Signing a contract with mFaktoring SA – significant agreement

The Management Board of Orzeł Biały SA (“The Company”, “The Issuer”) announces that on 29.09.2015, the Company received a contract signed by mFaktoring SA headquartered in Warsaw.

In addition, the Issuer signed,  on the same day, with the companies from mBank Group two loan agreements and an annex to the loan agreement from 30.06.2011.

The contract with the highest value from those signed with mBank Group companies, which exceeds 10% of the total revenue of the Issuer’s Group of Companies from the last four fiscal quarters (third quarter 2014 – second quarter 2015) is the Non-Recourse Factoring Agreement concluded with mFaktoring SA with its registered office in Warsaw.

The purpose of the above Agreement is:

a)       to provide the Company, against a collateral, the financing limit of trade receivables to the total amount of PLN 50 000 000, which consists of:

                – domestic factoring in PLN of up to PLN 30 000 000 PLN,

                – export factoring in EUR of up to EUR 5 000 000.

The agreement does not provide for contractual penalties. The financial terms of the Agreement do not differ from contracts commonly used in the market for such agreements and are based on WIBOR O/N rates for the domestic factoring or on EUR LIBOR O/N rates for the export factoring increased by the factor provision and the notional factoring fee. The Agreement has been signed for an indefinite period of time with the possibility of annual renewal of the factoring limit.

Legal securities for the limit extended by mFaktoring SA Limit consist of:

– blank promissory note

– assignment of receivables from the bank accounts of the Issuer held with mBank SA to the amount of the Issuer’s debt under the Factoring Agreement,

– Tripartite Agreement between: the Insurer of claims, Orzeł Biały SA and mFaktoring SA.

The total value of the contracts between the Issuer and mBank companies in the last 12 months is PLN 120 000 000.

Legal basis:

MFR SE § 5 Para. 1 Pt. 3 sec. 8

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