Current Report No.: 36/2020
Legal basis: Article 17 section 1 MAR – Inside information.
Contents of the report:
The Management Board of Boryszew S.A. (“Company”, “Issuer”) in reference to the information provided in Current Reports No. 18/2020 of June 24, 2020 and No. 27/2020 of September 1, 2020 and in periodic reports for Q1 2020 and H1 2020, on exceeding the level set in loan agreements:
- the ratio of Net Financial Debt (in one case of Gross Financial Debt) to EBITDA,
- profitability ratio at the level of profit on sales of the segment automotive,
- the financial debt service ratio (DSCR) based on consolidated operating profit (EBIT) increased by depreciation and adjusted for capital expenditure and income tax paid (adjusted EBITDA) and debt service for the last 12 months, and
- interest coverage ratio based on consolidated operating profit (EBIT) and interest paid for the last 12 months,
informs that on November 2, 2020, in the evening, an agreement was concluded with the last of the banking institutions financing the Company’s operations on the withdrawal from any sanctions resulting from loan agreements related to the breach of the above-mentioned financial covenants for Q1 2020 and H1 2020.
Bearing the above in mind, the Issuer indicates that as at the date of the conclusion of the above agreement, all banks financing the activities of the Issuer’s Capital Group express approval for higher levels of ratios or temporary suspension of their testing in subsequent quarters of this year.
The Company explains that:
- debt service coverage ratio (DSCR) is defined as debt service to adjusted EBITDA,
- interest coverage ratio is defined as interest paid to EBIT,
- the term EBIT is defined as the result on the operating activities of the Boryszew Capital Group for the last 12 months,
- the term EBITDA is defined as the result on operating activities (EBIT) increased by the depreciation of the Boryszew Capital Group for the last 12 months,
- the term Adjusted EBITDA is defined as EBITDA of the Boryszew Capital Group adjusted by investment expenditure and income tax paid for the last 12 months,
- the term net debt (debt) is defined as interest liabilities of Boryszew Capital Group less cash and cash equivalents of the Boryszew Capital Group,
- gross debt is defined as interest liabilities of the Boryszew Capital Group,
- interest paid is defined as interest paid to the Capital Group Boryszew for the last 12 months,
- the term debt service is defined as debt service (repayment of capital instalments and interest) of the Boryszew Capital Group for the last 12 months,
- profitability at the level of profit on sales of the segment automotive is defined as the result on sales minus management and sales costs to sales revenues in the automotive segment for the last 12 months.
The above definitions and methodologies for their calculation are the same as the definitions and methodologies for calculating these ratios in the Issuer’s previous periodic reports.
Signatures:
Piotr Lisiecki – President of the Management Board
Translation from the original Polish version.
In the event of differences resulting from the translation, reference should be made to the official Polish version.