OREANDA-NEWS. August 10, 2012. OJSC “Magnit” (the “Company”; MICEX and LSE: MGNT) announces the execution of the related party transaction by the Company on August 6, 2012.

The essentials of the transaction are as follows:

Type of transaction:

Related party transaction

Subject of transaction:

provision of guarantee under the Revolving Credit Line Agreement M 120529/0249018 dated 29th May, 2012 executed between JSC “Tander” and “ ROSBANK” (OJSC JSCB)

Under the Suretyship Agreement No.120802/0248980/S dated August 6, 2012 the Surety shall undertake to be unconditionally and irrevocably, jointly and severally liable to the Creditor in case of non-performance or undue performance by the Borrower all obligations under the Credit Agreement including repayment of the principal and Fees, forfeit for overdue principal and Fees, reimbursement of any expenditures, including but not restricting, expenditures incurred by the Creditor in conjunction with levying execution against the pledged property under the Credit Agreement and realization thereof as well as any losses of the Creditor including lost advantage resulted from non-performance or undue performance by the Borrower all obligations thereof under the Revolving Credit Line Agreement M 120529/0249018 dated 29th May, 2012 executed between the Borrower and the Creditor with the following essentials:

Content of the transaction:

•           Loan Amount: 3,000,000,000 (three billion) rubles;

•           Loan is provided for the period till 28.11.2015 inclusively;

•           The Borrower shall pay the Creditor the interest rate for the loan use at the rate determined by the Revolving Credit Line Agreement but not exceeding 12% per annum;

•           The suretyship does not secure the repayment of interest and penalties for overdue interest. The liability of the Surety shall be limited to the amount of 4,080,000,000 (Four billion eighty million) Russian Rubles,

Suretyship terminates when the Borrower has duly performed its obligations under the Credit Agreement.

Deadline to fulfill obligations under the transaction:

November 28, 2015 (term of repayment of principal loan and interests)

Parties and beneficiaries of the transaction:

the Surety - open joint-stock company "Magnit"; the Creditor - “ ROSBANK” (OJSC JSCB), the Borrower (the beneficiary) - joint-stock company "Tander"

 

Amount of the transaction:

4,080,000,000 rubles that amounts to 6.7923%from the issuer’s balance sheet assets

 

The value of the issuer’s assets as of the last date of the accounting period (quarter, year) preceding the transaction (date of the contract) and in respect of which the term for submission of the accounting (financial) report expired:

60,067,654 thousand rubles

 

Date of transaction (date of the contract):

August 6, 2012

 

Approval of the transaction:

the transaction was approved by the annual general shareholders’ meeting (minutes of the general shareholders’ meeting of OJSC “ Magnit” M w/M of May 28, 2012)