Wrap Text
Net1 signs Facilities Agreement with Nedbank in South Africa
Net 1 UEPS Technologies, Inc.
Registered in the state of Florida, USA
(IRS Employer Identification No. 98-0171860)
Nasdaq share code: UEPS
JSE share code: NT1
ISIN: US64107N2062
(“Net1” or “the Company”)
Net1 signs Facilities Agreement with Nedbank in South Africa
On December 13, 2013, Net1 Applied Technologies South Africa Proprietary Limited
(“Net1SA”), a directly wholly-owned subsidiary of Net 1 UEPS Technologies, Inc. (the
“Company”), and certain of Net1SA’s wholly-owned subsidiaries (collectively the
“Borrowers”), entered into a Facility Letter (as amended by the First Addendum described
below, the “Facilities Agreement”) with Nedbank Limited, a South African bank, which
provides for the extension of various short-term banking facilities in the aggregate amount of
up to ZAR 400 million, comprising (i) an overdraft facility of up to ZAR 250 million
(“Overdraft Facility”) and (ii) indirect and derivative facilities of up to ZAR 150 million,
including letters of guarantee, letters of credit and forward exchange contracts (“Indirect and
Derivative Facility”).
On December 18, 2013, the Borrowers signed a First Addendum to the Facilities Letter which
increased, through March 31, 2014, the aggregate facility to up to ZAR 650 million and the
Overdraft Facility to up to ZAR 500 million.
The Facilities Agreement represents an increase and expansion of the Company’s existing
short-term credit facilities with Nedbank.
The Overdraft Facility may be used to finance the ongoing working capital of the Borrowers.
In addition, the Facilities Agreement provides for a cash management sweeping arrangement
of up to ZAR 200 million which may be included within the Overdraft Facility.
Amounts outstanding under the Overdraft Facility are payable on demand and interest
thereunder is payable monthly in arrears at an interest rate agreed between Net1SA and
Nedbank (currently 7.35% per annum). A commitment fee of 0.35% per annum is payable
monthly in arrears on the monthly unutilized portion of the Overdraft Facility.
Fees or charges related to the Indirect and Derivative Facility are agreed at the time of
utilizing the applicable Facility
In addition to security previously granted by Borrower under the existing Nedbank credit
facility (including without limitation, Net1SA’s shareholding in Cash Paymaster Services
Proprietary Limited), each of the Borrowers will cross-guarantee up to ZAR 650 million of
the obligations of the other Borrowers under the Facilities Agreement.
The Facilities Agreement contains customary non-financial covenants, including, without
limitation, covenants that restrict the Borrowers' ability to dispose of or encumber their
assets, incur additional indebtedness or engage in certain business combinations.
The Borrowers’ obligations under the Facilities Agreement are without recourse to, and the
covenants and other agreements contained therein do not apply to, the Company or any of the
Company’s non-South African subsidiaries or to certain other Net1SA subsidiaries.
On December 18, 2013, the USD/ZAR exchange rate was $1.00/ZAR 10.32.
The foregoing description of the Facilities Agreement does not purport to be complete and is
qualified in its entirety by reference to the full text of the Facilities Agreement, a copy of
which was filed as an exhibit on a Form 8-K with the United States Securities and Exchange
Commission on December 19, 2013.
About Net1 (www.net1.com)
Net1 is a leading provider of alternative payment systems that leverage its Universal
Electronic Payment System, or UEPS, to facilitate biometrically secure, real-time electronic
transaction processing to unbanked and under-banked populations of developing economies
around the world in an online or offline environment. Net1’s UEPS/EMV solution is also
completely interoperable with global EMV standards that seamlessly permit access to all the
UEPS functionality in a traditional EMV environment. In addition to payments, UEPS can be
used for banking, healthcare management, payroll, remittances, voting and identification.
Net1 operates market-leading payment processors in South Africa, Republic of Korea, and
Ghana. In addition, Net1’s proprietary Mobile Virtual Card technology offers secure mobile
payments and banking services in developed and emerging countries while its MediKredit
and XeoHealth subsidiaries provide its proprietary 5010 and ICD-10 compliant real-time
claims adjudication system.
Net1 has a primary listing on the Nasdaq and a secondary listing on the JSE Limited.
Forward-Looking Statements
This announcement contains forward-looking statements that involve known and unknown
risks and uncertainties. A discussion of various factors that cause our actual results, levels of
activity, performance or achievements to differ materially from those expressed in such
forward-looking statements are included in our filings with the Securities and Exchange
Commission. We undertake no obligation to revise any of these statements to reflect future
events.
Investor Relations Contact:
Dhruv Chopra
Managing Director
Phone: +1-917-767-6722
Email: dchopra@net1.com
Johannesburg
December 20, 2013
Sponsor:
Deutsche Securities (SA) Proprietary Limited
Date: 20/12/2013 08:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
