Netia subsidiary enters hedge transaction
Under the terms of the transaction, the Netia subsidiary swapped the coupon payments on USD 100 million aggregate amount of 13.125% senior notes due 2009, for coupon payments on PLN 413.5 million aggregate principal amount of 16.76% notes, and swapped the coupon payments on EUR100 million aggregate amount of 13.5% senior notes due 2009, for coupon payments on PLN 389.5 million aggregate principal amount of 17.50% notes.
The coupons will be swapped during the period commencing December 15, 2001 and terminating June 15, 2007.
NETIA HOLDINGS S.A. is the largest alternative fixed-line telecommunications operator in Poland. Netia has 24 licenses for local telecommunications services in territories covering some 15 million people or approximately 40% of the Polish population. The Company's existing local telephone license territories cover six of the country's ten largest urban areas including Warsaw, Krakow, Poznan, Gdansk, Lublin and Katowice. Netia has also secured the benefit of a nationwide data and IP license to provide data transmission and Internet-based services. In May 2000 the Netia 1 consortium was issued the nationwide domestic long distance voice license. Netia, with the Swedish operator Telia AB as a strategic partner, is the first Polish company to be listed both on Nasdaq and the Warsaw Stock Exchange.