Slaughter and May advised Drax on the refinancing of its Revolving Credit Facility

Slaughter and May advised Drax Group plc (“Drax”) on the refinancing of its Revolving Credit Facility.

The new £300 million facility (the “Facility”) matures in 2025 and replaces the previous Revolving Credit Facility which would have matured in 2021. The Facility provides increased liquidity, enabling the full facility to be drawn as cash.

The Facility includes an embedded ESG component which adjusts the margin based on Drax’s carbon emissions against an annual benchmark.

As part of the refinancing Drax also amended its £35 million term-loan facility which matures in 2022 to simplify its capital structure.

Slaughter and May worked as an integrated team with Cravath, Swaine & Moore LLP acting as U.S counsel, Pinsent Masons LLP acting as Scots counsel and Maples Group acting as Cayman counsel.