TIDMDRX
RNS Number : 8306C
Drax Group PLC
21 October 2020
Drax Group plc
21 October 2020
NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE IN OR INTO
AUSTRALIA, CANADA OR JAPAN OR IN ANY OTHER JURISDICTION IN WHICH
OFFERS OR SALES OF SECURITIES WOULD BE PROHIBITED BY APPLICABLE
LAW. PLEASE SEE THE IMPORTANT NOTICES AT THE END OF THIS
RELEASE.
Drax Group plc
(LSE: DRX)
Pricing of offering of Senior Secured Notes due 2025
Drax Group plc ("Drax") today announced that its indirect wholly
owned subsidiary, Drax Finco plc (the "Issuer"), priced its
offering (the "Offering") of euro denominated senior secured notes
due 2025 (the "Notes") in an aggregate principal amount of EUR250
million.
The Notes will bear interest at an interest rate of 2(5) /(8)
per cent. per annum and will be issued at 100 per cent. of their
nominal value.
Drax has placed cross-currency swaps to convert the proceeds of
the Offering into Sterling, as a result of which the effective
Sterling-equivalent interest rate is 3.24 per cent. per annum. The
Notes will extend the Group's average debt maturity profile and
reduce the Group's overall cost of debt.
Drax intend to use the gross proceeds of the Offering (i) for
general corporate purposes, which may include the repayment of
indebtedness, and (ii) to pay estimated fees and expenses of the
Offering, including Initial Purchasers' fees and commissions,
professional fees and other associated transaction costs. Drax
intend to repay the existing GBP350 million 4 1/4 per cent. Senior
Secured Fixed Rate notes due 2022 issued by the Issuer in full
before 31 December 2020.
Enquiries:
Drax Investor Relations: Mark Strafford
+44 (0) 1757 612 491
Media:
Drax Head of Media and PR: Ali Lewis
+ 44 (0) 203 9434311
Website: www.drax.com
Cautionary Statement
This release is being issued pursuant to Rule 135c under the
U.S. Securities Act of 1933, as amended (the "Securities Act") and
is for information purposes only and does not constitute a
prospectus or any offer to sell or the solicitation of an offer to
buy any security in the United States of America or in any other
jurisdiction. Securities may not be offered or sold in the United
States of America absent registration or an exemption from
registration under the Securities Act. The Notes and related
guarantees were offered in a private offering exempt from the
registration requirements of the Securities Act and were
accordingly offered only to persons outside the United States in
compliance with Regulation S under the Securities Act. No
indebtedness incurred in connection with any other financing
transactions will be registered under the Securities Act.
This communication is directed only at persons who (i) have
professional experience in matters relating to investments falling
within Article 19(5) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005 as amended (the "Order"), (ii) are
persons falling within Article 49(2)(a) to (d) ("high net worth
companies, unincorporated associations, etc.") of the Order, (iii)
are persons who are outside the United Kingdom, or (iv) are persons
to whom an invitation or inducement to engage in investment
activity (within the meaning of section 21 of the Financial
Services and Markets Act 2000) in connection with the issue or sale
of any notes may otherwise lawfully be communicated or caused to be
communicated (all such persons together being referred to as
"relevant persons").
Any investment activity to which this communication relates will
only be available to, and will only be engaged in with, relevant
persons. Any person who is not a relevant person should not act or
rely on this document or any of its contents.
This announcement is not a public offering in the Grand Duchy of
Luxembourg or an offer of securities to the public under Regulation
(EU) 2017/1129, and any amendments thereto.
The Notes are not intended to be offered, sold or otherwise made
available to and should not be offered, sold or otherwise made
available to any retail investor in the European Economic Area (the
"EEA") or in the United Kingdom (the "UK"). For these purposes, a
retail investor means a person who is one (or more) of: (i) a
retail client as defined in point (11) of Article 4(1) of Article
4(1) of MiFID II; (ii) a customer within the meaning of the
Insurance Distribution Directive), where that customer would not
qualify as a professional client as defined in point (10) of
Article 4(1) of MiFID II; or (iii) not a qualified investor as
defined in Regulation (EU) 2017/1129 (as amended, the "Prospectus
Regulation"). Consequently no key information document required by
Regulation (EU) No 1286/2014 (as amended, the "PRIIPs Regulation")
for offering or selling the Notes or otherwise making them
available to retail investors in the EEA or in the UK will be
prepared. Offering or selling the Notes or otherwise making them
available to any retail investor in the EEA or in the UK may be
unlawful under the PRIIPs Regulation. Any offer of Notes in any
Member State of the EEA or in the UK will be made pursuant to an
exemption under the Prospectus Regulation from the requirement to
publish a prospectus for offers of Notes.
The Manufacturer target market (MiFID II product governance) is
eligible counterparties and professional clients only (all
distribution channels).
In connection with any issuance of the Notes, a stabilising
manager (or person(s) acting on behalf of such stabilising manager)
may over-allot Notes or effect transactions with a view to
supporting the market price of the Notes at a level higher than
that which might otherwise prevail. However, stabilisation may not
necessarily occur. Any stabilisation action may begin on or after
the date on which adequate public disclosure of the terms of the
offer of the Notes is made and, if begun, may be ended at any time,
but it must end no later than 30 days after the date on which the
issuer received the proceeds of the issue, or no later than 60 days
after the date of the allotment of the Notes, whichever is earlier.
Any stabilisation action or over-allotment must be conducted by the
stabilising manager (or person(s) acting on behalf of the
stabilising manager) in accordance with all applicable laws and
rules.
Forward Looking Statements
This release includes forward-looking statements within the
meaning of the securities laws of certain applicable jurisdictions.
These forward-looking statements can be identified by the use of
forward-looking terminology, including, but not limited to, terms
such as "aim", "anticipate", "assume", "believe", "continue",
"could", "estimate", "expect", "forecast", "guidance", "intend",
"may", "outlook", "plan", "predict", "project", "should", "will" or
"would" or, in each case, their negative, or other variations or
comparable terminology. These forward-looking statements include,
but are not limited to, all statements other than statements of
historical facts and include statements regarding Drax's
intentions, beliefs or current expectations concerning, among other
things, Drax's future financial conditions and performance, results
of operations and liquidity, strategy, plans, objectives,
prospects, growth, goals and targets, future developments in the
markets in which Drax participate or are seeking to participate,
and anticipated regulatory changes in the industry in which Drax
operate. By their nature, forward-looking statements involve known
and unknown risks, uncertainties and other factors because they
relate to events and depend on circumstances that may or may not
occur in the future. Readers are cautioned that forward-looking
statements are not guarantees of future performance and are based
on numerous assumptions. Given these risks and uncertainties,
readers should not rely on forward looking statements as a
prediction of actual results.
END
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END
MSCMZMZGKMZGGZM
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October 21, 2020 11:13 ET (15:13 GMT)
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