Conclusion of a new loan agreement by the Wirtualna Polska Holding SA Capital Group in order to increase the credit line to finance acquisitions and refinance the existing debt of the Wirtualna Polska Holding SA Capital Group
Current report no. 4/2024 dated 20 March 2024
Conclusion of a new loan agreement by the Wirtualna Polska Holding SA Capital Group in order to increase the credit line to finance acquisitions and refinance the existing debt of the Wirtualna Polska Holding SA Capital Group
Legal basis: art. 17 section MAR 1
Content of report:
The Management Board of Wirtualna Polska Holding SA ("Company") informs that on March 20, 2024, a loan agreement was concluded between the Company and Wirtualna Polska Media SA ("WPM") - as borrowers ("Borrowers"), Totalmoney.pl Sp. z o. o., Wakacje.pl SA, Stacja Służew Sp. z o. o., Audioteka Group Sp. z o. o., Nocowanie.pl Sp. z o. o., Extradom.pl Sp. z o. o., WP Naturalnie Solar 1 Sp. z o. o., WP Naturalnie Solar 2 Sp. z o. o., Szallas Group Zártkörűen Működő Részvénytársaság , Szallas.hu Zártkörűen Működő Részvénytársaság, Online Holding sro - as guarantors and a consortium of banks consisting of: (i) mBank SA with its registered office in Warsaw, ("Credit Agent") (ii) Powszechna Kasa Oszczedności Bank Polski SA with its registered office in Warsaw, (iii) ING Bank Śląski SA with its registered office in Katowice, (iv) Bank Polska Kasa Opieki SA with its registered office in Warsaw and (v) BNP Paribas Bank Polska SA with its registered office in Warsaw as lenders ("Lenders") ("New Loan Agreement"), pursuant to which the Lenders granted the Company and WPM loans in the total amount of up to PLN 1,067 million, intended for:
- financing and refinancing of acquisitions and investment expenditure specified in the New Credit Agreement in the total amount of up to PLN 300 million ("Capex Loan Tranche");
- refinancing of existing debt under the loan agreement concluded on February 25, 2020 with a banking consortium consisting of mBank SA banks - as the lender and loan agent, Powszechna Kasa Oszczędności Bank Polski SA and ING Bank SA ("Existing Loan Agreement");
- financing current operations and working capital.
For several years now, the Wirtualna Polska Holding Capital Group has been successively implementing its business development strategy through acquisitions in the e-commerce and online media markets. The increase in the credit line is intended to continue this strategy.
The debt under the New Loan Agreement bears interest at the WIBOR rate for 3-month deposits plus a margin specified in the New Loan Agreement, depending on the ratio of the net debt of the Company's Capital Group to EBITDA.
The borrowers will be obliged to repay the debt on the following dates: (i) a tranche in the amount of PLN 294.5 million in twenty-four equal quarterly installments payable starting from March 29, 2024. (ii) a tranche in the amount of PLN 442.1 million on the deadline date maturity, which will fall on the 7th anniversary of signing the New Loan Agreement; (iii) Capex Loan Tranche in the amount of up to PLN 120 million in sixteen equal quarterly installments payable starting from March 27, 2024, iv) Capex Loan Tranche in the amount of up to PLN 180 million on the final maturity date, which will fall on the 7th anniversary of the signing New Loan Agreement.
Pursuant to the New Loan Agreement, the following security will be established to secure receivables under the New Loan Agreement: (i) financial and registered pledges on shares in WPM, Totalmoney.pl Sp. z o. o., Wakacje.pl SA, Stacja Służew Sp. z o. o., Audioteka Group Sp. z o. o., Nocowanie.pl Sp. z o. o., Extradom.pl Sp. z o. o., WP Naturalnie Solar 1 Sp. z o. o., WP Naturalnie Solar 2 Sp. z o. o., Szallas Group Zártkörűen Működő Részvénytársaság , Szallas.hu Zártkörűen Működő Részvénytársaság , Online Holding sro .; (ii) registered pledges on the collection of property and rights of the Company, WPM, Totalmoney.pl sp. z o. o., Wakacje.pl SA, Stacja Służew Sp. z o. o., Audioteka Group Sp. z o. o., Nocowanie Sp. z o. o., Extradom Sp. z o. o., WP Naturalnie Solar 1 Sp. z o. o., WP Naturalnie Solar 2 Sp. z o. o., Szallas Group Zártkörűen Működő Részvénytársaság , Szallas.hu Zártkörűen Működő Részvénytársaság ,; (iii) ordinary and registered pledges on the rights to the WPM and Wakacje.pl SA trademarks; (iv) financial pledges on bank accounts maintained for the Company, WPM, Totalmoney.pl Sp. z o. o., Wakacje.pl SA Stacja Służew Sp. z o. o., Audioteka Group Sp. z o. o., Nocowanie.pl Sp. z o. o., Extradom.pl Sp. z o. o., WP Naturalnie Solar 1 Sp. z o. o., WP Naturalnie Solar 2 Sp. z o. o. along with powers of attorney to these bank accounts; (v) transfers of security rights under WPM agreements specified in the New Credit Agreement (including insurance policies, commercial contracts, intra-group loans); (vi) declarations of submission to enforcement by the Company, WPM, Totalmoney.pl Sp. z o. o., Wakacje.pl SA, Stacja Służew Sp. z o. o., Audioteka Group Sp. z o. o., Nocowanie.pl Sp. z o. o., Extradom.pl Sp. z o. o., WP Naturalnie Solar 1 Sp. z o. o., WP Naturalnie Solar 2 Sp. z o. o., Szallas Group Zártkörűen Működő Részvénytársaság , Szallas.hu Zártkörűen Működő Részvénytársaság , Online Holding sro.; (vii) an agreement to subordinate the repayment of specified existing and future receivables from WPM to the receivables of the Lenders.
The New Loan Agreement allows companies from the Company's Capital Group to pay dividends upon meeting the following conditions: (i) no arrears to Lenders; (ii) no breach of the financial obligations specified in the New Loan Agreement, including the obligation to maintain the ratio of total net debt of the Company's Capital Group to EBITDA ( Levarage Ratio) specified in the New Loan Agreement; (iii) receipt by mBank SA (as the Loan Agent) of the Company's written confirmation of the establishment of all security provisions provided for in the New Loan Agreement; (vi) prior repayment of existing debt and liabilities arising from hedging transactions; (vii) obligations to maintain financial indicators (financial covenants) will be examined at least once and will be assessed positively by the Loan Agent; and (viii) there will be no breach of the New Credit Agreement and (ix) the dividend payment will not result in a breach of the New Credit Agreement.
The New Loan Agreement contains clauses typical of loan agreements, in particular: (i) a provision on non-privilege - pari passu ; (ii) restrictions on establishing encumbrances on the assets of the Company's Capital Group and (iii) a cross- default clause stating that the breach of any obligation in the total amount exceeding PLN 10 million is tantamount to a breach of the New Loan Agreement.
Legal basis: art. 17 section 1 Regulation No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (Market Abuse Regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directive 2003/124/EC , 2003/125/EC and 2004/72/EC .
Signatures of persons representing the company:
Jacek Świderski - President of the Management Board
Elżbieta Bujniewicz-Belka – Member of the Management Board