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17 April 2018
Globalworth Real Estate Investments Limited ("Globalworth" or the "Company")
Execution of Loan Agreement to Globalworth Poland
Globalworth is pleased to announce the execution of a second loan agreement with its subsidiary, Globalworth Poland ("GPRE")[1]. The loan is being made available to GPRE for a refinancing of the existing financial indebtedness of GPRE and its subsidiaries and the potential acquisition of two new assets currently under due diligence, while offering a more flexible capital structure for the expansionary phase that GPRE is in.
The loan is for a maximum amount of €400 million to be funded from the Company's existing cash resources and offered in two tranches; Tranche A for up to €233 million and, at the Company's discretion, Tranche B for up to €167 million. The loan will bear fixed interest from the date of utilization at a level of 5% p.a. and an arrangement fee of 1%, both accrued on the loan balance and due at repayment. The loan tranches have a maturity of seven years, and both the Company and GPRE have an option to convert the loan (including interest and related fees) into new shares to be issued by GPRE[2], subject to obtaining appropriate corporate authorizations to issue shares for the purpose of implementing the conversion. The loan agreement provides for certain undertakings, representations and events of default customary for financings of such type.
This transaction represents a substantial transaction pursuant to the AIM Rules[3].
For further information visit www.globalworth.com or contact:
Enquiries
Andrew Cox Tel: +44 20 3026 4027
Head of Investor Relations & Corporate Development
Jefferies (Joint Broker) Tel: +44 20 7029 8000
Stuart Klein
Panmure Gordon (Nominated Adviser and Joint Broker) Tel: +44 20 7886 2500
Andrew Potts
Milbourne (Public Relations) Tel: +44 7903 802545
Tim Draper
About Globalworth / Note to Editors:
Globalworth is a listed real estate company active in Central and Eastern Europe, quoted on the AIM-segment of the London Stock Exchange. It has become the leading office investor in the Romanian real estate market and now has established a significant platform in Poland, through a 72% shareholding in Globalworth Poland, the new brand for Griffin Premium RE.. N.V. (GPRE), a pure-play Polish real estate platform listed on the Warsaw Stock Exchange. Globalworth acquires, develops and directly manages high-quality office and logistics/light-industrial real estate assets in prime locations, through which it benefits from a strong rental income profile from high quality tenants from around the globe. Managed by approximately 110 professionals across Romania and Poland, the combined value of its portfolio is €1.9 billion, of which over 90% is in income-producing assets, predominately in the office sector, and leased to some 440 national and multinational corporates from 28 countries and 37 different sectors. In Romania, Globalworth is present in Bucharest, Timisoara and Pitesti, whilst assets in Poland span Warsaw, Wroclaw, Lodz, Krakow, Gdansk and Katowice. For more information, please refer to http://www.globalworth.com/.
IMPORTANT NOTICE:
No public offer of securities is being made by virtue of this announcement.
This announcement has been prepared for the purposes of complying with the applicable laws and regulations of the United Kingdom and the information disclosed may not be the same as that which would have been disclosed if this announcement had been prepared in accordance with the laws and regulations of any jurisdiction outside of the United Kingdom.
This announcement may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "targets", "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward looking statements include all matters that are not historical facts and involve predictions. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements reflect the Company's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Company's business, results of operations, financial position, liquidity, prospects, growth or strategies and the industry in which it operates. Forward-looking statements speak only as of the date they are made and cannot be relied upon as a guide to future performance. Save as required by law or regulation, the Company disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements in this announcement that may occur due to any change in its expectations or to reflect events or circumstances after the date of this announcement.
[1] Globalworth Poland, in which the Company has a 71.7% shareholding, is the new branding for Griffin Premium RE.. N.V. The proposed name change of the legal entity will be presented at GPRE's AGM on 26 April 2018.
[2] The conversion price shall be equal to 60-day volume weighted average price of the shares of GPRE at the Warsaw Stock Exchange as of the date of submission of the conversion notice by the respective party.
[3] Further information required to be disclosed pursuant to Schedule 4 to the AIM Rules, being the most recently notified financial information, is that the profits attributable to GPRE for the year ended 31 December 2017 were €42.5m and the gross assets of GPRE at 31 December 2017 were €757.2m.