Conclusion of an annex to the credit agreement with PKO.BP S.A.

On 23 September 2016 STALPROFIL SA received from Bank PKO BP S.A. with its registered office in Warsaw information about signing an annex to the credit agreement in the form of multipurpose credit, which extends the limit availability period in the amount of PLN 75,000,000.00, by 22 September 2019. PKO BP S.A. is the largest creditor of the Company and the credit limit is an important source of long- and short-term financing operations of STALPROFIL S.A.
Within the limit granted STALPROFIL S.A. may use a multi-currency loan in PLN, EUR, USD, overdraft up to the equivalent of the amount of PLN 10,000,000.00, revolving working capital loan in PLN, EUR, USD, up to 50% of the limit ie. the equivalent of the amount of PLN 37,500,000.00, bank guarantees in domestic and foreign currency PLN, EUR, USD, equivalent to the amount of PLN 52,500,000.00, documentary letters of their own in PLN, USD, EUR to the equivalent 52,500,000, 00 PLN, the total amount of the simultaneous use of these sub-limits may not exceed the amount of PLN 75,000,000.00.
The interest rate of the loan was set at market conditions, based on WIBOR 1M, EURIBOR 1M, 1M LIBOR + margin of the Bank.
Securing the limit is, so far:
1. contractual mortgage to the amount of PLN 35,000,000.00 established by the Company to the real property and the right of property erected on the buildings and equipment located in Katowice-Panewniki,
2. registered pledge on commercial goods with a value of no less than PLN 20,000,000.00,
3. transfer of receivables from property insurance agreement covered by the mortgage,
4. declaration of submission to enforcement in accordance with art. 777 of the Civil Code.