MAGNIT
Press-release
Krasnodar
January 11, 2016
PJSC "Magnit" Announces the Execution of the Related Party Transaction
Krasnodar, January 11, 2016: PJSC "Magnit", Russia's largest food retailer (the
"Company", the "Issuer"; MOEX and LSE: MGNT), announces the execution of the
transaction on January 11, 2016.
Type of transaction: related party transaction.
Subject of transaction:
Provision by the Issuer of the guarantee under the ?redit agreement No.01CC5L
on opening of the revolving credit line in Russian rubles of January 12, 2015
(hereinafter - "the Credit agreement") executed between Joint Stock Company
"ALFA-BANK" (hereinafter - "the Creditor") and JSC "Tander" (hereinafter - "the
Borrower").
Content of transaction:
In accordance with the guarantee agreement the Guarantor shall be jointly
liable to the Creditor for the proper fulfillment of obligations by the
Borrower under the Credit agreement executed on the following essentials:
- the Creditor shall provide the Borrower with monetary funds in Russian
rubles;
- within the Credit agreement the Borrower shall be entitled to receive
Credits, the maximum amount of aggregate debt on which on any day of the term
of the Credit line comprises not more than 4,000,000,000 (Four billion) rubles;
- the term of the Credit line - until April 24, 2017;
- the credits shall be provided within the term of the Credit line for not more
than 36 (Thirty six) months;
- the Borrower shall pay to the Creditor the interest for the use of each
credit at the rate not exceeding 35.00% per annum;
- in case of the late repayment of the credits the Creditor shall be entitled
to charge the Borrower a penalty in the amount of 0.1% of the amount of
outstanding obligations per each overdue day, but not lower than the dual key
rate of the Bank of Russia effective on the day for which the penalty is
charged;
- the terms and procedure of granting and repayment of the Credit amounts,
other penalties and fines for the nonfulfillment/improper fulfillment of
obligations by the Borrower under the Credit agreement shall be determined by
the Credit agreement;
- the Credit agreement shall come into effect from the date of its signature
and remain in force until the parties fully fulfill their obligations under the
Credit agreement;
The Guarantor shall be fully liable to the Creditor for the non-fulfillment or
improper fulfillment of obligations by the Borrower under the Credit agreement,
including the principal amount of debt, interest and penalty.
The guarantee agreement shall secure the fulfillment of obligations by the
Borrower in case of invalidity of the Credit agreement, fixed by the valid
judgment, on repayment of monetary funds received by the Borrower for the
benefit of the Creditor, and on payment of interest for the use of another's
monetary funds charged on the amounts received by the Borrower.
Deadline for the fulfillment of the obligation:
The guarantee terminates in 1 (One) year from the date of closing of the Credit
line or upon the termination of the secured obligations.
Parties and beneficiaries under transaction:
The creditor - Joint Stock Company "ALFA-BANK"
The guarantor - Public Joint Stock Company "Magnit"
The borrower (beneficiary) - Joint Stock Company "Tander"
The amount of the transaction in the monetary value and as a % of the asset
value of the issuer:
5,798,904,110.00 rubles which amounts to 5.1751% 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:
112,040,106 thousand rubles
Date of the transaction execution: January 11, 2016
Information on the approval of the transaction:
The transaction was approved by the General Shareholders Meeting of December
22, 2015 (the minutes of the EGM of PJSC "Magnit" w/o No. of December 24,
2015).
For further information, please contact:
Timothy Post Head of Investor Relations
Email: post@magnit.ru
Office: +7-861-277-4554 x 17600
Mobile: +7-961-511-7678
Direct Line: +7-861-277-4562
Investor Relations Office MagnitIR@magnit.ru
Direct Line: +7-861-277-4562
Website: ir.magnit.com/
Media Inquiries Media Relations Department
press@magnit.ru
Company description:
Magnit is Russia's largest food retailer. Founded in 1994, the company is
headquartered in the southern Russian city of Krasnodar. As of December 31,
2015, Magnit operated 33 distribution centers and about 12,089 stores (9,594
convenience, 374 hypermarkets, and 2,121 drogerie stores) in 2,361 cities and
towns throughout 7 federal regions of the Russian Federation.
In accordance with the reviewed IFRS consolidated financial statements for 1H
2015, Magnit had revenues of RUB 455 billion and an EBITDA of RUB 49 billion.
Magnit's local shares are traded on the Moscow Stock 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.
Magnit PAO : PJSC MAGNIT : - Execution of the Related Party Transaction
January 11, 2016 at 08:46 am
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