Globalworth has announced the execution of a second loan agreement with its subsidiary, Globalworth Poland (GPRE). The loan is being made available to GPRE for a refinancing of the existing financial indebtedness of GPRE and its subsidiaries and the potential acquisition of two new assets currently under due diligence while offering a more flexible capital structure for the expansionary phase that GPRE is in.
The loan is for a maximum amount of €400 million to be funded from the company's existing cash resources and offered in two tranches; Tranche A for up to €233 million and, at the company's discretion, Tranche B for up to €167 million. The loan will bear fixed interest from the date of utilization at a level of 5% p.a. and an arrangement fee of 1%, both accrued on the loan balance and due at repayment.
The loan tranches have a maturity of seven years, and both the company and GPRE have an option to convert the loan (including interest and related fees) into new shares to be issued by GPRE, subject to obtaining appropriate corporate authorizations to issue shares for the purpose of implementing the conversion. The loan agreement provides for certain undertakings, representations and events of default customary for financings of such type.
This transaction represents a substantial transaction pursuant to the AIM Rules.
