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General Terms of Sale
Current reports A A A
Concluding the Appendix to the Non-Revolving Credit Agreement as well as the Multi-Purpose Credit Line Agreement with BNP PARIBAS BANK POLSKA S.A.
Report no.: 39/2011
Date of issue: 2011-05-27
Legal basis: Art. 56 Clause 1 Item 2 of the Offering Act – current and periodic information.
SUBJECT:
Concluding the Appendix to the Non-Revolving Credit Agreement as well as the Multi-Purpose Credit Line Agreement with BNP PARIBAS BANK POLSKA S.A.
CONTENT OF THE REPORT:
On May 27, 2011 Izostal S.A. (the Company) concluded the Appendix to the Non-Revolving Credit Agreement, the said agreement concluded on January 4, 2011, as well as the Multi-Purpose Credit Line Agreement with BNP PARIBAS BANK POLSKA S.A. („Bank”), with its seat in Warszawa.
In effect of the Appendix to the Non-Revolving Credit Agreement, the loan amount was increased by PLN 8,000,000.00, i.e. from PLN 4,357,500.00 to PLN 12,357,500.00. At the same time the existing validity period, i.e. through January 3, 2014, was kept.
The credit will be used to finance the following project: „Constructing the R&D Center for Technologies and Steel Products" within the Operational Program "Innovative Economy", Priority Axis: "Investing in Innovative Projects", Sub-Activity 4.5.2. "Support for Investments in the Modern Services Area" („Project”).
Basic forms of the loan security are: transfer of ownership and registered pledge on machines and equipment as well as contractual mortgage, which have been described below in detail.
The credit interest rate is based on a WIBOR 3M rate, plus the Bank margin.
The financial conditions of the credit did not deviate from the ones used commonly for such agreements.
Moreover, on May 27, 2011 Izostal S.A. concluded the Multi-Purpose Credit Line Agreement with BNP PARIBAS BANK POLSKA S.A. Based on this agreement the Bank released a credit limit to the Company, to the maximum amount of PLN 5,000,000.00, with the following sub-limits:
- credit on a current account up to PLN 5,000,000.00,
- guarantee line (performance of the agreement, rectification of defects and faults, payments, bid bonds) valid not longer
than 47 months, to the amount of PLN 5,000,000.00,
- guarantee line (performance of the agreement, rectification of defects and faults, payments, bid bonds) valid through 48
months, up to 60 months, to the amount of PLN 2,000,000.00.
The credit will be valid through May 24, 2021, the first current period of the credit availability expires on May 23, 2012.
The credit line will be secured by a general assignment of receivables by way of commercial receivables due from the selected debtors, to the monthly amount not lower than PLN 5,000,000.00. The security in question is also a legal security for the above mentioned Non-Revolving Credit Agreement.
The credit interest rate is based on a WIBOR 3M rate, plus the Bank margin.
The financial conditions of the credit did not deviate from the ones used commonly for such agreements.
Total value of the above mentioned agreements is PLN 17,357,500.
The Company regards the above mentioned agreements as significant, because their total value exceeds 10% of the Company Equity.
In effect of the Non-Revolving Credit Agreement, in order to secure the payment of a principal amount, contractual interest, default interest, costs, commissions and charges as well as claims for indemnity in result of the failure to perform or improper performance of the Credit Agreement, the Company is obliged to establish for the Bank a contractual mortgage up to PLN 18,536,250.00 on the Company's perpetual usufruct right to use the real property situated in Kolonowskie and on the Company's ownership of buildings and structures built on the said real property, for which rights the District Court in Strzelce Opolskie, 5th Division Land and Mortgage Register maintains Land and Mortgage Register KW No. OP1S/00040617/8. Record value of these assets, as per accounting books of Izostal S.A. as on 30.04.2011, amounts to PLN 56,002,841.75.
Following the Non-Revolving Credit Agreement, a mortgage will be entered.
The mortgage is higher than the sum equivalent to EUR 1 M expressed in PLN, calculated at the National Bank of Poland average exchange rate at the date of concluding the Agreement, and - therefore - meets the criterion required for the high value assets.
Following the Non-Revolving Credit Agreement, in order to secure the contractual obligations the Company is also obliged to establish for the Bank the transfer of ownership and registered pledge on machines and equipment to the total amount not lower than PLN 9,000,000.00, which machines and equipment will be bought by the Company within the Project of R&D Center for Technology and Steel Products.
Following the purchase of the above mentioned machines and equipment, an entry will be made in the court register of pledgers.
The value of a registered pledge will be higher than the sum equivalent to EUR 1 M expressed in PLN, calculated at the National Bank of Poland average exchange rate at the date of concluding the Agreement, and - therefore - meets the criterion required for the high value assets.
To the best of the Company’s knowledge, there are no connections between Izostal S.A. and its managing or supervisory bodies and BNP PARIBAS BANK POLSKA S.A. and its managing or supervisory bodies.
Specific legal basis: § 5 Clause 1 Item 1 and 3 of the Ordinance of the Minister of Finance of February 19, 2009 on current and periodic information disclosed by the issuers of commercial papers and the conditions for recognizing as equivalent the information required by the laws of a non-member state (Journal of Laws No. 33, Item 259, as amended).
SIGNATURES OF PERSONS REPRESENTING THE COMPANY:
Management Board President, General Director Marek Mazurek 2011-05-27
Management Board Vice President, Commercial Director Jacek Podwiński 2011-05-27
INFORMATION ON THE ENTITY:
Full name of the issuer: IZOSTAL SPÓŁKA AKCYJNA
Abbreviated name of the issuer: IZOSTAL S.A
Sector based on the classification of Warsaw Stock Exchange: Other industry
Address: 47-120 Zawadzkie Polna 3
Telephone: (77) 405 65 00
Fax: (77) 405 65 01
e-mail:info@izostal.com.pl
www.izostal.com.pl
VAT No. [NIP]:756-00-10-641
Statistical No. [REGON]: 530884678