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): October 6, 1999
Commission File Number 000-27852
PLATINUM ENTERTAINMENT, INC.
(Exact name of registrant as specified in its charter)
Delaware 36-3802328
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) 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.
Platinum Entertainment, Inc. (the "Company") sold 798,856 shares of common
stock of musicmaker.com, Inc. (Nasdaq: HITS) on October 6, 1999 for net
proceeds of $7,289,314, or $9.125 per share.
The sale results in a realized gain of $6,539,314 to the Company. The Company
received its stake in musicmaker.com, the Internet's largest music download and
custom CD vendor, in exchange for $750,000 in common stock of the Company in
September 1998. In addition, the Company granted musicmaker.com the exclusive
right to its music catalog for Internet downloads and "burn and mail"
compilations for two years, and thereafter a non-exclusive right to its music
catalog for Internet downloads and "burn and mail" compilations for an
additional three years. Shares of common stock of musicmaker.com, Inc. began
publicly trading in July 1999.
The Company will continue to participate and support its relationship with
musicmaker.com through its profit sharing arrangement, license agreement and
marketing and advertising agreement with musicmaker.com.
The Company will use $1,400,000 of the proceeds to permanently pay-down its
revolving bank credit commitment with First Source Financial, Inc. The
remainder of the proceeds will be used for general corporate purposes.
In addition, the Company negotiated an amendment to its credit agreement
with First Source with a revised loan due date of March 31, 2000, without
prepayment penalties.
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 13th day of
October, 1999.
PLATINUM ENTERTAINMENT, INC.
By: /s/ STEVEN DEVICK
Steven Devick
Chairman of the Board, President
and Chief Executive Officer
