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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: June 30, 1999
BREED TECHNOLOGIES, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 1-11474 22-2767118
(State of Incorporation) Commission File No.) (IRS Id. No.)
5300 Old Tampa Highway
LAKELAND, FLORIDA 33811
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (941) 668-6000
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ITEM 5. OTHER EVENTS.
On June 30, 1999, BREED Technologies, Inc. ("BREED"), announced that
it has obtained a waiver of certain financial covenants related to its senior
credit facility. The waiver extends through October 12, 1999.
Terms of the waiver impose certain obligations upon BREED during the
waiver period which, if not complied with, could result in a termination of the
waiver and a default under the credit facility. These obligations include, among
other conditions, increased interest rates for periods after August 1999, the
implementation and effectuation of a capital transaction program to explore
strategic alternatives for the business, increased reporting requirements to
BREED's lenders, and additional lenders fees to be paid by the end of the waiver
period (subject to extension under certain circumstances). Certain of the
conditions are consistent with actions already contemplated by BREED's
management, and management believes that all of the conditions are achievable.
In addition, the waiver permits BREED to utilize net proceeds from the sale of
certain assets for general corporate purposes, rather than the repayment of debt
as required under the credit facility.
BREED also confirmed that it has engaged the investment banking firm
of Wasserstein Perella & Co. to advise its Board of Directors regarding BREED's
capital transaction program.
The statements contained in this Current Report on Form 8-K that are
not purely historical, including statements regarding BREED's objectives,
expectations, hopes, intentions, beliefs or strategies regarding the future, are
"forward-looking" statements within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such
statements are subject to certain risks and uncertainties that could cause
results to differ materially from those projected. No assurance can be given
that BREED will be able to comply with the conditions of the waiver or obtain
any further relief from the lenders at the expiration of the waiver period in
which case, the lenders would be entitled to exercise the remedies provided
under the credit facility. Management believes these forward looking statements
are reasonable; however, undue reliance should not be placed on such forward
statements which are based on current expectations.
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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.
BREED TECHNOLOGIES, INC.
Date: June 30, 1999 By:
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Name:
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Title:
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BREED Technologies, Inc.
5300 Old Tampa Highway
Lakeland, Florida 33811
June 30, 1999
VIA EDGAR
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: BREED Technologies, Inc.
(COMMISSION FILE NO. 1-11474)
Ladies and Gentlemen:
Transmitted herewith for filing with the Securities and
Exchange Commission on behalf of BREED Technologies, Inc. (the "Company") is a
Current Report on Form 8-K.
Please contact the undersigned at (941) 668-6000 with any
comments or questions you have with respect to the foregoing.
Very truly yours,
/s/ Stuart Boyd
Stuart Boyd
Enclosure
cc: Mark E. Betzen, Esq.
Lisa K. Durham, Esq.
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