Further to Current Report No. 20/2015, the Management Board of Grupa Lotos S.A. (“Company”) announces that on November 12th 2015 it was notified that on November 3rd 2015 two registered pledges over 100% of shares in LOTOS Asfalt Sp. z o.o., the Company’s subsidiary (“Pledgor”), were entered in the Pledge Register maintained by the District Court for Gdańsk-Północ in Gdańsk, 9th Commercial Division of the Pledge Register.
The registered pledges were created to secure the repayment of PLN-denominated liabilities under a credit facility agreement executed to acquire a part of funds necessary to finance the EFRA (Effective Refining) Project, and potential liabilities under hedging transactions to be executed in connection with the EFRA Project pursuant to the credit facility agreement. The credit facility agreement was concluded between LOTOS Asfalt Sp. z o.o. and a syndicate of financial institutions comprising: Bank Gospodarstwa Krajowego, Bank Millennium S.A., Bank Polska Kasa Opieki S.A. (coordinating the financing of the EFRA Project), Bank Zachodni WBK S.A., Powszechna Kasa Oszczędności Bank Polski S.A., Powszechny Zakład Ubezpieczeń S.A., Powszechny Zakład Ubezpieczeń na Życie S.A. and Société Générale (“Bank Syndicate”).
The total value of the liabilities under the agreement which are secured under the first pledge is up to PLN 300m and refers to a working capital facility intended to finance operating activities, make VAT payments and refinance LOTOS Asfalt’s existing working capital debt.
The liabilities secured under the second pledge are potential liabilities under hedging transactions to be executed in connection with the EFRA Project pursuant to the credit facility agreement.
The maximum amounts secured under the above pledges are PLN 450 000 000 and PLN 450 000 001, respectively.
The carrying amount of the assets secured under the pledges (equal to the par value of the shares in Lotos Asfalt Sp. z o.o.) is PLN 452m.
The Company’s share in the share capital and total voting rights at the Pledgor’s General Meeting is 100%.
There are no links between the Company and the Bank Syndicate, or between the Company’s management or supervisory personnel and the Bank Syndicate’s management personnel.
The total value of the pledged assets is estimated at more than 10% of the Company’s equity, which provides the grounds for the preparation of this current report.
Legal basis:
Par. 5.1.1 of the Minister of Finance’s Regulation on current and periodic information to be published by issuers of securities and conditions for recognition as equivalent of information whose disclosure is required under the laws of a non-member state, dated February 19th 2009, as amended.