Current report no
:
75/2011
Report date
:
12/30/2011
Abbreviated name
:
Ciech SA
Subject
:
Execution of an agreement amending the loan agreement by German subsidiaries of Ciech SA
Legal basis
:
Art. 56 (1) (2) of the Public Offering Act – current and periodic information
Report
:
The Management Board of Ciech SA (the "Issuer") informs that today it was informed about execution of an agreement amending the Loan Agreement between Soda Deutschland Ciech (SDC) Group companies and Commerzbank and Kreditinstitut für Wiederaufbau, referred to in current report No 6/2008 dated January 23rd, 2008.
- The effective date of the amending agreement: December 30th, 2011
- Parties to the agreement:
a) Soda Deutschland Ciech Group companies being the Issuer’s subsidiaries:
- Soda Deutschland Ciech GmbH
- Sodawerk Stassfurt GmbH& Co. KG
- Sodawerk Holding GmbH
- Sodawerk Verwaltung GmbH
- KWG GmbH
b) borrowing banks:
- Commerzbank
- Kreditinstitut für Wiederaufbau (KfW)
- The subject matter of the agreement and significant terms of the agreement:
- Adjustment of the terms of the current agreement to the new situation occurred in consequence of execution by KWG GmbH and Vasa Kraftwerke Pool of a lease agreement dated December 16th, 2011 (Pachtvertrag) ;
- Inclusion in the definition of "senior debt" of annual payments of lease installments accounting for EUR 13 million net to VASA;
- Adjustment of loan covenants to the valid medium-term plan of SDC Group for the period 2012-2014 – the effect is an increased safety of operation of SDC Group regarding the forecasted observance of the loan covenants;
- Effective increase in the loan cost is approximately 1 percentage point p.a. and results from adjustment of the loan covenants to a safer level for SDC Group;
- The term of the loan agreement remains the same; the new loan covenants apply starting from Q4 2011.
Signatures of the Company’s Representatives
:
Ryszard Kunicki – President of the Management Board