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Press releases | Archive 2011

RBC proposed to change loan agreement terms

Moscow, September 20, 2011 — RBC OJSC (MICEX, RTS: RBCM) has initiated today the process of approval by the company’s creditors of changes in the terms of the loan agreement signed as part of the debt restructuring process in April 2010. The approval of these changes will help RBC to achieve a more active business growth thanks to the elimination of restrictions on the use of available cash for the implementation of the development program and the acquisition of assets.

RBC’s creditors were offered to vote in favor of amending clauses of the loan agreement that regulate, specifically, the raising of additional funds, including by way of placing shares, as well as clauses related to the acquisition and replacement of the company’s assets. Furthermore, RBC proposed to replace a provision of the loan agreement that regulates the forwarding of available cash from operating and investment activities towards the repayment of outstanding debt with a provision on the early repayment of part of the debt in the total amount of $55m in late 2013 and 2014.

As a result, RBC will be able to apply the proceeds of the planned additional share issue (the item has been included on the agenda of the extraordinary meeting of the company’s shareholders scheduled for October 10) for the implementation of the investment program, and within one year from the sale of any assets worth more than $27m — to acquire assets of a similar or greater category, value or quality to replace disposed assets.

These changes will also enable the company to maintain the balance of interests of all related parties, allowing RBC to use available cash for business development, and for creditors to receive a portion of the debt under 5-year LPNs ahead of schedule. As a result, the company’s total debt will be reduced by 26%, which, coupled with RBC’s profit growth, will improve debt servicing metrics.

«RBC demonstrated strong financial results and saw profits from its business operations grow in the first half of 2011. The growth rate could have been even higher, if the terms of the loan agreement did not impose certain restrictions on the development plans. This was the reason why we have commenced the process of the agreement’s change, allowing for the elimination of the main restrictions in relation to raising funds and acquisition of assets. We think that the company’s desire to attain maximum business growth is in line with the interests of both RBC’s shareholders and creditors. This has already been confirmed in the course of preliminary talks with RBC’s major creditors,» RBC OJSC CEO German Kaplun said.


Press and investor contacts:
Egor Timofeev
Tel: +7 (495) 363-1111
Email: pr@rbc.ru
Web: www.rbcholding.com