100mln re­struc­tur­ing deal

Financial Mirror (Cyprus) - - FRONT PAGE -

Bank of Cyprus Pub­lic an­nounced that it has reached an agree­ment Ar­mo­nia Es­tates, Pan­dora In­vest­ments, Lep­tos Ca­lypso Ho­tels and other Lep­tos Group sub­sidiaries for the re­struc­tur­ing of loans worth some EUR 100 mln.

The agree­ment in­clude the re­struc­tur­ing of the terms of the loans of the Lep­tos Group through the ex­ten­sion of their ma­tu­ri­ties, the strength­en­ing of their un­der­ly­ing col­lat­eral, as well as a mod­est re­lease of cer­tain se­cu­rity,

Some EUR 100 mln of ex­ist­ing loans of var­i­ous com­pa­nies of the Lep­tos Group with Bank of Cyprus are con­verted into EUR 100 mln worth of long-term con­vert­ible Loan Notes is­sued by the Neapo­lis Smart Eco City hold­ing com­pany, with Bank of Cyprus be­ing the Note­holder,

A cor­po­rate and fi­nan­cial re­or­gan­i­sa­tion of the Lep­tos Group wil get un­der­way that aims to max­imise its op­er­a­tional ca­pa­bil­i­ties, ef­fect the agree­ment and en­hance the fi­nan­cial strength of var­i­ous en­ti­ties within the Group.

The re­or­gan­i­sa­tion also in­cludes the ac­qui­si­tion by Pan­dora of eq­uity in two land-own­ing sub­sidiaries of Ca­lypso for a con­sid­er­a­tion of EUR 30 mln in the form of Pan­dora as­sum­ing an equal amount of loans of Ca­lypso with Bank of Cyprus, as well as the stream­lin­ing of the own­er­ship struc­ture of cer­tain joint ven­tures owned by Ar­mo­nia and Pan­dora through the ex­change of own­er­ship stakes be­tween them.

“The suc­cess of the Lep­tos Group, one of our largest clients, is im­por­tant for us and through this agree­ment the bank demon­strates its will­ing­ness to pro­vide its sup­port,” said CEO John Houri­can.

He added that “the Lep­tos Group has demon­strated its agility, re­silience and value cre­ation dur­ing its long his­tory and es­pe­cially in the re­cent chal­leng­ing years and we look for­ward to a closer, value creat­ing col­lab­o­ra­tion with the goal of cap­tur­ing the up­side po­ten­tial aris­ing from the Cyprus econ­omy gain­ing fur­ther strength in 2016 and be­yond.”

On his part, Lep­tos Group Ex­ec­u­tive Chair­man Michael Lep­tos said, “Bank of Cyprus has been a strong sup­porter of the Lep­tos Group since its very be­gin­ning and has con­trib­uted to its evo­lu­tion into one of the largest or­gan­i­sa­tions in Cyprus. This agree­ment demon­strates our joint will­ing­ness and com­mit­ment for the con­tin­u­a­tion and en­hance­ment of this busi­ness re­la­tion­ship, with ben­e­fits for both par­ties and the over­all Cyprus econ­omy for many more years to come.”

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