20/2021 – Conclusion of a number of long-term financing agreements and public disclosure of delayed inside information

The Management Board of Trakcja S.A. (the “Company”) informs that on 17 June 2021, as a result of negotiations with financial institutions, the Company has signed the following documents on long-term financing, which cover the following:

1. Annex which introduces a modified and consolidated credit agreement concluded between the Company and Bahn Technik Wrocław sp. z o.o., PRK 7 Nieruchomości sp. z o.o., Platforma Działalności Międzynarodowej S.A., Przedsiębiorstwo Produkcyjno-Usługowe „DALBA” sp. z o.o., as borrowers and guarantors, and Torprojekt sp. z o.o., Przedsiębiorstwo Eksploatacji Ulic i Mostów sp. z o.o., TOB Trakcja Ukraina as guarantors (jointly “Affiliates“), and mBank S.A. with its seat in Warsaw, Credit Agricole Bank Polska S.A. with its seat in Wrocław, Bank Gospodarstwa Krajowego with its seat in Warsaw, as creditors, and Agencja Rozwoju Przemysłu S.A. [Industrial Development Agency JSC] with its seat in Warsaw (“ARP”) as the lender, pursuant to which the Company was granted a new credit and a new loan, and the guaranty line has been modified (“Consolidated Credit Agreement“);
2. Annex which introduces modifications  to the agreement between creditors dated 13 June 2019, concluded by the Company, Affiliates, COMSA and creditors, that is: Bank Gospodarstwa Krajowego, ARP, mBank S.A, Credit Agricole Bank Polska S.A., Bank Polska Kasa Opieki S.A., AXA Ubezpieczenia Towarzystwo Ubezpieczeń i Reasekuracji S.A. (presently UNIQA Towarzystwo Ubezpieczeń S.A.), Credendo — Excess & Surety Societe Anonyme, Sopockie Towarzystwo Ubezpieczeń ERGO Hestia S.A., Korporacja Ubezpieczeń Kredytów Eksportowych S.A., Generali Towarzystwo Ubezpieczeń S.A. and COMSA S.A.U. Powszechny Zakład Ubezpieczeń S.A., UNIQA Towarzystwo Ubezpieczeń S.A. (jointly the “Creditors“), pursuant to which the conditions of cooperation between Creditors have been consolidated, the hierarchy of receivables has been set out as to which Creditors are entitled from the Company and from Affiliates, as well as of security interests established in the Creditors’ favour by the Company and its Affiliates; 
3. Annex which introduces modifications  to the agreement on joint conditions, concluded by the Company, Affiliates, mBank S.A., Credit Agricole Bank Polska S.A., Bank Polska Kasa Opieki S.A., Bank Gospodarstwa Krajowego and ARP, pursuant to which the conditions of granting financing to the Company and Affiliates by creditors which are banks and the ARP – have been consolidated;
4. Annex which introduces modifications  to the understanding on the consolidation of selected conditions of granting guaranty and surety agreements of 13 June 2019, concluded by the Company, Affiliates, AXA Ubezpieczenia Towarzystwo Ubezpieczeń i Reasekuracji S.A. (now UNIQA Towarzystwo Ubezpieczeń S.A.), Credendo – Excess & Surety Societe Anonyme, operating in Poland through Credendo – Excess & Surety Spółka Akcyjna Oddział w Polsce {Polish Branch], Generali Towarzystwo Ubezpieczeń S.A., Korporacja Ubezpieczeń Kredytów Eksportowych S.A., Sopockie Towarzystwo Ubezpieczeń Ergo Hestia S.A., Powszechny Zakład Ubezpieczeń S.A. and UNIQA Towarzystwo Ubezpieczeń S.A., pursuant to which the conditions of granting financing to the Company and Affiliates by creditors which are insurance companies – have been consolidated (“Insurance Agreement on Joint Conditions”).

(the documents specified in 1-4 shall be jointly referred to as “Financing Documents”).

Pursuant to the Consolidated Credit Agreement and under its terms, the Company which is the borrower:

1. has been granted a new, open-end credit of a total amount equal to PLN 52,983,000.00
2. has been granted a new, open-end loan of a total amount equal to PLN 52,746,000.00;
3. the bank guaranty lines have been modified, inter alia, by extending their periods of availability. In particular, two new guaranties for returning an advance shall be issued, in amounts, as appropriate: PLN 30,067,215.94 and PLN 30,867,672.81.

Additionally, as the Insurance Agreement on Joint Conditions has been modified, a new good performance guaranty shall be issued by insurance companies in an amount of PLN 30,067,216.67.

Furthermore, the  Consolidated Credit Agreement also provides for capital injections to the Company by PKP PLK S.A, in an amount of no less than PLN 200,000,000.00 by 31 January 2022. In the event the capital injection is not effected, the Company commits itself to conduct the sale of its subsidiary – AB Kauno Tiltai.

Entry into effect of the Financing Documents, as the setting in motion of debt instruments which follow from it, and of guaranty lines is contingent, inter alia, on the satisfaction by the Company and its Affiliates of conditions precedent specified in the Financing Documents, including primarily the change of existing security interests by increasing the maximum amount of sureties, establishment of new security interests.

The securing of claims under the Financing Documents shall, inter alia, be the modified existing security interests:

1. Mortgages on real properties owned by the Company and its Affiliates, including properties situated in: Warsaw, Wrocław, Bieńkowice, Skierdy, Sobolewo, Białystok, Bobrowniki and Marki;
2. Transfer for securing rights under trade agreements, insurance and intra-group loans;
3. Pledge on shares held by the Company in subsidiaries: (i) Bahn Technik Wrocław sp. z o.o.; (ii) PRK 7 Nieruchomości sp. z o.o.; (iii) Platforma Działalności Międzynarodowej S.A.; (iv) TORPROJEKT sp. z o.o.; (v) Przedsiębiorstwo Eksploatacji Ulic i Mostów sp. z o.o.; (vi) Przedsiębiorstwo Produkcyjno-Usługowe “DALBA” sp. z o.o.; (vii) AB Kauno Tiltai;
4. Guaranties granted by the Company and Affiliates;
5. Registered pledges on a set of tangible assets and rights, established by the Company and its Affiliates;
6. Registered pledges on inventory;
7. Registered pledges on machines, established by Bahn Technik Wrocław sp. z o.o.
8. Pledges on Company and Affiliates bank accounts;
9. Voluntary subjection to enforcement by Trakcja and its Affiliates.

Furthermore, the Company has committed itself to establish a new pledge on 66.84% of shares of its subsidiary, AB Kauno Tiltai.

The Company informs that on 4 December 2020 it has delayed the public disclosure of the following insider information:

“On 4 December 2020, Trakcja S.A. (the “Company”, the “Issuer”) has commenced negotiations with Agencja Rozwoju Przemysłu S.A. [Industrial Development Agency JSC] (“ARP”) and financial institutions, i.e. Bank Gospodarstwa Krajowego, mBank S.A., Credit Agricole Bank Polska S.A., (the “Banks”) as regards obtaining new financing for the Company. On 3 December 2020, the Company has received the preliminary terms and conditions of financing in a document entitled “Company Financing Term Sheet” on financing Trakcja S.A., having its seat in Warsaw (“Preliminary Term Sheet”). At the present stage, no binding decisions have been reached on the amount of financing or terms of financing”.

The result of the negotiation commenced in December 2020 with ARP and Creditors is the conclusion of Financing Documents, described herein.

Legal basis:

Article 17 (1 and 4) MAR