Pricing of offering of senior secured notes

RNS Number : 0509D

Drax Group PLC

21 April 2017

 

21 April 2017

DRAX GROUP PLC

(Symbol: DRX)

Pricing of offering of senior secured notes due 2022

Drax Group plc's ("Drax") indirect wholly owned subsidiary, Drax Finco plc, has today priced its offering of £350 million senior secured fixed rate notes due 2022 (the "Fixed Rate Notes") and £200 million senior secured floating rate notes due 2022 (the "Floating Rate Notes" and together with the Fixed Rate Notes, the "Notes").

The Fixed Rate Notes will bear interest at a rate of 4.25 per cent. per annum and will be issued at 100 per cent. of their nominal value.

The Floating Rate Notes will bear interest at an annual rate of 3 month LIBOR (subject to a zero per cent. floor) plus 4.0 per cent. per annum and will be issued at 100 per cent. of their nominal value.    

The proceeds from the offering of the Notes, together with cash on hand will be used as part of a refinancing of Drax's existing debt.

An amendment to the current £400 million credit facility is also expected to become effective on or around 5 May. Under the amendment, an aggregate principal amount of £350 million will be made available to Drax Corporate Limited. It is expected that approximately £35 million will be drawn at closing.

Drax has also extended its existing commodity trading facility, to include gas related commodity trades in addition to the existing power and dark green spread facility. The extension of the commodity trading facility allows Drax to transact prescribed volumes of trades without the requirement to post collateral.

Enquiries:

Drax Investor Relations:

Mark Strafford

[phone]

Media:

Drax External Communications:

Paul Hodgson

[phone]

Website: www.drax.com

Cautionary Statement

This release is for information purposes only and does not constitute a prospectus or any offer to sell or the solicitation of an offer to buy any security in the United States of America or in any other jurisdiction. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the "Securities Act"). The Notes will be offered in a private offering exempt from the registration requirements of the Securities Act and will accordingly be offered only to (i) qualified institutional buyers pursuant to Rule 144A under the Securities Act and (ii) certain non-U.S. persons outside the United States in compliance with Regulation S under the Securities Act.  No indebtedness incurred in connection with any other financing transactions will be registered under the Securities Act.

This communication is directed only at (i) persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 as amended (the "Order"), (ii) are persons falling within Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations, etc.") of the Order,  (iii) are persons who are outside the United Kingdom, and (iv) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any notes may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as "relevant persons"). Any investment activity to which this communication relates will only be available to, and will only be engaged in with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.  

This announcement is not a public offering in the Grand Duchy of Luxembourg or an offer of securities to the public in any European Economic Area member state that has implemented Directive 2003/71/EC, and any amendments thereto (together with any applicable implementing measures in any member state, the "Prospectus Directive").

Forward Looking Statements

This release includes forward-looking statements within the meaning of the securities laws of certain applicable jurisdictions. These forward-looking statements can be identified by the use of forward-looking terminology, including, but not limited to, terms such as "aim", "anticipate", "assume", "believe", "continue", "could", "estimate", "expect", "forecast", "guidance", "intend", "may", "outlook", "plan", "predict", "project", "should", "will" or "would" or, in each case, their negative, or other variations or comparable terminology.  These forward-looking statements include, but are not limited to, all statements other than statements of historical facts and include statements regarding Drax's intentions, beliefs or current expectations concerning, among other things, Drax's future financial conditions and performance, results of operations and liquidity, strategy, plans, objectives, prospects, growth, goals and targets, future developments in the markets in which Drax participate or are seeking to participate, and anticipated regulatory changes in the industry in which Drax operate. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors because they relate to events and depend on circumstances that may or may not occur in the future. Readers are cautioned that forward-looking statements are not guarantees of future performance and are based on numerous assumptions. Given these risks and uncertainties, readers should not rely on forward looking statements as a prediction of actual results.

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