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CR#40_2014 Orange Polska concluded financing agreements

 

Pursuant to article 5(1.3) of the Decree of the Minister of Finance of 19 February 2009 on current and periodic information disclosed by issuers of securities and conditions for recognising as equivalent information required by the laws of a non-member state (Journal of Laws of 2009, No. 33, item 259, as amended), the Management Board of Orange Polska S.A. (“Orange Polska” or “the Company”) hereby informs about financing agreements concluded by Orange Polska.

 

Orange Polska concluded financing agreements with the Orange SA Group in order to refinance Eurobonds maturing in May 2014, and reduce its financing costs

 

 

On May 15, 2014, in accordance with the Orange Polska Management Board’s decision and the Supervisory Board’s positive opinion described in the current report 38/2014, Orange Polska concluded the following agreements with a member of the Orange SA Group:

 

 -  Loan Agreement with Atlas Services Belgium SA, a wholly owned subsidiary of Orange SA. Under this agreement Orange Polska will receive financing of EUR 480 million, with 5-year maturity;

 -  Annex no. 1 to the existing Revolving Credit Facility Agreement concluded on April 17, 2013 between Orange Polska and Atlas Services Belgium SA, which increased the amount of the revolving credit by EUR 230 million and extended its maturity to 2018.

 

The financial terms of the aforementioned agreements are based on market conditions. The interest on the amounts drawn will be based on the Euribor or Wibor rates for the relevant interest periods plus a margin specified in the agreements.

The purpose of these agreements is to refinance the euro medium term notes of the total par value of EUR 700 million, maturing on May 22, 2014. This will enable Orange Polska to optimise its financial costs; as of today, the cost of the new financing averages 4.2% per annum, in PLN (including the cost of hedging).

The Agreements are not collateralized by any specific assets of the Company and constitute an equivalent liability with respect to Orange Polska’s other debt liabilities on the account of loans or securities issued.

The agreements are considered significant, because their total amount exceeds 10% of  Orange Polska’s equity.

Orange SA is a shareholder of Orange Polska, holding a 50.67% stake in Orange Polska, which corresponds to 50.67% of the total voting power on the AGM of the Company.

 

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