Viridian to pay €66m dividend
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.