EAS.L Regulatory News (EAS)

For immediate release 27 November 2013

Energy Assets Group plc

("Energy Assets", the "Company" or the "Group")

New Funding Facility

Energy Assets Group plc (LSE: EAS.L), the largest independent provider of industrial and commercial (I&C) gas metering services in the UK[1] is pleased to announce a new £35m facility with Bank of Scotland to refinance £10m of existing debt with Macquarie Bank (Macquarie) and provide additional finance to support the continued growth of the business. 

New £25m funding facility

The core element of the arrangement with Bank of Scotland is a new £25m funding facility which, when added to existing facilities with other banking partners, results in significant headroom of £45m.

Drawdowns will be available over a two year period and will attract an interest rate of 2.95% plus LIBOR, with a ten year repayment profile. The Group will work with Bank of Scotland to implement a hedging strategy which will see 100% of this facility covered by an interest rate swap, fixing LIBOR rates, by the end of the two year drawdown period.

Refinancing £10m of existing debt

As part of the agreement, £10m of existing debt previously held with Macquarie will be refinanced with Bank of Scotland. This removes all debt exposure with Macquarie. 

The loan, which was historically priced at a margin of 4% plus LIBOR, is now priced at 2.95% plus LIBOR.

To hedge against interest rate risk, the Company fixed the rate on the Macquarie loan by entering into an interest rate swap which will be novated to Bank of Scotland on standard market terms. The refinanced loan will be repaid over the remaining term of seven and a half years under a similar structure.

Chief Executive Phil Bellamy-Lee said:

"I am delighted to welcome Bank of Scotland as one of the Group's main funding partners. By securing this new facility the Group is now in an even stronger position to continue increasing its installed meter base through existing contracts and service new opportunities as they arise. 

We look forward to working with Bank of Scotland and further strengthening this relationship into the future as we continue to grow our business and cement our position as the leading independent meter asset manager."

The new funding facility, provided by Bank of Scotland as part of their commitment to support growth companies, was arranged by the Mid Markets Strategic Finance team. 

Hunter Inkster, Associate Director at Bank of Scotland said:

"Energy Assets is a high growth company with a strong leadership team. The Company is a frontrunner within its market and has firm strategic partnerships in place. This combined means it is in a good position to achieve its long term expansion plans and we look forward to supporting them in achieving this."

Enquiries

For further information visit www.energyassets.co.uk or contact:

Notes to Editors:

Energy Assets provides gas metering and related services in the I&C segment of the UK gas market and is the largest independent provider of I&C gas metering services in the UK (by number of meters under management). The Group offers gas suppliers and end-user consumers of gas a broad spectrum of metering services from the provision and management of new and replacement meters through its MAM Services division to the procurement and project management of related gas infrastructure works and the collection and provision of gas consumption data through the Group's Siteworks and AMR divisions.

Energy Assets is listed on the Main Market of the London Stock Exchange.