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20/2013 Orange Polska takes advantage of the France Telecom funding opportunity. - Orange Polska

Pursuant to art. 56, clause 1, item 1 of the Law of July 29, 2005 on public offering and the conditions for introducing financial instruments to the organized trading system and on public companies (Journal of Laws of 2005, No. 184, item 1539 with amendments), the Management Board of Telekomunikacja Polska S.A. (“TP S.A”, the “Company”) informs about the decision to conclude agreements for financing TP S.A.

Orange Polska takes advantage of the France Telecom funding opportunity to optimize its financial costs

Benefiting from being a part of the France Telecom Group (“FT”), Telekomunikacja Polska Group (“Orange Polska”, “ Group”) has decided to take advantage of FT’s funding capabilities, in order to optimize its financial cost. The Group will decrease the proportion of funding from external partners, and use funding options provided by FT. This will address the future funding requirements of Orange Polska and secure liquidity, while simultaneously enabling the Group to decrease its costs, by eliminating redundant funding facilities (e.g. back-up line), minimizing costs of carry and executing organizational synergies. 

To implement this policy, the TPSA Management Board has decided to conclude agreements for financing TP SA in 2013, to be signed between TP S.A. and France Telecom S.A. or a subsidiary of France Telecom S.A. („FT”) and has obtained a positive opinion of the TP S.A. Supervisory Board on the matter (issued on 28 February; in line with the WSE best practices, the Supervisory Board members representing FT abstained in the vote on the opinion). 

As part of those agreements, TP SA will have access to funding  with an intention to secure TP position in view of maturing in 2013 the EUR 400 million back-up line, outstanding debt, incl. PLN 0.9 billion EIB credit line, as well as operational requirements. TP S.A. and FT will also enter into an agreement for consolidation of excess cash on the Group’s bank accounts (“cash-pool”). The terms of the FT funding and cash consolidation are based on the “arm’s length” basis and will be established taking into account the conditions prevailing on the financial markets. 

France Telecom S.A. is a shareholder of TP S.A., holding a 49.79% stake in TP S.A., which corresponds to 49.79% of the total voting power.

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