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)
September 28, 2004
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Avalon Correctional Services, Inc.
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(Exact name of Registrant as specified in its Charter)
Nevada 0-20307 13-3592263
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(State or other jurisdiction (Commission File No.) (IRS Employer
of incorporation) Identification No.)
13401 Railway Drive, Oklahoma City, OK 73114
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(Address of principal executive offices) (Zip Code)
405-752-8802
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(Registrant's telephone number, including area code)
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INFORMATION TO BE INCLUDED IN THE REPORT
Item 7.01. Regulation FD Disclosure.
Avalon Correctional Services, Inc., (the "Company") announces that on
September 28, 2004, the Company entered into a Credit Agreement with Bank of
America, N.A. Under the terms of this Credit Agreement, Bank of America has
provided to the Company a $1 million revolving credit facility and a $4.5
million term loan credit facility. The credit facilities will bear interest at a
30 day LIBOR rate plus 250 basis points. The revolving credit facility matures
in two years, with interest to be paid monthly, and the principal paid at
maturity. The term loan credit facility matures in three years, with level
monthly principal and interest payments based upon a fifteen year amortization
schedule. The Bank of America credit facilites are secured by a mortgage on one
Company facility in Oklahoma City, Oklahoma, and a lien on Company receivables
and other non-real property Company assets (except for receivables and other
assets attributable to the Company's Colorado operations).
The proceeds of the term loan credit facility, together with other Company
funds, will be used to pay off remaining debt owed by the Company to Fleet
Capital Corporation. The revolving credit facility will be used for working
capital needs of the Company.
SIGNATURE
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.
AVALON CORRECTIONAL SERVICES, INC.
s// Donald E. Smith
DONALD E. SMITH
Chairman of the Board and Chief Executive Officer
Dated: September 28, 2004
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