amount of up to
$10,000,000 (not including an option by the Underwriter to purchase an
additional $1,500,000 in aggregate principal amount of Series A Notes to cover
over-allotments, if any), substantially in the form attached hereto as Exhibit
"A" (the "Series A Notes"), on the terms set forth herein;
WHEREAS, SECTION 13.1 of the Indenture provides that a supplemental
Indenture may be entered into by the Company and the Trustee without the consent
of any holder of any Notes for such purpose provided certain conditions are met;
WHEREAS, the conditions set forth in the Indenture for the execution and
delivery of this Supplemental Indenture have been complied with; and
WHEREAS, all things necessary to make this Supplemental Indenture a valid
agreement of the Company and the Trustee, in accordance with its terms, and a
valid amendment of, and supplement to, the Indenture have been done;
NOW THEREFORE:
In consideration of the premises and the purchase and acceptance of the
Series A Notes by the holders thereof the Company mutually covenants and agrees
with the Trustee, for the equal and proportionate benefit of all holders of the
Series A Notes, that the Indenture is supplemented and amended, to the extent
and for the purposes expressed herein, as follows:
1. ESTABLISHMENT OF SERIES A NOTES UNDER THE INDENTURE. The Company hereby
establishes the Series A Notes in the form of Exhibit A hereto in an aggregate
principal amount of $10,000,000 (not including an option by the Underwriter to
purchase an additional $1,500,000 in aggregate principal amount of Series A
Notes to cover over-allotments, if any) and on the terms set forth therein as a
series of Notes under the Indenture pursuant to this Supplemental Indenture.
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2. OPTIONAL REDEMPTION BY THE COMPANY. In accordance with SECTION 5.1 of
the Indenture, the Series A Notes will be subject to optional redemption by the
Company as provided in the form of Series A Note attached as Exhibit A hereto.
3. REDEMPTION AT OPTION OF HOLDER. In the event that a holder or his or her
duly authorized representative notifies the Trustee of such person's desire to
redeem all or any portion of a Series A Note pursuant to SECTION 6.1(a) or (b)
of the Indenture, the Trustee shall furnish such holder with the form set forth
in Exhibit A to the Indenture (for redemptions pursuant to SECTION 6.1(a) of the
Indenture) or Exhibit B to the Indenture (for redemptions pursuant to SECTION
6.1(b) of the Indenture).
4. TRUSTEE DISCLAIMER. The Trustee makes no representations as to the
validity or sufficiency of this Supplemental Indenture or the Series A Notes,
and assumes no responsibility for the recitals contained herein or therein which
shall be taken as the statements of the Company.
5. GOVERNING LAW. This Supplemental Indenture and the Series A Notes shall
be governed by the laws of the State of New York as to all matters affecting the
duties, liabilities, privileges, rights and obligations of the Noteholders, the
Company, the Trustee and any agents of the foregoing, include but not limited
to, matters of validity, construction, effect and performance.
IN WITNESS WHEREOF, LITCHFIELD FINANCIAL CORPORATION has caused its name to
be hereunto affixed, and this Supplemental Indenture to be signed by its
Chairman of the Board, President or any Vice President, and its corporate seal
to be affixed hereto, and the same to be attested by its Clerk; and THE BANK OF
NEW YORK, in token of its acceptance of the trust hereby created, has caused its
corporate name to be hereunto affixed and this instrument to be signed by one of
its authorized signatories, as of the day and year first above written.
LITCHFIELD FINANCIAL CORPORATION
Attest:
/s/ John J. Malloy By: /s/ Richard A. Stratton
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Attesting Officer Name: Richard A. Stratton
Title: President and Chief Executive Officer
[Corporate Seal]
THE BANK OF NEW YORK
By: /s/ Michael Culhane
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Name: Michael Culhane
Title: Vice President
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[Corporate Seal]
THE BANK OF NEW YORK
By:
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Name: Michael Culhane
Title: Vice President
Exhibit A to Supplemental Indenture
[FORM OF FACE OF NOTES]
No. Litchfield Financial Corporation $
Cusip: 536619 AE 9
8.25% SERIES A NOTE DUE NOVEMBER 1, 2003
Litchfield Financial Corporation, a corporation organized and existing
under the laws of the Commonwealth of Massachusetts (hereinafter called the
"Company," which term shall include any successor corporation as defined in the
Indenture referred to on the reverse side hereof), for value received, hereby
promises to pay to[ ], or registered assigns, the sum of [ ] Dollars on or
before November 1, 2003, in such coin or currency of the United States of
America as at the time of payment is legal tender for public and private debts,
and to pay interest (calculated on the basis of a 360-day year of twelve 30-day
months) on the unpaid principal amount hereof in like coin or currency from the
Interest Payment Date to which interest hereon has been paid immediately
preceding the date hereof (unless the date hereof is an Interest Payment Date to
which interest has been paid, in which case from the date hereof) or, if no
interest has been paid on this Note since the Original Issue Date hereof, as
defined in the Indenture referred to on the reverse side hereof, from such
Original Issue Date, at the rate of 8.25% per annum, payable monthly, on the
first day of each month, commencing December 1, 1998, until the principal hereof
shall have been paid or duly provided for. The interest so payable on any
Interest Payment Date will be paid to the person in whose name this Note is
registered at the close of business on the fifteenth day of the month
immediately preceding such Interest Payment Date (whether or not such fifteenth
day shall be a regular business day), unless the Company shall default in the
payment of interest due on such Interest Payment Date, in which case such
defaulted interest shall be paid to the person in whose name this Note is
registered at the close of business on a Special Record Date for the payment of
such defaulted interest established by notice to the registered holders of Notes
given by mail to said holders as their names and addresses appear in the Note
Register (as defined in the Indenture referred to on the reverse side hereof)
not less than 10 days preceding such Special Record Date. The principal hereof
and the interest hereon shall be payable at the main office of The Bank of New
York, Trustee under the Indenture referred to on the reverse side hereof, in New
York, New York; provided, however, that the interest on this Note may be
payable, at the option of the Company, by check mailed to the person entitled
thereto as such person's address shall appear on the Note Register (including
the records of any Note Co- Registrar).
Reference is hereby made to the further provisions of this Note set forth
on the reverse side hereof, and such further provisions shall for all purposes
have the same effect as though fully set forth at this place.
This Note shall not be entitled to any benefit under the Indenture referred
to on the reverse side hereof, or be or become valid or obligatory for any
purpose, until the authentication certificate endorsed hereon shall have been
signed by The Bank of New York, Trustee under such Indenture, or a successor
trustee thereto under such Indenture.
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IN WITNESS WHEREOF, LITCHFIELD FINANCIAL CORPORATION has caused this Note
to be signed in its name by its President and Chief Executive Officer or its
Executive Vice President or one of its Vice Presidents by his signature or a
facsimile thereof, and its corporate seal to be affixed or printed or engraved
hereon, or a facsimile thereof, and attested by its Clerk or one of its
Assistant Clerks by his signature or a facsimile thereof.
LITCHFIELD FINANCIAL CORPORATION
By:
--------------------------------
Title:
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[CORPORATE SEAL]
Attest:
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Attesting Officer
[FORM OF TRUSTEE'S AUTHENTICATION CERTIFICATE]
TRUSTEE'S AUTHENTICATION CERTIFICATE
This Note is one of the Notes described or provided for in the Indenture
referred to on the reverse side hereof.
The Bank of New York
as Trustee
Dated:
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By:
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Authorized Signatory
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[FORM OF REVERSE OF NOTE]
Litchfield Financial Corporation
8.25% SERIES A NOTE DUE NOVEMBER 1, 2003
This Note is one of a duly authorized issue of Notes of the Company
designated as its 8.25% Series A Notes due November 1, 2003 (herein called the
"Notes"), limited in aggregate principal amount of up to $___________________
(except for Notes authenticated and delivered upon transfer of, or in exchange
for or in lieu of other Notes), all issued and to be issued only in fully
registered form without coupons under an Indenture dated as of July 15, 1998 and
Supplemental Indenture dated as of ____________________ (such Indenture and
Supplemental Indenture, together with any indenture supplemental thereto, called
the "Indenture"), each duly executed and delivered by Litchfield Financial
Corporation to The Bank of New York, New York, New York, Trustee (the Trustee,
together with its successors being herein called the "Trustee"), to which
Indenture (which is hereby made a part hereof and to all of which the holder by
acceptance hereof assents) reference is hereby made for a description of the
respective rights of and restrictions upon the Company and the holders of the
Notes, and the rights, limitations of rights, duties and immunities of the
Trustee in respect thereof.
The Notes are redeemable at the option of the Company as a whole at any
time, or in part from time to time, prior to maturity, commencing November 1,
2000, on not less than 30 nor more than 60 days' notice given as provided in the
Indenture, upon payment of the then applicable redemption price (expressed in
percentages of the principal amount) set forth below under the heading "General
Redemption Prices," together in each case with accrued and unpaid interest to
the date fixed for redemption, all subject to the conditions more fully set
forth in the Indenture. The General Redemption Prices (expressed in percentages
of the principal amount) applicable during the 12-month period beginning
November 1 in the years indicated below are as follows:
General Redemption Prices
If redeemed during the 12 month period beginning November 1,
2000 .........................103.0%
2001 .........................101.5%
2002 and thereafter ..........100.0%
Unless the Notes have been declared due and payable prior to their maturity
by reason of an Event of Default and such Event of Default has not been waived
and such declaration has not been rescinded or annulled, a holder has the right
under SECTION 6.1 of the Indenture to present Notes for payment prior to their
maturity, and the Company will redeem the same (or any portion of the principal
amount thereof which is $1,000 or an integral multiple thereof, as the holder
may specify), subject to the following limitations: (a) the Company will have no
obligation to redeem any Notes prior to December 1, 1999, except on the death of
a holder as described below, and (b)
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the Company will have no obligation to redeem Notes (on the death of a holder or
otherwise) in excess of the following annual maximum amounts (collectively, the
"Annual Amount Limitations") of (i) $25,000 per holder and (ii) an aggregate
amount for all Notes issued under the Indenture submitted for redemption equal
to five percent (5%) of the aggregate original principal amount of the Notes
issued under the Indenture (the "Five Percent Limitation"). Notes submitted for
redemption, except for Notes submitted for redemption following the death of a
holder, must be submitted by September 1 of any year, commencing on September 1,
1999, for redemption on the following December 1. If the $25,000 per holder
limitation has been reached and the Five Percent Limitation has not been
reached, and if Notes have been properly presented for payment each in an
aggregate principal amount exceeding $25,000, the Company will redeem such Notes
in order of their receipt (except Notes presented for payment in the event of
death of a holder, which will be given priority in order of their receipt), up
to the aggregate limitation of five percent (5%) of the aggregate principal
amount of the Notes issued under this Indenture, notwithstanding the $25,000
limitation.
Subject to the Annual Amount Limitations (and unless the Notes have been
declared due and payable prior to their maturity by reason of an Event of
Default and such Event of Default has not been waived and such declaration has
not been rescinded or annulled), Notes submitted for redemption upon the death
of any holder (or any portion of the principal amount of such Notes which is
$1,000 or an integral multiple thereof, as the holder may specify), will be
redeemed within sixty (60) days following receipt by the Trustee of a written
request therefor from such holder's personal representative, or surviving joint
tenant(s), tenant by the entirety or tenant(s) in common.
The price to be paid by the Company for all Notes presented to it for
redemption pursuant to these provisions is 100% of the principal amount thereof
to be redeemed, plus accrued but unpaid interest on such principal amount to the
date of payment.
In the case of Notes registered in the name of banks, trust companies or
broker-dealers who are members of a national securities exchange or the National
Association of Securities Dealers, Inc. ("Qualified Institutions"), the $25,000
per holder limitation applies to each beneficial owner of Notes held by any
Qualified Institution as if such beneficial owner were a separate holder. A Note
held in tenancy by the entirety, joint tenancy or tenancy in common will be
deemed to be held by a single holder, and the death of a tenant by the entirety,
joint tenant or tenant in common will be deemed the death of a holder. The death
of a person who, during his or her lifetime, was entitled to substantially all
of the beneficial ownership interest of a Note, will be deemed the death of the
holder, regardless of the registered holder. For purposes of a holder's request
for redemption and a request for redemption on behalf of a deceased holder, such
beneficial interest shall be deemed to exist if the holder certifies street name
or nominee ownership, ownership by a custodian for the benefit of a minor under
the Uniform Gifts to Minors Act, community property or other joint ownership
arrangements between a husband and wife (including individual retirement
accounts or Keogh plans maintained solely by or for the holder or decedent, or
by or for the holder or decedent and his or her spouse) and trusts and certain
other arrangements whereby a person has substantially all of the beneficial
ownership interests in the Note during his or her lifetime. Beneficial interests
shall include the power to sell, transfer or otherwise dispose of a Note and the
right to receive the proceeds therefrom, as well as interest and principal
payable with respect thereto.
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Notes may be presented for redemption by delivering to the Trustee at its
main office as defined in the Indenture: (a) a written request for redemption,
in the form attached to the Indenture and provided by the Trustee upon written
request, signed by the registered holder or his or her duly authorized
representative, (b) the Note to be redeemed, (c) in the case of a surviving
tenant or personal representative of a deceased holder or beneficial owner,
appropriate evidence of death and such other additional documents as the Trustee
shall require, including, but not limited to, inheritance or estate tax waivers
and evidence of authority of the personal representative and (d) certification
that the aggregate requests for prepayment tendered on behalf of a registered
holder or beneficial owner do not exceed (or a description of the amount by
which such aggregate requests exceed) the $25,000 per holder limitation for the
applicable annual redemption period. In addition, any request for prepayment
must be delivered to the Trustee by hand or registered mail, return receipt
requested.
Any Notes tendered or any request for prepayment may be withdrawn by
written request received by the Trustee three (3) business days prior to the
issuance of a check in payment thereof.
Notes presented for redemption as set forth above will be redeemed in order
of their receipt by the Trustee, except that Notes presented for payment in the
event of death of a holder will be given priority in order of their receipt over
other Notes. Notes not redeemed in any such period because they have not been
presented prior to September 1 of that period or because of the Annual Amount
Limitations will be held in order of their receipt for redemption during the
following twelve (12) month period(s) until redeemed, unless sooner withdrawn by
the holder. Holders of Notes presented for redemption shall be entitled to and
shall receive scheduled monthly payments of interest thereon on scheduled
Interest Payment Dates until their Notes are redeemed.
In the case of any Notes which are presented for redemption in part only,
upon such redemption the Company shall execute and the Trustee shall
authenticate and deliver to or on the order of the holder of such Notes, without
service charge, a new Note or Notes, of any authorized denomination or
denominations as requested by such holder, in aggregate principal amount equal
to the unredeemed portion of the principal of the Notes so presented. The
Company may redeem, in acceptance of tenders made pursuant hereto, Notes in
excess of the principal amount that the Company is obligated to redeem, and may
purchase Notes in the open market. However, the Company may not use any Notes
purchased in the open market as a credit against its redemption obligations
hereunder.
In the event that there shall occur a Fundamental Structural Change or a
Significant Subsidiary Disposition (as defined in the Indenture), the holder of
this Note shall have the right, subject to certain conditions stated in the
Indenture, to present it for payment prior to maturity, and the Company will
redeem the same (or any portion of the principal amount thereof which is $1,000
or an integral multiple thereof, as the holder shall specify). The $25,000 per
holder limitation and the Five Percent Limitation shall not apply to any such
redemption.
To the extent permitted by, and as provided in, the Indenture, the Company
may, by entering into an indenture or indentures supplemental to the Indenture,
modify, alter, add to or eliminate in any manner any provisions of the
Indenture, or the rights of the holders or the rights and obligations of the
Company, upon the consent, as in the Indenture provided, of the holders of not
less than sixty-six and two-thirds percent (66 2/3%) in principal amount of the
Notes then outstanding.
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Notwithstanding the foregoing, no supplemental indenture shall, without the
consent of the holder of each outstanding Note affected thereby, change the
Stated Maturity of the principal of, or any installment of interest on any Note,
or reduce the principal amount thereof or the rate of interest thereon, reduce
the percentage of the aggregate principal amount of outstanding Notes the
consent of the holders of which is required for any supplemental indenture or
for any waiver of compliance with certain provisions of the Indenture, or modify
any of the provisions of the Indenture relating to the foregoing, all except as
provided in the Indenture.
If an Event of Default, as defined in the Indenture, shall have occurred
and be continuing, the principal of and all interest accrued on all the Notes at
any such time outstanding under the Indenture may be declared, and upon such
declaration shall become, immediately due and payable, in the manner, with the
effect and subject to the conditions provided in the Indenture. The Indenture
provides that such declaration and its consequence may be waived by the holders
of a majority in principal amount of the Notes then outstanding.
The Notes are issuable as registered Notes without coupons in denominations
of integral multiples of $1,000. Subject to the provisions of the Indenture, the
transfer of this Note is registrable by the registered holder hereof, in person
or by his attorney duly authorized in writing, at the office or agency of the
Company in New York, New York or at any other office or agency the Company
maintains for that purpose on books of the Company to be kept for that purpose
at said office, upon surrender and cancellation of this Note duly endorsed by,
or accompanied by a written instrument of transfer in form satisfactory to the
Company and the Trustee, and thereupon a new fully registered Note of the same
series, of the same aggregate principal amount and in authorized denominations,
will be issued to the transferee or transferees in exchange therefor; and this
Note, with or without others of the same series, may in like manner be exchanged
for one or more new fully registered Notes of the same series of other
authorized denominations but of the same aggregate principal amount; all as
provided in the Indenture. No service charge shall be made for any such
transfer, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge or expense that may be imposed in relation
thereto.
Prior to due presentment for registration of transfer, the Company, the
Trustee or any agent of the Company or the Trustee may deem and treat the person
in whose name this Note shall be registered at any given time upon the Note
Register as the absolute owner of this Note for the purpose of receiving any
payment of, or on account of, the principal and interest on this Note and for
all other purposes whether or not this Note be overdue; and neither the Company
nor the Trustee, nor any agent of the Company or the Trustee shall be bound by
any notice to the contrary.
No recourse under any obligation, covenant or agreement contained in the
Indenture or in any Note, or because of the creation of the indebtedness
represented hereby, shall be had against any incorporator, any past, present or
future stockholder, or any officer or director of the Company or any successor
corporation, as such under any rule of law, statute or constitution.
In any case where the date fixed for the payment of principal or interest
on any of the Notes or the date fixed for redemption thereof shall not be a
business day, then payment of such principal or interest need not be made on
such date, but may be made on the next succeeding business day with the same
force and effect as if made on the date fixed for such payment or redemption,
and no interest shall accrue for the period from or after such date.
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All terms used in this Note which are defined in the Indenture shall have
the meanings assigned to them in the Indenture.
[END OF FORM OF NOTES]
<PAGE> 11
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ASSIGNMENT FORM
VIA HAND DELIVERY OR REGISTERED MAIL, RETURN RECEIPT REQUESTED
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The Bank of New York
101 Barclay Street
New York, NY 10286
To assign this Note, fill in the form below:
I or we assign and transfer this Note to
(Insert assignee's Soc. Sec. or tax I.D. No.)
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(Print or type assignee's name, address and zip code) and irrevocably appoint
________________ agent to transfer this Note on the books of the Company. The
agent may substitute another to act for him.
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Date Your signature:
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Signature(s) must be guaranteed by an eligible guarantor institution which is a
member of a recognized signature program, I.E., Securities Transfer Agents
Medallion Program ("STAMP"), Stock Exchange Medallion Program ("SEMP") or New
York Stock Exchange Medallion Signature Program ("MSP"). Sign exactly as your
name appears on the Note. If the Assignment Form is executed by a person other
than a registered holder, enclose appropriate evidence of your authority to
effect the assignment.
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TO REDEEM A NOTE PURSUANT TO SECTION 6.1 OF THE INDENTURE, REQUEST A REDEMPTION
FORM AND PROVIDE YOUR NAME AND MAILING ADDRESS, VIA HAND DELIVERY OR REGISTERED
MAIL, RETURN RECEIPT REQUESTED TO:
THE BANK OF NEW YORK
101 BARCLAY STREET
NEW YORK, NY 10286
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