Annexe to the loan agreement – a significant agreement

The Management Board of Orzeł Biały S.A. (“The Issuer”, “The Company”) announces that on 23.03.2016 the Issuer concluded with ING Bank Śląski S.A. headquartered in Katowice (hereinafter: “ING”) an Annexe to the Multi-Product Facility Agreement dated 03.06.2013 (as notified by the Issuer in Consolidated Management Report Orzeł Biały Group of Companies for 2014, Point B.4.7.) and Current Report No 2/2015 dated 27.03.2015.

The annex extended the term of the loan limit until 23.06.2017 year. The duration of the revolving credit limit has not changed (final maturity date of 10.01.2022).

The above loan facility will used by the Issuer and the Group Companies of the Issuer: Orzeł Surowce sp. z o.o. and Pumech sp. z o.o., to finance current operations and investment activities.

The Agreement with the Annexe, which is part and parcel of the Agreement, does not provide for contractual penalties, except for possible penalty interest commonly used in contracts of this kind. Financial terms thereunder do not differ from those commonly applied in the market for such agreements and are based on WIBOR 1M + bank margin. The maximum term of the Agreement duration is till 01.10.2022.

The security for the facility extended by ING Bank Śląski S.A. consists of:

  • assignment of receivables under THE commercial contract;
  • contractual mortgage up to kPLN 68,100 on the perpetual usufruct for the property located at Piekary Śląskie;
  • registered pledge on machinery and equipment, technical equipment, accessories and instrumentation located at the Smelter Division of Orzeł Biały at Piekary Śląskie;
  • registered pledge on technological buildings such as chimneys, pipelines, installations, tanks, ducts that are not permanently connected with the ground, at the Smelter Division of Orzeł Biały at Piekary Śląskie;
  • assignment of rights from insurance policies for all secured/pledged items listed above;
  • Voluntary submission to execution under art. 777 § 1 point. 5 KPC.

The Management Board of Orzeł Biały S.A. announces that the total value of the contracts concluded during the past 12 months with ING by the Issuer’s Group amounts to kPLN 62,180 and exceeds 10% of of the total revenue of the Issuer’s Group of Companies for the last four quarters (first quarter of 2015 – fourth quarter of 2015).

The highest value agreement is represented by the Annexe to the Multi-Product Facility Agreement that is the subject of this report and which replaces previous loan agreements between the parties to the said Annexe.

Legal basis: MFR SE §5 Para.1 Pt. 3

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