Lenta Ltd Lenta signs loan agreement with VTB (2766R)
June 25 2015 - 11:10AM
UK Regulatory
TIDMLNTR TIDMLNTA
RNS Number : 2766R
Lenta Ltd
25 June 2015
Lenta signs RUB 37.3BN long-term unsecured loan agreement with
VTB Bank
Saint-Petersburg, Russia; 25 June 2015 - Lenta LLC, the main
operating subsidiary of Lenta Ltd. ("Lenta" or the "Company"),
today announces the signing of a RUB 37.3bn unsecured loan
agreement from VTB Bank with a seven-year term.
The loan will mature in 2022 and will be amortizable from the
fourth year of the facility. The loan agreement carries an interest
rate based on a 3-month MosPrime benchmark plus an agreed
margin.
The loan consists of two tranches: Tranche A in the amount of
RUB 30.0bn and Tranche B in the amount of RUB 7.3bn. Tranche A will
be used to refinance a current RUB 30.0bn loan facility from VTB
Capital, which matures in 2018. Tranche B will be available for
drawdown for a period of 18 months from the agreement's signing
date and may be used for general corporate purposes, including the
financing of Lenta's expansion programme.
The new loan facility increases Lenta's financial flexibility as
it extends the Company's debt maturities resulting in a smoother
debt maturity profile. The loan also releases security held under
the previous loan agreement with VTB Capital and it reduces
interest costs. Following the refinancing, the average maturity of
Lenta's debt portfolio is projected to increase from 30 months to
42 months. All of the Company's debt is Rouble denominated and 93%
is long-term.
The Company's effective weighted-average cost of debt has fallen
from 16.6% in 1Q 2015 to approximately 13.5% in 2Q 2015. The
combined effects of recent falls in market rates and improved loan
terms are projected to further reduce the cost of debt by
approximately 120 bps to 12.3% in 3Q 2015 (based on current
MosPrime rates).
About Lenta
Lenta is one of the largest retail chains in Russia and the
country's second largest hypermarket chain (in terms of 2014
sales). The Company was founded in 1993 in St. Petersburg. Lenta
operates 115 hypermarkets in 62 cities across Russia and 26
supermarkets in Moscow, with a total of approximately 746,728 sq.m
of selling space. The average Lenta hypermarket store has selling
space of approximately 6,200 sq.m. The Company operates five owned
hypermarket distribution centres.
The Company's price-led hypermarket formats are differentiated
in terms of their promotion and pricing strategies as well as their
local product assortment. The Company employed approximately 35,100
people as of 31 December 2014. The Company's management team
combines a mix of local knowledge and international expertise
coupled with extensive operational experience in Russia. Lenta's
largest shareholders include TPG Capital, the European Bank for
Reconstruction and Development and VTB Capital Private Equity, all
of whom are committed to maintaining high standards of corporate
governance. Lenta is listed on the London Stock Exchange and on the
Moscow Exchange and trades under the ticker: 'LNTA'.
A brief video summary on Lenta's business and its Big Data
initiative can be seen here.
For further information please visit www.lentainvestor.com, or
contact:
Lenta Instinctif Partners
Anna Meleshina, International Media:
Public Relations & Government Mark Walter
Affairs Director el:+44 (0)20 7457 2020
Tel: +7 812 363 28 53 E-mail: Mark.Walter@instinctif.com
E-mail: anna.meleshina@lenta.com
Russian Media:
Yana Mogileva, PR Manager Anton Karpov
el:+7 (812) 336 39 97 el:+7 495 660 05 91
E-mail: yana.mogileva@lenta.com E-mail: Anton.Karpov@instinctif.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCLLFIERRIEFIE
Lenta IPJSC (LSE:LNTA)
Historical Stock Chart
From Jul 2024 to Jul 2024
Lenta IPJSC (LSE:LNTA)
Historical Stock Chart
From Jul 2023 to Jul 2024