Drax Group to sell US dollar debt to partially pay back bridge financing

Drax Group will issue fixed rate medium-term US dollar denominated debt to partially pay back the short-term bank loans which it used to help finance the purchase of Scottish Power Generation.

At the start of January, the electric power generator tapped an acquisition bank facility for £550m to help cover the £687m cost of acquiring Scottish Power.

And now it was to offer $200m of senior secured fixed rate notes denominated in US dollars and maturing in 2025 with a coupon of 6.652% to partially pay back the funds drawn under that facility.

Said offer would be carried out under the indenture governing the prior sale of $300m-worth of such notes, the company said in a statement.

Management also reiterated its intention to refinance the remainder of the bank acquisition facility over the course of 2019.

The bank acquisition facility had a duration of 12 months, beginning from 31 December 2018, but could be extended for another seven months.

As of 0826 BST, shares of Drax Group were edging lower by 0.29% to 344.0p.