8-K 1 syn_8k-80401.htm FORM 8-K syn_8k-80401.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


March 28, 2008
Date of Report
(Date of earliest event reported)


SYNTHETECH, INC.
(Exact name of registrant as specified in its charter)

Oregon
000-12992
84-0845771
(State or other jurisdiction of incorporation)
(Commission File No.)
(IRS Employer
Identification No.)

1290 Industrial Way, P.O. Box 646, Albany Oregon 97321
(Address of principal executive offices) (Zip Code)

(541) 967-6575
(Registrant's telephone number, including area code)

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):

o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o
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

The information provided in Item 2.03 of this current report on Form 8-K is incorporated herein by this reference.

Item 2.03 
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

On March 28, 2008, Synthetech, Inc. entered into a Third Amendment of Loan and Security Agreement dated as of March 19, 2008 (the "Amendment"), which amends the Loan and Security Agreement originally dated June 15, 2006, with Access Business Finance LLC (as amended, the “Agreement”).  Pursuant to the Amendment, the borrowing base on eligible inventory increased from 40% to 50%, so that Synthetech may now borrow under the line of credit an amount equal to the lesser of (a) $2,000,000 and (b) a borrowing base equal to (i) 85% of Synthetech’s eligible accounts receivable plus (ii) the lesser of (x) 50% of the value of Synthetech’s eligible inventory or (y) $1,500,000.  In addition, the Amendment extended the Agreement through June 15, 2009.  Finally, the Amendment increased the annual loan fee from 0.75% to 1.0%.  Synthetech paid such loan fee on March 28, 2008 for the renewal term ending June 15, 2009.

Except as modified by the Amendment, the terms of the Agreement remain unchanged.

A copy of the Amendment is filed as an exhibit to this report and is incorporated into this Item 2.03 by this reference.

Item 9.01 
Financial Statements and Exhibits

(c) Exhibits

Exhibit No.                                Description
 
10.1
Third Amendment of Loan and Security Agreement dated as of March 19, 2008, between Synthetech, Inc. and Access Business Finance, LLC.



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.
 
     
       
Date: April 1, 2008
By:
/s/ Gary Weber  
   
Gary Weber
 
   
Vice President of Finance,
 
   
Chief Financial Officer