Further to Current Report No. 20/2015 of June 30th 2015, Grupa LOTOS S.A. (the “Company”) announces that on June 10th 2021 the subsidiary LOTOS Asfalt Sp. z o.o. (“LOTOS Asfalt”) notified a syndicate of the following financial institutions: Bank Gospodarstwa Krajowego (financing under the “Polish Investments” programme), Bank Millennium S.A., Bank Polska Kasa Opieki S.A., Santander Bank Polska S.A. (formerly: 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 S.A. (jointly the “Banks”), of its intention to make a voluntary prepayment of the entire debt under the agreement providing for a term facility of USD 432,000,000 (the “Term Facility”) and a revolving facility of up to PLN 300,000,000 (the “Revolving Facility”) dated June 30th 2015, contracted by LOTOS Asfalt to finance the EFRA Project (jointly the “EFRA Facility”), which – as a consequence of the prepayment referred to above – will also result in the release of the security instruments established in connection with the EFRA Facility, including a ceiling mortgage over LOTOS Asfalt’s rights to property, registered pledges over a set of LOTOS Asfalt’s all movables and rights, on inventories, receivables from bank accounts, and on shares in LOTOS Asfalt held by the Company. The agreement on a conditional loan extended to LOTOS Asfalt by the Company will also be terminated.
The prepayment is part of debt optimisation within the Group and will ultimately lead to a drop in the average borrowing costs (once a new final agreement for external financing is signed by LOTOS Asfalt) and facilitate the implementation of reorganisation measures necessary for implementing the remedies agreed in connection with the merger with Polski Koncern Naftowy ORLEN S.A., as announced by the Company in Current Report No. 21/2020 of July 14th 2020 and Current Report No. 10/2021 of March 12th 2021.
As at the date of this report, the debt outstanding under the Term Facility was USD 223,029,204.25 and under the Revolving Facility – PLN 0. The Term Facility should be prepaid on June 21st 2021. On the same date, the Revolving Facility will also be cancelled and settled, and LOTOS Asfalt will settle the interest rate risk hedges related to the Term Facility. The EFRA Facility will be repaid with LOTOS Asfalt’s internally generated funds and the Company’s internally generated funds provided to LOTOS Asfalt in the form of a PLN 400,000,000 loan.
Legal basis: Article 17(1) of MAR – Inside information