25 Jun 2015 16:10
Lenta signs RUB 37.3BN long-term unsecured loan agreement with VTB Bank
Saint-Petersburg, Russia; 25 June 2015 - Lenta LLC, the main operating subsidiary of Lenta Ltd. ("Lenta" or the "Company"), today announces the signing of a RUB 37.3bn unsecured loan agreement from VTB Bank with a seven-year term.
The loan will mature in 2022 and will be amortizable from the fourth year of the facility. The loan agreement carries an interest rate based on a 3-month MosPrime benchmark plus an agreed margin.
The loan consists of two tranches: Tranche A in the amount of RUB 30.0bn and Tranche B in the amount of RUB 7.3bn. Tranche A will be used to refinance a current RUB 30.0bn loan facility from VTB Capital, which matures in 2018. Tranche B will be available for drawdown for a period of 18 months from the agreement's signing date and may be used for general corporate purposes, including the financing of Lenta's expansion programme.
The new loan facility increases Lenta's financial flexibility as it extends the Company's debt maturities resulting in a smoother debt maturity profile. The loan also releases security held under the previous loan agreement with VTB Capital and it reduces interest costs. Following the refinancing, the average maturity of Lenta's debt portfolio is projected to increase from 30 months to 42 months. All of the Company's debt is Rouble denominated and 93% is long-term.
The Company's effective weighted-average cost of debt has fallen from 16.6% in 1Q 2015 to approximately 13.5% in 2Q 2015. The combined effects of recent falls in market rates and improved loan terms are projected to further reduce the cost of debt by approximately 120 bps to 12.3% in 3Q 2015 (based on current MosPrime rates).
About Lenta
Lenta is one of the largest retail chains in Russia and the country's second largest hypermarket chain (in terms of 2014 sales). The Company was founded in 1993 in St. Petersburg. Lenta operates 115 hypermarkets in 62 cities across Russia and 26 supermarkets in Moscow, with a total of approximately 746,728 sq.m of selling space. The average Lenta hypermarket store has selling space of approximately 6,200 sq.m. The Company operates five owned hypermarket distribution centres.
The Company's price-led hypermarket formats are differentiated in terms of their promotion and pricing strategies as well as their local product assortment. The Company employed approximately 35,100 people as of 31 December 2014. The Company's management team combines a mix of local knowledge and international expertise coupled with extensive operational experience in Russia. Lenta's largest shareholders include TPG Capital, the European Bank for Reconstruction and Development and VTB Capital Private Equity, all of whom are committed to maintaining high standards of corporate governance. Lenta is listed on the London Stock Exchange and on the Moscow Exchange and trades under the ticker: 'LNTA'.
A brief video summary on Lenta's business and its Big Data initiative can be seen here.
For further information please visit www.lentainvestor.com, or contact:
Lenta Anna Meleshina, Public Relations & Government Affairs Director Tel: +7 812 363 28 53 E-mail: anna.meleshina@lenta.com
Yana Mogileva, PR Manager Тel:+7 (812) 336 39 97 E-mail: yana.mogileva@lenta.com
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Russian Media: Anton KarpovТel:+7 495 660 05 91 E-mail: Anton.Karpov@instinctif.com |