Estonia, Financial Services, Legislation, Loan, Markets and Companies

On 5 February 2010 an amendment agreement to the loan contract concluded on 28 August 2007 was concluded between AS Ekspress Grupp and a syndicate consisting of SEB Bank, Sampo Bank and Nordea Bank. According to the agreement new loan deadline was set being 25 January 2015 instead of previously agreed 25 September 2012, Ekspress Grupp told the Tallinn bourse.

The repayment profiles were amended in such a way that AS Ekspress Grupp will begin repaying the loan in the form of instalments starting from February 2010 until December 2012 under a ten year annuity profile and starting from January 2013 until December 2014 under a five year annuity profile.

In connection with the restructuring of the loans of AS Ekspress Grupp, loan and lease commitments for the subsidiary Printall AS were also reviewed, and amendments for loan and lease contracts were concluded. According to the agreements, loan and lease deadlines are extended for one year and between January 2010 and December 2011 principal payments of the loan are reduced by 50%.

A minor increase in the interest rate also accompanied the amendments.

The restructuring of the loans improves the liquidity position of AS Ekspress Grupp considerably and adds flexibility to operating capital management, the firm said.