UTK signed Credit Facility Agreement with Bank of Moscow
Krasnodar, November 6, 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 a credit facility agreement to open a non-revolving credit line with Joint – Stock Commercial Bank “Bank of Moscow”.
The total amount of the Loan is 1,000 million rubles granted for the period of 3 years. The interest rate under the Agreement is 13.86% per annum.
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.
