Financial close for Cory energy-from-waste refinancing

Cory Riverside Energy, one of the UK’s resource management, recycling, and energy recovery companies, has announced the completion of a £520 million (US$652 million) debt-refinancing package for its Riverside Energy from Waste (EfW) plant in Belvedere, East London.

Existing senior term debt was refinanced with a £420.5 million (US$528 million) multi-tranche senior facility and a £98 million (US$123 million) junior facility.

The refinancing has been structured as a hybrid, and includes both infrastructure-focused banks and well-known institutional lenders. Highlights include:

• £322.5 million (US$404.5 million) 7-year amortising senior term loan, including both banks and institutions;
• £98 million (US$123 million) 13-year amortising senior institutional facility;
• £98 million (US$123 million) 7.5-year junior facility;
• Yielding structure that removes the cash sweep from the original debt package.

Nicholas Pollard, CEO of Cory Riverside Energy, said:

“This refinancing and the make-up of our new lenders demonstrates great confidence in Cory Riverside Energy and our place at the heart of London’s resource management infrastructure. It marks the culmination of the plan agreed with our shareholders 15 months ago, and completes the restructuring of the business. Our financial structure now reflects the operational structure, with a simplified business and removal of historic risk.

Our Riverside facility and infrastructure is unique in the sector, with an exemplary operational track record. It has been reliably operating at capacity since day one, and has the benefit of long-term contracts and indexed gate fees. We’ve had another record year, with 12 months of operating at a new, higher capacity. This refinancing is an exciting opportunity for us to focus on future growth and to develop the business even further.”

Cory Group is majority-owned by investment funds managed by Strategic Value Partners, with other investors including EQT Services (UK) Limited and Commerzbank. Cory Riverside Energy was advised by Rothschild on the refinancing.