GTC prolongs the maturity of another portion of its existing bonds

Globe Trade Centre S.A. (GTC) has successfully prolonged the maturity of more than EUR 21m of its existing bonds (that were due to mature in 2014) by issuing new bonds in exchange for the existing ones. This step complements GTC’s recent bonds prolongation transaction in the amount of EUR 50m and brings it to a total of over EUR 70m. The transaction is another element of the strategic plan that helps to improve the balance sheet and increase the financial liquidity of the Company.

GTC had proposed selected institutional investors to prolong the maturity of some of the existing bonds (issued in 2007) by way of issuing new bonds in exchange for existing ones. As a result of the acceptance by the bondholders, GTC issued 884 bearer bonds in uncertified form, in the total nominal value of PLN 88,400,000. The bonds will be amortized over 2017 and 2018 in 3 equal tranches with the final maturity at the end of April 2018.

The interest on the new bonds is based on the 6M WIBOR and a 4% p.a. margin set forth in the terms and conditions of the bonds.

With the aim of further deleveraging GTC has decided to purchase for redemption purposes additional 354 of existing bonds with a value of approx. EUR 8m at an average price nearly 96.48% of its nominal value.

The transaction reaffirms the market’s confidence in GTC’s financial policy.

GTC plans to list the new bonds on Catalyst by January 2013.