Rolf Group International Financial Reporting ... - Irish Stock Exchange

USE OF PROCEEDS
The net proceeds of the issue of the Notes by the Issuer are expected to be approximately
U.S.$248 million after deduction of a management and underwriting and selling concession and other
expenses relating to the issue of the Notes. The Issuer currently has outstanding indebtedness under the
U.S.$350 million Secured Syndicated Loan Facility dated 20 December 2005, as amended and restated on
12 December 2006. The Secured Syndicated Loan Facility is provided to the Issuer by Raiffeisen
Zentralbank Oesterreich Aktiengesellschaft (‘‘Raiffeisen’’) on behalf of a syndicate of international and
Russian banks.
The net proceeds of the issue of the Notes will be applied to repay partially the Secured Syndicated Loan
Facility.
The Issuer has also agreed in principle (pending signing and subject to the finalisation of documentation)
with each of ZAO Citibank, ABN AMRO Bank ZAO and Commerzbank (Eurasija) SAO bilateral
facility documentation in relation to facilities of approximately U.S.$205 million with maturities from one
to three years (together the ‘‘Bilateral Facilities’’) and is also in negotiations to put in place further
bilateral facilities with its Russian relationship banks. The Bilateral Facilities will also be applied in
conjunction with the net proceeds of the issue of the Notes for repayment of the Secured Syndicated
Loan Facility. If there is excess beyond the amount required for that purpose, the Bilateral Facilities and
any facilities agreed with the Russian relationship banks will be applied to give Rolf liquidity to further its
strategic objectives. (See ‘‘Business Description – Funding’’ and ‘‘Business Description – Strategic
objectives’’).
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