X5 Retail Regulatory News (FIVE)

27 Mar 2008 07:02

X5 Retail Group N.V.27 March 2008 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN SYNDICATION OF USD 1.1 BILLION 3-YEAR LOAN COMPLETED Amsterdam, 27 March 2008 - X5 Retail Group N.V. (the 'Company' or the 'Group'),Russia's largest food retailer in terms of sales (LSE ticker: "FIVE"), announcedtoday that syndication for the USD 1,100,000,000 3 year Term Loan Facility (the'Facility') was successfully completed on terms announced prior to the launch. The syndication was launched by BNP Paribas, CALYON, HSBC Bank plc, ING BankN.V. and Raiffeisen Zentralbank Osterreich AG (RZB) (each an "Initial MandatedLead Arranger and Bookrunner") on 25 January 2008 (the Facility was fullypre-funded by the Bookrunners in December 2007). Societe Generale and Unicreditjoined the transaction as Mandated Lead Arrangers. In total, 12 banks joinedthe Facility. As the Company stated on 18 December 2007, the Facility pays a margin of 225 bpsp.a. over LIBOR out of the box for the first year. Subsequently, the marginwill move in accordance with a Net Debt/EBITDA grid with a maximum margin at thetop of the grid of 200 bps p.a. over LIBOR. CFO of X5 Retail Group Evgeny Kornilov commented: "The successful completion of this syndication in the current market environmentreflects appreciation of X5's business strategy and healthy financial positionby established international financial institutions. We are convinced that ourstrong growth prospects and prudent financial management will ensure theCompany's stable access to debt financing irrespective of market conditions. Weare comfortable with our current debt structure where over 80% of existingobligations mature in more than two and a half years. Moreover, with USD 260million already available to the Company in fully committed credit lines, X5Retail Group confidently continues to invest in its future growth and unrivalledmarket leadership." For further details please contact Anna Kareva Simon Allocca X5 Retail Group BNP Paribas IR Director Tel.: +7 (495) 980-2729, ext. 22 162 Tel: + 44 20 7595 6562 e-mail: anna.kareva@x5.ru e-mail: simon.allocca@uk.bnpparibas.com 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 31 December 2007, the Group had 674 Company managed soft discount storeslocated in Moscow (309), St. Petersburg (244) and other Russian areas (121), 179Company managed supermarkets across Central Russia and Ukraine, including 105stores in Moscow (Moscow region and Yaroslavl region), and 15 Company managedhypermarkets. As of 31 December 2007, X5's franchisees operated 688 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. X5 Retail Group's full year 2007net retail sales surged 53% year-on-year to 5,284 mln. Forward looking statements: This announcement includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can beidentified by the fact that they do not only relate to historical or currentevents. Forward-looking statements often use words such as" anticipate","target", " expect", "estimate", "intend", "expected", "plan", "goal" believe",or other words 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. This information is provided by RNS The company news service from the London Stock Exchange