Drax Group plc’s issue of £350 million 4¼% Senior Secured Notes due 2022 and £200 million Senior Secured Floating Rate Notes due 2022

Slaughter and May has advised Drax Group plc on its refinancing which involved an issue by Drax’s indirect wholly owned subsidiary, Drax Finco plc, of £550 million senior secured notes and an amendment and restatement of its senior facilities agreement.

The notes consist of £350 million 4¼% Senior Secured Notes due 2022 and £200 million Senior Secured Floating Rate Notes due 2022. The notes are to be admitted to trading on the Euro MTF Market of the Luxembourg Stock Exchange.

The proceeds from the offering of the notes, together with cash on hand, will be used as part of a refinancing of Drax group’s existing debt. An amendment to the previous £400 million credit facility became effective on 5 May. Under the amendment, an aggregate principal amount of £350 million is available to Drax Corporate Limited.

Slaughter and May has also advised on the extension of Drax’s existing commodity trading facility, to include physical gas commodity trades in addition to the existing power and dark green spread facility. The extension of the commodity trading facility allows Drax to transact prescribed volumes of trades without the requirement to post collateral.

Slaughter and May worked on the Senior Secured Notes as an integrated team with Cravath, Swaine & Moore acting as U.S. counsel.

Slaughter and May has advised Drax Group on the deal with a team led by Guy O’Keefe (partner), Caroline Phillips (partner, in picture), James Broom (associate), James Costi (associate), Steve Dempsey (associate), Edward Dick (associate), Graham Dunn (associate), David Hay (associate), Andrew Williams (associate), Xian Wei Yeo (associate); on Corporate matters acted Victoria Macduff (partner) and Richard Hilton (associate), Ed Weston (associate); on Tax law acted Michael Lane (partner), Orlaith Kane (associate).

Involved fees earner: Caroline Phillips – Slaughter and May; Guy O’Keefe – Slaughter and May; James Broom – Slaughter and May; James Costi – Slaughter and May; Steve Dempsey – Slaughter and May; Edward Dick – Slaughter and May; Graham Dunn – Slaughter and May; David Hay – Slaughter and May; Andrew Williams – Slaughter and May; Victoria MacDuff – Slaughter and May; Richard Hilton – Slaughter and May; Ed Weston – Slaughter and May; Michael Lane – Slaughter and May; Orlaith Kane – Slaughter and May;

Law Firms: Slaughter and May;

Clients: Drax Group plc;