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KGHM Polska Miedz S.A. - Syndicated credit facility agreement

July 15, 2014



ENP Newswire - 15 July 2014

Release date- 11072014 - The Management Board of KGHM Polska Miedz S.A. announces that on 11 July 2014, KGHM Polska Miedz S.A. signed an Agreement for an unsecured, revolving credit facility in the amount of USD 2 500 million with an international syndicate of banks.

The Agreement has an initial five-year tenor incorporating two one-year extension options exercisable at the request of KGHM Polska Miedz S.A. (at the discretion of each lender).

The syndicate credit facility was arranged with a relational banks group of the KGHM Polska Miedz S.A. Group. The Global Coordinators responsible for organisation of the credit facility are Credit Agricole Corporate and Investment Bank, Credit Agricole Bank Polska S.A., Bank Zachodni WBK S.A., Santander Bank N.A., Bank Polska Kasa Opieki S.A., Bank Handlowy w Warszawie S.A. and Powszechna Kasa Oszczdnosci Bank Polski S.A. The credit facility was significantly oversubscribed, with a substantial reduction in allocation for the participants.

According to the agreement, the credit facility may be drawn in USD in the form of up to 25 renewable tranches. The financial resources acquired from the credit facility will be used in financing general corporate purposes (including capital expenditures) of the KGHM Polska Miedz S.A. Group and for refinancing of the financial debt of KGHM International Limited in the amount of USD 700 million.

Interest on the credit facility was calculated based on LIBOR plus a margin, depending on the net debt/EBITDA financial ratio. Other credit facility agreement terms and conditions are similar to the standard terms of these types of transactions.

The syndicate banks with which the agreement was entered into comprise: Credit Agricole Corporate and Investment Bank, Credit Agricole Bank Polska S.A., Bank Zachodni WBK S.A., Santander Bank N.A., Bank Polska Kasa Opieki S.A., Bank Handlowy w Warszawie S.A., Powszechna Kasa Oszczdnosci Bank Polski S.A., BNP Paribas, HSBC Bank plc, ING Bank Slski S.A., ING Bank N.V., Intesa Sanpaolo S.p.A., Societe Generale Corporate&Investment Banking as Mandated Lead Arrangers and Bookrunners; Bank Gospodarstwa Krajowego, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Scotiabank (Ireland), The Royal Bank of Scotland as Mandated Lead Arrangers; Barclays Bank plc, Bank of Montreal, mBank S.A., Mizuho Bank Nederland N.V., Sumitomo Mitsui Banking Corporation Europe Limited as Lead Arrangers.

Bank Polska Kasa Opieki S.A. is the Facility Agent. During the process of acquiring the financing and negotiations with the syndicate banks, KGHM Polska Miedz S.A. was supported by the independent financial advisor Rothschild and the law firm Gide.

The aforementioned agreement meets the criteria of a 'significant agreement' described in the Decree of the Minister of Finance dated 19 February 2009 regarding current and periodic information published by issuers of securities and conditions for recognising as equivalent information required by the laws of a non-member state as its value exceeds 10% of the equity of KGHM Polska Miedz S.A.

Contact:

Dariusz Wyborski

Tel: (+48 76) 74 78 277

Email: rzecznik@kghm.pl


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Source: ENP Newswire


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