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

On July 4, 2016, the Board of Stalprofil S.A. learned about signing by Bank Zachodni WBK S.A. based in Wrocław, an annex to the credit agreement of "multiline" concluded for the period until 25 January 2019 between: STALPROFIL S.A., ZRUG Zabrze S.A. and Bank Zachodni WBK S.A.
That annex reduces the total credit limit of 27.6 million PLN to 13.2 million PLN, adjusting its value to the current needs of the credit issuer.
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 13.2 million PLN Stalprofil S.A. and its subsidiary ZRUG Zabrze S.A. can use in the following set sub-limits:
- sublimit of up to 7.0 million PLN available for Stalprofil to use on a long-term working capital loan,
- sublimit in the amount of 0.5 million PLN available for Stalprofil to use on the current loan,
- sublimit in the amount of 8.8 million PLN available for Stalprofil to be used for short-term guarantees / letters of credit,
- limit the amount of 2.2 million PLN available for ZRUG Zabrze S.A. for long-term contractual guarantees.
Granted by the Bank limits are used by the issuer company and its subsidiary to finance current operations. Financial conditions in which these entities will benefit from the quotas do not differ from those commonly used in the market for such contracts and are based on WIBOR + margin.
For the new value of the credit limit the parties adjusted total value of the complex security, which include: pledge on commercial goods (metallurgical products) owned by Stalprofil with value of fixed prices by a net 4.0 million PLN and guarantee of the subsidiary Izostal S.A. to 9.2 million PLN. Between the issuer and the Bank as well as managers and supervisors there are no connections.