form8k-94636_lake.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 23,
2008
Lakeland
Industries, Inc.
(Exact
Name Of Registrant As Specified In Charter)
Delaware
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0-15535
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13-3115216
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(State
of Incorporation)
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(Commission
File No.)
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(I.R.S.
Employer
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Identification
No.)
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701
Koehler Avenue, Suite 7, Ronkonkoma, New York 11779-7410
(Address
of principal executive offices, including zip code)
(631)
981-9700
(Registrant’s
telephone number, including area code)
Not
applicable
(Former
name or 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 (see General Instruction A.2 below):
¨
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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¨
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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¨
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
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¨
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e(4)(c))
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Item
1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
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%.
Item
2.03. CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION
UNDER AN OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT
The
information set forth in Item 1.01 of this Form 8-K is incorporated herein
by reference.
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Schedule
to the Master Agreement dated as of September 19, 2008 between Wachovia Bank,
National Association (“Party A”) and Lakeland Industries, Inc.
(“Party B”)
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ISDA®
International Swap Dealers Association, Inc. Master Agreement dated as of
September 19, 2008 between Wachovia Bank,
National Association and Lakeland Industries,
Inc.
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Secretary
and Officer Resolution dated as of September 22, 2008
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Derivatives
Settlements and Authority to Honor Drafts dated as of September 22, 2008
between Wachovia Bank, National Association and Lakeland Industries,
Inc.
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General
Counsel Letter
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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 hereunto
duly authorized.
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LAKELAND
INDUSTRIES, INC.
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(Registrant)
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Date:
September 23, 2008
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/s/ Christopher J.
Ryan
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Christopher
J. Ryan
President
& CEO
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