2010-08-27
Current report No. 35/ 2010 - Execution of Framework Credit Facility Agreement and Guarantee Agreement with BANCO ESPIRITO SANTO DE INVESTIMENTO S.A.
The Management Board of HYDROBUDOWA POLSKA S.A. hereby reports that on August 27th 2010 it was notified that, on August 20th 2010, a framework agreement concerning various credit facilities was executed between the PBG Group companies ("the Borrowers”), including:
- PBG S.A.
- HYDROBUDOWA POLSKA S.A.
- HYDROBUDOWA 9 S.A.
- APRIVIA S.A.
and BANCO ESPIRITO SANTO DE INVESTIMENTO S.A., Polish Branch of Warsaw.
Under the agreement, BANCO ESPIRITO SANTO DE INVESTIMENTO S.A. agreed to provide the Companies with credit facilities up to the maximum amount of PLN 150m.
The facilities may be utilized as short-term loans, bank guarantees or other bank products (jointly referred to as “the Products”), agreed upon by the Parties on a case-by-case basis.
The Agreement will expire on August 18th 2011.
Repayment of liabilities under bank guarantees is secured with a corporate guarantee issued by PBG S.A., HBP, HB9, APRIVIA, which amounts to 150% of the Guarantee Facility and covers future liabilities of the Borrowers under the issued guarantees.
II.
Upon execution of the framework agreement, every Borrower also executed, on August 20th 2010, a guarantee agreement with the Polish Branch of BANCO ESPIRITO SANTO DE INVESTIMENTO S.A.
Under the guarantee agreement, the Companies guaranteed to the Bank timely and complete performance of their relevant obligations as well as due and timely repayment of any current and future liabilities under the framework agreement or any other liabilities as may arise thereunder. The Companies also agreed to pay up to PLN 225m, including interest, in the event of delay in any payment due under the agreement.
Concurrently, the Companies made a representation on submission to enforcement under the guarantee agreement up to PLN 225,000,000 (in words: two hundred and twenty-five million złoty), including default interest accrued from the date of any writ of execution until the date of payment, with the reservation that the Bank should be authorized to submit application for attaching an enforcement clause to the execution title until December 31st 2021.
The Bank’s fee for execution of the agreements was assessed on market terms.
The Agreements are deemed significant based on the value of the Issuer’s equity.
Legal basis: Par. 5.1.3 and 5.1.7 of the Regulation on current and periodic information to be published by issuer’s of securities of February 19th 2009.
