Atlantica to refinance 2019 notes with new USD-300m issuance

Author: 401(K) 2012 on Flickr, CC BY-SA 2.0

May 6 (Renewables Now) - Clean energy yieldco Atlantica Yield Plc (NASDAQ:AY) announced today it will issue USD 300 million (EUR 268m) in senior unsecured notes to a private investor this quarter.

The notes will have a six-year tenor and will mature on April 30, 2025. Atlantica said it plans to fully hedge the notes with an interest rate swap of at least three years, resulting in an estimated interest rate of about 4.5%.

The yieldco pointed out that this issuance will help it refinance its existing 7.0% senior notes due on November 15, 2019. What is left of the proceeds will be used for general corporate purposes.

This planned transaction is expected to lead to a cost improvement of some USD 4 million per year, starting from 2020, and will include an option to capitalise up to two years of interest payments, or around USD 14 million per year.

(USD 1.0 = EUR 0.894)

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