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| LAKE > SEC Filings for LAKE > Form 8-K on 23-Sep-2008 | All Recent SEC Filings |
23-Sep-2008
Entry into a Material Definitive Agreement, Creation of a Direct Financia
On September 23, 2008, Lakeland Industries, Inc. (the "Company") entered into an interest rate swap agreement (the "Swap Transaction") with Wachovia Bank, NA, pursuant to a confirmation that incorporates the 1992 ISDA Master Agreement, as amended in 2006. The Swap Transaction contains customary representations and warranties and covenants and may be terminated prior to its expiration, including as a result of the prepayment of the Company's current credit facilities. Any such early termination may require the Company to make additional payments to the counterparty.
The Company entered into the Swap Transaction in order to hedge the floating rate interest risk on its current credit facilities. The Swap Transaction has an effective date of September 19, 2008. Under the terms of the Swap Transaction, the Company is required to make monthly payments based on a fixed rate of interest on a notional amount to the counterparty while the counterparty is obligated to make monthly floating rate payments on the same notional amount to the Company based on the one month London Interbank Offered Rate. All interest rates are calculated based on a 360-day year for actual days elapsed. The Swap Transaction has a notional amount of $18,000,000, a fixed interest rate of 2.96%, and a termination date of July 7, 2010. Our actual cost of borrowing will be the rates discussed above plus an applicable pricing margin, which is currently 0.70%.
The information set forth in Item 1.01 of this Form 8-K is incorporated herein by reference.
(d) Exhibits
10.1 Schedule to the Master Agreement dated as of September 19, 2008 between Wachovia Bank, National Association ("Party A") and Lakeland Industries, Inc. ("Party B")
10.2 ISDAŽ International Swap Dealers Association, Inc. Master Agreement dated as of September 19, 2008 between Wachovia Bank, National Association and Lakeland Industries, Inc.
10.3 Secretary and Officer Resolution dated as of September 22, 2008
10.4 Derivatives Settlements and Authority to Honor Drafts dated as of September 22, 2008 between Wachovia Bank, National Association and Lakeland Industries, Inc.
10.5 General Counsel Letter
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