22/06/2016
Current Report No. 59/2016: Information on the value of agreements executed between the KRUK Group and the PKO BP Group
The Management Board of KRUK S.A. (Company) announces that on June 22nd 2016 the Company’s subsidiary PROKURA Niestandaryzowany Sekurytyzacyjny Fundusz Inwestycyjny Zamknięty (PROKURA NS FIZ, Borrower) signed two debt purchase agreements with Powszechna Kasa Oszczędności Bank Polski S.A. of Warsaw (Bank), as a result of which the aggregate estimated value of agreements executed between the KRUK Group and the PKO BP Group between December 16th 2015 and the date of this report reached PLN 84.7m, exceeding 10% of the KRUK Group’s revenue for the last four financial quarters, which satisfies the materiality criterion.
In this period, the highest value agreement was the non-revolving working capital facility agreement signed between the Bank, PROKURA NS FIZ and the Company (Credit Facility Agreement), conclusion of which was reported by the Company in Current Report No. 58/2016 of June 20th 2016.
Under the Credit Facility Agreement, the Bank advanced to PROKURA NS FIZ a credit facility of up to PLN 35.3m (Credit Facility) from June 20th 2016 to December 19th 2020.
The Credit Facility is to be applied towards financing/refinancing of up to 80% of the purchase price/instalment of the purchase price of debt portfolios purchased from the Bank, and may be disbursed in tranches.
The Credit Facility bears interest at a variable annual rate set on market terms, as 1M WIBOR plus a margin. The Bank’s remuneration was set also on market terms.
The Bank’s receivables under the Credit Facility Agreement are secured by: the Company’s civil-law surety with respect to the Borrower’s liabilities under the Credit Facility Agreement (see: Current Report No. 58/2016 of June 20th 2016), a power of attorney over the Borrower’s bank account and a financial pledge over that account, powers of attorney over the Company’s bank accounts operated by the Bank, the Borrower’s and the Company’s declarations of submission to enforcement of the Bank’s claims under the Credit Facility Agreement, pursuant to Art. 777.1.5 of the Code of Civil Procedure of November 17th 1964, with the Company acting as a civil-law surety. The Credit Facility Agreement also provides for a registered pledge under Polish law over the portfolios refinanced/financed by the Credit Facility or other portfolios – as additional security.
The Agreement does not provide for any contractual penalties. The other terms and conditions of the Agreement did not differ from those commonly used in similar agreements.
The materiality criterion is met because the total value of the agreements exceeds 10% of the KRUK Group’s revenue for the previous four financial quarters.
Detailed legal basis: Par. 5.1.3 of the Regulation of the Minister of Finance of February 19th 2009 on current and periodic information […]