Mirland Development Corporation PLC Amendment to Loan Terms with VTB Bank in Russia (0111L)
September 28 2016 - 2:01AM
UK Regulatory
TIDMMLD
RNS Number : 0111L
Mirland Development Corporation PLC
28 September 2016
MirLand Development Corporation PLC
(the "Company")
Amendment to Loan Terms with VTB Bank in Russia
The Company hereby announces, that on 26 September 2016, a
subsidiary of the Company which owns the rights and manages the
Vernissage Mall project in Yaroslavl, Russia (the "Project"),
signed an agreement with VTB Bank (the "Bank") to amend the terms
of the US$40 million loan that was provided by the Bank (the
"Loan") (the "Agreement"). The main provisions of the Agreement are
as follows:
-- The Loan established in Dollar currency (US), shall be
converted fully to a loan in local currency (Ruble)(1) .
-- The repayment of 97% of the Loan principal shall be postponed
to the third quarter of 2021. 2% of the principal Loan shall be
repaid in two (equal) installments in the first and second quarters
of 2021 and the remaining 1% shall be paid in quarterly instalments
(in tranches of 0.02%- 0.11%) during the period until the end of
2020.
-- The interest rate of the Loan shall be Russia's Central Bank
interest rate plus 4%(2) per annum and in any event will not exceed
18.75% per annum ("Determining Interest"). The interest will be
paid on a monthly basis. Notwithstanding, the subsidiary shall not
be required to repay interest rates over 8% per annum ("Paid
Interest"). Amounts arising from the difference between the
Determining Interest and the Paid Interest (the "Interest Gap")
shall join the Loan principal (at a rate of 97%), payable on the
third quarter of 2021. The deferral of payment of the Interest Gap
shall not constitute a breach of the Agreement andor cause
immediate repayment.
-- A "Cash Sweep" mechanism has been determined for the payment of the Loan principal.
-- In addition, the subsidiary had undertaken to comply with
financial covenants that shall be in effect throughout the Loan,
inter alias, with regard to revenues threshold, preservation of
positive Net Asset Value (NAV), EBITDA, debt service ratio, LTV and
occupancy rate of the Project.
MirLand Development Corporation plc
Roman Rozental +7 495 787 49 62
roman@mirland-development.com +7 499 130 31 09
FTI Consulting
Dido Laurimore / Tom Gough / Ellie Sweeney +44 20 7327 1000
Investec Bank plc
Jeremy Ellis / David Anderson +44 20 7597 4000
_______________________________________________________________________________________
(1) According to the representative exchange rate of the Dollar
Ruble on the execution of The Agreement. (2) In Accordance, as of
the date of this report the total interest rate of the Loans stands
at 14.0%.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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