Rurelec PLC Short Term Loan Facility (7569A)
December 24 2014 - 8:06AM
UK Regulatory
TIDMRUR
RNS Number : 7569A
Rurelec PLC
24 December 2014
24 December 2014
Rurelec PLC
("Rurelec" or "the Company")
Short Term Loan Facility
Heads of Terms Signed for Argentine Cash Release and
Expansion
The Directors of Rurelec PLC (AIM: RUR), the owner, operator and
developer of power generation capacity internationally, are pleased
to announce that the Company has entered into short term loan
agreements with Radix Investment UK Limited ("the Radix facility"
or "the facility") in an amount of GBP3.05 million. This facility,
which has been partly drawn today with the balance to be drawn in
January, permits Rurelec to make final payment to IPSA Group PLC
under the June 2013 contract to acquire two Westinghouse Siemens
701DU gas turbines for its Illapa generation project in Chile.
The Radix facility is for a three month period expiring 31 March
2015 and is expected to be repaid from the proceeds of the sell
down of project interests as part of Rurelec's programme of
partnerships in Latin America. The facility carries an annualized
interest rate of 6 per cent and is secured. Rurelec has also agreed
to issue Radix 16.8 million warrants to subscribe for new Ordinary
shares in Rurelec at an exercise price of 7.3 pence per share
expiring 24 December 2016.
The partnership transactions now being negotiated each assume
the sell down of a share stake in one of the Group's regional
holding companies or project companies. Outline terms have now been
agreed for the sell down of interests in Chile and Peru with
detailed binding agreements expected to be entered into and
announced early in 2015.
Rurelec has entered also into heads of terms for a transaction
intended to release and repay in US dollars the bulk of the
Company's project loans to its Energia del Sur combined cycle gas
turbine power plant in Argentina. If this transaction is concluded,
Energia del Sur is also expected to initiate a plant expansion
programme under a new Resolution 220 contract to install a new open
cycle gas turbine under the supervision of Rurelec's Independent
Power Corporation project development subsidiary. A further
announcement will be made in due course in the New Year.
Commenting on the loan and the developments in Argentina, Peter
Earl, CEO of Rurelec said:
"Shareholders have been patient in waiting for us to announce
our partnership arrangements. Given the complexity of the issues
involved and the strong interest from competing suitors, it has
taken longer to arrive at binding agreements than we would have
wished. However we believe that the waiting will be worthwhile. In
the meantime the Radix facility will permit us to accelerate the
arrival of the Illapa turbines in Chile."
For further information please log onto our website at
www.rurelec.com or contact:
Peter Earl, CEO, Rurelec PLC Tel: 020 7793 5600
Ana Ribeiro, Capital MSL Tel: 020 3219 8818 / 07980
321505
----------------------------- ----------------------------
James Joyce, Paul Shackleton Tel: 020 7220 1666
and James Bavister
W.H. Ireland
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This information is provided by RNS
The company news service from the London Stock Exchange
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