Netia subsidiaries enter into hedge transaction
WARSAW, Poland - August 1, 2000 - Netia Holdings SA (Nasdaq: NTIA), Poland's largest alternative fixed-line telecommunications services provider, announced that on July 31, 2000, Netia Telekom S.A. and Netia South Sp. z o.o., two wholly-owned subsidiaries of Netia Holdings S.A., entered into a hedge transaction with the London branch of Chase Manhattan Bank.
Under the terms of the transaction, the two Netia subsidiaries swapped their coupon payments on US$200 million aggregate amount of 10.25% senior notes due 2007, for coupon payments on PLN 430.0 million aggregate principal amount of 12.74% notes and PLN 430.9 million aggregate principal amount of 12.775% notes. The coupons will be swapped during the period commencing on May 1, 2001 and terminating on November 1, 2005.
Avi Hochman, Netia's Chief Financial Officer, commented: "This transaction marks the beginning of currency hedging as a long-term policy of Netia. We have been able to secure these hedges against our foreign currency obligations on favourable terms."