Ljubljana, 20. August 2009 - Droga Kolinska signed an agreement on a long-term facility in the amount of EUR 118.6 million with a syndicate of seven banks, led by UniCredit Banka Slovenija. Proceeds will be used by the Droga Kolinska Group to repay short-term debt to banks that would fall due for payment until the end of 2010.
As this measure involves the repayment of existing debt, the indebtedness of the Company and the Droga Kolinska Group will not increase.
Droga Kolinska is one of the first groups in the region to ensure the stability of its financing structure until the end of 2010, when conditions on the markets of South Eastern Europe are expected to ease.
Chief Financial Officer of the Droga Kolinska Group, Branko Greganovič added, "I must emphasise how much we value the trust that the banks participating in the syndicatehave shown Droga Kolinska. The loan would be nothing more than an ordinary course of business in stable conditions in financial markets. However, in the current conditions of a substantial financial crisis, a long-term loan is a guarantee of the financial stability of the entire Droga Kolinska Group.
The syndicate comprises seven banks: Banka Koper (Intesa Sanpaolo Group), SID banka, NLB, NKBM, Hypo Bank, Raiffeisen Bank and UniCredit Bank Slovenija.
UniCredit Banka Slovenija acts as an agent and arranger of the syndicated facility.
The loan in the total amount of EUR 118.6 million comprises of two parts:
(i) long-term tranche in the amount of EUR 95.0 million with a maturity of 5 years, falling due for final payment in 2014, and
(ii) short-term tranche in the amount of EUR 23.6 million, to be repaid by Droga Kolinska one year after the loan is drawn.