02.07.2019

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

The Management Board of STALPROFIL SA informs that on 2 July 2019 the company concluded with Bank PKO BP S.A. with its registered office in Warsaw, an annex to the loan agreement in the form of a multipurpose credit limit, which increases the multi-purpose credit limit by PLN 85,000,000.00, up to PLN 160,000,000.00 and extends the availability period this limit, until 2 July 2022.

Within the limit granted, STALPROFIL S.A. may use:
a) a multi-currency loan, in PLN, EUR, USD currency, on the current account up to the equivalent of PLN 15,000,000.00,
b) revolving working capital loan, in PLN, EUR, USD currency, up to the equivalent of PLN 80,000,000.00, of which PLN 40,000,000.00 will be made available after the assignment of the receivables to the Bank,
c) own bank guarantees in domestic and foreign trade in the currency of PLN, EUR, USD to the equivalent of PLN 120,000,000.00,
d) documentary letters of credit, in PLN, USD and EUR currency to the equivalent of PLN 80,000,000.00,
however, the total amount of simultaneous use of the above-mentioned sublimits may not exceed the amount of the limit of PLN 160,000,000.00.

The loan interest rate was determined on market conditions based on WIBOR 1M, EURIBOR 1M, LIBOR 1M + the Bank's margin.

Securing the limit is, as before:
1. contractual mortgage up to the amount of PLN 35,000,000.00 established on the Company's right of perpetual usufruct of the real estate and the ownership right of the buildings and equipment erected on it, located in Katowice-Panewniki,
2. a registered pledge on inventories of commercial goods with a value not lower than PLN 20,000,000.00,
3. transfer of receivables from the property insurance contract covered by the aforementioned mortgage,
4. statement on submission to enforcement in accordance with art. 777 kc,
and in addition:
5. transfer of receivables to the PKO BP S.A. Bank up to the amount of PLN 40,000,000.00, if an additional sublimit of the turnover loan is used, referred to in point b), above PLN 40,000,000.00.

The PKO BP SA bank is the largest creditor of the Company, and the aforementioned credit limit is an important source of long-term and short-term financing of operations of STALPROFIL S.A.