Consent to sign a syndicated credit facility agreement

Thursday, 19 December, 2019
38/2019

The Management Board of KGHM Polska Miedź S.A. announces that on 19 December 2019 it consented to sign an unsecured syndicated credit facility agreement in the amount of USD 1 500 million (approximately PLN 5 742 million at the average exchange rate announced by the National Bank of Poland for USD/PLN on 19 December 2019) with an international syndicate of banks (“Agreement”).

The Agreement has a five-year tenor and two one-year extension options exercisable at the request of KGHM Polska Miedź S.A. (at the discretion of each syndicate member). The credit facility will replace the current revolving syndicate credit facility in the amount of USD 2 500 million dated 11 July 2014 (which was announced by the Company via a regulatory filing no. 22/2014). Following the signing of the aforementioned syndicated credit facility Agreement, the credit facility agreement from 2014 will be terminated on 27 December 2019.

The planned signing of the syndicated credit facility Agreement realises the Strategy of KGHM Polska Miedź S.A. for the years 2019 – 2023 with respect to ensuring long-term financial stability by, among others, basing KGHM’s financing structure on long-term instruments. 

Moreover, the Management Board of KGHM Polska Miedź S.A. announces that the Agreement is planned to be signed on 20 December 2019. If the Agreement is not signed on 20 December 2019, the Company will announce this fact in a separate regulatory filing.

The credit facility was arranged with a relational banks group of the KGHM Polska Miedź S.A. Group. The title of Lead Organizer and Bookrunner will be granted to Bank Polska Kasa Opieki S.A., Intesa Sanpaolo S.p.A. Spółka Akcyjna Oddział w Polsce, Banco Santander S.A., Santander Bank Polska S.A. and Powszechna Kasa Oszczędności Bank Polski S.A.

As the credit facility was oversubscribed, there was a substantial reduction in allocation for the syndicate members.

According to the Agreement, the credit facility may be drawn in USD in the form of up to 30 renewable tranches. The funds acquired from the credit facility will be used to finance general corporate purposes.

Interest on the credit facility was set based on LIBOR plus a margin, which depends on the net debt/EBITDA financial ratio.

Other parameters of the credit facility agreement are similar to the standard terms of these types of transactions. 

The syndicate banks with which the Agreement will be entered into on 20 December 2019 comprise: Bank Polska Kasa Opieki S.A., Intesa Sanpaolo S.p.A. Spółka Akcyjna Oddział w Polsce, Banco Santander, S.A., Santander Bank Polska S.A., Powszechna Kasa Oszczędności Bank Polski S.A., BNP Paribas Bank Polska S.A., Bank of China (Luxembourg) S.A. Spółka Akcyjna Oddział w Polsce, Bank Millennium S.A., Credit Agricole Bank Polska S.A., Industrial and Commercial Bank of China (Europe) S.A. (Spółka Akcyjna) Oddział w Polsce, Erste Group Bank AG, SMBC Bank EU AG, Bank Handlowy w Warszawie S.A., Société Générale Spółka Akcyjna Oddział w Polsce, ING Bank Śląski S.A.

Legal basis: Art. 17 (1) of MAR (Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (Official Journal of the European Union dated 12 June 2014, no. L 173/1)

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