PEGAS NONWOVENS : has successfully completed refinancing of the Group by issuing long term bonds

REGULATORY ANNOUNCEMENT

PEGAS NONWOVENS has successfully completed refinancing of the Group by issuing long term bonds

PEGAS NONWOVENS announces that on 14 July 2015 it issued three private issues of senior unsecured bonds pursuant to Czech law.
1)
ISIN: CZ0003512808
Issuer: PEGAS NONWOVENS s.r.o.
Notional value: CZK 678,000,000 (words: six hundred and seventy eight million
Czech crowns) Maturity: 14 July 2025
Coupon: 6M PRIBOR + 2.00% p.a. Status: senior, unsecured
Manager: Československá obchodní banka, a.s.
2)
ISIN: CZ0003512816
Issuer: PEGAS NONWOVENS s.r.o.
Notional value: EUR 35,000,000 (words: thirty five million euros) Maturity: 14 July 2025
Coupon: 3.39% p.a. Status: senior, unsecured
Manager: Československá obchodní banka, a.s.
3)
ISIN: CZ0000000658
Issuer: PEGAS NONWOVENS S.A.
Notional value: CZK 1,080,000,000 (words: one billion eighty million Czech crowns) Maturity: 14 July 2022
Coupon: 2.646% p.a. Status: senior, unsecured Manager: Česká spořitelna, a.s.
Both of the issues denominated in Czech crowns were hedged against foreign exchange risks through a EUR/CZK currency swap. The proceeds from the issue will be used for the repayment of bank loans, for the partial buyback of bonds maturing 11/2018 and for further investments including a considered buyback of the Company's own shares.

PEGAS NONWOVENS SA (société anonyme) is registered in the registry of commerce and companies R.C.S. in Luxembourg under number B 112.044. The seat of the company is 68-70, boulevard de la Pétrusse, L-2320 Luxembourg, Luxembourg.

Registered at the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg under number E-0043

'We are extremely pleased with the smooth progress of the entire bond issue process and most importantly with the enormous investor confidence shown in the long-term prosperity of the PEGAS NONWOVENS Group. This bond issue provides the Company with a substantial level of security with regards to the financing of its long term development and enables it to fully concentrate on its strategic objectives. At the same time, considering the achieved advantageous conditions, the Company's interest expenses will be reduced and it will be hedged against a potential future increase in interest rates', said František Řezáč, CEO and Member of the Board of PEGAS NONWOVENS SA.

Investor and Media Contact:

Jan Židek

Head of External Reporting

PEGAS NONWOVENS Tel.: +420 515 262 408

GSM: +420 727 964 218 jzidek@pegas.cz

PEGAS NONWOVENS SA, société anonyme, is a holding company based in Luxembourg with operating companies based in Znojmo and Bucovice, Czech Republic and in the City of 6th October, Egypt. PEGAS NONWOVENS is a manufacturer of polypropylene / polyethylene nonwoven textiles for the hygiene, industrial, construction, agricultural, medical and other specialized sectors. These textiles are primarily used for the manufacture of baby diapers, feminine hygiene and adult incontinence products. The Company is active in developing new products demanded by the market and thereby maintains its position of technology leader in the European nonwovens market. PEGAS NONWOVENS currently has more than 570 employees.

PEGAS NONWOVENS SA is a publicly traded company on the Prague and Warsaw stock exchanges.

PEGAS NONWOVENS SA (société anonyme) is registered in the registry of commerce and companies R.C.S. in Luxembourg under number B 112.044. The seat of the company is 68-70, boulevard de la Pétrusse, L-2320 Luxembourg, Luxembourg.

Registered at the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg under number E-0043