ACPT Form8k_New Forest Refi
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)
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November
1, 2006
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AMERICAN
COMMUNITY PROPERTIES TRUST
(Exact
name of registrant as specified in its charter)
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MARYLAND
(State
or other jurisdiction
of
incorporation)
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1-14369
(Commission
File
Number)
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52-2058165
(I.R.S.
Employer
Identification
No.)
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222
Smallwood Village Center
St.
Charles, Maryland 20602
(Address
of principal executive offices)(Zip Code)
(301)
843-8600
(Registrant's
telephone number, including area code)
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))
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Item
1.01
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Entry
into a Material Definitive Agreement
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| |
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On
November 1, 2006, New Forest Apartments, LLC (“New Forest”), a majority-owned
subsidiary of American Community Properties Trust, the Registrant, secured
a
non-recourse mortgage of $23,000,000 with Wells Fargo Bank, N.A. The ten-year
loan, amortized over 30 years, has a fixed interest rate of 6.075%, requires
principal and interest payments through maturity and a balloon payment at the
maturity date, November 1, 2016. The prior mortgage of $12,144,000 was repaid
and the net proceeds from the refinancing will be used for overall apartment
property improvements, the repayment of recourse debt, future development
efforts and potential acquisitions.
The
loan
agreement includes customary events of default, including, but not limited
to,
the failure to pay any interest or principal when due, the failure to maintain
the required insurance coverage, the failure to provide timely financial
information, incorrect or misleading representations or warranties, insolvency
or bankruptcy, and change of control. The amounts outstanding on the mortgage
note under the loan agreement may be accelerated upon certain events of
default.
Item
2.03 Creation
of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet
Arrangement of a Registrant
The
disclosure required by this item is included in Item 1.01 and is
incorporated herein by reference.
SIGNATURES
Pursuant
to the requirements of the Securities and Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
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AMERICAN
COMMUNITY PROPERTIES TRUST
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(Registrant)
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Dated:
November 3, 2006
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By:
/s/ Cynthia L. Hedrick
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Cynthia
L. Hedrick
Executive
Vice President and Chief Financial Officer
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