Business Context and Reporting Period
Company: Universal Display Corp
Filing Type: Form 8-K (Current Report)
Report Date: December 3, 2004
Event Date: December 1, 2004
Context: The company entered into a material definitive arrangement to secure financing for the acquisition of its Ewing, New Jersey facility property and building.
Key Financial Metrics
This filing reports a specific debt transaction rather than comprehensive financial performance metrics (revenue, profit, cash flow, or margins). The filing text does not provide a clear value for these operational metrics.
| Metric | Value |
|---|---|
| Loan Principal Amount | $4,500,000 |
| Lender | Wachovia Bank, National Association |
| Interest Rate | Variable (LIBOR Market Index Rate + 1.25%) |
| Collateral | $5,000,000 in assets held in an investment account |
| Monthly Principal Payment | $25,000 |
| Maturity Date | December 1, 2009 |
Material Changes
- Debt Obligation: Creation of a new direct financial obligation of $4.5 million.
- Asset Acquisition: Proceeds were utilized to pay a portion of the $5.5 million purchase price for the company's Ewing, NJ facility, consummating an agreement dated October 26, 2004.
- Cash Flow Impact: Commencement of monthly principal and interest payments starting January 1, 2005.
Outlook, Risks, and Contingencies
- Repayment Terms: The loan is subject to acceleration upon standard events of default.
- Prepayment: The loan can be prepaid without penalty at any time.
- Security: The debt is secured by specific assets held in an investment account at the lender.
- Management Commentary: No forward-looking guidance or general outlook was provided in this specific filing; the focus is strictly on the execution of the loan agreement.
Key Facts for Investor Verification
- Verify the total cost of the Ewing, NJ facility acquisition ($5.5 million) and the source of the remaining $1 million not covered by this loan.
- Confirm the current LIBOR rate to calculate the immediate effective interest cost (LIBOR + 1.25%).
- Review the company's cash flow statements to ensure the $25,000 monthly principal payment plus accrued interest is sustainable.
- Check for any subsequent filings regarding the status of the $5 million collateral account.