1st Jul 2015 08:18
LONDON (Alliance News) - Gas-to-power producer Alkane Energy PLC on Wednesday said it has agreed amendments to its banking facilities with lender Lloyds Bank PLC, part of Lloyds Banking Group PLC.
Alkane said the amendments include a further GBP2 million advance to the company against its existing asset finance loan taken out a year ago.
Alkane and Lloyds also agreed to a capital repayment holiday and have agreed a change to the earnings before interest, taxation and amortisation covenant on the loan.
The company added that it is trading in line with its expectations.
"I am delighted with the continued support of Lloyds. These amendments will enable the group to continue to deliver growth during a period when there is a general lack of investment in new power stations and existing capacity is closing. Alkane is well placed to benefit from the resulting tightening of supply margins in the UK power market," said Neil O'Brien, Alkane's chief executive.
Alkane shares were up 2.9% to 23.40 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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