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MAGNIT PJSC (MGNT)
MAGNIT PJSC: Execution of Material Transaction
29-Sep-2017 / 16:01 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Press Release
Krasnodar
September 29, 2017
PJSC "Magnit" Announces the Execution of the Material Transaction
Krasnodar, Russia (September 29, 2017): Magnit PJSC, one of Russia's leading
retailers (the "Company", the "Issuer"; MOEX and LSE: MGNT), announces the
execution of the material transaction on September 29, 2017.
Type of transaction: major transaction.
Subject of transaction:
Provision by the Issuer of the guarantee under the General
agreement No. 0052/2017/0108 on the opening of the revolving
framework credit line with tiered interest rates as of September
29, 2017 (hereinafter - the "Agreement") executed between Public
Joint Stock Company "Sberbank of Russia" (hereinafter - the
"Creditor") and JSC "Tander" (hereinafter - the "Borrower").
Content of transaction:
In accordance with the guarantee agreement the Guarantor shall
be liable to the Creditor for the proper fulfillment by the
Borrower of all obligations, both monetary and non-monetary, and
obligations that may arise in the future under the Agreement
concluded on the following conditions:
1. Under the Agreement the Creditor and the Borrower shall
execute individual credit transactions (hereinafter - the Credit
transactions) by signing confirmations containing the essentials
of the Credit transaction;
2. The total credit limit amount shall not exceed 30,000,000,000
(Thirty billion) rubles;
3. The deadline for the full credits repayment under the Credit
transactions is September 28, 2022;
4. The interest rate for the credit use shall not exceed 30.0
(Thirty) percent per annum.
Other conditions, procedure of granting and repayment of the
credit amounts, interest and other payments shall be determined
by the Agreement.
The Guarantor's total liability shall not exceed 31,000,000,000
(Thirty one billion) rubles.
Deadline for fulfillment of obligations under the transaction:
The Guarantor's liability (the guarantee) is effective starting
from the date of signing of the Guarantee agreement until
September 28, 2025 inclusive. Before the specified date the
Guarantee agreement shall terminate after the fulfillment of all
obligations by the Borrower under the Agreement and Credit
transactions, or after the fulfillment of obligations by the
Guarantor under the Agreement, or otherwise in accordance with
the legislation of the Russian Federation.
Parties and beneficiaries under the transaction:
The Creditor - Public Joint Stock Company "Sberbank of Russia";
The Guarantor - Public Joint Stock Company "Magnit";
The Borrower (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 Creditor for
the fulfillment of obligations by the Borrower under the
Agreement and all Credit transactions shall not exceed
31,000,000,000 (Thirty one billion) rubles, which amounts to
25.2496% 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: September 29, 2017
Information on the approval of the transaction:
The transaction was approved by the PJSC "Magnit" Board of
Directors on July 27, 2017 (the minutes of the PJSC "Magnit"
Board of Directors meeting 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 reviewed IFRS consolidated financial statements 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.
ISIN: US55953Q2021
Category Code: MSCU
TIDM: MGNT
Sequence No.: 4674
End of Announcement EQS News Service
614681 29-Sep-2017
(END) Dow Jones Newswires
September 29, 2017 10:01 ET (14:01 GMT)
