Capital/Financing Update • Feb 9, 2018
Capital/Financing Update
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08-Feb-2018 / 15:45 CET/CEST
Dissemination of a RegulatoryAnnouncement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.
Press Release Krasnodar February 08, 2018
Krasnodar, Russia (February 08, 2018): Magnit PJSC, one ofRussia's leading retailers (the"Company", the"Issuer"; MOEXand LSE:MGNT), announces theexecution ofthetransaction on February 08, 2018.
Type of transaction: materialtransactionwhich is notmajor.
Provision by the Issuer of the guarantee under the credit Agreement No. KRD/RK/001/18 on the revolving credit lineas of February 08, 2018 (hereinafter - the"Principalagreement") executed between Publicjoint-stock companyROSBANK (hereinafter - the"Bank") and Joint Stock Company "Tander"(hereinafter - the"Debtor").
In accordance with the Guarantee agreement No. KRD/PR/001/18 as of February 08,2018, PJSC "Magnit"(hereinafter- the "Guarantor") shall be liable to the Bank jointly with the Debtor in the maximum amount of 11,500,000,000.00 (Eleven billion five hundred million) rubles for the fulfillment of alland any obligations by the Debtor arising under or in connection with the Principal agreement (hereinafter- the "Secured Obligations")executed on thefollowing termsand conditions:
1.In accordance with thetermsand conditions ofthe Principalagreement the Bank shall open therevolving credit line for the Debtor for the amount not exceeding the amount of the Debt Limit with the obligation to provide the Tranche (the Credit Line), and the Debtor agrees to repay the PrincipalDebt, pay interest accrued hereon and other amounts to be paid in accordance with theAgreement, as wellas to fulfillall other obligations under the PrincipalAgreement.
The credit shall be provided in the form of individual tranches, each is provided for a period not more than 12 (twelve) months under the Principalagreement.
The aggregate amount of the Debtor's obligations including the amount of the provided Tranche shall not exceed 10,000,000,000.00 (Ten billion) rubles.
Therepayment date ofany tranche shall occur not later than in 12 (Twelve) months and at the same timethe maturity date of the tranche shall not belater than February 07, 2019.
The interest rate for the use of each tranche provided within the PrincipalAgreement shall be additionally agreed between the Bank and the Debtor prior to the Provision oftherelevant tranche, provided that theinterest rateshall notexceed 30%(Thirty) percent perannum.
The guaranteeis provided for the period untilFebruary 07, 2020 inclusive. Theloanmaturity and interest payment dateis February 07, 2019 according to theAgreement.
The Guarantor - PublicJoint Stock Company "Magnit"; The Bank - Publicjoint-stock companyROSBANK; The Debtor (Beneficiary) - Joint Stock Company "Tander".
The amount of the secured obligations (the amount of the transaction) is 11,500,000,000.00 (Eleven billion five hundred million) rubles, which amounts to 10.0974%ofthe balancesheetassets oftheissuer .
Thetransactionwasapproved by the Board ofDirectors ofPJSC "Magnit"on May 29, 2017 (minutes ofthe w/o No. of May 29, 2017).
| Timothy Post | Head ofInvestor Relations Email: [email protected] Office:+7-861-277-4554 x 17600 |
|---|---|
| Dina Svishcheva | DeputyDirector, Investor Relations Email:[email protected] Office:+7-861-277-4554 x 15101 |
| MediaInquiries | Media Relations Department [email protected] |
Public Joint Stock Company "Magnit"is one of Russia's leading retailers. Founded in 1994, the company is headquartered in the southern Russian city ofKrasnodar. As ofDecember 31, 2017, Magnit operated 37 distribution centers and 16,350 stores (12,125 convenience, 243 hypermarkets, 208 Magnit Family storesand 3,774 drogeriestores) in 2,709 citiesand towns throughout 7 federalregions ofthe Russian Federation.
In accordance with the unaudited IFRS management accounts for 2017, Magnit had revenues of RUB 1,143 billion and an EBITDA of RUB 92 billion. Magnit's localshares are traded on the Moscow Exchange (MOEX:MGNT) and its GDRs on the London Stock Exchange (LSE:MGNT) and it hasacredit rating fromStandard &Poor's ofBB. Measured bymarketcapitalization, Magnit is one ofthelargest retailers inEurope.
ISIN: US55953Q2021 Category Code: MSCU TIDM: MGNT LEICode: 2534009KKPTVL99W2Y12 OAM Categories:3.1.Additional regulated information required to be disclosed under the laws of a Member State Sequence No.: 5193
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