Drax Finco sets €250 million tender cap for 2 5/8% notes due 2025

By Marisa Wong

Los Angeles, April 18 – Drax Finco plc announced the maximum acceptance amount for its April 16 tender offer for its €250 million of 2 5/8% senior secured notes due 2025 (ISIN: XS2247614063).

The maximum acceptance amount is €250 million, according to a Thursday press release.

The company said it may choose to accept significantly more or less than the maximum amount or none of the tendered notes.

As previously reported, the company is offering 97.875 and interest to the settlement date.

The offer will expire at 11 a.m. ET on April 24.

Instructions are irrevocable.

Results will be announced on April 25.

Settlement is planned for May 2.

The tender offer is subject to a new financing condition.

Drax separately announced on Thursday that it priced an upsized €350 million of 5 7/8% five-year senior secured notes.

Noteholders who participate in the tender offer may be given priority allocation in the new notes offering.

The purpose of the tender offer is to extend the group’s maturity profile and reduce refinancing risk.

The group does not intend to exercise the call option on the existing notes ahead of maturity.

NatWest Markets plc is the dealer manager (+44 20 7678 5222, NWMLiabilityManagement@natwestmarkets.com).

Kroll Issuer Services Ltd. is the tender agent (+44 20 7704 0880, drax@is.kroll.com, https://deals.is.kroll.com/drax).

Drax is a U.K.-based power generation company.

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