Alkane Energy PLC Increased Loan Facilities (7676R)
July 01 2015 - 2:00AM
UK Regulatory
TIDMALK
RNS Number : 7676R
Alkane Energy PLC
01 July 2015
1 July 2015
Alkane Energy plc
("Alkane" or the "Group")
Increased Loan Facilities
Alkane Energy plc, (AIM: ALK), the independent gas to power
producer, is pleased to announce that it has agreed with its
bankers, Lloyds Bank plc ("Lloyds"), some amendments to the
existing loan facilities. The amendments, which include an
additional advance of GBP2m, will provide the Group with
flexibility in pursuing value enhancing projects and delivering
growth. The enhancements to the facility and Lloyds' continued
support reflect the Group's underlying financial strength. The
amendments are as follows:
-- An additional advance of GBP2m has been made against existing
assets under the asset finance loan taken out on 15 July 2014. The
principal on this loan was originally GBP5.5m with a repayment
period of five years ending 8 July 2019. The repayment profile of
the outstanding principal of GBP4.7m plus the additional advance of
GBP2m has been extended to seven years, with the final payment
being due in July 2022.
-- A capital repayment holiday has been agreed in respect of the
term loan of GBP3m taken out on 24 May
2013. The balance of GBP1.5m is now repayable on 31 May 2016.
-- The covenant in respect of quarterly EBITDA levels relative
to total net debt will be increased to 2.5 times (from the current
2 times) for the remainder of 2015, and to 2.25 times for the
quarter ended 31 March 2016.
The additional funds and the rescheduling of repayments will
enable a greater proportion of our cash generation to be used to
support the continued development and growth of the Group.
Trading conditions remain consistent with the trading update
announcement that was made on 30 April 2015 and expectations are
unchanged.
Neil O'Brien, Chief Executive Officer, commented:
"I am delighted with the continued support of Lloyds. These
amendments will enable the Group to continue to deliver growth
during a period when there is a general lack of investment in new
power stations and existing capacity is closing. Alkane is well
placed to benefit from the resulting tightening of supply margins
in the UK power market."
Notes to Editors
For more information please contact:
Alkane Energy plc
Neil O'Brien, Chief
Executive Officer
Carl Kameen, Finance
Director 01623 827927
Liberum
Clayton Bush 020 3200 2000
VSA Capital Limited
Andrew Raca 020 3005 5000
Hudson Sandler
Nick Lyon
Alex Brennan 020 7796 4133
Background information
Alkane is one of the UK's fastest growing independent power
generators. The Company operates mid-sized "gas to power"
electricity plants providing both base load and fast response
capacity to the grid. Alkane has a total installed generating
capacity of 145MW and an electricity grid capacity of 160MW.
Alkane's base load operations, where power is generated 24/7,
are centred on a portfolio of coal mine methane ("CMM") sites.
Alkane has the UK's leading portfolio of CMM licences, enabling the
Company to extract gas from abandoned coal mines.
Power response sites are connected to mains gas and produce
electricity at times of high electrical demand through peak
running, or in order to balance the electricity grid through
participation in the National Grid's short term operating reserve
programme ("STOR"). Participants in STOR are paid premium rates
when called upon by the Grid to meet temporary supply shortages.
Alkane now operates 98MW of power response, one of the UK's largest
power response businesses, with contracted STOR revenues extending
out to 2025.
Alkane has been awarded 101MW of Capacity Mechanism Agreements
starting from October 2018, with 55MW existing sites being secured
on one year agreements and 46MW new sites on 15 year agreements
over the period to September 2033.
The Group operates from 27 mid-size (up to 25MW) power plants
across the UK, 13 CMM only, seven mains gas only, six using both
fuel sources and one using kerosene only. Alkane uses a combination
of standard modular reciprocating engines and gas turbines to
generate the electricity and sells this power through the
electricity network. The engine units and other plant are designed
to be flexible and transportable allowing additional capacity to be
brought onto growing sites and underutilised plant to be moved to
new sites to maximise efficiency.
In June 2014 Alkane transferred its shale gas interests to Egdon
Resources plc. It received 40 million Egdon shares making it the
largest shareholder in Egdon, the UK's third largest shale
operator.
More information is available on our website
www.alkane.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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