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INI-488/14

MERCATOR, d.d., Ljubljana

Documentation on Mercator Group financial restructuring signed; long-term financial stability of the company Mercator, d.d., provided; creditor banks express strong support and confidence in the Mercator Group

Pursuant to the Rules and Regulations of the Ljubljana Stock Exchange, d.d, and the relevant legislation, the company Poslovni sistem Mercator, d.d., hereby informs the shareholders and the public of the following:

 

Mercator Group, its creditor banks and financial lessors have together signed the comprehensive contract documentation for the Mercator Group's financial restructuring. By signing the contract documentation, the financial creditors expressed their solid support and confidence in the success of the Group's independent operations. With the signing of the documentation, all conditions for implementation of the provisions thereof are met in Slovenia; in other countries of Southeastern Europe, however, procedures for obtaining regulatory approvals and registrations are being finalised, participants expect nothing to stand in the way of these being completed within a matter of days.

The financial restructuring of the existing loans and financial leases sees the scheduled tenor extended for all participants until March 2020 at the earliest. Among other things, it aligns repayments with anticipated cash flow, and provides for improved liquidity, and a higher rate of investment into Mercator Group's core business. The previous capital structure was comprised largely of bilateral credit lines; Mercator together with its creditors have taken the major step of moving to a consolidated set of financing terms and common decision making platforms, with a consolidated set of documentation in line with international best practices. Conditions negotiated with the banks allow the Mercator Group to turn a new page in its operations and to accelerate the ongoing business transformation into a modern and successful retailer.

Mercator Group's landmark financial restructuring is one of the most extensive, complex and challenging financial restructuring processes of its kind in this part of Europe; successfully completed, the process will be a major and positive contributor to the Mercator Group's long-term financial and operational stability.

 

This announcement will be published on the company’s website at www.mercatorgroup.si as of June 10, 2014, and will remain posted for a period of at least five years.

Poslovni sistem Mercator, d.d.
Management Board
Date: 10.06.2014