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Conclusion of an annex to the Framework Agreement and an annex to the agreement establishing a mortgage for the benefit of mBank S.A.

30-07-2019 11:53

Report no.: 23/2019

Legal basis: Art. 17 Clause 1 MAR - confidential information.
 
CONTENT OF THE REPORT:
The Management Board of Izostal S.A. (Company) with reference to the current report no. 22/2018 of 3 August 2018, informs that on 30 July 2019 it received information about the signing by mBank S.A. (Bank) with its registered office in Warsaw, of the annex to the Framework Agreement (previously the Cooperation Agreement) and the annex to the Agreement establishing a mortgage for the benefit of mBank S.A.

As a result of the annex to the Framework Agreement, the value of the credit facility was increased from PLN 70,000 thousand to PLN 150,000 thousand.
Under the aforementioned facility, the Company may use the following banking products:
•    letters of credit without advance coverage in PLN, EUR and USD up to the amount of PLN 150,000 thousand,
•    guarantees in PLN, EUR and USD up to the amount of PLN 150,000 thousand,
•    non-revolving working credits in PLN, EUR and USD up to the amount of PLN 150,000 thousand,
•    revolving credits in PLN, EUR and USD up to the amount of PLN 150,000 thousand,

As a result of the annex to the Framework Agreement, the term of the credit facility granted is extended from 29 June 2021 to 30 June 2022.

The basic collateral for the credit facility granted by the Bank is:
•    contractual mortgage up to the amount of PLN 195,000 thousand, established on the real estate located in Kolonowskie, for which the District Court in Strzelce Opolskie, V Land and Mortgage Registers Department keeps the Land and Mortgage Register No. OP1S/00040617/8 along with assignment of rights under the insurance policy,
•    a statement of submission to execution,
•    assignment of receivables from the contract in the event of exceeding the credit to the value of more than PLN 70,000 thousand.

The financial terms on which the Company uses the granted limits do not differ from those generally applied for such agreements and are based on WIBOR, EURIBOR and LIBOR rates increased by the bank's margin.

Other material terms and conditions of the granted credit remained unchanged.

The credit limit granted by the Bank constitutes a source of financing for the Company's operating activity.

Furthermore, with reference to current report no. 28/2016 of 1 July 2016, the Company informs that on 30 July 2019 it became aware of the fact that the Bank signed an annex to the Agreement establishing the mortgage on the basis of which the value of the contractual mortgage is increased from PLN 91,000 thousand to PLN 195,000 thousand on the Company's right of perpetual usufruct of a land property located in Kolonowskie, Kolonowskie commune, at Opolska street no. 29, constituting a plot of land with registration numbers 2/6, 151, 153/3, 164, 165 and 166/2, from precinct 0039 Kolonowskie, and on building properties owned by the Company, situated on this land, constituting a separate property, for which the District Court in Strzelce Opolskie V Land and Mortgage Registers Department keeps the Land and Mortgage Register No. OP1S/00040617/8.

The mortgage constitutes a security for repayment of the credit facility made available under the Annex to the Framework Agreement referred to above.

Following the signed annex to the agreement establishing the mortgage, a proper entry of the change in the mortgage content will be made by increasing the mortgage amount to PLN 195,000 thousand.

To the best of the Company's knowledge, there are no associations between Izostal S.A. and the Bank or the persons managing and supervising it.


SIGNATURES OF PERSONS REPRESENTING THE COMPANY:
Management Board President, Marek Mazurek  2019-07-30
Proxy, Marek Matheja  2019-07-30

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: 47-113 Kolonowskie, Opolska 29
Telephone: +48 77 405 65 00
Fax: +48 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
 

Izostal SA 2019 | All Rights Reserved Tel. +48 77 405 65 00
Opolska 29, 47-113 Kolonowskie, Poland Fax +48 77 405 65 01
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