Bulletin

As Netia decided to withhold from providing an English version of its website, these of the company Followers who would be interested in subscribing Netia reports in Polish are kindly requested to register in the box below

Subscribe
19 January 2001

Netia subsidiary enters hedge transaction


Warsaw, Poland - January 19, 2001 - Netia Holdings SA (Nasdaq: NTIA, WSE: NET), Poland's largest alternative fixed-line telecommunications services provider, today announced that on January 18, 2001, Netia Holdings III BV, a wholly-owned subsidiary of Netia Holdings SA, entered into a hedge transaction with the London branch of Chase Manhattan Bank.

Under the terms of the transaction, the Netia subsidiary swapped the coupon payments on USD 100 million aggregate amount of 13.125% senior notes due 2009, for coupon payments on PLN 413.5 million aggregate principal amount of 16.76% notes, and swapped the coupon payments on EUR100 million aggregate amount of 13.5% senior notes due 2009, for coupon payments on PLN 389.5 million aggregate principal amount of 17.50% notes.

The coupons will be swapped during the period commencing December 15, 2001 and terminating June 15, 2007.

 

Avi Hochman, CFO of Netia Holdings SA, commented on the transaction: "Including our first large-scale hedging transaction less than six months ago, the equivalent of nearly USD 400 million in Netia debt has been swapped into Polish zloty. This is part of a long-term currency hedging policy, which we are conducting in a systematic fashion whenever the right conditions are available."


NETIA HOLDINGS S.A. is the largest alternative fixed-line telecommunications operator in Poland. Netia has 24 licenses for local telecommunications services in territories covering some 15 million people or approximately 40% of the Polish population. The Company's existing local telephone license territories cover six of the country's ten largest urban areas including Warsaw, Krakow, Poznan, Gdansk, Lublin and Katowice. Netia has also secured the benefit of a nationwide data and IP license to provide data transmission and Internet-based services. In May 2000 the Netia 1 consortium was issued the nationwide domestic long distance voice license. Netia, with the Swedish operator Telia AB as a strategic partner, is the first Polish company to be listed both on Nasdaq and the Warsaw Stock Exchange.