Concluding a Working Capital Facility Contract and the Contract for Establishment of Registered Pledge with Bank Zachodni WBK S.A.

Date  of issue: 2013-06-17
 
Legal basis: Art. 56 Clause 1 Item 2 of the Offering Act - current and periodic information.
 
SUBJECT: Concluding a Working Capital Facility Contract and the Contract for Establishment of Registered Pledge with Bank Zachodni WBK S.A.

CONTENT OF THE REPORT:
On the 17th of June 2013, Izostal S.A. ("The Company", "The Borrower") became aware of signing overleaf a Working Capital Facility Contract and a Guarantee Facility Contract with Bank Zachodni WBK S.A. ("The Bank") seated in Wrocław, of which total value exceeds 10% of the Izostal S.A equity.

The highest value contract is the Working Capital Facility Contract, under which the Bank grants a working capital facility to the Borrower in an amount of EUR 3,000 thousand, which, as on the date of conclusion, equals net PLN 12,695 thousand, based on the mean NBP exchange rate, for the purpose of financing current economic activity.

The facility, according to the Contract, may be utilized up to the 25th of May 2014.

The payment deadline is 26. May 2014.

Credit interest is EURIBOR plus Bank margin.

Credit security is registered pledge on the inventory of trade goods and production materials being Izostal S.A. property of total worth PLN 20,000 thousand, together with the transfer of insurance policy rights.

Other financial terms of the granted credit do not vary from the commonly applied in this type of contracts.

The Company deems the aforementioned contracts significant, as its total value exceeds 10% of Izostal S.A. equity.

Total value of contracts concluded by the Company with Bank Zachodni WBK S.A. equals PLN 16,695 thousands.

Moreover, on the 17th of June 2013 the Company became aware of signing overleaf by Bank Zachodni WBK S.A. ("Bank") seated in Wrocław of a Contract for Establishing a Registered Pledge, basing on which the Company pledges its trade goods and production materials worth PLN 20,000 thousand to Bank Zachodni WBK S.A. thousands. The subject pledge is the Working Capital Facility Contract security, mentioned above. Total value of pledged movables, according to fixed prices, on the conclusion date was: PLN 20,000 thousand.

Upon conclusion of the pledge agreement, a record in the Registry of Pledges will be made.

The registered pledge’s value is larger than the value expressed in PLN being an equivalent of EUR 1 mil. exchanged basing on mean NBP rates of the date of concluding the pledge contract, and as such is deemed as significant value asset.

According to the Company’s best knowledge, there are no interrelations between Izostal S.A. and persons managing or supervising the Company and Bank Zachodni WBK S.A. and its management, to which the registered pledge was made.

Specific legal basis: §5 clause 1 item 1 and 3 of the Ordinance of the Minister of Finance of February 19, 2009 on current and periodic information disclosed by the issuers of commercial papers and the conditions for recognizing as equivalent the information required by the laws of a non-member state (Journal of Laws No. 33, item 259 as amended).

SIGNATURES OF PERSONS REPRESENTING THE COMPANY:
Management Board President, Marek Mazurek 2013-06-17
Proxy, Marek Matheja 2013-06-17
 
INFORMATION ON THE ENTITY:
Full name of the issuer: IZOSTAL SPÓŁKA AKCYJNA
Abbreviated name of the issuer:  IZOSTAL S.A
Sector based on the classification of Warsaw Stock Exchange:  Other industry
Address: 47-120 Zawadzkie Polna 3
Telephone: (77) 405 65 00
Fax: (77) 405 65 01
e-mail:info@izostal.com.pl
www.izostal.com.pl
VAT No. [NIP]:756-00-10-641
Statistical No. [REGON]: 530884678