SIMEC Atlantis seeks one-year extension to repay tidal energy debts

Edinburgh-based tidal energy developer SIMEC Atlantis Energy has issued a request to amend the Debenture Deed with Abundance Investment, requesting a one-year extension for repayment.

The SIMEC Atlantis tidal turbine for the MeyGen project (Courtesy of SIMEC Atlantis)

As indicated above, the debentures at ECRC Atlantis‘subsidiary company Atlantis Ocean Energy were issued in 2017 and the principal of £4.95 million (€5.8 million) is currently due to be repaid on June 30, 2022.

The five-year bond offer has an 8% coupon which is payable semi-annually, SIMEC Atlantis informed at the time of issuance.

Now SIMEC Atlantis is asking bondholders via Abundance Investment at extend the due date to June 30, 2023.

In addition, the company asks change in interest rates due June 30, 2022, to be paid late, but no later than the end of September 2022. SIMEC Atlantis stated that the requested modification would also be charge additional interest due to the amount paid late at a rate equivalent to 4% per annum.

The news follows SIMEC Atlantis announcing it has signed a contract with Energy Optimization Solutions and Quinbrook Infrastructure Partners through their portfolio company Uskmouth Energy Storage to deliver a Battery Energy Storage System (BESS ) of 230 MW/460 MWh at the Uskmouth site. to be the largest such project in the UK.

The project will generate around £40m (€46.7m) in revenue for the company over 30 years, of which around £11m (€12.8m) will be paid in the next 18 months, subject to the achievement of certain milestones. , according to SIMEC Atlantis.

The company said so plans to use a portion of the initial proceeds from the agreement with Uskmouth Energy Storage to repay the debentures and related interest.

This request for special resolution requires the agreement of 75% in value of bondholders.

The voting period on the proposal is now open and voting results are expected during the week beginning June 13, 2022, after which SIMEC Atlantis expects to provide an update on the matter.

Register for Offshore Energy Expo & Conference: