Signing of annexes to the bank financing agreement in the amount of PLN 250,000,000 and to the Loan Agreement of June 2, 2021 with the institutions financing the CCC Capital Group
(Current report no. 33/2022)
Article 17 (1) MAR - confidential information
The Management Board of CCC S.A. based in Polkowice (hereinafter: "Issuer") hereby informs of the signing on October 27, 2022:
1) an annex to the Common Funding Terms Agreement of November 5, 2020. (hereinafter: "CTA Agreement"), referred to in Current Report No. 27/2022 and No. 65/2020, with the CCC Group's financing institutions, i.e. Bank Handlowy w Warszawie S.A., Bank Millennium S.A., BNP Paribas Bank Polska S.A., Bank Polska Kasa Opieki S.A., mBank S.A. (acting as agent), Powszechna Kasa Oszczędności Bank Polski S.A., Santander Bank Polska S.A., and
2) an annex to the loan agreement in the amount of PLN 885,962,000 dated June 2, 2021, (hereinafter the "Loan Agreement") referred to in current report no. 28/2022 and no. 32/2021 dated June 2, 2021, with the CCC Group's financing institutions, i.e. Bank Handlowy w Warszawie S.A., Bank Millennium S.A., BNP Paribas Bank Polska S.A., Bank Polska Kasa Opieki S.A., mBank S.A. (acting as agent), Powszechna Kasa Oszczędności Bank Polski S.A., Santander Bank Polska S.A. and Santander Factoring S.A.
Pursuant to the CTA, the repayment dates of the loans granted in the total amount of PLN 250,000,000 have been changed to October 27, 2024. The loans are secured by guarantees granted by Bank Gospodarstwa Krajowego under the Portfolio Guarantee Line from the Crisis Guarantee Fund up to the total amount of PLN 200,000,000.
The CTA and the Loan Agreement have also been amended with regard to financial ratios, aligning them with the ratios adopted in the Bond Issuance Terms, which the Issuer announced in in current report No. 32/2022 dated October 23, 2022.
In the Loan Agreement, the Issuer further undertook to reduce the financial indebtedness of the CCC Group (excluding the Modivo Group) during and by the end of 2023 by the amount of PLN 320,000,000, assuming that by February 27, 2023 at the latest, a portion of the Lenders' existing indebtedness in the amount of PLN 535,702,600 will be refinanced, secured by guarantees under the PLG-FGP Liquidity Guarantee Fund's portfolio guarantee line up to PLN 428,562,080. Pursuant to Report 32/2022, dated October 24, 2022, and the amended Terms and Conditions of Bond Issuance, Bondholders will be entitled to early redemption of the Series 1/2018 bonds in proportion to the reduction in credit financing.
The agreed debt reduction is part of the Issuer's strategy to reduce the level of debt, in the context of the current macroeconomic situation, particularly high interest rates. To this end, the Issuer continues to work intensively in improving the cash conversion cycle by reducing inventory turnover and reducing the operating cost base. At the same time, the Issuer is optimizing its investment plans and analyzing various opportunities to raise capital through leaseback of selected physical assets, new financing (debt or equity) or conducting an initial public offering (IPO) of Modivo shares.
In accordance with current report No. 31/2022 dated October 21, 2022, the Issuer has convened an Extraordinary General Meeting of Shareholders for November 17, 2022. Extraordinary Shareholders' Meeting of CCC S.A. regarding the increase of the Issuer's share capital. The potential raising of capital through the issue of shares to Ultro S.à r.l., Luxembourg (the Company's largest shareholder), or other entities may complement the Company's Management Board's activities in this regard.