24th Jul 2019 15:01
(Alliance News) - FTSE 250-listed Drax Group PLC Wednesday said it has completed the refinancing of its acquisition bridge facility and entered into two new senior debt facilities agreements.
A bridge loan is a short-term loan used until company secures permanent financing or removes an existing obligation.
The company drew GBP550 million under an acquisition bridge facility in January, which was used to partially fund the acquisition of ScottishPower Generation Ltd acquisition for an initial GBP687 million, while GBP150 million of the acquisition bridge facility was repaid on May 16.
The company said Wednesday that it entered into two new senior debt facilities agreements; a GBP375 million private placement agreement and a GBP125 million Environmental, Social and Governance facility agreement.
Drax said together, these facilities extend the its debt maturity profile beyond 2027 and reduce the overall cost of debt to below 4%.
Earlier on Wednesday, Drax hiked its payout after reporting a swing to profit in the first half of 2019.
The stock was up 5.9% at 303.60 pence on Wednesday.
Related Shares:
Drax