Termination of existing financing extended by a syndicate of banks arranged by Rabobank Polska S.A. (termination of a material agreement) (26/2010)
The Management Board of Netia S.A. (“Netia”, the “Company”) informs that on 29 July 2010 Netia sent written notice to Rabobank Polska S.A. (“Rabobank”), the lead arranger of the loan extended to Netia by Rabobank, Raiffeisen Bank Polska S.A. (“Raiffeisen”), Bank Millennium S.A. and Bank Gospodarki Żywnościowej S.A. (the “Loan”), (the “Loan Agreement”), cancelling the available commitment under the Loan about which Netia informed in the following current reports: current report No. 53/2007 dated 15 May 2007, current report No. 34/2008 dated 27 June 2008, current report No. 67/2008 dated 5 December 2008 and current report No. 36/2009 dated 30 June 2009.
In consequence of the above notice, the commitments available under the Loan, i.e. PLN 245 million in the form of a term loan and PLN 50 million of a revolving facility, will be irrevocably cancelled in their entirety effective from 5 August 2010. Simultaneously, the Company requested Rabobank for, inter alia, issuance of confirmation of expiry of receivables under the Loan Agreement thus allowing the Company to delete from the relevant registers all the instruments securing the Loan that were established by the Company and by companies in the Netia group.
The cancellation of the Loan will have no adverse financial consequences for the companies in the Netia group as the Company has sufficient cash on hand to fund its current organic growth strategy, including the program of Ethernet acquisitions, and has taken steps to arrange new financing to pursue potential consolidation opportunities (see Netia’s current report No 27/2010 dated July 29, 2010).
Legal basis: §5.1.5 of the regulation of the Minister of Finance dated 19 February 2009 regarding current and interim reports delivered by issuers of securities and the terms and conditions of finding as equivalent information required by laws of a non-member state (Journal of Laws 2009, No. 33, item 259).