Plutus PowerGen shares fall as company secures financing

The AIM-traded firm said it is also participating in ongoing discussions with Lombard for the provision of additional asset financing facilities of up to £22m on behalf of the other eight Rockpool Investments-funded companies which are 45% owned by PPG, and with which it has management contracts which generate revenue of £1.35m per annum for the company.

Its board confirmed the Facility is for £3m and has been committed for Attune Energy Limited, for a term in excess of five years.

Funds drawn down will be secured against the assets of Attune Energy, and the Facility attracts an annual interest rate at a fixed premium to one month LIBOR that the board said is typical for secured asset financing of this type in the UK, and is payable monthly in arrears.

To date, PPG has arranged funding of around £34m from Rockpool and, if current negotiations are successful, it will have raised a further £25m from Lombard, totalling a potential £59m for nine 20MW flexible generation sites.

Work is currently being undertaken at four of the nine sites being developed with Rockpool.

“The appointment of Lombard as the provider of asset finance to Attune Energy Limited and the potential provider of additional asset finance facilities to other Rockpool Companies demonstrates that PPG's interest in flexible power generation projects are financeable without dilution to shareholders,” said CEO Phil Stephens.

“The company now looks forward to focusing its attention on further negotiations with Lombard and the development of additional sites where the company will benefit from 80%+ equity ownership.”

Andrew Green, head of investment at Rockpool, said: “We are delighted that Lombard is working with PPG and our investee companies to help fund vital investment in the UK flexible power generation sector.”

At 1621 BST, shares in Plutus PowerGen were down 4.92% at 1.45p.