Grupa LOTOS SA

10/07/2020 | Press release | Distributed by Public on 10/07/2020 12:51

Execution of inter-creditor agreement and agreement on assignment of rights and receivables of Grupa LOTOS S.A. under subordinated loan granted to Grupa Azoty Poliolefins S.A.

Execution of inter-creditor agreement and agreement on assignment of rights and receivables of Grupa LOTOS S.A. under subordinated loan granted to Grupa Azoty Poliolefins S.A.
Report no. 27/20202020-10-07 • 20:40

Further to Current Report No. 12/2020 of May 31st 2020 on the execution of transaction documents concerning the terms and conditions of Grupa LOTOS S.A.'s involvement in the financing of the Polimery Police project, Grupa LOTOS S.A. (the 'Company') announces that on October 7th 2020 an inter-creditor agreement was executed between:

- the lenders providing credit financing to Grupa Azoty Polyolefins S.A. ('GAP') for the project: Alior Bank S.A., Bank Gospodarstwa Krajowego, Bank Ochrony Środowiska S.A., Bank Polska Kasa Opieki S.A., BNP Paribas Bank Polska S.A., European Bank for Reconstruction and Development, Industrial and Commercial Bank of China (Europe) S.A. Poland Branch, mBank S.A., Powszechna Kasa Oszczędności Bank Polski S.A., Powszechny Zakład Ubezpieczeń S.A., Powszechny Zakład Ubezpieczeń na Życie S.A., PZU Fundusz Inwestycyjny Zamknięty Aktywów Niepublicznych BIS 2, and Santander Bank Polska S.A.),

- the financial institutions granting GAP hedging limits: Alior Bank S.A., Bank Gospodarstwa Krajowego, Bank Ochrony Środowiska S.A., Bank Polska Kasa Opieki S.A., BNP Paribas Bank Polska S.A., ICBC Standard Bank PLC, mBank S.A., Powszechna Kasa Oszczędności Bank Polski S.A., and Santander Bank Polska S.A.,

- GAP's future shareholders: Hyundai Engineering Co. Ltd, Korea Overseas Infrastructure & Urban Development Corporation ('KIND'), and the Company, and GAP's existing shareholders: Grupa Azoty S.A. and Grupa Azoty Zakłady Chemiczne Police S.A. ('Grupa Azoty ZCHP'),

- the subordinated lenders: KIND, the Company, Grupa Azoty S.A., and Grupa Azoty ZChP,

- GAP.

The Agreement establishes and governs the subordination of the Company's (and the other shareholders' and subordinated lenders') claims in respect of its interest in GAP's share capital and the subordinated loan, in relation to the claims of the financial institutions listed above.

On October 7th 2020, the Company (as the assignor) and Bank PEKAO S.A. (as the assignee) signed an agreement on assignment by way of security of all rights and claims of the Company under the agreement on the grant of a subordinated loan by the Company to GAP (and any similar agreements as may be signed in the future), until all secured liabilities to the financial institutions have been fully repaid by GAP or reassigned.

Legal basis: Article 17(1) of MAR - Inside information.