OIL REFINERIES LTD 
By Immediate Report - Update on Liquidity and Profitability Plan
Further to the Company's immediate report of October 17, 2013, in which the Company announced that it is taking steps to increase liquidity and improve profitability ("the Original Report"), the Company announces the following:
1. The Company received the consent of its financing banks to the outline of agreements before November 28, 2013, whereby, inter alia:
1.1.The committed and uncommitted short-term credit lines that were available for all Group companies will be replaced with committed short-term credit lines (including for guarantees and letters of credit) by December
31, 2014, ("the Committed Credit Lines) amounting to a total of USD 484.5 million (the Company's share is
USD 318.5 million). Shortly before this date, Group companies had unused committed credit facilities of
USD 133 million.
1.2.The Company's factoring transactions of USD 112.5 million will be extended to December 31, 2014, and factoring transactions of another USD 107 million will be expanded, as from January 1, 2014 to December
31, 2015.
1.3.Swap transactions will be exercised under the conditions described in the bank documents.
1.4.For the period up to December 12, 2015, the Company's financial covenants with the lending banks that provided the Company with long-term credit will be replaced with the covenants described below ("the New Covenants"), which will also apply automatically to the Company's private debenture holders.
The following New Covenants will apply until the end of 2015 (following which the covenants that applied to the Company prior to the agreements will continue to apply):
Required | Q4 2013 | Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | Q1 2015 | Q2 2015 | Q3 2015 | Q4 2015 | |
Net debt less consolidated operating capital | > | 1,900 | N/A | |||||||
Consolidated equity (1) | > | 700 | 700 | 700 | 700 | 700 | 700 | 700 | 700 | 700 |
Consolidated equity (1) to total consolidated balance sheet | > | 17.0% | 17.0% | 17.0% | 17.5% | 18.0% | 18.7% | 19.0% | 19.5% | 20.0% |
Net debt (2) + factoring receivables divided by the average consolidated annual adjusted EBITDA (3)(4) | > | -- | 7.5 | 7.5 | 7.5 | 7.5 | 7.0 | 7.0 | 7.0 | 6.5 |
Annual adjusted consolidated EBITDA (3)(4) | > | -- | -- | 270 | 280 | 290 | 290 | 300 | 320 | 340 |
Consolidated average annual adjusted EBITDA (3) divided by consolidated interest repayments (5) in the 12 months subsequent to the measurement date | > | -- | 2.3 | 2.3 | 2.3 | 2.3 | 2.5 | 2.5 | 2.5 | 2.5 |
Cash (6) | > | 75 | 75 | 75 | 75 | 75 | 75 | 75 | 75 | 75 |
2
(1) Equity will be calculated as follows: (a) adjustment of the following effects, as from the fourth quarter of
2013: the method for recognizing derivatives in accordance with IFRS; buying and selling timing differences of the value of the unhedged inventory; provision for impairment of inventory; (b) deduction of changes in equity arising from adjusting deferred tax assets or liabilities due to changes in statutory tax rates and/or tax laws applicable to the Company.
(2) Net debt = debt to financial institutions1 net of cash (6)
(3) Adjusted EBIDTA = gross earnings less selling, administrative and general expenses, plus depreciation and amortization and net of the following effects:
