APR Energy seeks loans for sec­ond time this year

The Pak Banker - - COMPANIES/BOSS -

LIBYA: APR Energy Plc, a sup­plier of tem­po­rary power plants, hired ad­vis­ers to help rene­go­ti­ate loans for the sec­ond time this year af­ter clos­ing projects in Libya and Ye­men. The com­pany ex­pects to breach the terms of a credit fa­cil­ity when covenants are tested on Sept. 30, ac­cord­ing to a state­ment on Wed­nes­day. It ne­go­ti­ated a higher lever­ager­a­tio limit for $770 mil­lion of loans in March, af­ter telling banks it might fail to meet the terms.

APR, based in Jack­sonville, Florida, slumped to a firsthalf loss af­ter wind­ing down projects in Libya and Ye­men amid po­lit­i­cal in­sta­bil­ity. The com­pany, which has $617 mil­lion of gross debt, said it hired le­gal and fi­nan­cial ad­vis­ers to help rene­go­ti­ate loan terms, or to or­ga­nize a re­fi­nanc­ing.

"There is a rea­son­able prospect that the group will be able to suc­cess­fully ex­e­cute a rene­go­ti­a­tion or re­fi­nanc­ing," the com­pany said. Still, "there re­mains a ma­te­rial un­cer­tainty as to the out­come which casts sig­nif­i­cant doubt upon the group's abil­ity to con­tinue as a go­ing con­cern." The com­pany's shares fell 6.3 per­cent to 77.75 pence at 10:03 a.m. in Lon­don. They've tum­bled 58 per­cent this year. APR last year in­creased its syn­di­cated loan by $120 mil­lion to $770 mil­lion, ac­cord­ing to a fil­ing at the time. The $450 mil­lion re­volv­ing fa­cil­ity and $320 mil­lion term loan both ma­ture in Au­gust 2019.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.