X5 Retail Regulatory News (FIVE)

18 Dec 2007 07:02

X5 Retail Group N.V.18 December 2007 X5 RETAIL GROUP N.V. RAISES USD 1.1 BILLION IN A 3-YEAR SYNDICATED LOAN Amsterdam, 18 December 2007 - X5 Retail Group N.V., Russia's largest foodretailer in terms of sales (LSE ticker: "FIVE"), announced today that it hasmandated BNP Paribas, CALYON, HSBC Bank plc, ING Bank N.V. and RaiffeisenZentralbank Osterreich AG (RZB) (each an "Initial Mandated Lead Arranger andBookrunner") to arrange a USD 1,100,000,000 3 year Term Loan Facility. SocieteGenerale joined the transaction prior to the launch of general syndication as aMandated Lead Arranger. The proceeds of the Facility will be used to re-finance X5 Retail Group's oneyear USD 1 billion equity bridge signed in June 2007 and for general corporatepurposes. The Facility pays a margin of 225 bps p.a. over LIBOR out of the box for thefirst year. Subsequently, the margin will move in accordance with a Net Debt/EBITDA grid with a maximum margin at the top of the grid of 200 bps p.a. overLIBOR. General syndication will be launched in January 2008. Deputy CFO of X5 Retail Group Evgeny Kornilov commented: "This syndication underpins X5 Retail Group's strength as a borrower andconfirms the Company's ability to raise financing on favourable terms even in adifficult market situation.The new facility enhances X5's financial flexibility, improves its debtstructure by replacing short-term obligations and reduces future cost of fundingby avoiding a significant step-up in the interest rate on the previous bridgeloan." *** Note to Editors: X5 Retail Group N.V. is Russia's largest food retailer in terms of sales. TheCompany was created as a result of a merger between Pyaterochka (soft discounterchain) and Perekrestok (supermarket chain) on 18 May 2006. As of 30 September 2007, the Group had 573 company-managed soft discount storeslocated in Moscow (256), St. Petersburg (234) and other Russian areas (83), 163company managed supermarkets across Central Russia and Ukraine, including 101stores in Moscow (Moscow region and Yaroslavl region), and 13 company managedhypermarkets. As of 30 September 2007, X5's franchisees operated 627 stores across Russia andKazakhstan. The Group's net sales for the first nine months 2007 reached USD 3,618 million,an increase of 50% year-on-year. Gross profit for the period totaled USD 946million, EBITDA amounted to USD 311 million. Forward looking statements: This announcement includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identifiedby the fact that they do not only relate to historical or current events.Forward-looking statements often use words such as" anticipate", "target", "expect", "estimate", "intend", "expected", "plan", "goal" believe", or otherwords of similar meaning. By their nature, forward-looking statements involve risk and uncertainty becausethey relate to future events and circumstances, a number of which are beyond X5Retail Group N.V.'s control. As a result, actual future results may differmaterially from the plans, goals and expectations set out in theseforward-looking statements. Any forward-looking statements made by or on behalf of X5 Retail Group N.V.speak only as at the date of this announcement. Save as required by anyapplicable laws or regulations, X5 Retail Group N.V. undertakes no obligationpublicly to release the results of any revisions to any forward-lookingstatements in this document that may occur due to any change in its expectationsor to reflect events or circumstances after the date of this document. For further details please contact Anna Kareva Simon AlloccaX5 Retail Group BNP ParibasIR DirectorTel.: +7 (495) 980-2729, ext. 22 162 Tel: + 44 20 7595 6562e-mail: anna.kareva@x5.ru e-mail: simon.allocca@uk.bnpparibas.com This information is provided by RNS The company news service from the London Stock Exchange