Completion of subscription and allocation of series P bonds

RB 30/2019

The Management Board of Pragma Faktoring S.A. announces the completion of subscription and allotment of P-series bearer bonds issued pursuant to the Issuer’s Management Board Resolution No. 1/17.06.2019 dated June 17, 2019:

1. subscription start date: June 18, 2019;
2. subscription end date: July 3, 2019;
3. date of allocation of financial instruments: July 4, 2019;
4. Number of financial instruments subscribed or sold: 100,000 bonds;
5. rate of reduction in individual tranches: the issue was not divided into tranches, subscriptions were accepted for a total of 100,400 bonds, a discretionary allocation of 100,000 bonds was made, the discretionary reduction was for 400 bonds;
6. Number of financial instruments that were allocated in the subscription or sale: 100,000 P-series bonds were allocated;
7. price at which the financial instruments were purchased (taken up): PLN 100.-;
8. Number of persons who subscribed for financial instruments subscribed or sold in individual tranches: the issue was not divided into tranches, 120 persons subscribed for P-series bonds;
9. The number of persons to whom financial instruments were allocated under the subscription or sale in individual tranches: the issue was not divided into tranches, P-series bonds were allocated to 120 persons;
10. Name(s) of underwriters who acquired financial instruments in the execution of underwriting agreements: The Company has not entered into underwriting agreements;
11. value of the subscription carried out: PLN 10,000,000.00;
12. total issue costs amounted to: PLN 358,560.00, including:

1. preparation and conduct of the offer: PLN 347,000.00;
2. Underwriters’ remuneration – the Company has not entered into underwriting agreements;
3. Preparation of an information note, including the cost of consulting: included in the costs indicated in point a;
4. offer promotion: 0,- PLN;

13. average cost of carrying out the subscription per unit of security: PLN 3.59. Financial liabilities from the bond issue will be recognized at amortized cost using the effective interest rate method. The incurred costs of preparing and conducting the offering and consulting related to the bond issue will be included in the calculation of amortized cost, in accordance with the application of the effective interest rate method, and as a result will be amortized to the income statement over the life of the bonds. 14 All P-series bonds were subscribed for cash contributions. Other significant provisions of the Terms of Issue against the background of previous issues:

1. Variable interest rate WIBOR 3M + 4.25% margin (value unchanged from previous and Catalyst-listed issues).
2. Maximum net financial debt ratio at 400% of equity (unchanged).
3. Secured by a pledge on a portfolio of variable receivables (unchanged), Maximum Security Amount 120% (temporarily and previously 130%).
4. Inclusion in the estimation of the Maximum Collateral Amount of the receivables portfolio of allowances for future portfolio loss incurred by the Issuer in accordance with IFRS9 (previously there was no such regulation).
5. Reduce the maximum concentration levels of the pledged portfolio from 20% to 10%.
6. Security in the form of a pledge on the bank account, along with a regulation to ensure an adequate amount of cash receipts in the account (previously there was no such security).
7. Cancellation of the Pragma Inkaso S.A. surety, which was included in previous issues.

The issuer intends to continue to use bond issues alongside its own funds, bank loans and off-balance sheet financing from specialized funds to finance its operations. View the report here