United Wagon Company and Sberbank of Russia agreed to defer loan repayments
Public Joint Stock Company “Research and Production Corporation “United Wagon Company” (“RPC UWC” or the “Company”) (MOEX: UWGN), the market leader in innovative railcar manufacturing in the 1520mm gauge area, today announces that it has agreed with Sberbank of Russia PJSC (“Sberbank”) to postpone the loan repayments of the leasing company RAIL1520 LLC, which is a subsidiary of RPC UWC.
RAIL1520 has signed an amendment agreement to its non-revolving credit facility agreement dated 2011 with a limit of RUB 10 billion with Sberbank. Previously, on 25 August, 2015, RAIL1520 signed a similar amendment agreement to its non-revolving credit facility dated 2012 with a limit of RUB 15 billion.
According to each agreement, the repayments on the principal debt due in the second half of 2015 and the first half of 2016 are transferred to later dates. The final maturity dates of the credit lines remain unchanged (2021 for the 2011 agreement and 2023 for the 2012 agreement).
RAIL1520 has so far drawn down RUB 6.4 billion from the 2011 credit line and RUB 12.3 billion from the 2012 credit line.
The purpose of the credit lines is to purchase freight cars and expand RAIL1520’s fleet. The repayment schedules were changed due to the investment phase of the project taking longer than initially planned.
Alexey Tsyplakov, Deputy CEO of RPC UWC for Finance and Economy, commented: “We are continuing to optimise our debt burden to provide active Company’s growth with the necessary credit resources on attractive terms. Signing these deferral agreements with Sberbank demonstrates the confidence our financial partner has in the efficiency and stability of our business model”.