Firma Oponiarska Debica S A : Granting loan to Goodyear SA

DEBICA

RB 27/2019

POLISH FINANCIAL SUPERVISION AUTHORITY

Current Report No 27/2019

Date: September 27, 2019

Abbreviated name of issuer:

DEBICA

Subject:Granting loan to Goodyear SA

Legal grounds:

Art. 17 item 1 MAR - confidential information

Report content:

The Management Board of Tire Company Debica S.A. with its registered office in Debica ("Company") informs that today the Company concluded with Goodyear S.A. with its registered office in Colmar-Berg, Luxemburg ("Goodyear") a loan agreement under which the Company granted Goodyear a loan of PLN 70 million. The loan repayment date was set at 25 September 2020. The loan bears interest at a rate equal to [WIBOR1Y + 0.1% margin] per annum and is currently 1.95% per annum.

The loan agreement provides both Goodyear's right to make an early repayment and the Company's right to demand an early repayment. Repayment of the loan is secured by a guarantee from The Goodyear Tire & Rubber Company, Akron, Ohio, USA, the indirect parent of the Company.

In connection with the timely repayment on 27 September 2019 of an earlier loan granted in the nominal amount of PLN 70 million (the amount shown does not include accrued and repaid interest) by Goodyear (of which the Company reported in Current Report No. 25/2018 of 27 September 2018), the total value of the loans granted at present is PLN 225 million (capital, not including accrued interest).

Goodyear S.A. is the indirect parent of the Company and indirectly holds 87.251% through Goodyear Holdings S.àr.l. 87.251% of the total value of the loans granted at present (capital, not including accrued interest). The conclusion of the Agreement in question was deemed confidential due to its value and the fact that it was granted to the indirectly dominant entity.