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): June 7, 2006
SCOTT'S LIQUID GOLD-INC.
(Exact name of Registrant as specified in its charter)
Colorado 001-13458 84-0920811
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
4880 Havana Street, Denver, CO 80239
(Address of principal executive offices) (Zip Code)
Registrant's telephone number: (303) 373-4860
Check the appropriate box below if the Form 8-K 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 (17CFR 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.
On June 7, 2006, we have entered into a new loan with Citywide Banks
for up to $5,156,641 secured by the land, building and fixtures at
our Denver, Colorado facilities. This loan replaces the bank loan
with Citywide Banks, secured by the facilities, in the principal
amount of approximately $1,582,915. The new bank loan has a
six-month draw period, during which monthly payments of interest
only will be due, after which the outstanding amount converts to
a 15-year fully amortized term loan with principal and interest
payments monthly. The monthly amount will initially be $49,300,
commencing December 7, 2006. Interest on the bank loan is at the
prime rate as published in The Wall Street Journal, adjusted
annually each June. Part of the proceeds of the new loan have
been used to pay off the prior loan secured by our facilities,
and the remaining proceeds will be used in business operations,
including development of new products and the introduction of
new products. As did the prior bank loan, the loan agreement
contains a number of covenants, including the requirement for
maintaining a current ratio of at least 1:1 and a ratio of
consolidated long-term debt to consolidated net worth of not
more than 1:1. We may not declare any dividends that would
result in a violation of either of these covenants.
In connection with the new loan secured by the facilities, we
agreed with Citywide Banks to reduce the amount available under
our line of credit with Citywide Banks from $1,800,000
to $1,300,000.
Item 9.01 Financial Statements and Exhibits.
(c) Exhibits.
The following are exhibits to this Report:
Exhibit No. Document
10.0 Promissory Note dated June 7, 2006 by us to
Citywide Banks; Business Loan Agreement dated June 7,2006 between
us and Citywide Banks; Deed of Trust dated June 7, 2006 among us,
Citywide Banks and the Public Trustee of the City and County of
Denver, Colorado; Assignment of Rents dated June 7, 2006 between
us and Citywide Banks; letter agreement dated June 7, 2006
regarding the change in the amount under the existing bank line
of credit with Citywide Banks, and Addendum to Loan Documents
dated June 7, 2006.
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.
SCOTT'S LIQUID GOLD-INC.
(Registrant)
Date: June 12, 2006 /s/ Jeffry B. Johnson
-----------------------------
By: Jeffry B. Johnson
Chief Financial Officer and
Treasurer
EXHIBIT INDEX
Exhibit No. Document
10.0 Promissory Note dated June 7, 2006 by us to
Citywide Banks; Business Loan Agreement dated
June 7,2006 between us and Citywide Banks; Deed
of Trust dated June 7, 2006 among us, Citywide
Banks and the Public Trustee of the City and
County of Denver, Colorado; Assignment of Rents
dated June 7, 2006 between us and Citywide
Banks; letter agreement dated June 7, 2006
regarding the change in the amount under the
existing bank line of credit with Citywide
Banks, and Addendum to Loan Documents dated
June 7, 2006.