SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (D) OF THE
THE SECURITIES ACT OF 1934
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DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): March 19, 2002
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BUCKEYE TECHNOLOGIES INC.
(Exact name of registrant as specified in its charter)
DELAWARE 33-60032 62-1518973
(State of Incorporation) (Commission File Number) (I.R.S. Employer Identification No.)
1001 Tillman Street, Memphis, Tennessee 38112
(Address of principal executive offices)
Registrant's telephone, including area code (901) 320-8100
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ITEM 5. OTHER EVENTS
On March 19, 2002, the Registrant issued the following press release
announcing its new credit arrangements and updating its business outlook.
BUCKEYE ANNOUNCES NEW CREDIT ARRANGEMENTS
AND UPDATES BUSINESS OUTLOOK
MEMPHIS, TN March 19, 2002 - Buckeye Technologies Inc. (NYSE: BKI) today
announced that it has reached agreement with its bank group on amendments to the
Company's existing $215 million revolving credit facility. The Company also
commented on current business conditions.
Buckeye indicated that the amended agreement with its bank group loosens
financial covenants through June 2003, but increases its interest rate by 50
basis points to a current rate of 5.8%. The Company regards the terms of the
agreement as satisfactory.
Buckeye Chairman Robert E. Cannon commented that "We are pleased to have reached
agreement with our banks and are comfortable with the revised covenants. We
enjoy a strong relationship with an outstanding group of banks, including Fleet,
Wachovia, Bank of America, and Toronto Dominion. They understand our business
and have been supportive during a difficult economic period."
With regard to the Company's current quarter, Mr. Cannon stated that "We are in
the process of significantly reducing our finished product inventories. This
generates cash, but hurts earnings in the current weak wood pulp market. We are
taking a one-time restructuring charge of about $1 million which will also
adversely impact the current quarter. Consequently, we expect to experience a
net loss of about $4 million in the January-March quarter.
There are, however, some signs that the pulp market may be turning around.
Industry shipments were brisk in February and we are now moving into the usually
stronger spring months. We believe that the worst is behind us and that our
business results will start improving in the April-June quarter."
Buckeye, a leading manufacturer and marketer of specialty cellulose and
absorbent products, is headquartered in Memphis, Tennessee, USA. The Company
currently has facilities in the United States, Germany, Canada, Ireland and
Brazil. Its products are sold worldwide to makers of consumer and industrial
goods.
Certain matters discussed in this press release may constitute forward-looking
statements within the meaning of the federal securities laws that involve risks
and uncertainties, including but not limited to economic, competitive,
governmental, and technological factors affecting the Company's operations,
markets, products, services and prices, and other factors. For further
information on factors, which could impact the Company and the statements
contained herein, please refer to public filings with the Securities and
Exchange Commission.
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,
BUCKEYE TECHNOLOGIES INC.
/S/ GAYLE L. POWELSON
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Gayle L. Powelson
Senior Vice President, Chief Financial Officer
March 19, 2002