12/2014 – Information on Conclusion of Material Agreements

With reference to Current Report No. 18/2011, Current Report No. 9/2012 and Current Report No. 24/2013, the Management Board of Trakcja PRKiI S.A. (“Company” or “Issuer”) hereby informs that the Company and Alior Bank Spółka Akcyjna with its registered office in Warsaw (“Bank”) signed agreements with the total value of PLN 145,000,000 (one hundred forty five million Polish zlotys), including two annexes to the material agreements with the total value of PLN 95,000,000 (ninety five million Polish zlotys) and the agreement for a limit for guarantee products.

 

On 30 April 2014, two annexes to the credit agreements for revolving loans were signed:

 

 1. Annexe to the credit agreement of 30 March 2011 for revolving loan in the amount of up to PLN 60,000,000 (sixty million Polish zlotys), as amended, about the conclusion of which the Company informed in Current Report No. 18/2011 of 1 April 2011, and about the amendments thereto in Current Report No. 9/2012 of 23 March 2012 and Current Report No. 24/2013 of 20 March 2013.

 

By virtue of the aforementioned Annexe, the term of the credit agreement was extended until 30 April 2015 and its amount was changed to PLN 45,000,000 (forty five million Polish zlotys). The interest shall be calculated at a variable WIBOR O/N rate plus a fixed margin of the Bank. Contractual penalties: not applicable.

 

According to the aforementioned Annexe, the loan’s collateral shall be as follows:

a)  Power of attorney to the Company's bank accounts at the Bank,

b) Collective mortgage up to the amount of PLN 217,500,000.00 (in words: two hundred seventeen million five hundred thousand Polish zlotys, 00/100) on five properties of the Company (the right to perpetual usufruct and the ownership right to buildings and equipment related thereto) and on the property of the Company and its subsidiary, namely PRK 7 Nieruchomości Sp. z o.o. in Warsaw (the right to perpetual usufruct and the ownership right to buildings and equipment related thereto), together with the assignment of rights to the insurance policies for the aforementioned properties,

c) Confirmed assignment of receivables from the part of the contract attributable to the Company, which was concluded by the consortium, in which the Company is the leader, together with PKP PLK S.A., for the “performance of construction works for the modernisation of line no. 9 in the section from km 236.920 to km 287.70 included in the area of the local Control Centre with its registered office in Malbork”.

 

 2. Annexe to the credit agreement of 23 March 2012 for revolving loan in the amount of up to PLN 15,000,000 (in words: fifteen million Polish zlotys), by virtue of which the Bank extended the term thereof until 30 April 2015, and the Parties agreed on the loan amount to be PLN 50,000,000 (fifty million Polish zlotys).

 

The interest shall be calculated at a variable WIBOR 1M rate plus a fixed margin of the Bank. Contractual penalties: not applicable.

 

According to the aforementioned Annexe, the loan’s collateral shall be as follows:

a) Power of attorney to the Company's bank accounts at the Bank,

b) Collective mortgage up to the amount of PLN 217,500,000.00 (in words: two hundred seventeen million five hundred thousand Polish zlotys, 00/100) on five properties of the Company (the right to perpetual usufruct and the ownership right to buildings and equipment related thereto) and on the property of the Company and its subsidiary, namely PRK 7 Nieruchomości Sp. z o.o. in Warsaw (the right to perpetual usufruct and the ownership right to buildings and equipment related thereto), together with the assignment of rights to the insurance policies for the aforementioned properties,

c) Confirmed assignment of receivables from the part of the contract attributable to the Company, which was concluded by the consortium, in which the Company is the leader, together with PKP PLK S.A., for the “performance of construction works for the modernisation of line no. 9 in the section from km 236.920 to km 287.70 included in the area of the local Control Centre with its registered office in Malbork”.

 

The aforementioned loans were extended for the financing of the Company’s ongoing business operations. Other terms and conditions of Annexes do not differ from those commonly applied to this type of agreements.

 

In addition on the same day, i.e. on 30 April 2014, the Company and the Bank concluded the agreement for a limit for guarantee products (“Agreement”) in the amount of PLN 50,000,000 (fifty million Polish zlotys). The limit shall expire on 29 April 2015. The Bank shall be entitled to charge the Company with the commission agreed on by the Parties.

 

The agreements have been considered to be material due to the fact that the total value of the aforementioned agreements concluded by the Company and the Bank exceeds 10% of the Company’s equity.

 

Legal basis for the report: § 5 item 1 point 3 of the Regulation of the Minister of Finance of 19 February 2009 on current and periodic information published by issuers of securities and the conditions for regarding information required by the law of a non-member state as equivalent.

 

 

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