As filed with the Securities and Exchange Commission on December 6, 2000.
__________
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): NOVEMBER 10, 2000
CORRECTIONAL SERVICES CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 0-23038 11-3182580
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
1819 Main Street, Suite 1000 34236
Sarasota, FL (Zip Code)
(Address of principal executive
offices)
Registrant's telephone number, including area code: (941) 953-9199
NOT APPLICABLE
(Former name or former address, if changed since last report)
Exhibit Index on Page 4
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ITEM 5. OTHER EVENTS
Effective November 10, 2000, Correctional Services Corporations ("CSC"
or "the Company") entered into the First Amendment of its August 31, 1999,
Credit Agreement with Summit Bank, N.A., a New Jersey based national bank.
The Credit Agreement was amended as follows:
- The ability to repurchase stock was added.
- The $30 million revolving credit facility limit was reduced to
$25 million.
- The $45 million lease credit facility borrowing limit was
reduced to $35 million.
This Amendment to the Credit Agreement will allow the Company the
option of utilizing a percentage of both (i) excess cash flow (as defined
by the agreement) and (ii)the proceeds of the sale of certain assets, to
repurchase Company stock in furtherance of the Company's stock repurchase
plan as announced on October 20, 2000. The repurchase program began
during the fourth quarter of 2000 and will continue over a period of 12
months. The Board of Directors has authorized the expenditure of up to $10
million towards the completion of the repurchase program, as long as it is
in conformity with the Credit Agreement and it is deemed to be the best use
of company funds. There is no assurances as to the timing or the number of
shares that will be repurchased under the plan. A copy of the press
release issued by CSC on October 20, 2000 is attached hereto as Exhibit
99.1 and is hereby incorporated by reference.
Additionally, the loan covenants were amended. The amended Credit
Agreement is effective retroactive to September 30, 2000 and the Company is
in compliance with the amended loan covenants as of that date.
In addition, the Company expects to continue to have cash needs as it
relates to financing start-up costs in connection with new contracts. If
such opportunities are pursued, the Company would require additional
financing resources. Management believes these additional resources may be
available through other financing sources.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND
EXHIBITS
10.72.1 First Amendment to the Credit Agreement, dated August 31,
1999, between Correctional Services Corporation and Summit Bank, N.A.
99.1 Press Release, dated October 20, 2000, by Correctional
Services Corporation.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
as amended, the registrant has duly caused this Current Report on Form 8-K
to be signed on its behalf by the undersigned hereunto duly authorized.
Date: December 6, 2000
CORRECTIONAL SERVICES CORPORATION
By: /s/ James F. Slattery
-----------------------------
James F. Slattery
Chairman of the Board,
Chief Executive Officer and President
<PAGE> 3
EXHIBIT INDEX
10.72.1 First Amendment to the Credit Agreement, dated August 31, 1999,
between Correctional Services Corporation and Summit Bank, N.A.
99.1 Press Release, dated October 20, 2000, by Correctional Services
Corporation.
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