Drax part-refinances acquisition facility with dollar-denominated notes

(Sharecast News) - Drax Group announced on Friday that its indirect wholly-owned subsidiary Drax Finco has completed and settled its offering of US dollar-denominated 6.625% senior secured notes due 2025, in an aggregate principal amount of $200m.The FTSE 250 electricity generation company said the notes beared interest at a rate of 6.625% per annum, and were issued at 101.5% of their nominal value.It said the notes were issued under the indenture governing Drax Finco's outstanding $300m aggregate principal amount of 6.625% senior secured notes due 2025.Cross-currency swaps had been put in place to 2023 in relation to the proceeds of the offering, resulting in an effective sterling-equivalent interest rate applying to the new debt of 4.74% per annum."The proceeds of the offering will be used to repay in part outstanding amounts drawn under the group's acquisition bank facility, to pay related fees and expenses of the offering, including underwriting fees and commissions, professional fees and other associated transaction costs as well as applicable prepayment fees and accrued and unpaid interest to the date of repayment," the company said in its statement."Drax continues to expect to refinance the remainder of the acquisition bank facility during 2019." Drax