Main entity changing in a range of financing of The Company – agreements conclusion with BGŻ BNP Paribas Group

The Management Board of Orzeł Biały S.A. (‘The Company’, ‘The Issuer’) hereby announces that on 5th June 2017, The Issuer concluded an agreement of multi-purposeful credit line with BGŻ BNP Paribas S.A.Bank with main office in Warsaw (‘The Bank’) and the three-sided factoring agreement with The Bank and BGŻ BNP Paribas Faktoring with main office in Warsaw (‘The Factor’).

As part of multi-purposeful credit line agreement (‘The Agreement’), The Bank grant The Company a credit limit up to maximal amount 50 M PLN to use on following ways:

–          credit in current account up to amount of Main Line limit i.e. 50 M PLN and up to 1 M EUR;

–          letter of credit line amount up to 15 M PLN;

–          guarantee line amount up to 15 PLN.

The Agreement does not include any contractual penalty. Financial conditions, which were the base for concluding The Agreement, are not depart from commonly applied on market for such kind of agreement, moreover, they are based on WIBOR 1M rate for limits in PLN or on EURIBOR 1M for limits in EUR, which are extended to profit margin and The Bank commission. The Agreement was concluded for a period of 24 months with a possibility to extend the period of credit availability.  

Legal assurances of the limit, which were dispensed by BGŻ BNP Paribas, Inc. are provided:

a)       in blanco promissory note with a declaration,

b)      mortgage up to 75 M PLN amount on right of usufruct The Company’s fixed property, which are located in Piekary Śląskie,   

c)       receivables transfer in favour of The Bank from insurance policy,

d)      alienation’s agreement on warehouse total inventory , 

e)      registered pledge on warehouse total inventory

f)        three-sided agreement concluded by The Company, The Bank and The Factor, which pertain to payment due factoring assignment.

According to resolution of concluded agreement, The Issuer is obliged to repay credits incurred in mBank Group companies, with credit line closing (i.e. current account, credit account and factoring), which were raised by The Company.

The Issuer informed in current reports no. 21/2011 dated 7th July 2011, no. 18/2015 dated 29th September 2015 and no. 17/2016 dated 21st June 2016, about commitment as part of mBank Group.

Furthermore, as part of concluded factoring agreement (‘The Factoring Agreement’), The Factor and The Bank will grant renewable limit for The Company for financing trade receivables in total amount up to 50 M PLN, which consisted of:

– national factoring in PLN up to 40 M PLN,

– export factoring in EUR up to 36 M PLN.

The Factoring Agreement do not include any contractual penalty. Financial conditions, which were the base for concluding The Factoring Agreement, are not depart from commonly applied on market for such kind of agreement, moreover, they are based on WIBOR 1M for national factoring or on EURIBOR 1M for export factoring, which are extended to factoring profit margin and contractual factoring commission. Factoring agreement was open-ended concluded with an annual revolving factoring limit possibility.

Legal protection of the granted limit is provided:

a)       in blanco promissory note, which were issued by The Company,

b)      three-sided assignment of receivables agreement  concluded  by The Factor, The Bank and The Company.

Cumulative value of concluded agreement by The Issuer and companies from BGŻ BNP Paribas Group contain limits up to 100 M PLN.

Legal basis: Art. 17 Act 1 MAR

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