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

In reference to the current report 26/2014 Stalprofil S.A. Management Board informs that the Company on 7 October 2015 became aware of signing by PKO BP S.A. with its registered seat in Warsaw of an annex to the investment loan agreement for financing and refinancing of investments "Expansion of warehouse no. 3 in Dąbrowa Górnicza along with modernization of the existing storage and logistics infrastructure".
On the basis of this annex, the value of the investment loan was increased by PLN 887,960.00 to the amount of PLN 19,887,960.00. Drawing by the Company of subsequent tranches of the loan will end as originally established until September 2016 and the repayment of capital installments of the loan will take place from 30.09.2016 to 31.12.2020. The financial terms of the loan do not differ from market conditions for this type of banking products and are based on WIBOR 1M plus the bank's margin.
As a result of the increase of the loan amount has been increased basic security for repayment of the loan, which is a contractual mortgage to the amount of 23,865,000 PLN, established for the benefit of PKO BP S.A. for the perpetual usufruct of land and built-up property buildings situated on them, located in Dąbrowa Górnicza, Roździeńskiego 11A, for which the District Court in Dąbrowa Górnicza, VI Department of Land Registry maintained perpetual paper KW no. KA1D/00018216/1.
The property on which the mortgage on the carrying value as of the end of September 2015 was 16,451 thousand PLN, includes the right of perpetual use of plot no. 89 of the area of 49,329.00 m2 built with following objects: an office building, storage buildings and storage yards. On the real estate is the seat of the issuer and is located one of the two main trade depots of the Company.
There are no links between the issuer and the bank, for which the mortgage was established. The value of the mortgage established on the assets is greater than the expressed in PLN equivalent of EUR 1 million according to the average exchange rate announced by the NBP.