REG - SIMEC AtlantisEnergy - Bond repayment update & AIM Rule 26 website change

SIMEC Atlantis EnergyAnnouncement

23/02/2023 07:00

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RNS Number : 7702Q  SIMEC Atlantis Energy Limited  23 February 2023

23 February 2023

 

SIMEC Atlantis Energy Limited

("SAE Renewables", the "Company" and, together with its subsidiaries, the
"Group")

 

Bond repayment update and AIM Rule 26 website change

 

SAE Renewables (AIM: SAE) is today issuing a communication to its bondholders
outlining its plans for repayment of its three 5-year debentures, issued
through Atlantis Future Energy ("AFE") and Atlantis Ocean Energy ("AOE") with
the support of Abundance Investment Limited ("Abundance"), in 2017 - 2019.

 

SAE continues to progress the 230MW / 460MWh Battery Energy Storage Solutions
("BESS") project at its Uskmouth site in Wales. The option agreement for the
lease of the land at Uskmouth runs until 23 May 2023 before which we expect
the company that owns the battery project, Uskmouth Energy Storage Limited
("UES"), to enter a 30-year lease with the Group. This triggers the payment of
a £4m development premium to SAE, approximately 30 days later. In addition,
SAE has appointed Gerald Eve LLP, specialist real estate advisers, as agent to
monetise the lease and they are seeking offers in the region of £11.8
million. Part of the income from the above events will be applied toward the
repayment of the AFE 2018 and AOE 2017 debentures.

 

In light of the expected timing, and with the AFE 2018 capital due for
repayment on 31 March 2023, SAE is requesting a deferral of the repayment date
from AFE 2018 bondholders. A summary of the proposal to the bondholders is set
out below.

 

AFE 2018 debentures - repayment due 31 March 2023

SAE is asking the bondholders for agreement to defer the repayment date of the
debenture principal of £4.97m until such time as the funds from securitising
the annual lease income of the BESS project is received by the Company. SAE
estimates these funds will be received during either Q2 or Q3 2023. In
recognition of the deferral, and the increase in interest rates during the
past 12 months, AFE will offer an enhanced interest rate of 10% on the AFE
2018 debentures, to accrue from 1 April 2023 for the duration of the extension
period.

 

AOE 2017 debentures - repayment due 30 June 2023

SAE is advising AOE 2017 bondholders that there may be a short delay in
repaying the debenture principal of £4.95m. Repayment is contingent upon UES
entering the 30-year lease and SAE completing the securitisation of the lease
income. In the event an extension is required, in recognition of such
deferral, and the increase in interest rates during the past 12 months, AOE
will offer an enhanced interest rate of 10% on the AOE 2017 debentures, which
would accrue from 1 July 2023 for the duration of the extension period.

AFE 2019 debentures - repayment due 30 September 2024

SAE plans to repay these debentures on their maturity date.

 

In order to provide an opportunity to bondholders and investors who would like
to continue to support the Company's development of further BESS and tidal
stream projects, SAE intends to launch a new debenture offer later in 2023.

 

SAE has an aspiration to develop c.1GW of BESS projects at the Uskmouth site,
and is continuing to progress opportunities for additional projects at
Uskmouth, including a 100MW expansion of the previously announced BESS project
and a 120MW project, which re-uses the site of the old cooling towers,
currently expecting to achieve planning in Q1 2024. SAE is also exploring
opportunities for the development of BESS projects at its MeyGen site in
Scotland. Further announcements will be made in due course.

 

A copy of the communication to bondholders will be available from SAE's
website https://www.saerenewables.com/ (https://www.saerenewables.com/) .

 

 

AIM Rule 26 website change

SAE announces that the Company's website has changed to
https://www.saerenewables.com/ (https://www.saerenewables.com/) . The
information required pursuant to AIM Rule 26 is available at this address.

 

 

For further information, please contact:

 

 SAE Renewables                                           +44 (0)7739 832 446

 Sean Parsons, Director of External Affairs

 Strand Hanson Limited (Nominated and Financial Adviser)  +44 (0)20 7409 3494

 Richard Johnson

 Rory Murphy

 David Asquith

 Zeus Capital Limited (Broker)                            +44 (0)20 3829 5000

 Louisa Waddell

 Simon Johnson

 

Notes to Editors

SAE Renewables is a global developer, owner and operator of sustainable energy
projects with a diverse portfolio in various stages of development.

https://www.saerenewables.com/ (https://www.saerenewables.com/)

 

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