Virid­ian to pay €66m div­i­dend

The Irish Times - Business - - BUSINESS NEWS - JOE BREN­NAN

Belfast-based en­ergy group Virid­ian plans to pay a €60 mil­lion div­i­dend up to its ul­ti­mate par­ent group, ma­jor­ity owned by US pri­vate eq­uity firm I-Squared, as it un­der­goes a re­fi­nanc­ing of its debt.

The on­wner of elec­tric­ity and gas sup­plier En­er­gia and Power NI has con­firmed it plans to re­deem in full its €540 mil­lion of ex­ist­ing bonds and is­sue the equiv­a­lent of €600 mil­lion of cheaper notes, de­nom­i­nated in ster­ling and euro.

The com­pany plans to pay a £60 mil­lion (€66 mil­lion) div­i­dend to its re­cently-formed Cay­man Is­lands-based par­ent, Virid­ian Topco Lim­ited, which was set up by I-Squared ear­lier this year as it sold a mi­nor­ity stake in Virid­ian to an un­known in­vestor.

The ex­ist­ing debt, is­sued in Fe­bru­ary 2015, car­ries a 7.5 per cent in­ter­est rate and Virid­ian’s chief ex­ec­u­tive Ian Thom noted on a call with an­a­lysts late last month that its ri­vals’ fund­ing costs are cur­rently be­low 4 per cent, given how bond yields have fallen in the past two-and-a-half years.

Newspapers in English

Newspapers from Ireland

© PressReader. All rights reserved.