Essar refinances bridge loan with $300 million three-year facility

By Susanna Moon

Chicago, May 15 - Essar Energy plc said it refinanced a $450 million bridge loan due December 2012 with a $300 million three-year secured loan facility provided by the lenders of the bridge loan. The company also tapped $150 million of internal cash resources.

Separately, Essar Energy has also signed for a $250 million 3.5-year subordinated unsecured loan facility with Essar Global Ltd. for general corporate purposes. The facility is currently undrawn.

"The completion of these financings provides Essar Energy with additional debt facilities including an extended maturity profile and demonstrates continued strong support from our banking group and major shareholder," Naresh Nayyar, chief executive officer of Essar Energy, said in the release.

"The successful commissioning of the Vadinar refinery and near completion of three of our major power plant projects marks an inflexion point in our capital expenditure cycle and will see a significant improvement in the cash flows within our businesses."

Essar Global owns 76.82% of Essar Energy, which is a London-based energy company that does business mostly in India.

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