Current Report No. 17/2017

Date of preparation: 2017-11-09

Abbreviated name of the Issuer: Ciech S.A.

Subject: Commencement of negotiations related to an annex to the loan agreement

Legal basis: Article 17.1 of the MAR – Inside Information 

Report: 

The Management Board of CIECH S.A. with its registered office in Warsaw (the “Company” or “Issuer”) informs that today a decision has been made to commence negotiations on an annex to the Loan Agreement*, the conclusion of which was advised by the Issuer in its current report no. 38/2015 on 30.10.2015.

The Management Board has decided to renegotiate the terms and conditions of the Loan Agreement due to the favourable conditions on the banking market, and possible development projects, the implementation of which is being considered.

The negotiations on the annex will be conducted both with existing and new lenders. 

Lenders have submitted to the Issuer proposals to change the terms of the Loan Agreement, the most important of which are:

1. change of the repayment date of the Term Loan and Revolving Loan - to the date falling within five years from the date of entry into force of the annex, but not later than 31 December 2022,

2. change of the Term Loan repayment schedule - to depreciation amounting to an equivalent of PLN 350,000,000 by 30 December 2021, and the equivalent of PLN 350,000,000 by 30 September 2022; the remainder of the Term Loan will be repaid within the due date of the aforementioned Loan, as indicated above.

At the same time, no changes to the interest rates on the loans are expected. 

The Issuer informs that the conclusion of the annex will require corporate approvals of the Issuer.

*Any terms capitalised herein have the meaning assigned to them in Report No. 38/2015 of 30.10.2015.

Legal basis: article 17.1 of the Regulation of the European Parliament and of the Council (EU) No. 596/2014 of 16 April 2014 on Market Abuse (the Market Abuse Regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (Official Journal of the European Union L No. 173, p. 1) (the “MAR”).

Signatures of persons representing the Company: 

Maciej Tybura – President of the Management Board 

Artur Osuchowski – Member of the Management Board