Extension of Dresdner Support Facilities

    RNS Number : 7562J
  K2 Corporation
  08 December 2008
   

    START
    K2 Corporation
8 December 2008
    K2 Corporation
U.S.$3,000,000,000 Capital Note Programme
U.S.$10,000,000,000 Euro Medium Term Note Programme
Extension of support facilities provided by Dresdner Bank AG
    On 18 March 2008 K2 Corporation (the "Company") announced that it had entered into a U.S.$1,500,000,000 committed revolving mezzanine
credit facility (the "Mezzanine Facility") and a 'backstop' facility (the "Backstop Facility" and, together with the Mezzanine Facility, the
"Support Facilities") with Dresdner Bank AG ("Dresdner") for the purposes of facilitating the repayment in full of the Company's senior
debt.
    The Company hereby informs you that Dresdner Bank has today agreed to extend the term over which the Support Facilities will be
available to the Company.
    Extension of availability of Support Facilities
    Pursuant to the terms of a deed of amendment dated 8 December 2008 which amends the terms of each of the Support Facilities, the period
during which the Company is able to draw-down amounts under the Mezzanine Facility and to utilise the Backstop Facility will now expire upon
the earlier of 30 June 2009 and the day falling 30 days after the occurrence of an Enforcement Event. Prior to such amendment, the
availability period under each of the Support Facilities expired upon the earlier of 31 December 2008 and the day falling 30 days after the
occurrence of an Enforcement Event.
    Advances under the Mezzanine Facility will continue to be available for terms up to the maturity date of the Company's longest-dated
outstanding senior debt obligation, but will now be repayable on the earlier of the first business day following the payment and discharge
in full of all Secured Liabilities (other than Advances under the Mezzanine Facility) and the day falling sixty (60) calendar days after the
date upon which the last outstanding senior debt issued by the Company is redeemed in full or purchased by the Company and cancelled
(previously, Advances under the Mezzanine Facility became repayable once all Secured Liabilities owing to Priority Creditors had been
provided for).  
    Capital Notes
    The board of directors of the Company continues to consider that it is unlikely that any payment to the holders of Capital Notes by way
of redemption or payment of interest or other distributions will be made prior to the repayment in full of all of the Company's Secured
Liabilities.
    Acquisition of Dresdner by Commerzbank AG
    On 27 November 2008 the Boards of Management of Allianz SE and Commerzbank AG ("Commerzbank") agreed to accelerate the change of
ownership of Dresdner which was announced on 31 August 2008. With immediate effect from 27 November 2008 Commerzbank agreed to purchase 100
per cent. of Dresdner, subject to the approval of the Supervisory Boards of both companies as well as the approval of applicable regulatory
and competition authorities. The closing of the completed sale of Dresdner to Commerzbank is expected at the beginning of 2009 and a merger
of the two companies is expected by the end of the first quarter of 2009.
    Further information on the change of ownership of Dresdner is available at
http://www.allianz.com/en/allianz_group/investor_relations/transactions/dresdner /page3.html 
    ----------------------------------
    Issued at the request of K2 Corporation by Dresdner Bank AG London Branch, Structured Credit Investments, P.O. Box 52715, 30 Gresham
Street, London EC2P 2XY, United Kingdom, as Manager of K2 Corporation.
    END

This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
MSCUUGUPPUPRGMR