May 29, 2002 – Santiago, Chile
Quiñenco S.A. (LQ:NYSE) informed the Superintendency of Securities and Insurance today that its wholly-owned subsidiary, LQIF, had obtained a US$70 million loan from a company related to the Luksic Group, Quiñenco’s controlling shareholders.
The loan, which was carried out at arms’ length and is in line with current market conditions in Chile, matures in May of 2005 and bears an annual interest rate of LIBOR + 2%. The loan is not guaranteed by collateral and contains covenants similar to those normally undertaken by the Company in existing credit agreements. Fees associated with the granting of the credit approximate US$100 thousand.
Quiñenco S.A., one of Chile’s leading business conglomerates, is the controlling entity of a portfolio of companies involved in financial services, food and beverage, telecommunications, manufacturing and real estate and hotel administration.