Alkane secures £2m debt finance
Alkane Energy has agreed a £2m extension to its banking facilities with Lloyds TSB Bank.
The extension on the Mansfield company's existing facilities of £5.5m brings the total to £7.5m, with the sum to mature in 2013.
The interest charge applied is 2.5 per cent above LIBOR, with covenants in place relating to net worth, EBITDA levels relative to outstanding debt, interest cover, minimum electricity pricing levels and the proportion of output under contract.
Alkane said its spending and operations are "well within the current bank facility and covenants".
"The company's operating sites are highly cash generative, with EBITDA margins of circa 50 per cent," it said.
"This organic cash flow combined with the increased facility will provide Alkane with the ability to take the company through its coal mine methane roll-out programme and allow advantage to be taken of further growth opportunities."
