The Management Board of Grupa LOTOS S.A. reports that today Grupa LOTOS S.A. and consortium of four banks, comprising BANK POLSKA KASA OPIEKI S.A. of Warsaw, PKO BP S.A. of Warsaw, BRE BANK S.A. of Warsaw, and RABOBANK POLSKA S.A. of Warsaw, have executed a loan agreement. The agreement provides for a four-year revolving loan for a total amount of USD 400,000 thousand (PLN 1,004,600 thousand, translated at the mid exchange rate quoted by the National Bank of Poland for December 19th 2007), for refinancing and financing the inventories of Grupa LOTOS S.A. The agreement is the first element of the financing strategy for the operations of Grupa LOTOS S.A. in the coming years, related to the execution of the 10+ Programme. The lending term under the agreement may be extended by the parties by one year. The main security for the loan is an agreement on registered pledge over the inventories of Grupa LOTOS S.A. (along with related assignments of rights under agreements on storage of inventories and insurance agreements) and an agreement on pledge over cash receivables under an agreement on keeping the bank accounts of Grupa LOTOS S.A. related to the loan agreement (along with a power of attorney to the accounts). The other provisions of the loan agreement, including those pertaining to contractual penalties, do not differ from provisions commonly applied in agreements of such type. The agreement is deemed significant as its estimated value exceeds 10% of the equity of Grupa LOTOS S.A. The Management Board of Grupa LOTOS S.A. also reports that today, in connection with the above loan agreement, Grupa LOTOS S.A. has entered into two registered pledge agreements in order to secure the liabilities incurred by Grupa LOTOS S.A. Pursuant to the agreements, the registered pledge created for the lenders covers the inventory of Grupa LOTOS S.A. with the estimated value (as at November 30th 2007) of ca. USD 900,000 thousand (PLN 2,260,350 thousand, translated at the mid exchange rate quoted by the National Bank of Poland for December 19th 2007) and cash receivables under an agreement for keeping the bank accounts of Grupa LOTOS S.A. related to the loan agreement. There are no links between Grupa LOTOS S.A. or its management staff and the banks for which the pledges were created or their management staff. The assets covered by the pledge agreements are deemed assets of significant value as their value exceeds 10% of the equity of Grupa LOTOS S.A. Legal basis for the publication of this report: Par. 5.1.3 and Par. 5.1.1 of the Regulation of the Minister of Finance on current and periodic information to be published by issuers of securities, dated October 19th 2005.
Execution of a Loan Agreement between Grupa LOTOS S.A. and a Bank Consortium and Execution of Pledge Agreements as Security under the Loan Agreement
Report no. 96/20052007-12-20