Plutus PowerGen has arranged a £3m 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 £22m 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 £1.35m per annum for the Company.
The Facility is for £3m and has been committed for Attune Energy Limited. The continuing dialogue with Lombard is in respect of a further facility of up to £22m 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 £34m 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.
At 9:58am: (LON:PPG) Plutus Powergen Plc Ord 0.1 share price was +0.03p at 1.55p