Play Communications S.A. and its fully owned operating subsidiary P4 Sp. z o.o. (jointly “Play Group”) on 8 January 2018 have entered into Amendment and Restatement Agreement to the Senior Facilities Agreement dated 7 March 2017. On the backdrop of favorable financial market conditions, changes to the Agreement will provide more flexibility in repayment scheme as well as improved terms of the interest and covenants, which secure strong position of Play Group in the face of further network and services development opportunities, including potential 2019-2020 spectrum auctions, if any. Key flexibility enhancements include adjustment of the capital repayment profile, decrease of the margin when leverage below 3.0x and optional introduction of unsecured PLN bond program:
- within the improvement of the repayment profile annual amortization is lowered to PLN 347m (from PLN 586m) in years 2019-2021, keeping the option to repay more at the sole discretion of Play Group, while repayment in 2022 is to be PLN 1bn (instead of original PLN 293m);
- margin over WIBOR is ca. 0.25pp lower below 3.0x leverage, with more granular leverage grid;
- unsecured debt program of up to PLN 2bn can be optionally introduced within Permitted Financial Indebtedness.
More information concerning the Amendment and Restatement Agreement is available in current report no. 2/2018 published earlier today.