form8-k.htm
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
10, 2008
ClearOne
Communications, Inc.
(Exact
Name of Registrant as Specified in Its Charter)
Utah
(State or
Other Jurisdiction of Incorporation)
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000-17219
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87-0398877
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(Commission
File Number)
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(I.R.S.
employer identification number)
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5225 Wiley Post Way,
Suite 500,
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84116
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Salt Lake City,
Utah
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(Address
of principal executive offices)
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(Zip
Code)
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(801)
975-7200
(Registrant’s
Telephone Number, Including Area Code)
Not
applicable
(Former
Name or Former Address, if Changed Since Last Report)
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
communication 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
On
September 10, 2008, we entered into a demand margin loan agreement with UBS
Financial Services, Inc., which enables us to borrow up to $3,870,000 at an
interest rate based on the 30-day LIBOR rate plus 25 basis
points. The interest rate will be subject to change at any time in
the sole discretion of UBS. To secure our obligations under the loan with UBS,
we have pledged our auction rate securities as collateral. We will
pay monthly interest payments to UBS, however, no interest payments will be due
if a minimum equity ratio (as determined by UBS) is maintained in our collateral
accounts. If the value of the auction rate securities declines below
the minimum equity ratio determined by UBS, we may be required to pledge
additional collateral as security for the loan, sell the auction rate
securities, or otherwise repay the outstanding principal balance. The
UBS loan will be due on demand.
The Loan
provides us with partial liquidity to our currently illiquid auction rate
securities. A portion of the Loan may be used to fund our pending tender offer
which is scheduled to expire September 16, 2008.
ITEM
2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant
The
information provided in Item 1.01 of this Current Report on Form 8-K is
incorporated herein by reference.
ITEM
9.01 Financial Statements and Exhibits
Exhibits.
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Exhibit
No.
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Title of
Document
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Location
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Margin
Loan Agreement between ClearOne Communications, Inc. and UBS Financial
Services, Inc. dated September 10, 2008
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This
Filing
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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 hereunto
duly authorized.
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CLEARONE
COMMUNICATIONS, INC. |
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Date: September
11, 2008
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By:
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/s/ Greg A.
LeClaire
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Greg
A. LeClaire
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Chief
Financial Officer
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