POWER station operator Drax has refinanced its £400m revolving credit facility at a better rate, which will be in place for the next four years.
The group has had a difficult year because Government policy has not always been supportive of biomass as a major source of renewable energy. The power station is a decade into a project to convert its fuel source from coal to biomass.
In September it also announced it was ending its involvement in the White Rose carbon capture and storage project when the two-year feasibility study is complete, blaming a “drastically different financial and regulatory environment”.
Those travails have seen Drax’s share price more than halve during 2015, with its market value falling from £1.9bn to £910m at last night’s close.
Drax’s revolving credit facility has a margin of 175 basis points over LIBOR, compared with a margin of 225 basis points on its previous facility, and which matures in December 2019.
It has also renewed its commodity trading facility, which allows the company to transact prescribed volumes of commodity trades without the requirement to post collateral.
