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): March 20, 2014
StoneMor Partners L.P.
(Exact name of registrant as specified in its charter)
Delaware | 001-32270 | 80-0103159 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
311 Veterans Highway, Suite B, Levittown, PA 19056
(Address of principal executive offices) (Zip Code)
Registrants telephone number, including area code (215) 826-2800
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 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 March 20, 2014, StoneMor Operating, LLC ( Operating Company ), StoneMor Pennsylvania LLC ( StoneMor Pennsylvania ) and StoneMor Pennsylvania Subsidiary LLC ( Subsidiary and together with the Operating Company and StoneMor Pennsylvania, Tenant ), each of which is a direct or indirect subsidiary of StoneMor Partners L.P. ( StoneMor ), and the Archdiocese of Philadelphia, an archdiocese governed by Canon Law of the Roman Catholic Church ( Landlord ), entered into Amendment No. 1 (the Amendment ) to the Lease Agreement (the Lease ), dated September 26, 2013. StoneMor joined the Lease as a guarantor of all Tenants obligations under the Lease. Subject to closing conditions, the Tenant will operate 8 cemeteries pursuant to the Lease and 5 cemeteries pursuant to the related Management Agreement in Pennsylvania.
The Amendment extended the period for satisfying certain conditions precedent under the Lease to May 30, 2014, after which each of Tenant and Landlord has the right to terminate the Lease if its conditions precedent are not satisfied. Commencement of the Lease is a condition precedent to commencement of the Management Agreement.
The parties to the Amendment also acknowledged that certain conditions precedent set forth in the Lease had expired or been satisfied, including obtaining the approval of the Orphans Division of the Court of Common Pleas of Philadelphia County.
The foregoing summary is not intended to be complete and is qualified in its entirety by reference to the Amendment. A copy of the Amendment is attached as Exhibit 10.1 to this Form 8-K and is incorporated by reference herein.
Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits:
Exhibit
|
Description |
|
10.1 | Amendment No. 1 to Lease Agreement, dated as of March 20, 2014, by and among StoneMor Operating, LLC, StoneMor Pennsylvania LLC, StoneMor Pennsylvania Subsidiary LLC, the Archdiocese of Philadelphia, and StoneMor Partners L.P. |
1
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.
STONEMOR PARTNERS L.P. | ||
By: | StoneMor GP, LLC | |
its general partner | ||
By: |
/s/ Timothy K. Yost |
|
Name: | Timothy K. Yost | |
Title: | Chief Financial Officer |
Date: March 26, 2014
EXHIBIT INDEX
Exhibit
|
Description |
|
10.1 | Amendment No. 1 to Lease Agreement, dated as of March 20, 2014, by and among StoneMor Operating, LLC, StoneMor Pennsylvania LLC, StoneMor Pennsylvania Subsidiary LLC, the Archdiocese of Philadelphia, and StoneMor Partners L.P. |
Exhibit 10.1
AMENDMENT NO. 1
TO
LEASE AGREEMENT
This AMENDMENT NO. 1 TO LEASE AGREEMENT (this Amendment) is entered into on, and effective as of, March 20, 2014 by and among by and among the Archdiocese of Philadelphia, an archdiocese organized and existing under and governed by Canon Law of the Roman Catholic Church and recognized by the Commonwealth of Pennsylvania as a nonprofit religious organization (the Landlord or the Archdiocese ) and StoneMor Operating LLC, a Delaware limited liability company ( Operating ), StoneMor Pennsylvania LLC, a Pennsylvania limited liability company ( StoneMor Pennsylvania ), and StoneMor Pennsylvania Subsidiary LLC, a Pennsylvania limited liability company ( Subsidiary, and together with Operating and StoneMor Pennsylvania, the Tenant ). StoneMor Partners L.P., a Delaware limited partnership ( StoneMor ), joined in the Lease for the purpose of guarantying all of Tenants rental payment and other obligations under the Lease, as such guaranty obligations are set forth in Section 14.22 of the Lease. StoneMor hereby joins in this Amendment for the purpose of consenting to the Amendment. Each of the foregoing shall be considered a party to this Amendment.
WHEREAS, the parties hereto are party to that certain Lease Agreement dated as of September 26, 2013 (the Lease);
WHEREAS the parties hereto desire to make certain amendments to the Lease to extend the period for satisfying certain conditions precedent and to acknowledge that certain conditions precedents in the Lease have expired or been satisfied.
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the parties hereby agree as follows:
1. Defined Terms . Capitalized terms used but not defined in this Amendment shall have the meanings ascribed to such terms in the Lease.
2. Amendments to the Lease .
(a) Section 1.4.1 of the Lease is hereby amended by deleting December 31, 2013 in the first sentence and replacing it with May 30, 2014. For the avoidance of doubt, the purpose of this amendment is to extend the Pre-Commencement Expiration Date as used in the Lease to May 30, 2014.
(b) The parties acknowledge that the Orphans Court has approved the Orphans Court Petition and Decree and that the period for taking an appeal has expired.
(c) Further, the parties acknowledge that certain Historical Financial Information may be required by StoneMor in any offering document to be used to raise financing. The parties desire to amend the Lease to permit further extensions of the period for satisfaction of this requirement. Accordingly, Section 1.4.5 of the Lease is hereby amended and restated in its entirety to read as follows:
1.4.5 Extension . Anything in this Lease to the contrary notwithstanding, if StoneMor reasonably determines (based upon advice of the staff of the Securities and Exchange Commission or its accountants or lawyers) that StoneMor must include or incorporate by reference any Historical Financial Information (as defined in Section 1.7) in any registration statement to be used to raise financing to pay the Up-Front Rent, Tenant shall have the right to extend the Pre-Commencement Expiration Date to such date that is 90 days after the date that the Archdiocese provides the Historical Financial Information (including any audit report thereon and the consent of the independent accountant to the use of such audit report and any comfort letter from the independent accountants reasonably requested by the underwriter of any offering of securities) requested by StoneMor but in no event beyond September 30, 2014; provided however, that notwithstanding any such extension by Tenant, Tenant shall thereafter have the right to terminate this Agreement by written notice to Archdiocese if Archdiocese has not provided the requested Historical Financial Information by June 30, 2014.
3. Certain Conditions Precedent . The parties acknowledge that the conditions precedent set forth in Section 1.4.1 (a)(ii) (surveys) and (iii) (zoning reports), Section 1.4.1(b) (objections), Section 1.4.1(d) (business due diligence), Section 1.4.1(j) (board approval) and Section 1.4.1(m) and Section 1.4.2(a)(i) (Orphans Court Approval) of the Lease have been satisfied or have expired in accordance with their terms.
4. Confirmation . Except as expressly amended by this Amendment, the Lease is not modified hereby, is hereby ratified and confirmed, and shall remain in full force and effect.
5. Counterparts . This Amendment may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become effective when one or more such counterparts have been signed by each of the parties and delivered to the other parties.
6. Applicable Law . This Amendment shall be governed by, and construed in accordance with, the laws of the Commonwealth of Pennsylvania without regard to principles of conflict of laws.
[ Signature Pages Follow ]
IN WITNESS WHEREOF, the parties have hereunto set their hands and seals this day and year first above written.
TENANT | ||
STONEMOR OPERATING LLC, a Delaware limited liability company | ||
By: |
/s/ Frank Milles |
|
Name: | Frank Milles | |
Title: | Vice President | |
STONEMOR PENNSYLVANIA LLC, a Pennsylvania limited liability company | ||
By: |
/s/ Frank Milles |
|
Name: | Frank Milles | |
Title: | Vice President | |
STONEMOR PENNSYLVANIA SUBSIDIARY LLC, a Pennsylvania limited liability company | ||
By: |
/s/ Frank Milles |
|
Name: | Frank Milles | |
Title: | Vice President | |
STONEMOR, solely in its capacity as guarantor | ||
STONEMOR PARTNERS L.P., a Delaware limited partnership | ||
By: |
/s/ Frank Milles |
|
Name: | Frank Milles | |
Title: | Vice President |
[signatures continued on next page]
LANDLORD | ||
THE ARCHDIOCESE OF PHILADELPHIA | ||
By: |
/s/ Daniel J. Kutys |
|
Name: | Monsignor Daniel J. Kutys | |
Title: | Moderator of the Curia, | |
Attorney-in-fact for Most Reverend | ||
Charles J. Chaput, O.F.M., Cap,
Archbishop of Philadelphia |
[signatures continued from prior page]