Current report no 36/2005

Current report no 36/2005
The Management Board of „Orbis” SA hereby informs about the execution, on
November 10, 2005, of term credit facility agreement of PLN 500,000,000 by and between
Orbis SA (Borrower), Hekon - Hotele Ekonomiczne SA (Guarantor) and Bank Handlowy w
Warszawie SA (Arranger, Agent and Collateral Agent), Société Genérale SA Branch in
Poland (Arranger and Document Agent) and Bank Zachodni WBK SA & Calyon SA.
The Credit Facility Agreement ensures financing during a 7-year term, with 2 options of
deferring the final maturity date of the credit facility for a year, after the end of the initial
credit term. The interest rate is based on WIBOR for a respective interest period plus the
Banks’ margin. The Agreement was executed for the purpose of refinancing the present debt
in Eur (A Tranche of the credit facility amounting to PLN 280,000,000) and financing the
general needs of the company, including a new investment program (B Tranche of the credit
facility amounting to PLN 220,000,000). The decision on refinancing was made by the
Company taking advantage of favorable market conditions for the purpose of converting the
debt into the local currency, extending credit maturity profile and reducing the costs of debt
service.
Cap mortgages shall be established as a collateral for the credit facility on real properties of
the following „Orbis” SA branches: Hotel Mercure Poznań, Hotel Novotel Centrum
Warszawa, Hotel Novotel Centrum Poznań, Hotel Sofitel Victoria Warszawa, Hotel Mercure
Kasprowy Zakopane, Hotel Mercure Panorama Wrocław, up to the cap value equivalent to
120% of the value of the credit facility. In addition, assignment of rights arising out of
insurance policies on hotel properties on which cap mortgages have been established and a
surety granted by Hekon - Hotele Ekonomiczne SA shall constitute a supplementary
collateral.
The credit agreement is a significant agreement since the value of the agreement exceeds 10%
of „Orbis” SA equity, which equaled to PLN 1 560 386 thousand as of June 30, 2005.