<PAGE>
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 15, 1997
PLATINUM ENTERTAINMENT, INC.
(Exact name of registrant as specified in its charter)
DELAWARE
(State or other jurisdiction of incorporation)
0-27852 36-3802328
(Commission File Number) (I.R.S. Employer
Identification No.)
2001 Butterfield Road
Downers Grove, Illinois 60515
(Address of principal executive offices, including zip code)
(630) 769-0033
(Registrant's telephone number, including area code)
<PAGE>
ITEM 5. OTHER EVENTS.
On December 15, 1997, the Registrant issued the press release attached as
Exhibit 99.1 announcing the sale of $22.5 million of preferred equity and the
refinancing of bank debt. The information contained in this press release is
incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
c) Exhibits.
99.1 Press Release of Registrant dated December 15, 1997.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, Platinum
Entertainment, Inc. has duly caused this Current Report to be signed on its
behalf by the undersigned, hereunto duly authorized, on this 22th day of
December, 1997.
PLATINUM ENTERTAINMENT, INC.
By: /s/ STEVEN DEVICK
----------------------------------
Steven Devick
Chairman of the Board and
Chief Executive Officer
<PAGE>
Exhibit Index
-------------
Exhibit # Item
--------- ----
99.1 Press Release
<PAGE>
EXHIBIT 99.1
Contact: Steven D. Devick
Chief Executive Officer
630-769-0033
PLATINUM ENTERTAINMENT, INC. CLOSES ON
SALE OF $22.5 MILLION OF PREFERRED EQUITY;
RETIRES ACQUISITION BRIDGE FINANCING
Downers Grove, IL -- December 15, 1997 -- Platinum Entertainment, Inc.
(NASDAQ:PTET) today reported it has closed on the sale of $22.5 million in
preferred equity securities with warrants to an investor group consisting of MAC
Music LLC, SK-Palladin Partners, LP and Platinum Venture Partners II, LP. MAC
Music LLC is a joint venture between Alpine Equity Partners L.P. and Maroley
Media Group LLC. Alpine is a private equity firm, led by Robert Morgado,
focusing on global media and entertainment investments. Morgado is the former
Chairman and Chief Executive Officer of the Warner Music Group. SK-Palladin
Partners, LP is a partnership controlled by Sidney Kimmel, Chairman and CEO of
Jones Apparel Group, and Mark J. Schwartz, President and CEO of Palladin
Capital, Inc. Platinum Venture Partners II, L.P. is a partnership including
several of Platinum Entertainment's directors.
Steven Devick, Platinum Entertainment's Chairman and Chief Executive Officer,
commented, "This is a great step forward for our Company, not only because of
the capital infusion which has been used to retire acquisition-associated bridge
financing, but also to add the experience of recognized music industry and
financial experts to help continue the Company's growth.
Robert Morgado, Chairman of Maroley Media Group LLC and former Chairman and CEO
of the Warner Music Group, said, "When we consider making an investment, we
consider three ingredients: Number one is the people; number two is the
strategic interest; and number three, does the company operate in a niche that
gives it an advantage in a marketplace otherwise dominated by big companies. For
our purposes, we concluded a strong affirmative on all three points."
<PAGE>
Devick added, "This closing allows us to move forward efficiently with our
strong release schedule in what has been for us, an outstanding holiday selling
season. We currently have the #1, #2, and #3 chart positions simultaneously on
Billboard's Classical Budget chart and John Denver's last recording, A
CELEBRATION OF LIFE, recently has been listed as Billboard Magazine's country
album Hot Shot Debut and Pacesetter in consecutive weeks. Our Gospel label
received more Stellar Award nominations (the Gospel equivalent to Grammy Awards)
than any other label, and we currently have two records in the Billboard Top 15
Blues chart, including the critically recognized, "PAINT IT BLUE - THE SONGS OF
THE ROLLING STONES."
Platinum Entertainment, Inc. produces, acquires, markets and distributes high
quality recorded music for a variety of music formats. Platinum and its
wholly-owned subsidiaries currently produce music for the Gospel,
Classical/Themed, Adult Contemporary, Country, Blues and Urban/Dance formats,
primarily under its CGI Records, Intersound Classical, River North Records,
Intersound Country, House of Blues and Intersound Urban labels. Platinum's
products include new releases, typically by artists established in a particular
format, as well as compilations and repackagings of previously recorded music
that enable the Platinum to exploit its catalog of master recordings.
This press release contains certain forward-looking statements (within the
meaning of the Private Securities Litigation Reform Act of 1995) that involve
substantial risks and uncertainties. A number of important factors could cause
the Company's actual results, performance or achievements for fiscal 1998 and
beyond to differ materially from those expressed in such forward-looking
statements. These factors include, without limitation, commercial success of
the Company's repertoire, its leveraged capital structures, charges and costs
related to acquisitions, permanent acquisition financing needs, relationships
with artists and producers, attraction and retention of key personnel, general
economic and business conditions and enhanced competition and new competitors in
the recorded music industry, and other factors described in the Company's
filings with the Securities and Exchange Commission.
