REC refinances 50% of debt due 2014

On May 16, the Renewable Energy Corporation (REC) announced the completion of a financial transaction to reduce by 50% its 2014 convertible bonds, according to a company statement.

The debt, worth NOK 1.2 billion ($206 million), has been refinanced via a "partial repayment and partial extension of debt maturity to 2016 and 2018".

The financial transaction was funded with NOK 0.4 billion ($68.7 million) in available cash and an equity issue of NOK 372 million ($63.9 million). Moreover, REC also increased the size of the existing 2016 and 2018 senior bond facilities by about NOK 0.4 billion ($68.7 million), according to a recent company statement.

In April, the Norwegian solar company had published a negative 2012 annual report. The silicon business had experienced a 42% drop in revenues and a NOK6.6 billion loss after tax.

However, REC had managed to reduce its net debt in 2012 from NOK4.7 billion in 2011 to NOK1.8 billion. Nevertheless, in February, the company’s chairman Jens Ulltveit-Moe was replaced by Mimi K Berdal.