AS Ekspress Grupp to refinance the existing loans

Ekspress Grupp 

23.07.2012 15:07
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Tallinn, Estonia, 2012-07-23 15:07 CEST (GLOBE NEWSWIRE) -- 

On July 12th 2012, AS Ekspress Grupp entered a new syndicate loan contract that
refinances group's existing loan and financial leas obligations towards banks
and leasing companies. The refinancing transaction was settled on 23rd of July
2012. The parties of the new syndicate are SEB Bank and Nordea Bank. 

The most important conditions when compared towards the earlier contract are
the interest marginal that is 1% lower than the previous one, extending the
final term of the loan contract until July 25th 2017 and calculation of monthly
loan repayments according the schedule of average 7.8 years. Loan balance as
capital payment upon termination of the contract is approximately 11 million
euros. The final contractual term up to now was 25th of January 2015 and
repayments were based on a 5-year schedule. 

Amendments of the new entered syndicate loan contract shall have immediate
impact on the economic results of the company. The new contract brings about
lower monthly interest and loan repayments, the guarantee fees paid shall also
decrease. In total, the impact of contract amendments on company's net profit
is approximately 200 thousand euros a year. Considering the cash flow, savings
in debt servicing will be about 3 million euros a year. So far, the contract
prohibited payment of dividends to shareholders; payment is permissible
pursuant to the new contract. With entering the new syndicate contract, the
company incurs costs in approximately 60 thousand euros on contract fees and
formalisation of securities. 

As a result of amending the syndicate loan, company's expenses shall decrease
and the amount of free cash, which the company plans to invest into growing the
business through new companies or acquiring and launching assets producing
turnover, shall increase. 

'Ekspress Grupp is a good example of a company where strong management and
owners can maintain trust towards the path chosen by the company also under
severe economical conditions. SEB has always believed in Ekspress Grupp since
the company's professional team is capable to realize their vision also under
complicated circumstances. The new syndicate loan has an advantageous impact
over the financial situation of the company and helps to strengthen the market
position of the media group', stated Allan Parik, Management Board Member and
Manager of the Corporate & Institutions Area of SEB. 

'Under strong leadership, Ekspress Grupp has pulled through the crisis and
shown itself to banks as a reliable partner. We believe in the managerial
decisions of Ekspress Grupp and are glad to continue as their long-term
cooperation partner,' said Andres Laane, Nordea Bank's Management Board Member
and Deputy Head of Banking. 


         Additional information:
         Gunnar Kobin
         Chairman of the Management Board
         GSM: +372 5188111
         e-mail: gunnar@egrupp.ee
News Source: NASDAQ OMX



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Language:     English
Company:      Ekspress Grupp
              
               
              Estonia
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         EE3100016965
WKN:          
 
End of Announcement                             DGAP News-Service
 
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