New loan agreements signed to refinance credit facilities taken to fund 10+ Programme
Report no. 24/20192019-07-02

Further to Current Report No. 32/2008 of June 27th 2008, Grupa LOTOS S.A. (“Company”) announces that on July 2nd 2019 Grupa LOTOS S.A. and a bank syndicate comprising ING Bank Śląski S.A., PEKAO S.A., PKO BP S.A., Sumitomo Mitsui Banking Corporation Bank EU AG, Intesa Sanpaolo S.p. A, Caixabank S.A. (Spółka Akcyjna), Industrial and Commercial Bank of China (Europe) S.A. and Erste Group Bank AG, signed new loan agreements to refinance credit facilities taken out to fund the 10+ Programme.

The agreements provide for a term loan of USD 400m (PLN 1.5 bn at the mid rates quoted by the National Bank of Poland for July 2nd 2019) and a working capital loan of USD 100m (PLN 376m  at the mid-rates quoted by the National Bank of Poland for July 2nd 2019) as the base currency, with an option to be utilised in USD, EUR or PLN.

The loans must be repaid no later than on the 5th anniversary of their disbursement date. The main security for the loans is the Company’s representation on submission to enforcement in favour of the lenders made under Art. 777.1.5 of the Civil Procedure Code. The other terms and conditions of the agreements do not differ from standard terms commonly used in agreements of this type.

The purpose of refinancing the credit facility agreements signed in 2008 is to optimise the structure
 and repayment term of financial liabilities incurred for the 10+ Programme and to release security created over Grupa LOTOS S.A.’s assets under the previous agreement (Current Report No. 32/2008).

Legal basis: Article 17(1) of MAR – Inside information