(Alliance News) - Drax Group PLC on Thursday said it has finalised the refinancing of its revolving credit facility named the New Environmental, Social & Governance Revolving Credit Facility.
Drax, which operates the Drax Power Station in North Yorkshire, said the GBP300 million debt facility will mature by 2025, and it has the option to extend by one year. The new facility will replace the current one due to mature in 2021 and provides increased liquidity. The full facility can be drawn as cash. Drax's previous facility restricted cash drawn to support liquidity to GBP165 million. It is currently undrawn for cash.
Drax said that its facility has a customary margin grid referenced over Libor - the London Interbank Offered Rate - which reflects a small reduction in cost compared to the current RCF. It includes an embedded ESG component, which adjusts the margin based on the electricity generation firm's carbon intensity measured against an annual benchmark.
Drax also has agreed to change its GBP35 million term-loan facility due to mature in 2022 in order to simplify its capital structure. This follows the announcement that Drax had entered a new infrastructure term loan facilities agreement in September for a committed total of GBP160 million, with an option to extend by another GBP75 million.
Shares in Drax were up 0.8% at 334.60 pence in London on Thursday.
By Zoe Wickens; zoewickens@alliancenews.com
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