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): January 14, 1998
United States Leather, Inc.
(Exact name of registrant as specified in its charter)
Wisconsin 33-64142 13-3503310
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
1403 West Bruce Street, Milwaukee, Wisconsin 53204
(Address of principal executive offices, including zip code)
(414) 383-6030
(Registrant's telephone number)
<PAGE>
Item 5. Other Events.
On January 14, 1998, United States Leather, Inc. (the "Company")
entered into a $55 million revolving credit facility through a syndicate
led by BankAmerica Business Credit, Inc., replacing a previous senior
credit facility led by BankBoston. The new revolving credit facility has
a three-year term. A copy of the Company's press release dated January
19, 1998 is included as an exhibit to this filing.
Item 7. Financial Statements and Exhibits.
(b) Exhibits.
The exhibit listed in the accompanying Exhibit Index is filed as
part of this Current Report on Form 8-K.
<PAGE>
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 thereunto duly authorized.
UNITED STATES LEATHER, INC.
Date: January 21, 1998 By: /s/ Kinzie L. Weimer
Kinzie L. Weimer
Senior Vice President, Chief Financial
Officer, Treasurer and Secretary
<PAGE>
UNITED STATES LEATHER, INC.
EXHIBIT INDEX TO FORM 8-K
Dated January 14, 1998
Exhibit
No. Description
(99.1) Press Release of United States Leather, Inc. dated January 19,
1998.
EXHIBIT 99.1
FOR IMMEDIATE RELEASE
For more information call
Linda Stephenson OR Kinzie Weimer
Zigman Joseph Stephenson United States Leather, Inc.
(414) 273-4680 (414) 389-5175
UNITED STATES LEATHER, INC. ANNOUNCES COMPLETION OF FIRST
STEP IN EFFORTS TO IMPROVE ITS CAPITAL STRUCTURE
MILWAUKEE, WI, January 19, 1998...United States Leather (USL) announced
today that as part of an ongoing process to revamp the company's capital
structure, it has entered into a $55 million revolving credit facility
through a syndicate led by BankAmerica Business Credit, replacing a
previous senior credit facility led by BankBoston. This new facility is
secured principally by the company's accounts receivable, inventories and
other assets.
Anthony Biancanello, president and chief executive officer of USL,
said that this new credit facility, which marks the first significant
milestone in its restructuring process, will be advantageous to the
company from an operational standpoint because of more flexible financial
covenants and increased availability.
USL announced in late September, 1997 at a special meeting of its
bondholders that the company had recommended a process to deliverage its
balance sheet in order to make required strategic investments. At that
time, Biancanello said, "by reducing its debt burden, the company will be
able to take the cash used to service debt and reinvest it more
beneficially in its own future."
Since that announcement, the company, assisted by the firm of
Houlihan Lokey Howard & Zukin, has been engaged in negotiations to effect
the deleveraging. With the new senior credit facility completed, and a
similar facility to support it Canadian operation anticipated soon, the
company indicated that its primary focus now will be reaching agreement
with its bondholders to exchange a substantial portion of their debt for
equity in the company. Negotiations between the company and bondholders
to effect this exchange are ongoing, according to Biancanelllo.
"The company continues to work toward completion of its financial
restructuring," Biancanello stated, "and based on current circumstances,
it is unlikely that it would make the next interest payment on its 10-1/4%
Senior Notes due 2003, although the board of directors has made no final
decision on this matter." He added, "to make the interest payment would
be inconsistent with our overall efforts to strengthen the company's
balance sheet and reinvest in the business."
United States Leather is a diversified producer and marketer of
finished leather serving the furniture, footwear, personal leather goods
and automotive markets. The company, headquartered in Milwaukee,
Wisconsin, operates manufacturing facilities in Wisconsin, North Carolina,
Nebraska, Indiana and Canada.
