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Hogan Lovells Advises Kompania Węglowa S.A. on €317 Million Bond Issue

08 February 2013

WARSAW, 8 February 2013 - Hogan Lovells Warsaw banking and infrastructure team has advised the largest coal mining company in Europe, Kompania Węglowa S.A., on the private placement of secured bonds with a value of €317 million. These secured bonds will be used to finance current short-term bank debt, as well as financing the working capital of the company.

The bonds will be issued in two phases. On 7th February 2013 the company issued short-term bonds to be redeemed on October 31st, 2013 (phase one). Subsequently, the company will carry out the issue of medium-term bonds which will have a buy-out period of between three to five years (phase two). The bonds are being offered to institutional investors in Poland. The obligations arising from the bonds have been secured by, among others, pledges over coal supply contracts.

The team advising Kompania Węglowa S.A. was led by Warsaw banking partner Rafał Grochowski with support from senior associate Elżbieta Rablin-Schubert and lawyer Pawel Wasiel.

The financing is the second to date mid-term financing in the coal mining sector in Poland.

Hogan Lovells has acted as the sole legal adviser to Kompania Węglowa SA in arranging the structure of this financing.

Kompania Węglowa S.A. is the largest coal mining company in both Poland and Europe and is engaged in drilling, mining, and the selling of coal and carbon products. Kompania Węglowa S.A. was established in 2003 by grouping together 23 mines which previously operated within the structures of five different coal companies. Currently the Group employs over 60 thousand workers and its mining capacity is approximately 40 million tons of coal per year. In 2011 the Company generated revenues of €3.214 million.

 
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