kl05001.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): April 30, 2008
FRANKLIN
CREDIT MANAGEMENT CORPORATION
(Exact
name of registrant as specified in its charter)
|
Delaware
|
0-17771
|
75-2243266
|
|
(State
or Other Jurisdiction
of
Incorporation)
|
(Commission
File
Number)
|
(I.R.S.
Employer
Identification
No.)
|
|
101
Hudson Street
Jersey
City, New Jersey
(Address
of Principal Executive Offices)
|
|
07302
(Zip
Code)
|
Registrant’s
telephone number, including area code: (201) 604-4402
________________________________________________
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):
£ 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
8.01. Other
Events.
Effective
April 30, 2008, Franklin Credit Management Corporation (the “Company”) entered
into $275 million (notional amount) of fixed-rate interest rate swaps (the
“April 30 Swaps”). The fixed-rate swaps are for a period of three
years, are non-amortizing, are at a fixed rate of 3.47% and were entered into
with the Company’s lead lending bank (the “Bank”).
Under
these swap agreements, the Company will make interest payments to the Bank at
fixed rates and will receive interest payments from the Bank on the same
notional amounts at variable rates based on one-month LIBOR.
Taking
into account the April 30 Swaps and the interest rate swaps previously entered
into by the Company on February 27, 2008, the Company currently has $1.0 billion
of fixed-rate interest rate swaps, which have remaining terms varying from about
ten months to almost four years.
On May 6,
2008, the Company issued a press release announcing its entry into the April 30
Swaps. A copy of the press release is attached hereto as Exhibit 99.1
and is incorporated in this Item 8.01 by reference.
Item
9.01. Financial Statements
and Exhibits.
(d) Exhibits
Exhibit
No. Description
99.1 Press
Release, dated May 6, 2008, entitled “Franklin Credit Announces Hedge
Agreements.”
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.
FRANKLIN CREDIT
MANAGEMENT CORPORATION
By: /s/ Paul D.
Colasono
Name: Paul D.
Colasono
Title: Chief
Financial Officer and
Executive
Vice President
Date: May
6, 2008