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MAGNIT PJSC (MGNT)
MAGNIT PJSC: Execution of the Material Transaction
27-Nov-2017 / 15:16 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
November 27, 2017
PJSC "Magnit" Announces the Execution of the Material Transaction
Krasnodar, Russia (November 27, 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 November 23, 2017.
Type of transaction: material transaction which is not major.
Subject of transaction:
Provision by the Issuer of the guarantee under the Credit
agreement No. 01MP9L on the opening of the non-revolving credit
line in Russian rubles as of September 8, 2017 (hereinafter -
the "Principal agreement") executed between Joint Stock Company
"ALFA-BANK" (hereinafter - the "Creditor") and LLC "TK Zelenaya
Liniya" (hereinafter - the "Borrower").
Content of transaction:
In accordance with the Guarantee agreement the Guarantor shall
be liable to the Creditor for the fulfillment by the Borrower of
all current and future obligations under the Principal agreement
executed on the following terms and conditions:
1. Monetary funds shall be provided to the Borrower in Russian
rubles (hereinafter - the "Credits") in the form of the
non-revolving credit line (hereinafter - the Credit line") in
the maximum amount of 3,500,000,000.00 (Three billion five
hundred million point zero) Russian rubles;
2. The Credits shall be provided under the additional agreements
executed between the Creditor and the Borrower;
3. The availability period of the Credit line shall be set from
September 8, 2017 to September 8, 2025 inclusive. The Credits
can be provided within the Availability period of the Credit
line.
The Credits within the Availability period of the Credit line
shall be provided for the term not less than 5 (Five) years, but
not more than 8 (Eight) years.
4. The Borrower shall pay the interest to the Creditor for the
use of each Credit at the rate of 1.25% (One point two five
percent) per annum.
In cases specified in the Principal agreement, the Creditor
shall be entitled to increase the interest rate for the use of
Credits, as well as for the past crediting periods, but in any
case not exceeding 35% (Thirty five percent) per annum.
Other terms and conditions (including the procedure of granting
and repayment of the Credits, interest and other payments) shall
be determined by the Principal agreement.
The Guarantor's total liability shall not exceed
13,300,000,000.00 Russian rubles.
Deadline for fulfillment of obligations under the transaction:
The guarantee terminates in one year from the date of closing of
the Credit line or upon the termination of the secured
obligations.
Parties and beneficiaries under the transaction:
The Creditor - Joint Stock Company "ALFA-BANK";
The Guarantor - Public Joint Stock Company "Magnit";
The Borrower (beneficiary) - LLC "TK Zelenaya Liniya".
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
Principal agreement shall not exceed 13,300,000,000.00 Russian
rubles, which amounts to 11.68% 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:
113,890,709 thousand rubles
Date of the transaction execution: November 27, 2017
Information on the approval of the transaction:
The transaction does not require approval (obtaining consent to
its execution).
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
LEI Code: 2534009KKPTVL99W2Y12
OAM Categories: 3.1. Additional regulated information required to be
disclosed under the laws of a Member State
Sequence No.: 4920
End of Announcement EQS News Service
633029 27-Nov-2017
(END) Dow Jones Newswires
November 27, 2017 09:16 ET (14:16 GMT)
