38/2022 – Determining the initial terms of the Company’s financing

Trakcja S.A. (“Issuer”, “Company”) informs that today the Company, together with the Financing Parties, i.e. mBank S.A., Credit Agricole S.A., BGK, Pekao S.A., Agencja Rozwoju Przemysłu S.A. Uniqua, KUKE, Credendo, PZU, Ergo Hestia, Generali, Subsidiaries i.e: BTW sp. z o.o., PRK 7 Nieruchomości sp. z o.o., Platforma Działalności Międzynarodowej S.A., Przedsiębiorstwo Produkcyjno-Usługowe “Dalba” sp. z o.o., Torprojekt sp. z o.o., Przedsiębiorstwo Eksploatacji Ulic i Mostów sp. z o.o, TOB Ukraina and PKP Polskie Linie Kolejowe S.A. with its registered office in Warsaw, hereinafter referred to as the “Investor”, signed the initial terms and conditions of Trakcja S.A. financing related to the planned capital injection of Trakcja S.A. by PKP PLK S.A. (hereinafter “Term Sheet”).

As set out in the Term Sheet:
1.    The Investor intends to subscribe for Series E shares of the new issue in the Company for an amount of PLN 200 million subject to the fulfilment of conditions precedent set out in separate documentation, with the planned date of adoption of the resolution by the Extraordinary General Meeting of the Company being 23 June 2022;
2.    The Investor and the Company agreed on the key terms of settlement of the dispute concerning the court claims and foundation piles – therefore, the Investor and the Company intend to conclude an agreement specifying the disposal of the aforementioned disputes, which is a condition precedent to obtaining financing. The preliminary amount of the settlement is PLN 41,750,000 gross, and its estimated impact on the Company’s and the Group’s result will be PLN -0.8 million;
3.    provides for the maintenance of the terms of the existing financing with a perspective until the end of 2023, which includes:
i.    credit/loan financing of the Company and its subsidiaries by the Financing Parties for the total amount of PLN 306,981,264.22,
ii.    guarantee lines for a total amount of PLN 706,568,276.23,
4.    the financing structure set out in the Term Sheet shall be binding on the Company, the Subsidiaries, the Financing Parties and the Investor, provided that the receipt of funds into the Company’s bank account in respect of the Recapitalisation shall take place by 30 November 2022.

The Term Sheet is subject to change and does not constitute a guarantee or other assurance by the Investor or the Financing Parties that the Recapitalisation will proceed. Nevertheless, the Term Sheet has been accepted by the decision-making bodies of each Financing Party, while the implementation of the Term Sheet is subject to the conclusion of satisfactory documentation and the fulfilment of conditions precedent.

Legal basis:
Article 17 MAR