The Management Board of LC Corp S.A. (the Issuer) hereby reports that today i.e. 1 June 2012 a subsidiary company of the Issuer i.e. Warszawa Przyokopowa Sp. z o.o. with its registered office in Wrocław (Warszawa Przyokopowa), in which the Issuer holds 81.66 % of shares, entered into a framework agreement – concerning futures and derivative transactions (the Framework Agreement), together with an additional swap agreement (Additional Agreements) – with an entity unrelated to the Issuer i.e. Raiffeisen Bank Polska S.A. of Warsaw (the Bank).
The Framework Agreement and the Additional Agreements regulate the rules of concluding and settling accounts for futures and derivative transactions. Terms of cooperation between the Bank and Warszawa Przyokopowa have been established in the Framework Agreement, the Rules of Futures and Derivative Transactions and the Additional Agreements concerning FX and swap transactions. The transactions will be carried out on an individual basis and each time after the Bank and Warszawa Przyokopowa agree on their terms. The necessity for entering into the above-mentioned agreements results from the bank credit agreement concluded on 15 July 2011 by and between Warszawa Przyokopowa and the Bank (the Credit Agreement), as referred to in Current Report No. 45/2011 of 15 July 2011.
The limits for the FX transactions provided for in the above-mentioned agreements total PLN 70,000,000 with expiry date of 31 December 2014, and PLN 20,000,000 for swap transactions with expiry date of 28 June 2024.
The transactions resulting from the above-mentioned agreements are secured by:
– A mortgage of up to PLN 135,000,000 (one hundred and thirty five million zloty) on the right of perpetual usufruct to the land and the building being a separate property of Warszawa Przyokopowa, for which a land and mortgage register No. WA4M/00139030/7 is kept by the District Court for Warsaw-Mokotów in Warsaw, 10th Land and Mortgage Department, and
– Declaration on submitting to execution pursuant to Art. 97 of the Banking Law, up to an amount of PLN 135,000,000. Declarations on establishing these securities were submitted by Warszawa Przyokopowa also on 1 June 2012. Warszawa Przyokopowa is not obliged to provide an additional security for the transactions resulting from the above-mentioned agreements.
The Framework Agreement as well as the Additional Agreements concerning FX and swap transactions have been concluded for an indefinite period, with the Additional Agreements remaining in force only within the validity period of the Framework Agreement.
The Framework Agreement as well as the Additional Agreements are considered agreements of significant value as the estimated total value of services resulting from the agreements may exceed at least 10% of the Issuer's equity.
Legal basis: Art. 5.1.3 of the Directive of the Minister of Finance dated 19 February 2009 on current and periodic information published by issuers of securities and conditions for recognising as equivalent the information required by the laws of a non-member state (Journal of Laws – Dz.U. No. 33, Item 259).