UTK signed Credit Facility Agreements with VTB Bank
Krasnodar, November 5, 2009 – Southern Telecommunications Company (“UTK”) (RTS: KUBN, KUBNP; ÌICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA), the principal fixed-line telecommunications provider for Russia’s Southern Federal District, reports that pursuant to the decision of the Board of Directors (Minutes ¹ 10 of October 30, 2009) the Company signed two credit facility agreements to open non-revolving credit lines with Open Joint –Stock Company VTB Bank.
The total amount of each Loan is 1,000 million rubles granted for the period of 3 years. The interest rates under the Agreements are 14.52% and 14.44% per annum, accordingly.
The Company shall repay the granted Loan in monthly equal shares starting from August 2011. The credit funds will be used to finance the Company’s day-to-day operations. The released own funds of the Company will be directed to refinance the Company’s current debts.
