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): April 17, 2008
CONCORD CAMERA CORP.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
New Jersey 0-17038 13-3152196
(State or other jurisdiction of (Commission File (IRS Employer
incorporation) Number) Identification No.)
4000 Hollywood Boulevard, North Tower, Hollywood, Florida 33021
---------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (954) 331-4200
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
|_| Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 1.01. Entry into a Material Definitive Agreement.
Effective April 17, 2008, Concord Camera Corp. (the "Company") entered
into an Express Creditline Loan Agreement (the "Loan Agreement") with Citigroup
Global Markets, Inc. ("Citigroup") for a $9 million secured revolving credit
line (the "Citigroup Facility"). Advances under the Citigroup Facility may only
be used by the Company to finance business operations and general working
capital and cannot be used to purchase, carry or trade in securities, or reduce
or retire indebtedness incurred to purchase, carry or trade in securities. In
addition to the $9 million credit line for advances, the Citigroup Facility
provides for the accrual of up to $1 million of interest, resulting in an
aggregate credit limit of $10 million (the "Loan Limit") under the Citigroup
Facility. The Citigroup Facility is secured by a first priority lien and
security interest in approximately $20 million of the Company's auction rate
securities that have experienced failed auctions (the "Collateral"). On March 5,
2008, the Company announced that it had experienced several failed auctions for
the portion of its auction rate securities portfolio that had then recently gone
to auction, resulting in the Company's inability to sell these securities.
Under the terms of the Loan Agreement, interest on amounts outstanding
under the Citigroup Facility is payable monthly at the Open Federal Funds rate
plus 1.50% per annum from April 17, 2008 through August 20, 2008. In order to
maintain its eligibility for this interest rate, the Company must continue to
attempt to sell the Collateral at future auctions. After August 20, 2008, the
interest rate is subject to review by Citigroup. Citigroup may, in its sole
discretion and without cause, demand full or partial payment of any outstanding
balance under the Citigroup Facility or reduce the Loan Limit at any time. The
Loan Agreement may be terminated by either party upon 30 calendar days prior
written notice to the other party.
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.
CONCORD CAMERA CORP.
Date: April 22, 2008 By: ---------------------------------
Scott L. Lampert, Vice President,
General Counsel and Secretary