Conclusion of an annex to the credit agreement with Bank Zachodni WBK S.A.

On 22 January 2016 the Management Board of Stalprofil was informed about signing by Bank Zachodni WBK S.A. with its registered office in Wrocław, an annex to the credit of the "multiline" that for the next three years (until 25 January 2019) extends the deadline made available by Bank Zachodni WBK S.A. multi-product line of credit, increases the total value of 23.0 million to 27.6 million PLN and gives it multi-agent character by incorporating the subsidiary ZRUG Zabrze S.A. as a third party.
At the same time as a result of the signing of the annex the long-term working capital loan agreement concluded between Stalprofil S.A. and Bank Zachodni WBK S.A. with a limit of 10.0 million zł (originally concluded before 25 January 2017) and the agreement on the limit for opening letters of credit in the amount of 5.0 million zł, whose term of validity expired on 31 January 2016, have expired.
According to the annex to the multi-purpose and multi-stakeholder credit agreement - "multiline", with a total credit limit provided by Bank Zachodni WBK S.A. in the amount of 27.6 million PLN can be used by Stalprofil S.A. and its subsidiary ZRUG Zabrze S.A. under the following established limits:
1. Limit on working capital loans amounting to 23.0 million PLN, including:
- sublimit in the amount of 23.0 million PLN available for Stalprofil to be used for a revolving loan up to the amount PLN 21.0 million and an overdraft facility to the amount of 2.0 million PLN.
- sublimit in the amount of 5.0 million PLN available for ZRUG Zabrze S.A. to be used for a revolving loan up to the amount of 4.0 million PLN and overdraft up to the amount of 1.0 million PLN.
2. Limit to the amount of 4.6 million PLN available for ZRUG Zabrze S.A. to be used for performance guarantees contracts.
Granted by the Bank credit limits are used by the issuer and its subsidiary to finance current operations. The financial terms under which these entities will use the granted limits do not differ from those prevailing on the market for such contracts and are based on WIBOR + margin. The Company considers the agreement as significant as their total original value exceeded 10% of the equity of the issuer.
The collateral provided by Bank Zachodni WBK credit lines constitute so far: pledge on commercial goods (metallurgical products) owned by Stalprofil with the value of net fixed prices PLN 10.0 million and the assignment of receivables from commercial contracts Stalprofil whose annual turnover is min. 27.5 million PLN. Between the issuer and the Bank as well as managers and supervisors there are no connections.

Notice: the official version is the Polish language version and the version translated into English is provided purely for information purposes.