Group has also refinanced its existing facilities with Lombard North Central Plc
Energy Assets Group Plc (EAG) has announced it has agreed a refinancing and extension of its existing debt facilities with Lombard North Central Plc, the asset finance division of The Royal Bank of Scotland Group.
Livingston-based EAG, a UK market leader in industrial and commercial (I&C) gas metering service provision, has refinanced £24 million in existing debt with Lombard as well as extending its facility by a further £20 million, taking its total loan facility to £60 million.
EAG said £24 million in existing debt had been moved onto a revised pricing structure, from an average rather of 8.3 per cent to a fixed rate of 5.27 per cent as of February 26, 2013.
The group said the revised pricing will bring “a substantial interest cost reduction” amounting to more than £0.5 million in the first full year.
EAG said the existing debt, which was originally drawn down between 2009 and 2011 with a ten-year repayment term, will be refinanced into one loan repayable over the remaining term of eight years under a similar structure.
A further £20 million added to the existing facility has been priced at 3.375 per cent over LIBOR (London Inter-Bank Offered Rate) from today, with a ten-year repayment profile.
EAG chief executive Phil Bellamy-Lee said: “I am delighted to be able to announce this new financing arrangement which will bring with it immediate cash benefits to the group.
“The increased facility and the renegotiation of interest rates applied to both existing and future facilities will not only significantly reduce funding costs but will also put the group in a strong position to continue to increase its installed meter base and undertake potential new contract awards that are currently being pursued.
“We are pleased to be continuing our strong and valued relationship with Lombard, who have been a prominent provider of funding to the group over the past few years.
“We look forward to further strengthening this relationship into the future as we continue to grow our business and cement our position as the leading independent meter asset manager.”
Gary Leith, managing director of Lombard Corporate Asset Finance, added: “Energy Assets has impressed us with its development over a relatively short period of time.
“This facility increase, which we are proud to have supported, will further help the group achieve its growth aspirations in the advanced meter market.”
Last November, EAG reported a 27 per cent rise in revenues for the first half to September 30 to £7.6 million and pre-tax profits before exceptional items rose 28 per cent to £1.8 million.