Current Report No.: 36/2020

Date of preparation: 28.12.2020

Abbreviated name of the Issuer: CIECH S.A.

Subject: Commencement of negotiations on the conclusion of a new loan agreement

Legal basis: Art. 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”) herewith informs that today it has made a decision to begin (together with some of the Company's subsidiaries) negotiations concerning a new loan agreement with selected banks and financial institutions in order to obtain new financing. At present, the Management Board provides for the following basic terms and conditions of such new financing:

(a) total amount: PLN 2 115 million (or its equivalent);

(b) currency: PLN and/or EUR;

(c) term: 5 years;

(d) form: amortised term loan PLN 560 million, non-amortised term loan (PLN 1.305 million) and revolving credit facility PLN 250 million;

(e) required financial ratios (covenants): maintaining the threshold level of the financial ratio (net debt to operating result increased by depreciation (EBITDA) at a level not exceeding 4,0x;

(f) interest: variable interest rate determined on the basis of the WIBOR/EURIBOR base rate increased by margin, the level of which depends on the level of the net debt to operating result increased by depreciation (EBITDA);

(g) purpose: to refinance the existing financial debt of the Company's Group (the “Refinanced Debt”), to finance the refinancing expenses, and to finance the general corporate objectives of the Company and certain companies from its Group. The Refinanced Debt includes loans with a total value of approx. PLN 2 102 million (value expressed in PLN converted according to the NBP exchange rate of 28.12.2020), granted in the form of:

- bilateral loans extended on the basis of loan agreements of 18.04.2019, with a total value of PLN 505 million, the conclusion of which was announced by the Company in its Current Report No. 13/2019 of 18.04.2019;

- syndicated loans with a total value of PLN 1 597 million, extended under a loan agreement of 29.10.2015, the conclusion of which was announced by the Company in its Current Report No. 38/2015 of 30.10.2015, as amended by the annex dated 9.01.2018, the execution of which was disclosed by the Company in its Current Report No. 1/2018 of 9.01.2018.  

The Management Board has decided to commence negotiations on the terms and conditions of new financing due to favourable conditions on the banking market. 

The negotiations could end in the conclusion of an agreement for the extension of loans with selected financial institutions or the Company's withdrawal from executing the documentation and obtaining such financing. 

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).

Signatures of the Company’s representatives:: 

Dawid Jakubowicz – President of the Management Board

Jarosław Romanowski - Member of the Management Board