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)

Registrant’s 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 Tenant’s 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
No.

  

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
No.

  

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 Tenant’s 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]