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 30, 2002
KRAMONT REALTY TRUST
(Exact Name of Registrant as Specified in Charter)
Maryland 1-15923 25-6703702
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(State or other (Commission File Number) (I.R.S. Employer
jurisdiction of Identification No.)
incorporation or organization)
Plymouth Plaza
580 West Germantown Pike
Plymouth Meeting, Pennsylvania 19462
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(Address, including zip code, of Principal Executive Offices)
Registrant's telephone number, including area code: (610) 825-7100
NOT APPLICABLE
(Former Name, or Former Address, if Changed Since Last Report)
ITEM 5. OTHER EVENTS.
On December 30, 2002, Kramont Operating Partnership, L.P. ("Kramont OP"),
Kramont Realty Trust's (the "Company") operating partnership, initiated funding
pursuant to a Loan Agreement (the "Loan Agreement"), dated December 20, 2002,
between Kramont OP and Fleet National Bank, N.A. on its own behalf and as agent
for certain other banks providing for a credit facility (the "Credit Facility").
As of the date of the initial funding, the maximum amount of the Credit Facility
is $100,000,000 and the maximum amount which Kramont OP may borrow under the
Credit Facility (the "Borrowing Base") is approximately $68,000,000. The maximum
amount of the Credit Facility may be increased to $125,000,000, under the terms
and conditions of the Loan Agreement. The Borrowing Base available to Kramont OP
under the Credit Facility is subject to increase or decrease from its current
amount pursuant to the terms of the Loan Agreement. The Loan Agreement provides
for monthly payments to the lenders of interest only, subject to certain
mandatory principal payments from time to time under certain terms and
conditions described therein. The Credit Facility is a revolving line of credit
with a term of three years which is guaranteed by the Company and those of its
subsidiaries who have provided mortgages to the lenders. The Credit Facility is
secured by these guarantees, 16 first mortgages on shopping centers located
throughout the East Coast owned by the subsidiaries, and a first priority
security interest in the membership interests and partnership interests of the
subsidiary entities and their respective managers and general partners.
Additional subsidiary guarantees, mortgages and security interests may be
created under the Credit Facility and existing guarantees, mortgages and
security interests released as collateral for the Credit Facility, under the
terms and conditions of the Loan Agreement. The Credit Facility contains various
financial covenants that must be observed. Financial covenants include a net
worth requirement, an interest expense coverage requirement, a maximum leverage
ratio requirement, a minimum fixed charge ratio requirement, and requirements
concerning permitted distributions and investments. Credit Facility borrowings
bear interest (a) at the prime rate or the prime rate plus 25 basis points based
on the leverage ratio of the Company's and Kramont OP's total debt and
liabilities to its total asset value, or (b) LIBOR (London InterBank Offered
Rate) plus 175 to 225 basis points based on such ratio. Interest rates may be
set for one, three or six-month periods. Advances under the Credit Facility may
be used for general corporate purposes and, among other purposes, to fund
acquisitions, repayment of all or part of outstanding indebtedness, expansions,
renovations, financing and refinancing of real estate, closing costs and for
other lawful purposes. Additional provisions include arrangement and commitment
fees of up to $975,000, with the commitment fee subject to an increase of 0.5%
of subsequent commitments in excess of $100,000,000 and a fee applicable to the
unused portion of the maximum Credit Facility amount. The $67,988,000 received
today is expected to be applied in part to the repayment of outstanding debt,
including a portion of the amount outstanding under the Company's credit
facility with GMAC Commercial Mortgage.
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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.
KRAMONT REALTY TRUST
Date: December 30, 2002 By: /s/ Carl E. Kraus
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Carl E. Kraus
Senior Vice President and
Chief Financial
and Investment Officer
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