Essar Energy Plc (ESSR.L) said it has refinanced a $450 million bridge loan which was due December 2012 with a new $300 million 3 year secured loan facility and $150 million of internal cash resources.
Separately, the company has also signed a $250 million 3.5 year subordinated unsecured loan facility with Essar Global Ltd. for general corporate purposes.
The new $300 million 3 year secured loan facility is being provided by a consortium of banks who were the lenders under the original $450 million bridge loan facility.
Naresh Nayyar, chief executive officer of Essar Energy, stated, "The completion of these financings provides Essar Energy with additional debt facilities including an extended maturity profile and demonstrates continued strong support from our banking group and major shareholder. The successful commissioning of the Vadinar refinery and near completion of three of our major power plant projects marks an inflexion point in our capital expenditure cycle and will see a significant improvement in the cash flows within our businesses."
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