By Paul A. Harris
Portland, Ore., April 21 – Drax Group Co. priced an upsized £550 million amount of five-year senior secured notes (BB+/BB+) in two tranches on Friday, according to market sources.
A £350 million amount of fixed-rate notes priced at par to yield 4¼%. The yield printed on top of final yield talk; initial guidance was 4¼% to 4½%.
A £200 million amount of floating-rate notes also priced at par to yield Libor plus 400 basis points. The floating-rate tranche priced with a 0% Libor floor. The spread came on top of final spread talk; initial guidance was Libor plus 400 bps to 425 bps.
The deal was upsized from £500 million.
Joint bookrunner Barclays will bill and deliver. J.P. Morgan was also a joint bookrunner.
The Selby, England-based coal and biomass generator plans to use the proceeds to repay its bridge facility and refinance existing term debt. The additional proceeds resulting from the £50 million upsizing of the deal will be used for general corporate purposes.
| Issuer: | Drax Finco plc
|
| Amount: | £550 million, increased from £500 million
|
| Tenor: | Five years
|
| Securities: | Senior secured notes
|
| Bookrunners: | Barclays (bill and deliver), JPMorgan
|
| Co-managers: | BofA Merrill Lynch, Lloyds
|
| Trade date: | April 21
|
| Settlement date: | May 5
|
| Ratings: | S&P: BB+
|
| Fitch: BB+
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Roadshow
|
|
|
| Fixed-rate notes
|
| Amount: | £350 million
|
| Coupon: | 4¼%
|
| Price: | Par
|
| Yield: | 4¼%
|
| Call protection: | Two years
|
| Price talk: | 4¼%, revised from 4¼% to 4½%
|
|
|
| Floating-rate notes
|
| Amount: | £200 million
|
| Coupon: | Libor plus 400 bps
|
| Price: | Par
|
| Yield: | Libor plus 400 bps
|
| Floor: | 0%
|
| Call protection: | One year
|
| Price talk: | Libor plus 400 bps, revised from guidance of Libor plus 400 bps to 425 bps
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
