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Atlantica Yield finalises refinancing of corporate notes

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May 29 (Renewables Now) - Clean energy yieldco Atlantica Yield Plc (NASDAQ:AY) said on Tuesday it has concluded the issuance of its new senior unsecured note issuance facility agreement (NIFA) to redeem all outstanding senior notes on May 31, 2019.

The sustainable total return infrastructure company said in a statement that the cost of this facility has been hedged at about 4.4%. The closing of the financing is expected to result in an estimated cost improvement of about USD 4 million (EUR 3.6m) per year, as from 2020, as well as a longer tenor compared with the existing financing and an option to capitalise up to two years of interest payments. In addition, the financing will lead to a natural hedge for cash available for distribution (CAFD) generated in euro.

“We have achieved a significant cost improvement, a longer tenor and new flexibility,” commented CEO Santiago Seage.

Earlier this month, Atlantica unveiled plans to issue USD 300 million in senior unsecured notes with a six-year term to a private investor this quarter. It said it targeted an interest rate swap of at least three years, resulting in an estimated interest rate of about 4.5%. The yieldco added that this issuance will help it refinance its existing 7.0% senior notes due on November 15, 2019.

(USD 1.0 = EUR 0.896)

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