Ireland’s Viridian Group uses £40m cash to buy back 9.3% of bond notes
Debt reduction will yield interest savings of some £4.5m per annum
17th May, 2013 – The major all-island power and energy group Viridian will use cash in hand to buy back some £40m or 9.3% of a currently held bond (Senior Secured Notes) due in 2017. The buyback is being funded by cash generated during the 2013 financial year. The redemption price is 103% and the buyback will take effect on 4th June, 2013.
Ian Thom, Group Chief Executive said, “The Group’s results for the first three financial quarters in 2013 were in line with expectations. We are pleased to be in a position to use cash generated during the 2013 financial year to redeem £40m of Senior Secured Notes. The £40m redemption will save the Group approximately £4.5m per annum in interest costs.”
Viridian is Ireland’s leading independent energy generation and supply utility with annual revenues of approximately €2 Billion. The largest independent energy company in the all-Ireland market, Viridian and its retail energy subsidiary Energia have committed over €1.2 Billion since 1999 to support Ireland’s energy infrastructure.
Viridian’s gas fired generating stations in Dublin can supply c 20% of Ireland’s electricity needs. The company is also helping to achieve Ireland’s renewable energy targets through its major renewable energy portfolio which provides electricity from wind farms all over Ireland. Viridian is also a major supplier of gas to Irish businesses since 2007.
The bond notes will be redeemed by Viridian Group Fundco II Ltd. at a rate of 9.3%, or €29,109,000 in aggregate principal amount in Euro Notes (“Redeemable Euro Notes”), and 9.3%, or $23,250,000 in aggregate principal amount of Dollar Notes (“Redeemable Dollar Notes”) and will be redeemed on 4th June 2013 (“the Redemption Date).
The redemption price payable for the Redeemable Euro Notes is 103% of the €29,109,000 in aggregate principal amount of such Redeemable Euro Notes (€29,982,270). The redemption price payable for the Redeemable Dollar Notes is 103% of the $23,250,000 in aggregate principal amount of such Redeemable Dollar Notes ($23,947,500).
The record date, on which any holder must hold any Redeemable Euro Notes or any Redeemable Dollar Notes to be entitled to the relevant redemption price, is 3rd June 2013.
Immediately after the Redemption Date, 90.7%, or €283,891,000 of the Euro Notes and 90.7%, or $226,750,000 of the Dollar Notes originally issued will remain outstanding.
Viridian will announce its results for the year ended 31st March 2013 on 30th May 2013.