19th Oct 2020 09:25
(Alliance News) - Drax Group PLC on Monday said it is considering raising EUR250 million through a bond issue for general coprorate purposes and to pay off other debt.
The electricity generator, which operates Drax power station in north Yorkshire, said unit Drax Finco PLC has mandated unnamed banks acting as joint bookrunners to arrange a global investor call and a series of fixed income investor calls which may be followed by an offering of EUR250 million five-year senior secured notes.
There can be no assurance the offering will proceed or will be completed, Drax added.
The bonds would be rated BB+ by both Standard & Poor's and Fitch Ratings.
In September, Drax had entered new infrastructure term loan facilities agreement for a committed total of GBP160 million, with an option to extend by another GBP75 million.
Shares in Drax were down 0.6% at 295.60 pence each in London on Monday morning.
By Tapan Panchal; [email protected]
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