A waste processing plant in Newcastle, designed for modern materials recycling and waste autoclaving, had planning consent for two pyrolysis treatment plants to generate electricity. After undertaking due diligence and examining the market potential, Reditum Capital arranged a secured loan to the borrower to expand and develop the pyrolysis plant.
Reditum Capital arranged a maximum loan of £7m over a six-month term. The loan agreement included a first ranking debenture over the borrower, including the property, the plant and the machinery. The loan had an optional six-month term extension but the borrower chose not to exercise this and repaid the loan to investors in full and on time.