GÖTEBORG, Sweden--(BUSINESS WIRE)--Regulatory News:
In reference to the current report no. 19/2012 dated November 6, 2012, in which the Management Board of Arctic Paper S.A. (the “Company”) informed about the conclusion of a material agreement, we hereby inform that on December 20, 2013 the Company and its subsidiaries, i.e. Arctic Paper Kostrzyn S.A (“APK”), Arctic Paper Investment GmbH and Arctic Paper Mochenwangen GmbH, executed an amendment agreement (“Amendment Agreement”) to the Facility Agreement with the consortium of banks composed of: Bank Polska Kasa Opieki S.A., BRE Bank S.A. and Bank Zachodni WBK S.A. (“Facility Agreement”)
The Amendment Agreement comes into effect on 23 December 2013.
The disbursement of the Amendment Agreement shall be contingent upon conditions precedent having been satisfied by APK, Arctic Paper Investment GmbH and Arctic Paper Mochenwangen GmbH, which conditions shall include: submission of the corporate documents of the Company as well as of the APK, Arctic Paper Investment GmbH and Arctic Paper Mochenwangen GmbH.
The Amendment Agreement established the following:
- new levels of covenants for APK and Arctic Paper SA Capital Group, which has been agreed upon with the Company’s Management Board;
- commitment to increase the share capital of the Company with the amount payable of no less than PLN 50,000,000 until 30.09.2014;
- commitment of the Company’s Group to allocate the proceeds from the share capital increase and sales of assets to reinvestment within the Group, up to the amount of PLN 60,000,000;
- allocation of the excess amount of proceeds from the share capital increase and sales of assets above PLN 60,000,000 as prepayment of liabilities arising from the Facility Agreement;
- the maximum yearly amount of management fee payable by APK to the Company of PLN 3,500,000;
- commitment of APK not to declare and not to pay out any dividends.
The collateral established for the Facilities repayment has not been changed.
The Company as well as the Borrower shall be jointly and severally liable for the obligations under the Facility Agreement, whereas Arctic Paper Investment GmbH and Arctic Paper Mochenwangen GmbH have each guaranteed the repayment of liabilities arising from the Facility Agreement.
This information is disclosed pursuant to Minister of Finance directive of February 19, 2009 on current and periodic information provided by issuers of securities, and on conditions of equivalence of information required to be provided under non-Member State law, §5, clause 1 item 3, and was submitted for publication on 20 December 2013 at 8:30 pm CET, in reference to Arctic Paper’s current report no. 44/2013 filed with the Warsaw Stock Exchange.
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