Netia signs a credit facility agreement with Rabobank Polska SA
WARSAW, Poland – May 15, 2007 – Netia SA (“Company” or “Netia”) (WSE: NET), Poland’s largest alternative provider of fixed-line telecommunications services, today announced that on May 15, 2007 Netia entered into a PLN 300 million credit facility agreement with Rabobank Polska SA (the “Bank”) as arranger, credit facility agent, security agent and lender (the “Agreement”, the “Facility”). The above Facility will be extended to Netia in the form of a term loan and a revolving loan of up to PLN 250 million and PLN 50 million, respectively. The Facility is to be repaid by 15 November 2011. The Facility bears interest at a variable interest rate of WIBOR plus a margin dependant on financial ratios. The proceeds from the Facility will be used to finance Netia’s capital expenditures and current operations.
The repayment of the Facility is secured by the following: two capped mortgages on the right of perpetual usufruct of the Company’s real estate at ul. Poleczki 13 in Warsaw (for which the District Court for Warsaw-Mokotów maintains a land and mortgage register No.WA2M/00142936/8), a registered pledge on a set of movables and rights constituting an organised part of the enterprise of Świat Internet SA, registered pledges and financial pledges on the shares of Świat Internet SA, UNI-Net Sp. z o.o., InterNetia Sp. z o.o, Netia WiMax SA, Premium Internet SA, and assignment as collateral security of Netia’s receivables under certain agreements. The financial pledges on shares will remain in place until registration of the registered pledges is completed.
The agreement was classified by the Company as material in view of the fact that the value of obligations resulting therefrom is greater than 10% of the existing value of Netia’s equity.