(Alliance News) - Calisen PLC on Monday said it has agreed around GBP1.1 billion of refinancing, replacing some of its older bank facilities and reducing cost of debt.
Shares in Calisen were up 3.8% at 184.80 pence in London at midday.
The Manchester-headquartered company owns and manages a portfolio of electricity and gas meters though its Calvin Capital business unit and carries out installation, meter reading and maintenance services though its Lowri Beck unit.
The two existing bank facilities to be refinanced are a GBP400 million facility maturing October 2022 and a GBP730 million facility maturing September 2029.
These will be replaced by a GBP290 million fixed rate institutional tranche amortising from June and to be repaid by December 2034 as well as a GBP192.5 million amortising bank loan that must be repaid by December 2023.
In addition, a GBP115 million amortising capital expenditure facility to be repaid by December 2027 has been agreed and is one of the three committed but undrawn facilities available to help fund Calisen's smart meter roll-out.
Also included in this is a GBP400 million revolving credit facility due June 2025 and a GBP70 million standby facility due June 2025.
Total committed facilities under the new financing platform amount to GBP1.07 billion, with the company's total drawn and undrawn facilities available amounting to GBP1.53 billion.
The refinancing will result in Calisen's average cost of debt falling to around 2.3% to 3% versus a previous all-in cost of funds of approximately 3% to 4%. The weighted average life of the company's refinanced longer-term drawn project facilities has increased to 8.5 years from 3.8 years.
Caliden will replace some of its existing interest rate swaps at the financial close, resulting in an approximately GBP43.9 million one-off cash cost funded from the new facilities and offset by lower interest rate benefits.
Further, Calisen "will also enter into new interest rate swaptions which will attract an upfront premium expected to be approximately GBP5.3 million."
Existing swaps are carried on the company's balance sheet at fair value with the December 31 mark-to-market liability having been GBP30.3 million. Therefore the impact recognised for the company's 2020 income statement will be limited only to the fair value movement.
Capitalised debt issue costs of GP14.5 million for the refinanced facilities will be expensed along with "expected costs of approximately GBP14.0 million relating to the establishment of the new funding platform".
Chief Financial Officer Sean Latus said: "The refinancing extends the weighted average life of the facilities we have refinanced as well as fixing their cost while interest rates are at historic lows.
"The support that the refinancing has generated from both our existing lenders and new institutional debt providers is testament to the underlying credit strength of our business, allowing us to fund the continued smart meter roll-out more efficiently and deliver on our pipeline of opportunities."
By Anna Farley; annafarley@alliancenews.com
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