Netia subsidiary enters hedge transaction
Warsaw, Poland - March 30, 2001 - Netia Holdings SA (Nasdaq: NTIA, WSE: NET), Poland's largest alternative fixed-line telecommunications services provider, announced that today Netia Telekom S.A., a wholly-owned subsidiary of Netia Holdings SA, entered into a hedge transaction with Merrill Lynch Internetional.
Under the terms of the transaction, the Netia subsidiary swapped the coupon payments on USD 193.5 million aggregate amount of 11.25% senior discount notes due 2007, for coupon payments on PLN 795.95 million aggregate principal amount of 13.81% notes, and swapped the coupon payments on DM207.1 million aggregate amount of 11% senior discount notes due 2007, for coupon payments on PLN 388.5 million aggregate principal amount of 13.81% notes.
The coupons will be swapped during the period commencing May 1, 2002 and terminating November 1, 2005.
Avi Hochman, CFO of Netia Holdings SA, commented on the transaction: "We again managed to close a hedging transaction on very good terms, taking advantage of attractive market conditions. We now have swapped 80% of our coupon payments to Polish Zlotys, which will help us to decrease our foreign exchange exposure. We intend to continue our hedging policy whenever the right conditions are available."