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 24, 2010 (September 20, 2010)
STERLING CHEMICALS, INC.
(Exact Name of Registrant as Specified in Charter)
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Delaware
(State or Other Jurisdiction of
Incorporation)
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000-50132
(Commission File Number)
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76-0502785
(IRS Employer Identification No.) |
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333 Clay Street, Suite 3600
Houston, Texas
(Address of Principal Executive Offices)
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77002-4109
(Zip Code) |
(713) 650-3700
(Registrant’s telephone number, including area code)
Not Applicable
(Former Names 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:
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))
TABLE OF CONTENTS
Item 1.01. Entry into a Material Definitive Agreement.
On September 20, 2010, Sterling Chemicals, Inc. (“Sterling”) entered into an Amendment to its
Revolving Line of Credit for letters of credit (the “LC Facility”) with JP Morgan Chase Bank,
N.A. (“Chase”), which is effective September 10, 2010. The amendment extended the term of the LC
Facility by three months. In connection with the amendment to the LC Facility, Sterling also
entered into a Security Agreement (the “Security Agreement”) and a Pledge Agreement (the “Pledge
Agreement”) on September 20, 2010, each dated September 13, 2010, with Chase. Pursuant to the
Security Agreement, Sterling agreed, under and subject to the terms and conditions of the Security
Agreement, to grant first-priority liens in favor of Chase on a substantial portion of its assets
to secure Sterling’s obligations under the LC Facility, primarily consisting of its accounts
receivable and inventory. Under the Pledge Agreement, Sterling agreed, under and subject to the
terms and conditions of the Pledge Agreement, to pledge to Chase its interest in, among other
things, all restricted subsidiaries under Sterling’s indenture, all promissory notes under
$1,000,000 issued to Sterling (excluding promissory notes arising from a disposition of certain
collateral under the indenture) and all dividends, distributions and other payments with respect to
any other pledged property.