eEnergy refinances all its facilities for 'significantly lower' cost

Energy efficiency and management service provider eEnergy has entered into a new revolving credit facility with Silicon Valley Bank, it announced on Friday, replacing all of its existing borrowing facilities.

The AIM-traded firm said Silicon Valley Bank was providing a facility of £5m over three years, with potential for additional capital facilities as eEnergy delivered on its growth plans.

eEnergy said it refinanced £3.1m of its existing borrowings, and expected to draw down a further £1m to cover part of the deferred consideration payable to the vendors of UtilityTeam.

The board said the new facility would give the company “enhanced liquidity”, more flexible financing, and a “strong partner” to support its growth strategy.

While the blended cost of the finance would be “significantly lower” than the refinanced facilities, the board said its earnings expectations remained unchanged for the current financial year.

“This transaction with a top-tier growth investor demonstrates the strength of eEnergy's proposition,” said chief executive officer Harvey Sinclair.

“We are delighted to be partnering with Silicon Valley Bank to continue to execute eEnergy's growth vision and strategy.”

At 1337 GMT, shares in eEnergy were down 2.98% at 12.1p.