Cory Riverside Energy announces debt refinancing
London, 28 March 2017: Cory Riverside Energy, one of the UK’s leading resource management, recycling, and energy recovery companies, is pleased to announce the completion of a £520m debt-refinancing package for its Riverside Energy from Waste (EfW) plant in Belvedere, East London.
Existing senior term debt was refinanced with a £420.5m multi-tranche senior facility and a £98m junior facility.
The refinancing has been structured as a hybrid, and includes both infrastructure-focused banks and well-known institutional lenders. Highlights include:
- £322.5m 7-year amortising senior term loan, including both banks and institutions;
- £98m 13-year amortising senior institutional facility;
- £98m 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.
Notes to Editor
- Cory Riverside Energy is one of the UK’s leading resource management, recycling, and energy recovery companies.
- Riverside is the largest operating Energy from Waste facility in the United Kingdom, with a unique river-based infrastructure on the Thames for delivering waste.
- The existing shareholders have been in place since 2015, and since then have overseen a major restructuring programme, with three of Cory Group’s four business lines sold:
- June 2016: Sale of Cory Group’s municipal collection business, Cory Environmental Municipal Services Ltd, to Biffa Waste Services Ltd.
- July 2016: Sale of Cory Group’s national waste brokerage (“Brokerage”) businesses to Reconomy. Brokerage comprised UK Nationwide Skip Hire Limited, trading as Skippy Nationwide, Skips @ Home Limited, trading as Skip Hire UK, and Cory Environmental Recycling Services Limited.
- January 2017: Sale of Cory Group’s landfill sites and associated landfill gas operations, across 14 locations in the UK, to Armour Group Holdings Ltd.
- 2016 was a record year for Cory Riverside Energy, which has had an exceptionally strong operational track record, operating at its full permitted capacity since day one.
- Other highlights include:
- 528 GWh of baseload electricity generated;
- 753,000 tonnes of waste diverted from landfill;
- 100,000 truck journeys removed from London’s road every year thanks to our Thames river infrastructure;
- Equivalent of 160,000 homes powered;
- 230,000 tonnes of carbon saved by not sending waste to landfill;
- 200,000 tonnes of ash recycled as road aggregate;
- 10,000 tonnes of Air Pollution Control Residue recycled to create building blocks used in construction.
Our Riverside facility and infrastructure is unique in the sector, with an exemplary operational track record.