31 Jul 2017 15:45
PJSC MAGNIT - Execution of Material TransactionPJSC MAGNIT - Execution of Material Transaction
PR Newswire
London, July 31
Press Release
Krasnodar
July 31, 2017
PJSC “Magnit” Announces the Execution of the Material Transaction
Krasnodar, Russia (July 31, 2017): Magnit PJSC, one of Russia’s leading retailers (the “Company”, the “Issuer”; MOEX and LSE: MGNT), announces the execution of the transaction on July 31, 2017.
| Type of transaction: material transaction which is not major. | |
| Subject of transaction: Provision by the Issuer of the guarantee under the Credit agreement No. KRD/RK/008/16 as of November 11, 2016 as amended by the additional agreement w/o No. of 31.07.2017 (hereinafter – the “Principal agreement”) executed between Public joint-stock company ROSBANK (hereinafter – the “Bank”) and Joint Stock Company “Tander” (hereinafter – the “Debtor”). | |
| Content of transaction: | |
In accordance with the Guarantee agreement No. KRD/PR/023/16 as amended by the additional agreement w/o No. of 31.07.2017, the Guarantor shall be liable to the Bank jointly with the Debtor for the fulfillment of all and any obligations by the Debtor arising under or in connection with the Principal agreement, including but not limited to the obligation for payment of the amount of the principal debt, interest, any other payments, fees and refunds, reimbursement (payment) of documented costs, as well as interest, penalties (fees) of the Bank related to the protection and observance of the Bank’s rights under the Principal agreement and/or the delay in fulfillment. 1. The Guarantee agreement shall secure the fulfillment of obligations by the Borrower under the Principal agreement concluded with the Bank on the following essentials: 1.1 under the Principal agreement the Bank shall open the revolving credit line for the Debtor for the amount not exceeding 20,000,000,000.00 (Twenty billion) Russian rubles or the equivalent of this amount in US dollars or Euros at the rate of the Bank of Russia on the terms and conditions set forth in the Principal agreement. 1.2 the credit shall be provided in the form of individual credits under the Principal agreement. 1.3 the date of the credit line closure under the Principal agreement shall be not later than November 10, 2017. 1.4 the interest rate for the credit use shall not exceed 30.0 (Thirty) percent per annum. The Bank shall be entitled to unilaterally increase/decrease the interest rate for the credit use within the limits set forth by the Principal agreement. 1.5 each individual credit under the Principal agreement shall be provided for the period not exceeding 12 (Twelve) months from the date of provision of this credit to the Debtor, and the maturity date of any credit cannot be later than November 10, 2017. 1.6 other conditions, procedure of granting and repayment of the credit, interest and other payments shall be determined by the Principal agreement.
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| Deadline for fulfillment of obligations under the transaction: The guarantee is provided for the period until August 1, 2018 inclusive. Parties and beneficiaries under the transaction: The Bank – Public joint-stock company ROSBANK; The Guarantor - Public Joint Stock Company “Magnit”; The Debtor (Beneficiary) – Joint Stock Company “Tander”. | |
| The amount of the transaction in the monetary value and as a % of the asset value of the issuer: The limit of the Guarantor’s total liability to the Bank shall not exceed 21,873,972,603 (Twenty one billion eight hundred and seventy three million nine hundred and seventy two thousand six hundred and three) rubles, which amounts to 17.8164% of the balance sheet assets of the issuer. | |
| Asset value of the issuer as of the closing date of the accounting period preceding the execution of the transaction: 122,774,116,000 rubles | |
| Date of the transaction execution: July 31, 2017 | |
| Information on the approval of the transaction: The transaction was approved by the Board of Directors of PJSC “Magnit” on July 27, 2017 (minutes of the w/o No. of July 27, 2017). |
For further information, please contact:
| Timothy Post | Head of Investor Relations Email: post@magnit.ru Office: +7-861-277-4554 x 17600 |
| Dina Svishcheva | Deputy Director, Investor Relations Email: Chistyak@magnit.ru Office: +7-861-277-4554 x 15101 |
| Media Inquiries | Media Relations Department press@magnit.ru |
Company description:
Public Joint Stock Company “Magnit” is one of Russia's leading retailers. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. As of June 30, 2017, Magnit operated 35 distribution centers and 14,844 stores (11,114 convenience, 430 hypermarkets and 3,300 drogerie stores) in 2,567 cities and towns throughout 7 federal regions of the Russian Federation.
In accordance with the unaudited IFRS management accounts for 1H 2017, Magnit had revenues of RUB 555 billion and an EBITDA of RUB 49 billion. Magnit's local shares are traded on the Moscow Exchange (MOEX: MGNT) and its GDRs on the London Stock Exchange (LSE: MGNT) and it has a credit rating from Standard & Poor's of BB+. Measured by market capitalization, Magnit is one of the largest retailers in Europe.