TIDMDRX
RNS Number : 3365Z
Drax Group PLC
17 May 2019
Drax Group plc
17 May 2019
NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE IN OR INTO
AUSTRALIA, CANADA OR JAPAN OR IN ANY OTHER JURISDICTION IN WHICH
OFFERS OR SALES OF SECURITIES WOULD BE PROHIBITED BY APPLICABLE
LAW. PLEASE SEE THE IMPORTANT NOTICES AT THE END OF THIS
RELEASE.
17 May 2019
DRAX GROUP PLC
(Symbol: DRX)
Drax Finco plc made the below announcement on the Luxembourg
Stock Exchange in respect of its GBP350,000,000 4(1) /(4) % Senior
Secured Fixed Rate Notes due 2022 and $300,000,000 6(5) /(8) %
Senior Secured Notes due 2025
***************
Completion of offering of senior secured notes due 2025
On 16 May 2019, Drax Group plc's ("Drax") indirect wholly owned
subsidiary, Drax Finco plc, completed and settled its offering (the
"Offering") of U.S. dollar denominated 6(5) /(8) % senior secured
notes due 2025 (the "Notes") in an aggregate principal amount of
$200 million.
The Notes bear interest at an interest rate of 6.625 per cent.
per annum and were issued at 101.5 per cent. of their nominal
value. The Notes were issued under the indenture governing Drax
Finco plc's outstanding $300 million aggregate principal amount of
6(5) /(8) % senior secured notes due 2025. Cross-currency swaps
have been put in place to 2023 in relation to the proceeds of the
Offering, as a result of which the effective sterling-equivalent
interest rate applying to this new debt is 4.74 per cent. per
annum.
The proceeds of the Offering will be used to repay in part
outstanding amounts drawn under the group's acquisition bank
facility(1) , 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. Drax
continues to expect to refinance the remainder of the acquisition
bank facility during 2019.
Enquiries:
Drax Investor Relations: Mark Strafford
+44 (0) 1757 612 491
Media:
Drax External Communications: Matt Willey
+44 (0) 1757 612 285
Website: www.drax.com
Note
(1) Drax Corporate Limited drew GBP550 million under an
acquisition bank facility on 2 January 2019 used to partially fund
the acquisition of Scottish Power Generation for an initial net
consideration of GBP687 million. The facility has a 12-month
duration from 31 December 2018, with an additional seven-month
extension option.
Cautionary Statement
This release is being issued pursuant to Rule 135c under the
U.S. Securities Act of 1933, as amended (the "Securities Act") and
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 Securities Act. The Notes and related
guarantees were offered in a private offering exempt from the
registration requirements of the Securities Act and were
accordingly 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 persons who (i) 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").
Manufacturer target market (MiFID II product governance) is
eligible counterparties and professional clients only (all
distribution channels). No PRIIPs key information document (KID)
has been prepared as the Notes are not available to retail
investors in the European Economic Area.
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.
END
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCAFMRTMBJBBAL
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May 17, 2019 02:00 ET (06:00 GMT)
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