OREANDA-NEWS. July 24, 2012. . AS Premia Foods (hereinafter Premia) and AS SEB Pank (hereinafter SEB) executed several credit and collateral agreements. Under these agreements, the loan portfolio of the Estonian branch of AS UniCredit Bank acting as the borrower will be refinanced within 2 following months and the credit limit of Premia will be increased. The maximum amount of credit granted under the executed agreements is up to 16,410,000 euro.

As a result of the refinancing, the interest rate of the investment loan and overdraft facility will decrease by 10 basis points.

The final repayment date of the overdraft facility in the amount of 4,900,000 euro is 18.07.2013. The investment loan will be a long-term credit limit in the maximum amount of 10,900,000 euro with the final repayment date of 18.07.2017. The repayment of the principal amount will be made in equal parts under 7-year repayment schedule. For Premia, the refinanced repayment schedule results in positive cash flow in the approximate amount of 400,000 per year arising from the decreased repayment burden.  The amount of 3,900,000 euro of the investment loan will be available from 01.12.2012, whereas at the same time the credit limit of the overdraft facility will decrease by 1,500,000 euro.

In addition to the above, SEB granted Premia a guarantee limit in the amount of 610,000 euro under which Premia will be from 01.03.2013 entitled to request the issue of guarantee letters by SEB with the maximum term of 12 months.