Source - RNS
RNS Number : 5993L
Plutus PowerGen PLC
04 October 2016
 

 Plutus PowerGen Plc / Ticker: PPG / Index: AIM

4 October 2016

Plutus PowerGen plc ('PPG' or 'the Company')

Debt Financing Secured for Attune Energy Limited

 

Plutus PowerGen plc, the AIM listed power company focused on the development, construction and operation of flexible power projects in the UK, has arranged a £3 million asset financing facility for one of its indirect investment companies with Lombard North Central plc ('Lombard'), a subsidiary of Royal Bank of Scotland PLC (the 'Facility').

 

PPG is also participating in ongoing discussions with Lombard for the provision of additional asset financing facilities of up to £22 million on behalf of the other eight Rockpool Investments LLP ('Rockpool') funded companies which are 45% owned by PPG ('Rockpool Companies') and with which it has management contracts which generate revenue of £1.35 million per annum for the Company.

 

The Facility is for £3 million and has been committed for Attune Energy Limited. The continuing dialogue with Lombard is in respect of a further facility of up to £22 million to fund the other eight Rockpool Companies.

 

The Facility is for a term in excess of five years. Funds drawn down will be secured against the assets of Attune Energy Limited. The Facility attracts an annual interest rate at a fixed premium to one month LIBOR that is typical for secured asset financing of this type in the UK and is payable monthly in arrears.

 

To date, PPG has arranged funding of around £34 million from Rockpool and, if current negotiations are successful, it will have raised a further £25 million from Lombard, totalling a potential £59 million for nine 20MW flexible generation sites. 

 

Work is currently being undertaken at four of the nine sites being developed with Rockpool.

 

Phil Stephens CEO of PPG said, "The appointment of Lombard as the provider of asset finance to Attune Energy Limited and the potential provider of additional asset finance facilities to other Rockpool Companies demonstrates that PPG's interest in flexible power generation projects are financeable without dilution to shareholders. The Company now looks forward to focusing its attention on further negotiations with Lombard and the development of additional sites where the Company will benefit from 80%+ equity ownership."

 

Andrew Green Head of Investment at Rockpool said, "We are delighted that Lombard is working with PPG and our investee companies to help fund vital investment in the UK flexible power generation sector."

 

**ENDS**

 

For further information, please visit www.plutuspowergen.com, or contact:

 

Charles Tatnall

Plutus PowerGen Plc

Tel: +44 (0) 20 3705 8350

Phil Stephens

Plutus PowerGen Plc

Tel: +44 (0) 20 3705 8352

Ewan Leggat

SP Angel Corporate Finance LLP

Tel: +44 (0) 20 3470 0470

Laura Harrison

SP Angel Corporate Finance LLP

Tel: +44 (0) 20 3470 0470

Elisabeth Cowell

St Brides Partners Limited

Tel: +44 (0) 20 7236 1177

Hugo de Salis

St Brides Partners Limited

Tel: +44 (0) 20 7236 1177

 

Notes to Editors

 

About PPG

Plutus PowerGen plc is an AIM listed company focused on the development, construction and operation of flexible stand-by power generation sites in the UK.  At present, the market dynamics for flexible power generation are positive as a result of the continued downward pressure on capacity available to National Grid to balance supply and demand, leading to their announcements about possible power shortages over the next few years.

 

Flexible Power generators such as PPG offer a viable and timely solution to the power capacity shortfall in the UK.  To this end, PPG is initially focusing on delivering 200MW of capacity by the end of 2017 and currently has a project pipeline of potential development sites with 700MW of power generation capacity.

 

PPG has a straightforward multi-revenue stream model with large and stable counter-parties and is using project/EIS funding through SPVs to finance construction of the generation assets. This structure has the benefit of limiting dilution to plc shareholders as the assets are financed and built.

 

About Lombard

 

As the largest asset financer provider in the UK and voted 'Best Leasing & Asset Finance Provider' by Business Moneyfacts for eight consecutive years from 2009-2016, Lombard provides various forms of asset finance to many different types of businesses, from SMEs to large multi-national corporates. Products range from Hire Purchase, Finance Lease, Operating Lease, to Sale and Leaseback, as well as specialist divisions that provide funding for sustainable and green energy, agriculture and technology products.

 

Lombard has been providing funding to UK businesses for over 150 years and is headquartered in Crawley, West Sussex, with an extensive network of business centres situated throughout the UK.

 

Lombard North Central Plc is authorised and regulated by the Financial Conduct Authority for consumer credit activities. For Insurance Mediation, Lombard North Central Plc is an appointed representative of The Royal Bank of Scotland plc, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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