BALA CYNWYD, Pa., Dec. 10 /PRNewswire-FirstCall/ -- Central European
Distribution Corporation (Nasdaq: CEDC) today announced it has received from
Bank Pekao SA a binding offer for the refinancing of CEDC's short term debt
that matures in March 2009; the terms of the offer provide that it is binding
on Bank Pekao and will be available to CEDC until March 31, 2009. The amount
of the refinancing would consist of two parts. The first part consists of a
PLN 240,000,000 (approximately $80 million) facility with a two year maturity
with interest margin increasing by 80 basis points. The second facility
consists of a short term working capital overdraft facility for PLN
118,500,000 (approximately $39.5 million) to be extended for a twelve month
period with interest margin increasing by 60 basis points, which together
represents a majority of our short term debt. The remainder of the Company's
short term debt is expected to be financed from existing cash, operating cash
flow and extensions of smaller working capital facilities.
The offered terms provide that, among other things, for the first part of
the facility, the borrower would be CEDC's wholly owned subsidiary, Carey Agri
International Poland Sp. z o.o., and that CEDC and its material subsidiaries
would guarantee the facility; the facility would be secured by the shares of
Bols Hungary and a portion of the shares of Polmos Bialystok. For the second
part of the facility, various subsidiaries of CEDC would be direct borrowers
and security would be provided over, among other things, specified amounts of
inventory.
William Carey, President and CEO commented, "We are pleased to have
received this offer of terms for a debt facility to ensure that we are
well-positioned to continue to grow in our key markets in Poland and Russia.
Our strong underlying business performance and management execution year to
date continue to be key drivers in our financial standing in Central Europe.
The facility is subject to documentation satisfactory to the lender, which
is expected to contain customary representations, covenants and events of
default, and other customary closing and funding conditions, including the
absence of a material adverse change.
CEDC is the largest vodka producer in Poland and produces the Absolwent,
Zubrowka, Bols and Soplica brands, among others. CEDC currently exports
Zubrowka to many markets around the world, including the United States,
England, France and Japan. CEDC also produces and distributes Royal Vodka, the
top selling vodka in Hungary, and produces Parliament Vodka, the leading
premium vodka in Russia.
CEDC also is the leading national distributor of alcoholic beverages in
Poland by value, and a leading importer of alcoholic beverages in Poland and
Hungary. In Poland, CEDC imports many of the world's leading brands, including
brands such as Carlo Rossi Wines, Concha y Toro wines, Metaxa Brandy, Remy
Martin Cognac, Guinness, Sutter Home wines, Grant's Whisky, Jagermeister, E&J
Gallo, Jim Beam Bourbon, Sierra Tequila, Teacher's Whisky, Campari, Cinzano,
Skyy Vodka and Old Smuggler.
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements involve known and unknown risks and uncertainties that may cause
the actual results, performance or achievements of CEDC to be materially
different from any future results, performance or achievements expressed or
implied by forward-looking statements. Investors are cautioned that
forward-looking statements are not guarantees of future performance and that
undue reliance should not be placed on such statements. CEDC undertakes no
obligation to publicly update or revise any forward-looking statements or to
make any other forward-looking statements, whether as a result of new
information, future events or otherwise, unless required to do so by the
securities laws. Investors are referred to the full discussion of risks and
uncertainties included in CEDC's Form 10-K for the fiscal year ended December
31, 2007, and in other documents filed by CEDC with the Securities and
Exchange Commission, including Current Reports on Form 8-K, which included
certain updates to our risk factor disclosure.
SOURCE Central European Distribution Corporation
