KCP » Topics » Item 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT

This excerpt taken from the KCP 8-K filed Oct 26, 2007.

Item 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT


On October 23, 2007 Kenneth Cole Productions, Inc. (“the Company”) received the amended credit facility agreement, whereby on October 5, 2007, the Company amended its credit facility agreement (“the Facility”) with JPMorgan Chase Bank, and certain other financial institutions, to expand the definition of “consolidated EBITDA” in section 1.01 of the Facility.  


A copy of Amendment No. 1 is attached hereto as Exhibit 99.1.


This excerpt taken from the KCP 8-K filed Dec 22, 2006.

Item 1.01 Entry into a Material Definitive Agreement


NEW CREDIT FACILITY WITH JPMORGAN CHASE


On December 20, 2006, Kenneth Cole Productions, Inc. (the “Company”) executed a $100 million senior unsecured revolving credit facility (the “Facility”) with JP Morgan Chase Bank, N.A., as administrative agent, and certain banks named therein, as lenders thereunder.  The amounts borrowed by the Company under the Facility are expected to be used for working capital and other general corporate purposes.  The Facility provides for issuance of standby letters of credit and a swing line loan.  The Company may pay down or borrow under the Facility in pre-established minimum principal amounts.  Borrowings under the Facility will bear interest at the Alternate Base Rate, defined as the prime rate or the federal funds rate in effect on the borrowing date plus ½% of 1% or the Adjusted LIBOR Rate, based on the debt leverage ratio defined in the Facility.  Pursuant to the terms of the Facility, the Company has agreed to maintain a ratio of consolidated total indebtedness to consolidated EBITDA and has also agreed to certain negative covenants, including limitations on the Company’s ability to incur indebtedness or liens, ability to enter into mergers or sell assets of the Company, ability to change the nature of the Company’s businesses, and the ability of the Company to enter into any guarantees.  Upon written request of the borrower, and subject to customary conditions, the Facility may be increased in minimum increments of $10 million provided that the aggregate amount of increases does not exceed $150 million in total borrowing.  The Facility terminates on December 20, 2011 and is subject to acceleration upon the occurrence of customary events of default.


This excerpt taken from the KCP 8-K filed Nov 8, 2006.

Item 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT


On November 2, 2006, Kenneth Cole Productions (LIC), Inc. (“KCP”) and Paul Davril, Inc. (“PDI”) executed an amendment to their existing license agreement and agreed to work together to effectuate a smooth and orderly transition of the Kenneth Cole New York men’s and women’s sportswear license back to KCP prior to January 1, 2008, the original license contract termination date.  KCP will assume certain obligations with respect to personnel, fixturing, and showrooms during the transition period.  In addition, the license for Kenneth Cole Reaction men’s sportswear is extended through December 31, 2008, from December 31, 2007, although KCP and PDI each have a one-time option in January 2007 to terminate the license agreement in its entirety, effective December 31, 2007.  During the 2007 annual period and the 2008 annual period, unless earlier terminated pursuant to option, PDI is obligated to pay royalties to KCP based on the higher of actual net sales or minimum net sales of $35 million. 



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, there unto duly authorized.

 

 

Kenneth Cole Productions, Inc.

Registrant

 

 

Dated November 8, 2006

By:     /s/ DAVID P. EDELMAN

Name: David P. Edelman

Title:   Chief Financial Officer










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