Board Wielton S.A. ("Company", "Issuer") informs that on September 27, 2018, it signed with a consortium of banks, which includes PKO Bank Polski SA, BGŻ BNP Paribas S.A. and Bank Gospodarstwa Krajowego ("Consortium"), a list of framework conditions ("Term Sheet") containing assumptions regarding the syndicated target loan for refinancing bridge loans (about which the Issuer informed in Current Report No. 11/2018 of 17 September 2018) , refinancing the Issuer's existing debt and selected entities of the Issuer's Capital Group as well as financing or refinancing investment expenditures and working capital of the Issuer's Capital Group.
The subject of the Term Sheet is the following financing structure:
- investment loan of the equivalent of PLN 130 million (possible to be launched in PLN and EUR) granted to the Issuer for a period of 7 years to refinance the existing debt of the Wielton Group due to investment loans,
- an investment loan of PLN 183 million (possible to run in PLN and EUR) granted to the Issuer for a period of 7 years to refinance bridge loans granted to co-finance the acquisition of 75% of shares in Lawrence David Limited (current report no. 11) 2018 of September 17, 2018) and for financing and refinancing of Wielton Group's capital expenditures,
- a PLN 100m working capital loan (possible to be launched in PLN, EUR) granted to the Issuer for refinancing for a period of 5 years and financing of working capital and subsidiary company Wielton Logistic Sp. z o.o. for refinancing the current indebtedness. In addition, in the Term Sheet, the Consortium expressed interest in developing cooperation as part of the co-financing of the purchase of the remaining 25% of shares in Lawrence David Ltd. and other investment expenses of the Wielton Group and additional financing of the Wielton Group's working capital, and additional funding is needed between the parties among others in the area of establishing security.
The assumed share of individual banks in financing is 1/3 of the financing amount.
The Issuer reserves that the Term Sheet does not constitute a binding commitment of banks to provide financing. Financing is subject to final acceptance by credit committees and is subject to the conclusion of relevant agreements, owhich the Issuer will inform in the current report mode.
In connection with the signing of the Term Sheet and the fulfillment of other conditions, on 28 September 2018, bridge loans will be put at the disposal of the Issuer, which the Company announced in its current report No. 11/2018 dated September 17, 2018.
Source: company website, investor relations, current and periodic reports.